Cabral Gold Adds Two Additional Drill Rigs and Reports Results of Follow-up Drilling at Morro da Lua target, Cuiú Cuiú District, Brazil

Vancouver, British Columbia--(Newsfile Corp. - July 15, 2021) - Cabral Gold Inc. (TSXV: CBR) (OTC: CBGZF) ("Cabral" or the "Company") is pleased to provide a drilling update from the Cuiú Cuiú golddistrict, Brazil, and to provide assay results from six recently completed follow-up RC holes at the Morro da Lua target.

Highlights are as follows:

• Follow-up RC drilling at the Morro da Lua target, one of 43 targets identified so far outside of the Central and MG gold deposits at Cuiú Cuiú, has identified at least three high-grade NE trending veins which continue along strike and down-dip, including a new mineralized vein structure

• A single diamond drill hole (DDH194) completed at this target in 2019 intersected three high-grade veins below historic workings and returned gold values including 2.8m @ 19.5 g/t gold, 0.6m @ 14.8 g/t and 0.5m @ 9.1 g/t gold. The recent drilling was designed to establish continuity of these veins both along strike and down-dip

• Six RC holes were completed at Morro da Lua and returned 2m @ 10.5 g/t gold in RC84, 3m @ 6.6 g/t gold in RC85, 1m @ 6.2 g/t gold in RC87 and 2m @ 3.6 g/t gold in RC88, indicating continuity along strike and down-dip and the presence of a new mineralized vein structure

• Drill contracts have been awarded and signed for two additional diamond drill rigs at the 100% owned Cuiú Cuiú golddistrict. The rigs are expected to arrive in the coming weeks and will bring the total number of rigs on site to five, comprising three diamond-drill rigs and two RC rigs

Alan Carter, Cabral's President and CEO commented, "The results from six follow up RC holes at the Morro da Lua target are highly encouraging and suggest that high-grade gold mineralization occurs in at least three veins and extends along strike and down dip. We have now demonstrated that the high-grade intercepts are not isolated and additional drilling will be required to fully understand the extent of the high-grade veins at Morro da Lua.

The addition of two more diamond drill rigs on site will bring the total number of rigs on site to five, which will allow us to aggressively drill off the high-grade zones at MG, Central and Machichie, and at the same time continue to define the gold-in-oxide blanket at MG and test other regional targets within the Cuiú Cuiú district".

Morro da Lua RC Drill Results

The Morro da Lua target is one of 43 targets identified so far, in addition to the Central and MG gold deposits at Cuiú Cuiú. It is also one of ten targets with high-grade drill results. Morro da Lua is located 2.8km NE of the Central gold deposit and 5km NW of the MG gold deposit (Figure1).

Figure 1: Location map showing the location of the MG and Central gold deposits, and the Morro da Lua target as well as other targets with high-grade drill intercepts in central part of Cuiú Cuiú district as depicted by dashed line 8km in diameter. Background to map is 1VD RTP airborne magnetic data

To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/3900/90313_9179795a54a80b73_002full.jpg

A single diamond-drill hole (DDH194) completed at this target in 2019 intersected three high-grade veins below historic artisanal workings and returned 2.8m @ 19.5 g/t gold, 0.6m @ 14.8 g/t and 0.5m @ 9.1 g/t gold (see news release dated May 16, 2019). The recent drilling was designed to establish continuity of these veins both along strike and down-dip.

Six RC holes were completed at Morro da Lua and returned encouraging results including 2m @ 10.5 g/t gold in RC84, 3m @ 6.6 g/t gold in RC85, 1m @ 6.2 g/t gold in RC87 and 2m @ 3.6 g/t gold in RC88 (Figure 2, Table 1).

Two of the three vein structures intersected in DDH194, appear to continue to both the north and south, whilst follow-up drilling did not extend to sufficient depth to establish continuity of the third mineralized structure which returned 0.6m @ 14.8 g/t gold in DDH194. However, a new mineralized vein structure was intersected immediately east of the principal structure and returned 3m @ 6.6 g/t gold in RC85.

These drill results suggest that the Morro da Lua target consists of at least three parallel high-grade vein structures which continue over at least 150m of strike length, trend NE and dip steeply to the NW. All of the veins are open to the north, south and down-dip. Similar NE-trending vein structures have been identified at other targets to the south of Morro da Lua including JN, Machichie SW and Hamilton Novo. Further drilling is planned to determine the extent of these high-grade veins at Moro da Lua.

Figure 2: Drone image showing location of recently completed RC holes (RC83 - RC88) and drill results (in red) at Morro da Lua

To view an enhanced version of Figure 2, please visit:
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Table 1: Table showing significant drill results from RC holes RC83 to RC88 at Morra da Lua target

Two additional drill rigs at Cuiú Cuiú

Drill contracts have recently been signed with Energold Perfuracoes Ltda for two additional diamond drill rigs. The addition of these two rigs will bring the total number of rigs in operation at Cuiú Cuiú to five, three diamond drill rigs and two RC rigs.

The first of the two new rigs is expected on site in early August and will be initially focused on the drilling of regional targets. The second rig is expected on site in late August / early September and will be initially focused on drilling off the high-grade zones within the Central gold deposit.

Drilling Program Update

Assay results are currently pending on a total of seven diamond-drill holes (DDH 217 to DDH 223) recently completed at the MG gold deposit. The holes were designed to define the continuity of several zones of high-grade gold mineralization which are indicated by the drilling completed to date. Diamond drill hole 224 is in progress.

In addition to the diamond drilling at MG, the large Geosedna RC rig has been tasked with drilling off the overlying oxide blanket at MG and results are pending on several holes. Approximately 70 holes, each to a maximum depth of 65m are planned over the next couple of months to determine the size of the MG oxide blanket.

The Cabral reconnaissance RC rig continues to aggressively test regional targets and an update on this program will be provided in the near future.

About Cabral Gold Inc.

The Company is a junior resource company engaged in the identification, exploration and development of mineral properties, with a primary focus on gold properties located in Brazil. The Company has a 100% interest in the Cuiú Cuiú gold district located in the Tapajós Region, within the state of Pará in northern Brazil. Two gold deposits have so far been defined at Cuiú Cuiú and contain 43-101 compliant Indicated resources of 5.9Mt @ 0.90g/t (200,000 oz) and Inferred resources of 19.5Mt @ 1.24g/t (800,000 oz).

The Tapajós Gold Province is the site of the largest gold rush in Brazil's history producing an estimated 30 to 50 million ounces of placer gold between 1978 and 1995. Cuiú Cuiú was the largest placer gold camp in the Tapajós and produced an estimated 2Moz of placer gold historically.

FOR FURTHER INFORMATION PLEASE CONTACT:

"Alan Carter"
President and Chief Executive Officer
Cabral Gold Inc.
Tel: 604.676.5660

Guillermo Hughes, FAIG and MAusIMM, a consultant to the Company as well as a Qualified Person as defined by National Instrument 43-101, supervised the preparation of the technical information in this news release.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-looking Statements

This news release contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively "forward-looking statements"). The use of the words "will", "expected" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such forward-looking statements should not be unduly relied upon. This news release contains forward-looking statements and assumptions pertaining to the following: strategic plans and future operations, and results of exploration. Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. The Company believes the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct.

Notes

Gold analysis has been conducted by SGS method FAA505 (fire assay of 50g charge), with higher grade samples checked by FAA525. Analytical quality is monitored by certified references and blanks. Until dispatch, samples are stored under the supervision the Company's exploration office. The samples are couriered to the assay laboratory using a commercial contractor. Pulps are returned to the Company and archived. Drill holes results are quoted as down-hole length weighted intersections.

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