Cerrado Gold Appoints the Toronto-Dominion Bank To Be the Mandated Lead Arranger for Export Credit Agency Supported Project Financing at Its Mont Sorcier Iron and Vanadium Project in Québec

• Indicative Terms for up to US$598m in a potential UKEF (UK Export Credit Agency) Supported Project Financing
• Company in final stages of appointing the Mandated Lead Arranger for Monte Do Carmo, Brazil

(All numbers reported in US dollars)

TORONTO, ON / ACCESSWIRE / November 21, 2023 / Cerrado Gold Inc. (TSXV:CERT)(OTCQX:CRDOF) ("Cerrado" or the "Company") is pleased to announce that further to the October 18, 2023 announcement in relation to potential Export Credit Agency ("ECA") Supported Project Financing of up to $598 million, the Company has appointed the Toronto-Dominion Bank ("TD") as the MLA for its Mont Sorcier Iron and Vanadium Project located in Québec. Cerrado is also in the final stages of finalizing the appointment of the MLA for its Monte Do Carmo project in Brazil.

As announced on September 5th, the Company together with its advisors, SD Capital Advisory Ltd and GKB Ventures Ltd ("S&G"), initiated a tender process to solicit interest from global Project Finance Banks to act as the MLA for the Company's Brazil and Quebec projects. As a result of this competitive process, the company received compelling bids. Together with the Company's advisors, the bids were evaluated based on ECA Project Finance Experience, execution capabilities and ultimately the financial terms for the Project Financing. TD has extensive experience in ECA financing, a longstanding relationship with UKEF, and presented competitive and compelling terms for the project financing.

The UKEF-backed facility is expected to be for up to US$598 million on a non-recourse project financing basis for a total tenor of 11 years. The funding will be to cover 70% of the expected project capital expenditures for the Mont Sorcier project.

As is common for ECA-supported Project Financing, UKEF provides political and commercial guarantees to project lenders, thereby lowering the overall project risk to the lender and resulting in lower costs of capital. This reduces the cost of debt to Cerrado Gold (and its 100% owned company Voyager Metals Inc) whilst at the same time extending tenors and creating debt capacity not normally available in the commercial bank market. To secure such support, project developers commit to a pre-agreed level of procurement from UK-based organizations for goods, services and materials. UKEF's mandate is to promote and support exports from British companies in the global market.