Cerrado Gold Appoints Banco Santander S.A. as Mandated Lead Arranger for Export Credit Agency Supported Project Financing at Its Monte Do Carmo Project in Brazil

• Indicative Terms for up to US$175m in a potential UKEF (UK Export Credit Agency) Supported Project Financing
• Banco Santander S.A. appointed as Mandated Lead Arranger due to extensive experience in ECA and Resources sector financing with a significant presence Brazil

(All numbers reported in US dollars)

TORONTO, ON / ACCESSWIRE / December 5, 2023 / Cerrado Gold Inc. (TSX.V: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 $175 million, the Company has appointed and executed an Engagement Letter with Banco Santander S.A. ("Santander") as the Mandated Lead Arranger ("MLA") for its Monte Do Carmo Project in Brazil. Santander has now executed the engagement letter and completed administrative procedures and onboarding, and plans to initiate the due diligence process within the coming weeks.

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. Santander has extensive experience in ECA financing, a longstanding relationship with UKEF, and presented competitive and compelling terms for the project financing. Additionally, Brazil is one of the core markets for the Santander which is also one of the Top 20 largest Financial Institutions, globally.

The UKEF backed facility is expected to be for up to US$175 million on a non-recourse project financing basis for a total tenor of 8 years. The funding will be to cover 70% of the expected project capital expenditures for the Monte Do Carmo 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 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.