Cerrado Gold Announces Acceleration of Exploration Program at Its Minera Don Nicolas Gold Mine

Executive Summary

• Cerrado Gold is adding three new drill rigs (two diamond, one RC) to accelerate its MDN exploration program, expanding the planned drilling from 20,000 m to roughly 50,000 m in 2026.
• The company will certify its on‑site laboratory to speed assay turn‑around and will issue results in batches for greater clarity.
• Concurrently, Cerrado issued 8,314,997 RSUs and 100,000 share purchase options under its amended omnibus incentive plan.

Key Details

• Drill Rig Expansion: Three additional rigs (2 diamond, 1 RC) to enable simultaneous drilling on multiple high‑quality targets at Minera Don Nicolás (MDN).
• Exploration Scope Increase: Total planned drilling for MDN to rise from the previously announced 20,000 m to approximately 50,000 m in 2026.
• On‑Site Lab Certification: Steps are being taken to certify the on‑site laboratory, allowing faster assay completion and turnaround.
• Assay Reporting Plan: Exploration results will be released in batches to improve clarity and definition for investors and stakeholders.
• Operational Performance: New mining equipment (trucks & support gear) supports ore feed rates of 300,000 tpm to the leach pad, aligning with production targets.
• Underground Development: Three access portals are now open; initial high‑grade underground ore is being blended with lower‑grade stockpiles and is expected to be mined in larger volumes late Q4 2025.
• Future Underground Exploration: Planned to commence once additional development work is completed, leveraging the expanded drill program.
• Incentive Plan Grants: Issued 8,314,997 restricted share units (RSUs) – vesting after 12 months, expiring 15 Dec 2028; and 100,000 share purchase options at an exercise price of $1.27, vesting immediately, expiring 30 Sept 2028.
• CEO Comment: Mark Brennan highlighted the “significant shift” in operations and the aim to deliver a proof‑of‑concept for extending mine life and growth potential by year‑end.

Notable Quotes

“Following an internal review of the significant potential of high quality exploration targets at MDN… we have decided to accelerate and expand the drill program with additional rigs.” – Mark Brennan, CEO & Chairman
“We are seeing a significant shift in the operations at MDN as we have a solid base for consistent production and mine life, with numerous high‑quality opportunities to extend both.” – Mark Brennan