Cabral Gold Secures US$45 Million Gold Loan to Fully Fund Heap Leach Starter Operation

Rhea-AI Summary

Cabral Gold (OTCQB: CBGZF) executed a US$45,000,000 gold loan to fully fund the Cuiú Cuiú heap leach starter project and the Board approved a decision to construct on October 16, 2025.

The Updated PFS estimated capex US$37.7M, a 1 Mtpa plant, 6.2-year mine life, all-in sustaining cost US$1,210/oz, post-tax IRR 78%, NPV5 US$74M and a 10-month payback at US$2,500/oz. Drawdown is expected within weeks, subject to security registration and TSXV approval.

Key loan terms: 39-month term, 10% annual interest (capitalized to Dec 2026), principal repayments in gold (39 kg/quarter from Mar 31, 2027), and issuance of 10,000,000 warrants at C$0.71 on drawdown.

Positive

• US$45.0M gold loan fully funds capex US$37.7M
• Board approved formal decision to construct the Project
• Project returns: post-tax IRR 78% and NPV5 US$74M
• Approximately C$70M treasury on loan drawdown for construction

Negative

• Annual interest rate of 10% with interest capitalized until Dec 2026
• Loan repayments forecast to equal 32% of gold produced during loan life
• 10,000,000 warrants at C$0.71 may dilute shareholders

Board of Directors Approves Construction Decision

Vancouver, British Columbia--(Newsfile Corp. - October 16, 2025) - Cabral Gold Inc. (TSXV: CBR) (OTCQB: CBGZF) ("Cabral" or the "Company") is pleased to announce that the Company has executed a gold loan agreement with Precious Metals Yield Fund, (the "Lender") with a principal amount of US$45,000,000 and a term ending 39 months from the first drawdown date with the full amount to be repaid no later than December 31, 2028 (the "Gold Loan"). The Company expects to use the proceeds of the Gold Loan to fully fund the capex for the Cuiú Cuiú Heap Leach gold starter project (the "Project"), which is estimated at US$37.7 million in the Company's Pre-feasibility study released on July 29, 2025. Drawdown of the Gold Loan is expected within weeks and is subject to the registration of security interests in favor of the Lender in accordance with the binding Gold Loan agreement.

With the Project now fully funded through this commitment, the Company is also pleased to announce that its Board of Directors have approved a "decision to construct" for the Project. With approximately C$70 million in the treasury on drawdown of the Gold Loan, the Company will accelerate its early works program into full construction mode in support of the first gold pour by the end of 2026. Additionally, the financial flexibility provided by this Gold Loan and the recent equity raise of C$14.9 million (see press release dated May 6, 2025) will allow the Company to continue to execute its regional exploration drilling program at Cuiú Cuiú during the construction of the Project.

Alan Carter, Cabral's President and CEO commented, "This Gold Loan agreement is a monumental step forward for our Company and provides a complete funding solution for the construction of our heap leach starter project, without any significant further dilution to our capital structure. The financial metrics included within the recent PFS study make for a compelling opportunity, with a capex cost of US$37.7M, a post tax IRR of 78%, an NPV₅ of US$74M and a payback of just 10 months, at a base case gold price of US$2500 / oz.

The Gold Loan agreement also allows us to continue our program of exploration drilling during the construction period and beyond. This program is aimed at expanding the much larger underlying hard rock resource base at Cuiú Cuiú. Following the commencement of commercial production in Q4, 2026, this exploration drill program will expand to test the more than 50 targets so far identified across the Cuiú Cuiú district, and is expected to be self-funding.

Cabral's board of directors has formally approved commencement of construction of the gold-in-oxide starter project, which is expected to take 12 months to complete."

Gold Loan Details

The key terms of the Gold Loan are as follows;

• Term of 39 months
• US$45 million principal amount to be advanced to the Company in gold or cash, at the
• Company's option
• Should the principal amount be advanced to the Company in cash, the balance outstanding shall be expressed in fine gold kilograms based on the gold price at drawdown;^[1]
• Annual interest rate of 10%;
• 100% of interest costs capitalized to principal until December 2026;
• Principal payments of 39 kilograms of gold per quarter commencing 31 March 2027;
• Provision for penalty free repayment of outstanding principal and interest; and
• No hedging, cash sweeps, cash collateralization, or offtake agreement.

The Gold Loan principal and interest are forecast to account for under 14% of the gold produced during the Project's life and 32% of the gold produced during the Gold Loan's life.

Full terms of the executed Gold Loan agreement will be filed on SEDAR+ at www.sedarplus.ca under Cabral's issuer profile.

Warrants will be issued to the Lender on drawdown of the Gold Loan;

• 10,000,000 non-transferable common share purchase warrants of Cabral Gold Inc. (the "Warrants"), with each Warrant entitling the Lender to acquire one common share of the Company for a period of 24 months following the issuance of the Warrants;
• The Warrants and the common shares of the Company underlying such Warrants (the "Warrant Shares") will be subject to an applicable statutory hold period under Canadian securities laws expiring 4 months and one day following the issuance of the Warrants.
• Issue price of the Warrant Shares shall be C$0.71 per Warrant Share (50% premium on 5 day VWAP ending 15^th October, 2025), and
• All conditions precedent to the drawdown under the Gold Loan shall be satisfied prior to the issuance of the Warrants.

The Gold Loan and the related issuance of the Warrants to the Lender on the drawdown date remain subject to approval of the TSX Venture Exchange. The Company's obligations under the Gold Loan will be secured by, among other things, corporate guarantees and first ranking guarantees, and first security from each of Cabral Gold B.C. Inc. and Magellan Minerais Prospeccao Geologica Ltda (each a wholly owned subsidiary of the Company). The Company expects to draw on the Gold Loan and issue the Warrants upon satisfaction of all conditions precedent to the first draw under the Gold Loan agreement.

The Lender (Precious Metals Yield Fund) is an affiliate of the Phoenix Gold Fund, Cabral's largest institutional shareholder.

Project Financing and Initial Capital

The US$45 million in proceeds from the Gold Loan financing fully funds the initial capital costs to develop the Project based on the Updated Pre-Feasibility Study prepared by Ausenco earlier this year and released on July 29, 2025 (the "Updated PFS"). The results of this study indicated that an attractive opportunity exists to monetize the gold in surface oxide blankets at Cuiú Cuiú. With a 1 Mtpa capacity Heap Leach plant, the Project has a 6.2-year mine life, producing gold at an all-in-sustaining operating cost of US$1,210 per ounce. The investment is modest, with capital costs estimated at US$37.7 million, of which approximately US$3 million has been invested to date in early works activities. Commissioning of the Project is planned for Q3 2026, with production scheduled for Q4 2026.

The Project returns an IRR of 78% and an NPV₅ of US$74 million, with a project payback period of 10 months at the base case gold price of US$2,500 per ounce (see press release dated July 29, 2025). The financial appeal of the Project has greatly increased since the release of the Updated PFS, following the recent substantial rise in gold prices.

The Gold Loan provides capital at a very attractive cost of capital, especially in relation to the forecast returns of the Project. It also provides Cabral with the security of locking in the current gold price for all debt service obligations and allows the Company to continue its exploration drilling program during the Gold Loan period.

Construction Decision

The Board of Directors of the Company has approved a "decision to construct" for the Project. From 1^st November, the Project is expected to transition from the early works phase to the formal construction program. As part of the early works activities, detailed engineering and procurement are well underway, as is the hiring of the Project implementation team under Luiz Celaro, Cabral's Construction Manager. The construction schedule includes a key milestone of completing earthworks and civil works on the production plateau by the end of 2025.

Plant commissioning is scheduled for Q3, 2026, with production scheduled to follow in Q4 2026.

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. Three main gold deposits have so far been defined within the Cuiú Cuiú gold district which contain National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") compliant Indicated resources of 12.29Mt @ 1.14 g/t gold (450,200oz) in fresh basement material and 13.56Mt @ 0.50 g/t gold (216,182oz) in oxide material. The Cuiú Cuiú gold district also contains Inferred resources of 13.63Mt @ 1.04 g/t gold (455,100oz) in fresh basement material and 6.4Mt @ 0.34 g/t gold (70,569oz) in oxide material. The resource estimate for the primary material is based on the NI 43-101 technical report dated October 12, 2022. The resource estimate for the oxide material at the Company's PDM and MG deposits are based on a NI 43-101 technical report dated October 21, 2024. The resource estimate for the oxide material at the Central and Machichie deposits are based on the Updated PFS.

The Tapajós Gold Province is the site of the largest gold rush in Brazil's history which according to the ANM (Agência Nacional de Mineração or National Mining Agency of Brazil) produced an estimated 30 to 50 million ounces of placer gold between 1978 and 1995. Cuiú Cuiú was the largest area of placer workings 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

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 factors include, among others, risks relating to the Company's ability to satisfy the conditions precedent to draw on the Gold Loan, the Company's ability to obtain TSXV approval for the Gold Loan and the issuance of the Warrants, the Company's ability to use the net proceeds of the Gold Loan as described in this news release, the Company's ability to complete construction of the Project and begin production on the projected timelines and cost estimates (if at all), the ability and timing (if at all) to complete future exploration programs and the ability of such programs to become self funding, the ability of exploration activities (including drill results) to accurately predict mineralization, and the ability to adapt to changes in gold prices, estimates of costs, estimates of planned exploration and development expenditures; the profitability (if at all) of the Company's operations. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Any forward-looking statements contained in this news release represent management's current expectations and are based on information currently available to management and are subject to change after the date of this news release. The Company is under no obligation (and expressly disclaims any such obligation) to update or alter any forward-looking statements, the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law. All of the forward-looking statements in this news release are qualified by the cautionary statements herein.

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^[1] Based on US$4,100/oz gold price, Gold Loan principal at drawdown is expected to be 353 kilograms of fine gold.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/270683

FAQ

What did Cabral Gold (CBGZF) announce on October 16, 2025?

Cabral secured a US$45M gold loan, the Board approved construction, and drawdown is expected within weeks.

How does the US$45M gold loan fund the Cuiú Cuiú project (CBGZF)?

The loan fully funds the Project capex of US$37.7M per the Updated PFS and supports construction and early works.

What are the Cuiú Cuiú Project economics cited by Cabral (CBGZF)?

The Updated PFS shows a post-tax IRR of 78%, NPV5 of US$74M and a 10-month payback at US$2,500/oz.

When is production expected for Cabral's Cuiú Cuiú heap leach project (CBGZF)?

Plant commissioning is scheduled for Q3 2026 with production expected in Q4 2026.

What are the key loan terms for Cabral's US$45M gold loan (CBGZF)?

39-month term, 10% annual interest (capitalized to Dec 2026), principal repaid as 39 kg gold/quarter from Mar 31, 2027.

What shareholder dilution should investors expect from the Cabral loan (CBGZF)?

The lender will receive 10,000,000 warrants exercisable at C$0.71 for 24 months, subject to hold period and TSXV approval.