Sprott stream financing from Monte do Carmo Gold Project

On March 14, 2022, Cerrado Gold Inc. ("Cerrado") announced that it entered into a US$20 million gold and silver stream agreement with Sprott Resource Streaming and Royalty Corp. ("Sprott") for the sale and delivery of 2.25% of all gold and silver produced from Cerrado’s Monte do Carmo Gold Project located in the State of Tocantins, Brazil.

Under the terms of the agreement, Cerrado has a one-time option to buy back 50% of the stream through the exercise of the option and payment the predetermined amounts outlined below

• On or before June 30, 2024 - US$12.5 million
• From July 1, 2024 until June 30, 2025 - US$13.0 million
• July 1, 2025 until June 30, 2026 - US$13.5 million

To facilitate funding in advance of commercial production, Sprott issued a US$20 million secured note bearing interest at a rate of 10% per annum, calculated and payable quarterly, that matures on the earlier of the achievement of commercial production together with certain other conditions, or March 14, 2031.

Cerrado has provided Sprott a first right of approval to participate in any future stream or royalty type financing until certain delivery thresholds are met.

Further information can be found on Newsfile’s website.

Cerrado Gold is a public gold producer and exploration company with gold production derived from its 100% owned Minera Don Nicolás mine in Santa Cruz province, Argentina. It also owns 100% of the assets of Minera Mariana in Santa Cruz province, Argentina. It is also undertaking exploration at its 100% owned Monte Do Carmo project located in Tocantins, Brazil.

Sprott Resource Streaming and Royalty provides specialized forms of capital to the mining sector on behalf of institutional investors.