CERRADO GOLD INC - CRDOF STOCK NEWS

Cerrado Gold Inc. (TSX.V:CERT)(OTCQX:CRDOF) has clarified its prior agreements with Red Cloud Financial Services and Feneck Consulting Group for capital markets and investor relations services. The Red Cloud agreement, terminated in January 2024, cost $10,000 monthly. The Feneck agreement, ended in December 2023, was $3,500 monthly. Neither received bonus fees or stock options.

Cerrado also disclosed a shared services agreement with Ascendant Resources effective March 30, 2023, formalizing an existing arrangement. Expenses are split approximately 70% to Cerrado and 30% to Ascendant. As of March 31, 2024, Ascendant owes Cerrado $3.2 million for shared services. Additionally, Cerrado provided Ascendant with a $1.5 million USD unsecured promissory note at 10% annual interest, with $0.8 million outstanding as of March 31, 2024.

Cerrado Gold (TSXV:CERT)(OTCQX:CRDOF) announced Q2 2024 production results for its Minera Don Nicolas Mine in Argentina. Highlights include:

- Q2 production of 16,255 Gold Equivalent Ounces (GEO), up from 11,204 GEO in Q1 2024
- High-grade ore from Calandrias Norte and ramp-up of heap leach operations supporting strong production
- Approximately US$10 million in current liabilities repaid since Year End 2023
- Significant cost reductions made to reduce corporate expenses
- Heap leach production improved from 491 GEO in April to 943 GEO in June, despite harsh weather
- Additional crushing capacity being added to support increased production

The company expects to release full Q2 financial results in August 2024 and anticipates announcing an updated 43-101 Preliminary Economic Assessment and Mineral Resource Estimate shortly.

Cerrado Gold announced the successful outcomes of its Annual and Special Meeting held on June 27, 2024. Notably, all proposed resolutions were approved by shareholders. Around 40.6 million common shares, representing 39.49% of all outstanding shares, were voted.

The election of eight directors saw overwhelming support, with each director receiving over 96% of the votes. The company also approved McGovern Hurley LLP as the new auditors for the upcoming year, after KPMG LLP resigned.

Shareholders also approved the sale of the company’s subsidiary, Serra Alta Mineração Ltda, to Amarillo Mineração Do Brasil Ltda., marking a significant step towards finalizing the deal contingent on certain conditions and TSXV approval. This sale involves the Monte Do Carmo project in Brazil.

Additionally, upon shareholder approval, all existing credit obligations under a prior Loan Agreement were deemed repaid, terminating the agreement.

Cerrado Gold has filed its Q1 2024 financials, aiming to revoke a Cease Trade Order (CTO) from the Ontario Securities Commission (OSC). The company has addressed its compliance issues under National Policy 11-207 regarding continuous disclosure obligations.

Cerrado plans to submit an application to the TSX Venture Exchange for trading resumption once the CTO is lifted by the OSC. Trading is expected to resume within two business days post-approval by the TSX Venture Exchange.

Cerrado Gold, operating under the stock symbol CRDOF, has received the third and final advance of $7 million from Hochschild Mining's subsidiary, Amarillo Mineração do Brasil. This brings total funds from the Signing Loan to $15 million. According to the option agreement, upon shareholder approval, the loan and associated interest will be repaid by setting off an equivalent amount from the purchase price due by Amarillo. If shareholders don't approve the transaction by June 30, 2024, the loan will mature on September 30, 2024, but Hochschild may accelerate it from July 1, 2024. Additionally, Cerrado has appointed McGovern Hurley LLP as its new auditor, pending shareholder approval at the annual meeting on June 27, 2024.

Cerrado Gold has released their Q4 and year-end 2023 financial results for their Minera Don Nicolas (MDN) gold project in Argentina. The company reported an annual production of 52,230 gold equivalent ounces (GEO) and a Q4 adjusted EBITDA of $0.8 million, with the annual figure reaching $13.8 million. The All-In Sustaining Cost (AISC) for Q4 stood at $1,594 per ounce, and the annual AISC was $1,427 per ounce. Despite delays in the ramp-up of their Las Calandrias Heap Leach due to crusher issues, production levels improved significantly from March to May 2024, averaging over 6,000 GEO per month. The company's annual revenue was $100.1 million, up from $90.4 million in 2022, while the net loss for 2023 was $6.8 million compared to a $5.9 million loss in 2022. High production costs and increased tax expenses contributed to the losses. The company aims to stabilize operations, reduce debt, and focus on cash flow and exploration activities to extend mine life.

Cerrado Gold has filed proxy materials for its annual and special shareholders meeting on June 27, 2024.

The company expects to file its audited financial statements for 2023 this week, a condition for receiving a US$7 million advance from Hochschild Mining's subsidiary.

The third advance will complete a US$15 million interest-bearing loan, which will be repaid if Cerrado secures shareholder approval for selling its Monte Do Carmo project for US$60 million.

If approval is not obtained by June 30, the loan matures on September 30, but Hochschild may accelerate repayment starting July 1.

Cerrado Gold has provided an update regarding the cease trade order (CTO) issued on May 7, 2024, by the Ontario Securities Commission (OSC) due to the company's failure to file its audited annual financial statements for the year ending December 31, 2023. The filings were initially due by April 29, 2024.

Despite efforts to work with auditors KPMG LLP, Cerrado expects to complete and file the annual statements by June 6, 2024. Consequently, the company anticipates missing the May 30, 2024, deadline for its interim financial statements for the first quarter of 2024. An application for a management cease trade order (MCTO) was denied as the CTO is already in effect and will remain until the interim filings are completed, expected two weeks post-annual filings.

No insolvency proceedings or undisclosed material information were reported.

Cerrado Gold has provided an update on the cease trade order (CTO) imposed by the Ontario Securities Commission (OSC) on May 7, 2024, due to its failure to file audited financial statements for the year ended December 31, 2023. The filings were due by April 29, 2024. The company expects to complete the filings by May 31, 2024, after which the CTO may be lifted within two days. Cerrado Gold has applied for a management cease trade order (MCTO) due to possible late filing of Q1 interim financial statements for the period ending March 31, 2024. If granted, the general public can still trade shares, but executives will be restricted.