Gold equivalent production of 13,832 Gold Equivalent Ounces (“GEO”) at AISC of $1,915/oz during Q3 2025
Adjusted EBITDA of $11.8 million for Q3 2025
Cash $16.5 million
Partial hedge expires end December increasing future gold sale prices
Full year guidance of 50,000-55,000 GEO maintained: Underground mining production to ramp up in the fourth quarter
20,000 metre exploration program expanded by 50,000 metres with additional rigs to arrive in the fourth quarter
Significant progress at both the Lagoa Salgada and Mont Sorcier projects
Management to host conference call on Monday, December 1st, 11:00AM EST
TORONTO, Nov. 28, 2025 (GLOBE NEWSWIRE) — Cerrado Gold Inc. [TSX.V:CERT](OTCQX:CRDOF, FRA:BAI0]) (“Cerrado” or the “Company“) announces its operational and financial results for the third quarter (“Q3/25”) including its Minera Don Nicolas (“MDN“) gold mine in Santa Cruz Province, Argentina; its Lagoa Salgada Polymetallic Project in Portugal; and its Mont Sorcier High Purity DRI Iron Project in Quebec. Financial results include the consolidated financial position of Ascendant Resources Inc. (“Ascendant”) following the close of the acquisition effective May 16, 2025.
Production results for MDN were previously released on October 20, 2025. The Company’s financial results are reported and available on SEDAR+ (www.sedarplus.com) and the Company’s website (www.cerradogold.com).
Q3/25 MDN Operating Highlights:
Q3 Production of 13,832 GEO vs 11,437 GEO in Q2 2025 (+21%)
Heap leach production growing as expanded crushing capacity and improved recoveries result in another record of quarterly production of 10,429 GEO (+33% vs Q2)
Underground development at Paloma is advancing, with ramp up well advanced and three access portals targeted to reach production stopes in Q4
CIL plant starting to receive ore from underground development, production expected to ramp up in Q4/2025 as higher grade underground material supplants lower grade stockpile feed in the mill
Operational results for the third quarter saw a continuing increase in gold production over Q2 and Q1 2025. The heap leach operation reached another production record of 10,429 GEO for the quarter. The expanded crushing circuit is enabling higher volumes of ore to be placed on the pad with more consistent sizing, resulting in improved recoveries. Incremental improvements to recovery are expected following the planned addition of an agglomerator and additional conveyors installed in Q4 2025. With higher gold prices, the CIL plant continued to process lower-grade stockpiles through Q3/25 and is expected to continue through Q4, supplementing higher grade feed from the underground operations.
Exploration continues with encouraging initial results although full assay results remain pending. The program has progressed at a slower rate than anticipated with less metres drilled and greater delivery time encountered for assay results. As such, the initial 20,000m drill program is unlikely to be completed in full by year-end. Cerrado will add any incomplete drilling to the announced 50,000 metre program targeted for 2026. To prevent further delays, Cerrado has acquired three new rigs which are scheduled to arrive in Q4, that will accelerate drilling from late December and into 2026. Cerrado has also initiated the process to certify its own testing lab, enabling the company to dramatically reduce turnaround times for assays.
At Lagoa Salgada, the Optimized Feasibility Study is nearing the final stages of completion and is expected to be delivered in early 2026. Further work is progressing on completing the required submissions under Article 16 for the Environmental Permit. At Mont Sorcier, the infill drill program has been completed, and work continues with updating the geological model as well as mine design and planning. The Bankable feasibility study is targeted to be completed in Q2/2026 with a phased development plan as outlined in the press release dated November 10, 2025.
Mark Brennan, CEO and Chairman commented, “For the most part we are very pleased with the 2025 transition programs that we have commenced at the corporate level and with our three assets. The results from the third quarter at MDN delivered an additional increase in production from the heap leach and with the addition of higher-grade ore from underground operations in Q4, we should exit the year at the highest production rate of the year to date. The strong cash flow generated from operations continues to build our cash balance, while deploying capital for exploration and development of our project pipeline. Advances at the Lagoa Salgada Polymetallic Project and at the High-grade Mont Sorcier DRI Iron Project continue to strengthen our belief that there is significant value to be unlocked in these projects as the respective Feasibility Studies are completed in the near term.
He continued, “Looking ahead into 2026 we expect to begin to reap the rewards, and the significant addition to shareholder value, of our investments with higher grade material coming in from the underground and the heap leach operations running at peak production and with expanded exploration supporting the potential for additional resources at MDN. We also expect to have an updated Feasibility Study in hand for Lagoa Salgada at year end which is expected to demonstrate the robust economic strength and further potential growth of that project moving forward. Additionally, we will also see a bankable feasibility study for our Mont Sorcier Project released in Q2 which management believes should demonstrate a solid, profitable, long-life project and lock in value for that asset.”
Operating Results for the Quarter
Operational results for Q3 2025 showed an increase in production over the previous quarter, driven by higher production from the heap leach operations. The operational performance of the heap leach continued to steadily improve over the quarter. The installation of an agglomerator to reduce fines and improve recoveries as well as other minor upgrades are expected to be completed during the fourth quarter and used as needed. Production from stockpiled material via the CIL plant remained stable, and underground operations at Paloma were delayed slightly due to the need for additional stabilization works. The underground is now expected to begin to contribute meaningfully to production in Q4 2025 and beyond as development rates increase and more ore becomes available.
The final updates to the crusher circuit, including final installation of the agglomerator and additional conveyors, are set to be completed in Q4/25.
As previously announced, MDN commenced underground mining in June, opening three portals for underground mining beneath the Paloma pit. Ore production has been slightly delayed due to the requirement for additional structural support but is expected to ramp up in Q4/2025 and into 2026. While initial production expectations are relatively modest given the current known underground resource, underground access is expected to provide a platform for major exploration activities at lower costs than drilling from surface. Underground exploration aims to materially expand resources at MDN, leveraging the underground development for a potential expansion in production and/or mine life.
On the exploration front, MDN commenced an approximate 20,000 metre drill program late in the second quarter initially focused on high grade targets around the existing Paloma deposits. Initial results have been positive and thus the Company announced an increase of 50,000 metres to the program. Results are pending and further drilling will be required to confirm any new resources. The company plans to drill additional targets near Calandrias, the Paula Andrea region (where previous high-grade shoots have been mined) and from underground, once sufficient areas have been developed. As previously announced the Company has lowered its annual production guidance to the range of 50,000 – 55,000 GEO for 2025. AISC costs for the year are likely to be at the high end of revised guidance of $1,600 -$1,800 per GEO. AISC costs remain higher than initially anticipated due to ongoing costs and inflationary pressures in Argentina, and the inclusion of the expanded exploration program that was not included in the original budget for the year. That said, management continues to expect unit costs to decline as production continues to ramp up in the coming quarters.
The Company continues to make progress in repayments to lenders and vendors at MDN further decreasing overall indebtedness of the company. During 2025 the company expects to further deleverage its balance sheet from operational cash flow based upon production forecasts and improved gold prices, while continuing to invest in exploration and the completion of the Feasibility Studies for Lagoa Salgada and Mont Sorcier Projects.
Q3 Financial Performance
Table 1. Q3 2025 Operational and Financial Performance
Three Months Ended September 30
Nine months ended September 30
Key Operating Information
Unit
2025
2024
2025
2024
Operating Data
Heap Leach Operations
Ore Mined
ktonnes
759.04
364.84
1,968.11
716.24
Waste Mined
ktonnes
1,001.21
884.78
3,023.71
2,111.90
Total Mined
ktonnes
1,760.25
1,249.62
4,991.82
2,828.14
Strip Ratio
waste/ore
1.32
2.43
1.54
2.95
Mining rate
ktpd
19.13
13.58
18.35
10.36
Ore placed on pad
ktonnes
793.12
433.81
2,209.83
949.87
Head Grade Au
g/t
0.81
0.75
0.82
0.74
Head Grade Ag
g/t
11.68
10.04
13.17
10.69
Recovery Au
%
47%
31%
41%
30%
Recovery Ag
%
23%
9%
15%
8%
Gold Ounces Produced
oz
9,605
3,253
23,944
6,646
Silver Ounces Produced
oz
85,214
12,713
143,163
25,639
Gold Equivalent Ounces Produced
oz
10,429
3,403
25,521
6,955
High Grade CIL Operations
Ore Mined
ktonnes
–
43.43
11.39
187.06
Waste Mined
ktonnes
–
1,234.99
59.54
4,416.83
Total Mined
ktonnes
–
1,278.41
70.93
4,603.88
Strip Ratio
waste/ore
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