Cabral Gold Drills 7m @ 9.4 g/t Gold and Identifies a Second Gold-in-Oxide Blanket in the Cuiú Cuiú District, Brazil

Vancouver, August 10, 2021 - Cabral Gold Inc. (TSXV: CBR) (OTC: CBGZF) ("Cabral" or the "Company") is pleased to provide assay results from eleven recently completed reconnaissance RC holes at the Pau de Merenda ("PDM") target within the Cuiú Cuiú gold district in northern Brazil.

Highlights are as follows:

• Reconnaissance RC drilling at the Pau de Merenda target, located 2.5km NW of the Central gold deposit, has returned numerous mineralized drill intercepts in near surface unconsolidated weathered and oxidized saprolite material, including hole RC-112 which averaged 40m @ 2.2 g/t gold from surface including 7m @ 9.4 g/t gold and terminated in 2m @ 23.8 g/t gold

• These results indicate the presence of a second near surface gold-in-oxide blanket at Cuiú Cuiú which is very similar to the recently identified mineralized blanket above the MG gold deposit. Other drill results from this ongoing reconnaissance drill program include 16m @ 1.3 g/t gold in RC-104

• Twenty-one vertical RC holes have been completed thus far at PDM and the results from the initial eleven holes indicate the presence of a blanket with minimum dimensions of 400 x 200m, which is open in all directions. Results are pending on ten additional reconnaissance RC holes, drilled to a maximum depth of 78m

• Several other high priority targets have also been identified for additional gold-in-oxide blanket deposits at Cuiú Cuiú, with reconnaissance drilling currently in progress at the previously untested Mira Boa target

Alan Carter, Cabral's President and CEO commented, "We are absolutely thrilled to be reporting these drill results from near surface unconsolidated material at the PDM target which is located just 2.5km NW of the Central gold deposit. When we first identified the presence of a gold-in-oxide blanket at surface above the MG deposit in mid-April of this year, we predicted that we would make additional discoveries of this type at Cuiú Cuiú, and the initial results from the PDM target are confirmation of that belief. The initial drilling at Pau de Merenda suggests we have a second mineralized blanket at surface which extends over an area of at least 400m by 200m and is open in all directions, and furthermore contains some very high-grade intercepts. The identification of this new blanket obviously also raises the possibility of a significant underlying primary gold deposit akin to MG, which will also require drilling in the coming months."

PDM Reconnaissance RC Drilling

The Pau de Merenda target is located approximately 2.5km NW of the Central gold deposit at Cuiú Cuiú and comprises a significant gold-in-soil anomaly (Figure 1). Limited historic diamond drilling (nine holes totaling 2,593m) at this target previously returned encouraging drill results within the underlying bedrock including 30m @ 1.1 g/t gold in CC-19, 47.1m @ 1.8 g/t gold in CC-20 and 8.5m @ 5.1 g/t gold in CC-22 (Figure 2). Interestingly, the most northerly of the historic diamond drill holes (CC-82) returned 29.8m @ 0.35 g/t gold in unconsolidated material from surface.

Figure 1: Map showing the location of the PDM target, the two known gold deposits at Central and MG and other key targets within the Cuiú Cuiú district

To view an enhanced version of Figure 1, please visit:
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Figure 2: Map showing the PDM target with historic diamond drill holes and recently completed vertical RC drill holes (labelled)

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Following the identification of the extensive gold-in-oxide blanket in unconsolidated soil and sediments above the MG gold deposit, a review was conducted of other targets within the Cuiú Cuiú district where there were indications of similar near surface mineralization in the unconsolidated cover material. The drill intercept in diamond drill hole CC-82 drilled at PDM was evidence of that possibility.

As a result of this review, a total of 21 vertical RC holes were drilled at PDM (Figure 2) with Cabral's AST-SV50 reconnaissance RC rig to a maximum depth of 78m in order to test for the possibility of a second gold-in-oxide blanket akin to that overlying the MG gold deposit. Results are reported here for the initial eleven shallow holes (RC-103 to RC-113), which were drilled on a grid at 100m spacings (Figures 2 and 3) extending through the gold-in-soil anomaly.

Ten of the eleven holes returned gold mineralization over intervals up to 40m in thickness (Table 1, Figure 3), suggesting the possibility of an extensive gold-in-oxide blanket. The highlight of the initial holes was RC-112 which intersected 40m @ 2.2 g/t gold from surface, including 7m @ 9.4 g/t gold and ended in material averaging 9.4 g/t gold. The last two meters of hole 112 averaged 23.8 g/t gold indicating that the mineralized zone at that location is open at depth.

Similarly, hole RC-104 which was drilled 150m NW of RC-112 returned 16m @ 1.3 g/t gold from surface, suggesting the presence of a NW-trending higher-grade core to the gold-in-oxide blanket which is open in all directions.

There are indications from the current RC drilling of a NW-trending zone of primary gold mineralization in the underlying granitic rocks, which may be the source of the gold-in-oxide blanket at PDM. Hole RC-112 was drilled just 25m north-west of the historic diamond hole CC-20 which intersected 47.1m @ 1.8 g/t gold in the underlying unoxidized basement material.

Figure 3: NW-SE cross-section through the PDM gold target showing the location of recently completed RC holes RC-104 and RC-112

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Results are pending on ten additional holes but clearly further drilling will be required to fully define the extent of this new gold-in-oxide blanket.

The presence of an extensive gold-in-oxide blanket and the encouraging historic drill intercepts in the underlying basement rock, raises the possibility that there could be a primary gold deposit underlying the blanket. This possibility will be tested in the coming months following the arrival of the two additional diamond drill rigs on site.

Table 1: Table of drill results for reconnaissance RC drill holes at Pau de Merenda RC-103 to RC-113

Miraboa Reconnaissance RC Drilling

The Miraboa target is located 3km south-west of the Central gold deposit and is the site of extensive historic placer gold workings. The source of this gold is currently unexplained. Soil sampling has identified an extensive gold-in-soil anomaly extending over at least 2km N-S which has never been tested by drilling.

As outlined above, following the identification of the gold-in-oxide blanket at MG, a review was conducted of all of the peripheral targets which were ranked in terms of their prospectivity for additional gold-in-oxide blankets. Like Pau de Merenda, Miraboa was one of the targets that ranked very highly. Other targets that are still to be drill tested for additional gold-in-oxide blankets include Jerimum Cima, Central SE and Central.

A total of 22 vertical holes to a maximum depth of 80 meters have been completed thus far at Miraboa from a planned program of 25 holes. Results are pending.

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. Two gold deposits have so far been defined at Cuiú Cuiú and contain 43-101 compliant Indicated resources of 5.9Mt @ 0.90g/t (200,000 oz) and Inferred resources of 19.5Mt @ 1.24g/t (800,000 oz).

The Tapajós Gold Province is the site of the largest gold rush in Brazil's history producing 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

Guillermo Hughes, MAusIMM and FAIG., a consultant to the Company as well as a Qualified Person as defined by National Instrument 43-101, supervised the preparation of the technical information in this news release.

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 forward-looking statements should not be unduly relied upon. This news release contains forward-looking statements and assumptions pertaining to the following: strategic plans and future operations, and results of exploration. Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. The Company believes the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct.

Notes

Gold analysis has been conducted by SGS method FAA505 (fire assay of 50g charge), with higher grade samples checked by FAA525. Analytical quality is monitored by certified references and blanks. Until dispatch, samples are stored under the supervision the Company's exploration office. The samples are couriered to the assay laboratory using a commercial contractor. Pulps are returned to the Company and archived. Drill holes results are quoted as down-hole length weighted intersections.

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