Cabral Gold Drills 34m @ 5.4 g/t gold Including 13m @ 13.4 g/t gold at the Machichie target, Cuiu Cuiu District, Brazil

Vancouver, British Columbia--(Newsfile Corp. - January 7, 2021) -  Cabral Gold Inc. (TSXV: CBR) (OTC Pink: CBGZF) ("Cabral" or the "Company") is pleased to announce drill results from the Machichie and Medusa targets, and provide an update regarding the current reverse circulation ("RC") drilling program which is designed to test multiple targets within the Cuiú Cuiú gold district in northern Brazil.

Highlights are as follows;

• At the Machichie target, the initial RC drill hole, 40-20, returned 34m @ 5.4 g/t gold including 13m @ 13.4 g/t gold, within which a bonanza grade section returned 3m @ 48.2 g/t gold. This hole is an important step-out hole and was drilled 175m east of the initial Machichie discovery hole which returned 62.8m @ 0.9 g/t gold including 2.1m @ 15.3 g/t gold and 45m @ 1.0 g/t gold including 3.1m @ 7.3 g/t gold

• Hole 41-20 was drilled 50m east of hole 40-20 and intersected 20m @ 1.2 g/t gold including 1m @ 10.0 g/t gold indicating that the mineralized zone at Machichie continues along strike and is open to the east

• Reconnaissance drilling at the Medusa target aimed at identifying the source of mineralized surface boulders averaging 24.7 g/t gold has intercepted a mineralized structure directly below the mineralized float on surface, which will require further drilling

Alan Carter, Cabral's President and CEO commented, "These very high-grade results from initial step-out RC drill holes at the Machichie target at Cuiú Cuiú, confirm our belief that Machichie is a significant mineralized zone, and in all likelihood, the third significant gold deposit within the Cuiú Cuiú district. The grade and width of the mineralized intersection in hole 40-20 is the best we have seen so far at Machichie, and these holes significantly extend the mineralized zone to the east. Further drilling along strike and down dip will clearly be required to fully determine the size of the Machichie discovery. The reconnaissance drilling at Medusa has also intersected a new mineralized zone at depth which is very encouraging and will require follow-up drilling. With two rigs currently drilling, and an aggressive surface exploration program in progress at Cuiú Cuiú, we look forward to a steady stream of results during the first half of 2021".

Figure 1: Cuiú Cuiú location map showing the location of the Machichie target in relation to the 43-101 compliant MG and Central deposits and the recently identified Cilmar, Alonso, Medusa, Tracaja and Dona Moca targets

To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/3900/71498_7d13248d44bb6b22_002full.jpg

Machichie Target

The Machichie target is located 500m north of the MG gold deposit (Figure 1) and was initially drilled in early 2019. As at MG, the mineralized zone is E-W trending and consists of a high-grade core zone surrounded by a low-grade envelope which appears to continue along strike and down-dip. The initial drilling in 2019 returned gold values which included 45.0m @ 1.0 g/t including 3.1m @ 7.3 g/t gold and 62.8m @ 0.9 g/t including 2.1m @ 15.3 g/t gold.

The current follow-up RC drill program is designed to determine the extent of the mineralized zone at Machichie and the initial two step-out holes (RC 40-20 and RC 41-20) were completed in December 2020 prior to the end of year break to test the eastern extension of the mineralized zone. A series of NE-trending mineralized vein structures (Machichie SW vein array) converge with the E-W trending corridor and will also be targeted as part of the ongoing drill program.

Hole 40-20 returned 34m @ 5.4 g/t gold from 0 to 34.0m including 13m @ 13.4 g/t gold from 18.0 to 31.0m, within which a high-grade section intersected 3m @ 48.2 g/t gold from 18.0 to 21.0m. Hole 40-20 was drilled 175m east of the discovery drill holes at Machichie which returned 62.8m @ 0.9 g/t gold including 2.1m @ 15.3 g/t gold and 45m @ 1.0 g/t gold including 3.1m @ 7.3 g/t gold in 2019 (Figure 2). Hole 40-20 also intersected 1m @ 3.30 g/t gold from 85.0 to 86.0m depth. The hole was drilled 75m east of the most easterly hole drilled at Machichie to date.

Hole 41-20 was drilled 50m east of hole 40-20 (Figure 2) and intersected 20m @ 1.2 g/t gold from 25.0 to 45.0m including 1m @ 10.0 g/t gold from 43.0 to 44.0m. A second zone of 2m @ 1.2 g/t gold was intersected from 148.0 to 150.0m depth.

Results are pending for hole 42-20, a hole drilled to test the Machichie NE target, where a single hole, 183-19, drilled in 2019, returned 15.9m @ 1.7 g/t gold including 0.5m @ 21.3 g/t gold and 1.0m @ 10.3 g/t gold and occurs along a previously unknown structure which is open along strike and at depth.

Figure 2: Detailed map of Machichie-MG area showing recently completed drill holes 40-20 and 40-21 at eastern extension of Machichie target and proposed drill holes at the Machichie, Filao de Amor, Machichie SW, Hamilton Novo, Maranhao East and Machichie NE targets

To view an enhanced version of Figure 2, please visit:
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These initial drill results from the step out holes are highly encouraging and indicate that the mineralized zone at Machichie not only continues along strike to the east of the previous drilling, but is open and includes significant zones of very high-grade gold mineralization. Further drilling is planned at Machichie to test both the E-W trending corridor and the NE-trending vein structures at Machichie SW from January 2021 onwards. Drilling to date on the Machichie main E-W zone has so far confirmed gold mineralization over a 500m strike length and is open.

Medusa Target

Results were returned on twenty-one reconnaissance RC holes (holes 16-20 to 36-20) which were drilled at the Medusa target (Figure 1). These were drilled in two N-S oriented traverses aimed at identifying the mineralized structure which is the source of two groups of surface boulders that were collected 350m apart and returned gold values of 5.2 to 50.1 g/t gold in the west and 1.1 to 82.1 g/t gold in the east (Figure 3).

The most significant intercept was returned from the final hole of the program (RC 36-20) at Medusa which was drilled immediately north of the eastern-most boulder train and intersected a broad low-grade zone of gold mineralization and a 1m section from 83.0m depth returned 1.0 g/t gold directly underneath the eastern most set of boulders which range from 1.1 to 82.1 g/t gold. This intercept is encouraging and will require follow-up drilling of the structure immediately to the east and west. Variably disseminated pyrite was present across the broader interval of 19.0 to 63.0m associated with weaker mineralization, indicating the presence of a broad alteration system. Medusa has a broad geochemical gold-in-soil anomaly associated with an extensive magnetic low in an area of poor exposure, with the drilling at an early reconnaissance stage.

Figure 3: Detailed map of the Medusa target showing extent of gold-in soil anomaly and location of surface float samples and the two lines of reconnaissance RC drill holes. Note the location of hole RC 36-20 with respect to the surface samples grading 3.6 to 82.2 g/t gold

To view an enhanced version of Figure 3, please visit:
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Other Targets

Results are currently pending on six holes completed at the Tracaja target prior to the end of year break and drilling has recommenced on this target. An update regarding the drilling at Tracaja will be released shortly and results are expected within the next few weeks.

Surface reconnaissance work is also continuing in a number of different target areas at Cuiú Cuiú with results expected over the next few weeks.

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 garimpo in the Tapajós and produced an estimate 2Moz of placer gold historically.

FOR FURTHER INFORMATION PLEASE CONTACT:

"Alan Carter"

President and Chief Executive Officer
Cabral Gold Inc.

Tel: 604.676.5660

Dr Adrian McArthur, B.Sc. Hons, PhD. FAusIMM., 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 assays have been determined by SGS method FAA505 (fire assay; 50 charge). Analytical quality is monitored by certified references and blanks. Until dispatch, samples are stored in the Company's supervised exploration office. The samples are couriered to the assay laboratory using a commercial contractor. Pulps and rejects are returned to the Company and archived. Intersections quoted are down-hole widths. RC samples are split using a Jones riffle splitter, and have been recovered in a dry condition using a face-sampling bit, with the program executed by GEOSEDNA - Perfurações Especiais S/A, specialist drilling contractors. Sampling has been conducted in 1-2m intervals, based on geological control.

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