Cabral Gold Inc. announced that it has entered into a royalty agreement with Osisko Gold Royalties Ltd. pursuant to which Osisko has agreed to purchase a 1% net smelter return ("NSR") royalty on the Cuiú Cuiú gold project for a total cash consideration of USD 5 million. Cuiú Cuiú Project Cuiú Cuiú is an advanced gold exploration and development project located in the state of Para, Brazil, immediately adjacent to the Tocantinzinho gold project which is currently under construction. The Cuiú Cuiú project hosts NI 43-101 compliant mineral inventory of 21.6 M @ 0.87 g/t gold (604,000oz) in the Indicated Resources category and 19.8 Mt @ 0.84 g/t gold (534,500 oz) in the Inferred Resources category.

A Prefeasibility Study considering potential exploitation of weathered oxide saprolitic gold mineralization is currently being undertaken by Ausenco and is expected to be completed during Fourth Quarter 2023. If positive, the study should pave the way for a construction decision for trial mining and heap-leach processing of the near-surface oxide gold mineralization at Cuiú Cuiú. Details of the Transaction Cabral has granted Osisko a 1% NSR royalty from the production of all products from the Cuiú Cuiú property.

The total consideration is USD 5 million which will be paid in two tranches; USD 2.5 million on closing and USD 2.5 million following the registration of certain security pledges, which is expected during July 2023. Following the completion of a Feasibility Study, Cabral will pay Osisko USD 250,000 on the date thereof and each subsequent anniversary of said completion by way of an advance payment, until the commencement of commercial production. These payments shall be credited against future royalty payments due under the Agreement.

The terms of the transaction allow Cabral to use a portion of the proceeds for general working capital purposes.