Vancouver, British Columbia--(Newsfile Corp. - January 27, 2021) - Cabral Gold Inc. (TSXV: CBR) (OTC Pink: CBGZF) ("Cabral" or the "Company") is pleased to provide the results from recent surface sampling at the Jerimum Meio (JM) target, and provide an update on the current drill program within the Cuiú Cuiú gold district in northern Brazil.

Highlights are as follows;

• An outcropping east-west trending vein structure has been identified in surface reconnaissance work at the JM target located 2.2km NW of the MG gold deposit. Channel sampling of the new vein structure has returned 0.9m @ 35.3 g/t gold (open)

• Surface grab sampling completed at the JM vein structure during December 2020 returned gold values of 23.7, 42.6, 126.4, 145.8, 162.2 and 700.2 g/t gold. The JM structure has never been previously drill-tested and will be included in the reconnaissance drill program

• Follow-up drilling is in progress at the Machichie NE target where a single hole drilled in 2019 returned 15.9m @ 1.7 g/t gold including 0.5m @ 21.3 g/t gold. Machichie NE is located 150m north of the Machichie target, which recently returned 34m @ 5.4 g/t gold

• The reconnaissance drill program has been temporarily suspended due to an outbreak of Covid-19, resulting in positive tests for 10 employees. The reconnaissance drill program is based out of a different location to the follow-up drilling which is in progress at Machichie

Alan Carter, Cabral's President and CEO, commented, "The identification of outcropping high-grade quartz-sulphide mineralization at the JM target is further evidence that numerous high-grade veins occur within the Cuiú Cuiú district. Unlike other recently identified targets in the eastern part of the district, the high-grade gold mineralization at JM is exposed on surface which allows us to much more confidently predict the location and orientation of the mineralized structure at depth at this previously undrilled target. Drilling of this target, which was originally planned for early February, is likely to be delayed until mid-late February due to a recent outbreak of Covid-19 at our reconnaissance drill camp. Thankfully all of the affected personnel are exhibiting only mild symptoms. Follow-up drilling is however continuing at the Machichie NE target which is located immediately north of the MG gold deposit."

Figure 1: Cuiú Cuiú location map showing the JM (Jerimum Meio) target in relation to the 43-101 compliant MG and Central gold deposits, the Machichie discovery and other recently identified targets. Background to map is 1VD RTP airborne magnetic data

To view an enhanced version of Figure 1, please visit:

JM Target

The JM target at Cuiú Cuiú is located 2.2km NW of the MG deposit and 1.8km NW of the Machichie discovery (Figure 1) where recent drilling returned 34m @ 5.4 g/t gold including 13m @ 13.4 g/t gold (see news release dated January 7, 2021).

JM has never been previously drill-tested due to the lack of surface outcrop but recent surface sampling has revealed an outcropping quartz vein trending ENE adjacent to a stream draining from north to south where abundant placer gold has been recovered. The airborne magnetic data also suggests an E-W trending structure at this location.

Grab samples taken in December 2020 from the outcropping vein, returned gold values up to 700.2 g/t gold and include 23.7, 42.6, 126.4, 145.8, 162.2 and 700.2 g/t gold. A single channel sample from the outcropping vein returned 0.9m @ 35.3 g/t gold (Figure 2). Sampling was limited by available exposure and the width of the mineralized structure is likely to be greater than 0.9m. The vein is sub-vertical in terms of dip.

In view of the extremely high-grade results from this new mineralized vein structure, this target will be included in the current reconnaissance drill program (see below) and an initial six holes are planned.

Figure 2: Airborne magnetic map (RTP 1VD) showing location of JM target and recent high grade surface results associated with new outcropping vein structure, and the location of MG and Central gold deposits and other principal targets within the central part of the Cuiú Cuiú district

To view an enhanced version of Figure 2, please visit:

Drilling Update

Reconnaissance Drilling

The reconnaissance drilling program which is currently testing the Indio target has been temporarily suspended due to an outbreak of Covid-19 at the secondary camp which is used as a base for reconnaissance drilling. Ten employees have tested positive for Covid-19 and are all exhibiting mild symptoms, and have been isolated. A series of additional measures have been put in place to mitigate the spread of the disease on site.

Thus far, 2 holes of an initial 6-hole program have been completed at Indio where recent surface float samples of quartz-sulphide mineralization returned values of 7.7, 9.7, 13.3, 29.3 g/t and 137.8 g/t gold (see news release dated January 20, 2021).

Follow-up Drilling

The larger contracted Prospector W750 RC drill rig is currently drilling at the Machichie NE target in an effort to determine the orientation and dip of the mineralized structure intersected in a single hole which was drilled on this target in 2019 and intersected 15.9m @ 1.7 g/t gold including 0.5m @ 21.3 g/t gold (see news release dated March 26, 2019). Results are currently pending on five follow-up holes at Machichie NE which is located just 150m north of the main Machichie E-W trending zone, and at this stage is believed to be a separate and possibly parallel structure to Machichie.

Following the completion of the follow up holes at Machichie NE, the rig will return to further testing the main Machichie E-W structure where recent drilling returned 34m @ 5.4 g/t gold and 20m @ 1.2 g/t gold on the eastern extension of the Machichie zone (see news release dated January 7, 2021).

The follow-up drill crew is based out of a different location to the reconnaissance drill team and are being closely monitored for signs of Covid-19.

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.

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