Cabral Gold Inc. announced that it has commenced a program of RC and power-auger drilling at the Cuiu Cuiu district, located in Para state in northern Brazil. Highlights: A drill program comprising six RC holes and 21 short power-auger holes has commenced at the MG gold deposit, targeting higher-grade mineralization within shallow gold-in-oxide blanket and saprolite gold resources. Following the completion of the RC program at MG, the rig will move to the Central deposit where 19 RC holes are planned with the objective of upgrading the Inferred portion of the current oxide resource at Central to Indicated.

This work is designed to better define and expand the higher-grade shallower portion of the oxide resources within the near-surface saprolite and blanket material, to improve confidence in the current oxide gold resources, and to aid in the mine planning and sequencing as part of the ongoing Prefeasibility Study on Trial-mining of the oxide resources at the MG and Central gold deposits that is currently being conducted by Ausenco do Brasil Engenharia Ltda. Cuiu drilling program: The 25-hole RC and 21-hole power-auger drilling program at Cuiu Cuiu is aimed at expanding and better defining higher-grade mineralization within the near-surface oxide gold resources at both the MG and Central gold deposits as part of the ongoing trial-mining Prefeasibility Study. Previous drilling within the oxide mineralization at the MG gold deposit returned a number of higher-grade drill intercepts in the core of the deposit, including DDH214, which returned 60m @ 3.5 g/t gold from surface in blanket and saprolite.

The current drill program is also designed to upgrade a portion of the resource at the Central gold deposit, from Inferred to Indicated material. At Central, previous drilling within the oxide resources returned several higher-grade drill intercepts, e.g. DDH306 which returned 20.9m @ 4.2 g/t gold from surface. A total of 25 RC holes are planned to test blanket and saprolite oxide gold mineralization.

These include six holes at MG, which will be completed first, followed by 19 holes at Central. The trial-mining Prefeasible Study is focused on the open-pit and heap-leach exploitation of this higher-grade oxide material in the early years.ence the reason for further tighter drilling in order to better define the higher-grade material that lies above the core of the deposits. High-grade gold-in-oxide material also exists within both the PDM blanket and in weathered oxide material above the new Machichie discovery.

These areas represent excellent targets for adding additional near-surface higher-grade gold-in- oxide resources. Previous drilling within the gold-in- oxide blanket and saprolite at PDM returned a number of higher- grade drill intercepts, e. g. RC324 which returned 11m @ 3.1 g/t gold from surface and RC310 which returned 13m @ 4.6 g/t gold. Trenching at the new Machichie discovery similarly returned high grade zones at surface in gold-in-oxide material including 7.7m @ 5.8 g/t gold in trench CT0049, and 5m @ 8.3 g/t gold in trenchCT0035A.