Cerrado Gold Unhedged: Capturing Record Gold Prices with Share Buyback

TORONTO, ON – January 19, 2026 – Cerrado Gold Inc. today announced a significant strategic shift, confirming the conclusion of its gold hedging program and proposing a substantial share buyback initiative. The dual announcement positions the Toronto-based miner to fully capitalize on a surging gold market, with prices currently hovering near record highs of $4,700 per ounce, while signaling strong confidence in its own undervalued stock.

Effective January 15, 2026, the company has ceased its hedging activities, which had placed a ceiling of $3,250 per ounce on a portion of its gold sales from the Minera Don Nicolas mine in Argentina. Going forward, Cerrado will sell 100% of its production at near-spot prices, a move set to dramatically increase revenue and profitability in the current high-price environment.

Capitalizing on a Gold Supercycle

Cerrado's decision to un-hedge its production is timed to perfection. The gold market has been on a remarkable tear, building on a 2025 that saw the precious metal achieve over 50 all-time highs and deliver returns exceeding 60%. The momentum has carried into 2026, with gold gaining over 6% in the first two weeks of the year alone.

This bullish trend is underpinned by a potent combination of geopolitical instability, macroeconomic shifts, and strong investor demand. Heightened global tensions, coupled with expectations of a weakening U.S. dollar and anticipated interest rate cuts from the Federal Reserve, have polished gold's appeal as a premier safe-haven asset. Analysts are overwhelmingly positive, with major financial institutions like J.P. Morgan and Goldman Sachs forecasting that gold could surpass the $5,000 per ounce milestone before the end of the year.

By removing the $3,250/oz price cap, Cerrado Gold instantly unlocks the full potential of the current market. The difference of nearly $1,450 per ounce between its previous ceiling and today's spot price represents a massive potential uplift in cash flow for every ounce sold, directly impacting the company's bottom line and its capacity for growth and shareholder returns.

In a statement, Mark Brennan, CEO and Chairman of Cerrado, highlighted the strategic success of the now-concluded program. "This program was implemented to support the Company as it completed several key investments... We can now sell our gold production at unhedged near-spot gold prices, improving profitability and free cash flow."

A Vote of Confidence: The Share Buyback Plan

Concurrent with its move to unhedged production, Cerrado has announced its intention to launch a Normal Course Issuer Bid (NCIB). The company has submitted a notice to the TSX Venture Exchange to purchase for cancellation up to 6,794,790 of its common shares, which represents approximately 5% of its total issued and outstanding shares.

This move is a clear signal from management and the board of directors that they believe the company's shares are trading at a significant discount to the intrinsic value of its assets. A share buyback, or NCIB, is a direct method of returning capital to shareholders. By reducing the number of shares outstanding, the proportionate ownership stake of each remaining shareholder increases, which can boost key per-share metrics like earnings per share and net asset value.

"Using Cerrado's excess liquidity in light of strong gold prices, to buy back common shares at their current trading prices, would be highly accretive to our net asset value per share," stated Brennan. "Accordingly, the proposed purchase for cancellation of shares by Cerrado will benefit shareholders by increasing their proportionate ownership in the Company."

Brennan further confirmed that the NCIB is designed to be funded with excess cash generated from gold sales above the company's budgeted price, ensuring that the buyback will not impede existing growth plans or compromise the company's strong cash position.

The Foundation for Growth: A Look at Cerrado's Portfolio

The ability to make these bold financial moves today was built on a period of disciplined strategic investment. The recently concluded hedging program served as a financial backstop, providing revenue certainty that allowed Cerrado to de-risk its balance sheet and advance critical growth projects across its international portfolio.

Key among these was the ramp-up of the underground mine at its flagship Minera Don Nicolas (MDN) operation in Santa Cruz, Argentina. This development is crucial for extending the mine's life and increasing production. The stable cash flow from the hedge also supported progress at the company's other development assets: the highly prospective Lagoa Salgada polymetallic project in Portugal and the Mont Sorcier iron project in Quebec, Canada.

With these foundational investments now bearing fruit, Cerrado is transitioning from a phase of secured development to one of aggressive value realization, leveraging its operational strength to capture maximum market upside.

Diversified for the Future: From Precious Metals to Decarbonization

While the immediate focus is on gold, Cerrado's long-term strategy is rooted in a diversified portfolio of assets positioned to meet future global demands. Its operations span precious metals, base metals, and critical minerals essential for the green energy transition.

In Argentina, the Minera Don Nicolas and Las Calandrias operations are the company's primary cash-flow engines, now supercharged by exposure to unhedged gold prices. In Portugal, the Lagoa Salgada project on the prolific Iberian Pyrite Belt offers exposure to a suite of valuable metals, including zinc, copper, lead, tin, silver, and gold, providing significant commodity diversification.

Perhaps most distinct is the 100%-owned Mont Sorcier project in Quebec. This asset is not a gold play, but a high-purity, high-grade Direct Reduced Iron (DRI) project. The iron concentrate from Mont Sorcier is designed to feed Electric Arc Furnaces (EAFs), a technology central to decarbonizing the global steel industry. As steel producers migrate away from carbon-intensive blast furnaces, demand for high-quality DRI feedstock is expected to soar. The financial strength fortified by its gold operations provides Cerrado with the capacity to continue advancing this vital project, positioning the company as a key player in both the precious metals market and the broader sustainable development landscape.