Cerrado Gold Update 

Aug 4 2020

Dear All,

Please see the press release announcing that following extensive review and consultation with financial advisors, Cerrado Gold has agreed to go public through the mechanism of a reverse takeover (RTO) using a publicly listed shell Company; BB1 Acquisition Corp.(TSXV: BBA.P). This mechanism should allow Cerrado to become a publicly traded entity by the end of November.

We are currently in a tremendously strong gold price environment which has led to a very positive stock market for gold companies. We expect this trend to continue for the foreseeable future. As such, management believes now is the right time to conduct the public listing process. The announcement of a go public transaction should also facilitate the capital raise Cerrado is currently undertaking by increasing the pool of potential investors who may entertain a “near public” opportunity.

As per my last note, we are in the process of raising $5 million at a pre money valuation of US$47 million (US$0.80 per share) with Haywood Securities, and while we have had a very positive response to the Cerrado investment opportunity, we have been hindered by the fact that we are a private company and cannot assure liquidity to potential investors; investors who have been making very good money with liquid public companies.

This is an important step in the evolution of the Cerrado story and we are very excited by the opportunity that it brings to continue to drive value at MDN in Argentina and the potential for continued expansion at Monte do Carmo in Brasil.

It is still the intent of management to have a simultaneous full disclosure financing coincident to the go public transaction.

We are grateful for your support and are happy to address any questions that you may have.










110 Yonge St., Suite 501

Toronto ON, M5C 1T4

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