TICKERS: CBR

Company Returning to Brazil's Gold Rush Region Determined to Find the Source
Reverse Takeover

Source:

A company with a gold project in the heart of Brazil's gold country has completed a reverse takeover and begins trading today on the TSX Venture Exchange.

Cabral Gold Inc. (CBR:TSX.V) just completed a three-way business combination and begins trading today on the TSX Venture Exchange. The company, formerly known as San Angelo Oil Ltd., has combined with Cabral Gold Ltd. and 1116669 B.C. Ltd. and has completed a share consolidation, and is now operating as Cabral Gold Inc.

The company just completed the third tranche of funding, and raised total gross proceeds of about $4.16 million in its private-placement funding. There are approximately 31 million shares outstanding, of which about 40% are controlled by insiders. According to the company, the proceeds will go toward the "work program on the Cuiú Cuiú project and for general working capital."

Cuiú Cuiú is located in the Tapajos region of Para State, Brazil, home of a large gold rush from the mid-1970s until the mid-1990s. The Brazilian Department of Mineral Production estimates that 20 to 30 million ounces of placer gold were produced in the region. Cuiú Cuiú is believed to have produced 1.5 to 2 million ounces of placer gold during this period. The source of the placer gold in the Cuiú Cuiú area has not yet been identified.

Cuiú Cuiú is located next to Tocantinzinho (TZ), a gold development project that Cabral CEO Alan Carter and Cabral director Dennis Moore were instrumental in discovering and that is now owned by Eldorado Gold. Carter and Moore have a 3.5% NSR on the TZ mine, which Eldorado's mine plan estimates will produce 1.7 million ounces of gold over 10 years.

According to Cabral Gold, 26 km of historical drilling resulted in an initial resource estimate for Cuiú Cuiú in 2011 of 0.1 million ounces gold Indicated and 1.2 million ounces gold Inferred. Another 22 km of drilling was conducted but not included in the estimate.

Management has indicated that it first plans to update the 2011 resource estimate to include the additional 22 km of drilling. It also wants to extensively conduct soil sampling and other surface tests to identify potential drill targets, with an eye to commencing drilling Q2/18.

Cabral is helmed by experienced names in the field. Charles Oliver, former lead portfolio manager for Sprott Gold and Precious Metals Fund, chairs the board of directors. In addition to CEO Alan Carter and director Dennis Moore, he is joined on the board by Don Njegovan, vice president of business development at Osisko Mining and Derrick Weyrauch, who has served as CFO of Jaguar Mining and several junior exploration companies.

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