Summary of Cerrado Gold Conference Call Company Overview - **Company**: Cerrado Gold - **Project**: Lagoa Salgada, a high-grade polymetallic VMS deposit in Portugal - **Key Personnel**: Mark Brennan (Chairman and CEO), Jason Brooks (CFO), João Barros (President of Cerrado Europe), and others involved in the call Core Industry Insights - **Mining Industry in Portugal**: Lagoa Salgada is recognized as a project of national interest, aligned with the European Union's Critical Raw Materials Act, aimed at securing European supply of critical metals [17][18] - **Economic Impact**: The project is expected to contribute 23% to the local economy, providing high-paying jobs and supporting the community [6][16] Key Points from the Call 1. **Environmental Impact Assessment (EIA)**: - Initial EIA submitted on December 21, 2023, included comprehensive studies and was accepted by the Portuguese Environmental Agency (APA) [7] - The project received a unanimous favorable opinion from the technical evaluation committee, a first in Portuguese mining history [9] - APA later issued an unfavorable opinion based on concerns regarding a deeper aquifer, which was not previously identified [10][11] 2. **Regulatory Challenges**: - The company believes the unfavorable opinion is legally invalid as new technical issues cannot be introduced at this stage [11][12] - Cerrado is pursuing legal avenues to challenge the APA's decision and is engaging with local authorities for resolution [14][15] 3. **Community and Government Support**: - Strong backing from local communities and government officials, including the Secretary of State for Energy, who previously encouraged investment in the project [5][6] - The project has received support from EDM (Portuguese state-owned mining company) and AICEP (Portuguese Trade and Investment Agency) [14][27] 4. **Operational Updates**: - At Minera Don Nicolás, the company aims to produce 50,000-60,000 ounces of gold in 2026, with plans for significant exploration [19][30] - The Mont Sorcier Iron Project is progressing, with a full feasibility study expected in Q2 2026 [20] 5. **Market Position**: - Cerrado Gold is trading at a significant discount compared to peers in the gold sector, despite producing more gold and having similar life-of-mine profiles [19][21] - The company is financially strong with a robust balance sheet and is not solely reliant on the Lagoa Salgada project [18][40] Additional Important Insights - **Legal and Technical Solutions**: The company has proposed effective technical solutions to mitigate concerns raised by the APA, which can be addressed in the next phase of the project [11][36] - **Future Outlook**: The company remains optimistic about resolving the permitting issues and emphasizes the importance of Lagoa Salgada for both the company and the local community [34][40] - **Shareholder Value**: Anticipation of positive near-term developments that could enhance shareholder value, including the recommencement of a normal course issuer bid [22][40] This summary encapsulates the critical aspects of the conference call, highlighting the challenges and opportunities faced by Cerrado Gold in relation to the Lagoa Salgada project and its broader operational strategy.

Core Viewpoint - Cerrado Gold Inc. has received an unfavorable opinion from the Portuguese Environmental Agency regarding the Environmental Impact Assessment for the Lagoa Salgada Project, despite the project being deemed approved due to the expiration of the statutory deadline for a final decision [1][2][9]. Regulatory Context - Under Portuguese law, the APA was required to issue an Environmental Impact Declaration within 50 business days, which lapsed on January 22, 2026, leading to tacit approval of the EIA submitted on November 8, 2025 [2]. - The project has undergone significant improvements based on previous feedback from the APA, addressing concerns raised in May 2025 [6][10]. - The unfavorable opinion from the APA is based on potential risks to the hydrodynamic balance of aquifers, which the company argues were not previously identified and thus should not be grounds for a negative opinion [8][12]. Company Actions - The company is currently reviewing the APA's unfavorable opinion and is engaging with local authorities to seek a resolution that benefits all stakeholders [4][14]. - If constructive engagement does not yield a favorable outcome, the company plans to file a legal claim to enforce the RJAIA and confirm the project's tacit approval [5][14]. Strategic Significance - The Lagoa Salgada Project is recognized as a Project of National Interest by the Portuguese Government and aligns with the EU Critical Raw Materials Act, contributing to the secure supply of critical metals in Europe [5][15]. - The project is a high-grade polymetallic deposit containing zinc, copper, lead, tin, silver, and gold, with significant exploration potential [15][20].