Significant upside in Brazil adjacent to Eldorado Gold May 2017
Disclaimer The material presented herein is private and confidential. The contents are not to be reproduced or distributed to any third party, including the public or press. Certain statements contained in this presentation constitute forward-looking statements. These statements relate to future events or the Corporation's future performance, business prospects or opportunities. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect, "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Corporation believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. These statements speak only as of the date specified. The Corporation does not intend, and does not assume any obligation, to update these forward-looking statements. These forward-looking statements involve risks and uncertainties relating to, among other things, results of exploration activities, the Corporation's limited experience with development-stage mining operations, uninsured risks, regulatory changes, defects in title, availability of materials and equipment, timeliness of government approvals, changes in commodity and, particularly, gold prices, actual performance of facilities, equipment and processes relative to specifications and expectations and unanticipated environmental impacts on operations. Actual results may differ materially from those expressed or implied by such forward-looking statements. 2
Introducing A New Brazilian Gold Explorer Cabral Gold Inc. (TSXV – SAO) Solid Assets Experienced RTO and Financing Management and Board Expected to Close in June • Primary project: Cuiú Cuiú 2017 • Widespread artisanal workings • Alan Carter • $22MM spent • Paul Hansed • ~ 34.5MM shares outstanding • 1.3MM oz gold resource (2011 • Charles Oliver • Est. $20.7MM market cap historic) • Dennis Moore • $7MM cash • 48km of drilling (22km after • Derrick Weyrauch • Plans to aggressively explore, resource est.) • Don Njegovan define targets and expand • Contiguous to Eldorado’s TZ resource base development gold project • High potential for resource expansion • Many untested targets 3
Experienced Board and Management Management Alan Carter – President and Director: (BSc, PhD in Geology) +25 years of experience in mining, 13 with Rio Tinto + BHP Billiton. Founder and CEO of Magellan Minerals Ltd. Co-owner of 3.5% NSR on Tocantinzinho. Co-founder of Peregrine Metals and Cuprum Resources. Currently a director of Anfield Gold Ltd. (acquired Magellan Minerals in 2016) and Peregrine Diamonds. Paul Hansed – Chief Financial Officer: + 25 years of accounting and finance experience including 19 years with KPMG in Canada and Europe. Previous CFO of Magellan Minerals Ltd. Board of Directors Charles Oliver – Chairman: (CFA, BSc in Geology, AccDir). Former Lead Portfolio Manager for Sprott Gold and Precious Metal Fund, and at AGF Funds, where he managed a variety of funds, including the Precious Metals Fund, Canadian Resources Fund, Global Resources Fund, Growth Equity Fund and Markland Oil sands Sector Fund. Currently a director Klondex Mines Ltd. and Integra Gold Corp. Dennis Moore: (BSc, M Eng) +35 years of experience in mining exploration in Austral-Asia and South America. Discovered Tocantinzinho in 1997 and ultimately drilled off 2.4MM oz for Brazauro Resources. Co-founder and former VP Exploration Magellan Minerals. CEO of a private exploration company focused on Nevada exploration. Co-owner of 3.5% NSR on Tocantinzinho. Derrick Weyrauch: (BA Econ., CPA, CA) +25 years of experience in senior management focused on financing, corporate turnaround and restructuring, strategic planning and M&A transactions. Mr. Weyrauch served as a director of Jaguar Mining from 2013 to 2014, and as CFO until 2016, overseeing its restructuring from CCAA. Prior to that he has been CFO of several junior exploration companies, including Andina Minerals Inc., Temex, and Malbex. Currently a director of Banro and Eco Oro. Don Njegovan: (BSc Mining Engineering, BA) +20 years experience in mining. VP Business Development at Osisko Mining. Former Mining Investment Banker. 4
San Angelo Oil Ltd. (TSXV – SAO) RTO Transaction and Financing Details Business combination agreement by way of three-cornered amalgamation Merger Announced announced May 11, 2017 Merger Terms 0.9 Cabral share per 1 San Angelo share (0.18 post rollback) Expected Close On or around July 10, 2017 Approval of 5:1 roll back by San Angelo shareholders Cabral to have working capital of no less than $3.8MM Terms and Conditions Approval of the amalgamation by Cabral shareholders TSX-V approval $6MM subscription receipt offering of Cabral units converting to San Angelo units. Units to be free trading at closing of the amalgamation. Financing Pricing $0.108 per unit comprising a common share and one half 1-year warrant with a strike of 0.135 and a second half 2-year warrant with a strike of 0.162 (post merger $0.60, $0.75, and $0.90 respectively). 5
Pro-forma Capital Structure and Ownership After RTO and Financing Basic • After RTO and 5:1 roll back • 24.5MM shares basic • 26.3MM shares f.d. • 0.86MM warrants and 0.94MM options all ITM • ~$1.4MM cash and $1.9MM ITM cash • After planned $6MM financing • 34.5MM shares basic Fully Diluted • 47.5MM shares f.d. • 12.1MM warrants and 0.94MM options • ~$6.9MM cash and $7.4MM ITM cash Based on the price of financing Cabral’s market cap would be $20.7MM with an EV of $13.8MM 6
Cuiú Cuiú: Regional Location Tapajos Site of the world’s largest ever gold rush between mid 1970 ’s and mid1990 ’s Largest placer gold province in Brazil. Third largest in world. Estimated to have produced 20-30MMoz of placergold Bom Jardim Cuiu Cuiu Tocantizinho (Eldorado Gold) 2.2Moz Navigable River Highway Anfield Anfield 7
Cuiú Cuiú: Larger Artisanal Footprint than TZ Cuiú Cuiú • 36K ha property 2Moz from streams contiguous and on +1.5MMoz resource to date trend to the northwest ofTZ Airstrip • Cuiú Cuiú reportedly produced 10x the gold of TZ from artisanal workings during the Tapajos road goldrush • Accessible by road and navigableriver Rio Crepori • Serviceable airstrip at the small village of Cuiú Cuiú on the property, population Tocantinzinho 0.2MMoz from ~400 streams 2.2Moz resource 8
Highlights of Previous Cuiú Cuiú Work 1. Successfully identified four significant bedrock sources of several heavily worked steams 2. Maiden resources for two gold zones with combined 2011 resources (43-101 now historic) of 1.3MM oz (in pit), or 1.5MM oz (geological) 3. Metallurgical work returned gold recoveries of 94-97% from conventional grind and CIL cyanidation 4. Two new deposits discovered in 2012; Central North and Jerimum Baixo have not yet been included in resource estimate - both are still open 5. Work was focused on 15% of the property near the village of Cuiú Cuiú 6. Gold in soil anomaly ~18km in length loosely corresponding to structures interpreted from mag 7. Numerous high-grade intercepts outside existing resource in at least six areas 8. Identified many showings, veins and anomalous areas to follow up 9
Location of Known Cuiú Cuiú Deposits • Property geology dominated by a major structure trending to TZ • +98% of previous drilling and +95% of prior expenditures was in the core area near Cuiú Cuiú • Resources (historic) at Central and Moreira Gomes • J. Baixo and Central North drilled after resource calculations 10
Cuiú Cuiú Resources Historic Resources Indicated Tonnes (000) Grade (g/t) Gold Ounces (000) Central 3,400 1.0 100 Moreira Gomez 0 0.0 0 Total 3,400 1.0 100 Inferred Tonnes (000) Grade (g/t) Gold Ounces (000) Central 17,000 0.9 500 Moreira Gomez 14,000 1.5 700 Total 31,000 1.2 1,200 Source: Pincock, Allen & Holt, A. M. McMahon, April 19, 2011: Resource Estimate and Technical Report for the Cuiú Cuiú Project Tapajos Region, North-Central Brazil. NI 43-101 Report Note: Mineral resources are not mineral reserves and do not have demonstrated economic viability. Please note that all figures have been rounded to reflect their appropriate level of accuracy. These resources are constrained by mineable shapes and cut-off grades to meet the requirement that resources must have reasonable prospects for economic extraction. The mineable shapes are either Lerch-Grossman pits or conceptual underground stopes. Resources falling within the pits are reported at cut-off grades of 0.3 gpt Au for fresh rock or 0.4 gpt Au for saprolite. Stope shapes only include blocks above a cut-off grade of 1.3 gpt Au. The cut-off grades consider a gold price of $1,250 per ounce and metallurgical recoveries of 91% for fresh rock and 66% forsaprolite. 11
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