CALGARY, AB, Aug. 17, 2023 - Tucano Gold Inc is pleased to announce that it has entered into a Definitive Agreement to acquire 100% of the shares of Mina Tucano Ltda and 100% of the shares of Tucano Resources Mineração Ltda, each for a consideration of BRL1.00, along with the submission of a proposed payment plan to Mina Tucano's creditors which, if approved and confirmed by the court, will see operations resume in Q4´23 and make Mina Tucano the largest employer in the state of Amapá, Brazil.

Purchased by Great Panther Mining Ltd in 2019, Mina Tucano holds a 100% interest in the Tucano gold mine hosted on a 1,973 square kilometre land package on the highly prospective Vila Nova Greenstone Belt of the Guyana Shield. The operation includes a state of the art 3.5 Mtpa CIL plant and has produced over 1.5 million ounces since it was opened in 2005.

Great Panther published an updated 43-101 report on June 8, 2022, with Proven and Probable Reserves of 12.9Mt at 1.59 g/t for 656,000 ounces. Its M,I &I Resource is 1.8 million ounces with significant scope for expansion.

We are pleased to be working with Mina Tucano´s team lead by Julio Carneiro and Joter Siqueria who have our full support to reopen operations in Q4. We expect Mina Tucano to gradually increase annual production towards 100,000 ounces over the medium term.

Having successfully established Pilar Gold Inc and Laiva Gold Inc, the Tucano Gold team has gained a wealth of experience, giving Mina Tucano access to greater sources of funding and shared technical expertise. With combined mill capacity of 7.3Mtpa, we are on track to achieve 300,000 ounces of annual production from Tucano Gold, Laiva Gold and Pilar Gold by 2025.

Tucano Gold has received strong expressions of interest for its seed financing round that is priced at a fraction of the replacement cost to build such a world class complex today. We believe the time is right to buy a large, long life gold mine like Mina Tucano before the next upward cycle in gold in 2024, and follows Laiva Gold's acquisition of Europe´s largest gold mill in Finland earlier this year.

Investors in the seed round of Tucano Gold will also receive a free share in its exploration spin-out Tucano Gold Exploration Inc in Q1´24. Tucano Gold Exploration will hold arguably the largest and most prospective set of tenements on the Guyana Shield.

We have a strong track record of shareholder returns since our first seed round in Pilar Gold at $0.10 per share in January 2021 (last round $1.00 in November 2022) and believe this round in Tucano Gold will be just as successful as production ramps up and Mina Tucano once again becomes a great success for all stakeholders.

Contact:

Jeremy Gray | CEO of Tucano Gold
Jeremy.Gray@Tucano.Gold
+44 7769 388 376

Edward Balme | Head of IR
Edward.Balme@Tucano.Gold
+44 7514 584 610