Operator: Cerrado Gold, Inc.

Location: Santa Cruz, Argentina

Royalty: 2.0% NSR (all metals)

Term of Royalty: Life of Mine

Don Nicolas is an open-pit gold mine owned and operated by Minera Don Nicolas S.A., a wholly-owned subsidiary of Cerrado Gold, Inc. (“Cerrado”) and is located in the mineral-rich Deseado Massif in the Province of Santa Cruz, Argentina. Don Nicolas comprises a series of tenements within a greater block of exploration leases totaling some 2,730 square kilometers in area, with mining activities having been carried out on the Martinetas, La Paloma, and Calandrias Norte areas.

Operations at Don Nicolas commenced in 2018 and use a hub-and-spoke model feeding a central mill. Higher-grade ore is processed with a conventional crushing and grinding circuit followed by a carbon-in-leach (CIL) circuit for gold recovery. The rated capacity of the plant is 1,000 tonnes per day, and gold recovery averages over 90%. In mid-2023, Cerrado began placing lower-grade ore on the new Calandrias heap leach pad, and Cerrado expects the addition of the Las Calandrias and Martinetas heap leach projects to add approximately 20,000 to 25,000 ounces per year of gold production over a 5-year period.