Brazilian Gold Commences Phase Two Drill Program on the Batistão Project

Further to its successful Phase One drill program (News Release 12/12, May 30, 2012), Brazilian Gold Corporation (TSXV: BGC) is pleased to announce the start of the Phase Two drill program on its wholly owned Batistão project located approximately 30 km southwest of the town of Peixoto de Azevedo in Brazil’s northern Mato Grosso state. This region was the focus of a gold rush in the 1980’s where 5 million ounces of unofficial production, mostly from shallow alluvial and laterite workings, is reported to have taken place. The region benefits from excellent infrastructure including road access, electrical power and the availability of a local skilled workforce.

Ian Stalker, CEO of Brazilian Gold, commented “We are delighted the Phase One drill program confirmed the results of the historic drilling on the Batistão project and contingent on the results of the Phase Two program expect to be in a position to complete an initial resource estimate on this deposit soon after the drill program is completed. Resources from this project will add to the two gold discoveries (Jau deposit – Surubim project and VG1 deposit – Boa Vista project) by Brazilian Gold and subsequent resource estimates, as well as the expansion and upgrading of gold resources on the Company’s flagship São Jorge project in 2011. In a relatively short time period, the Company has increased its global gold resource ounces by 114% and indicated resource ounces by 43%.”

Batistão Phase Two Program

• The Phase Two drill program (900 m) will follow up on encouraging results intersected in the Phase One program that included 20 m grading 2.02 g/t gold within a larger interval of 43 m grading 1.10 g/t gold (BTD-003-12).
• The program is designed to infill the current 200 m spaced sections to 100 m spacing from surface to approximately 100 m depth along the eastern part of the deposit (500 m strike length).
• The deposit is coincident with a gold-in-soil anomaly that is approximately 2,000 m long and open in both directions.
• Concurrent with the drill program, a small soil sampling program will be completed to close off the gold-in-soil anomaly along strike.

The Batistão target was previously explored by a major Australian mining company from 1992 to 1995. The gold mineralization was discovered during a regional stream sediment program and was delineated by soil sampling, geophysics, auger drilling (109 holes in 762 m) and short reverse circulation (RC) drill holes (24 holes in 1,287 m). The program outlined a west to northwest trending gold-in-soil anomaly that is over 2,000 m in length. Short RC holes tested 500 m of this strike length to a depth of approximately 50 m; the mineralized zone is up to 30 m thick and is open in all directions. Gold mineralization is associated with sericite-silica-sulphide altered granitic rocks; sulphide minerals include pyrite (