Brazilian Gold Intersects 4 M Grading 8.06 G/T Within a Thicker Interval of 78 M Grading 0.97 G/T Gold at the Boa Vista Project, Brazil

VANCOUVER, British Columbia--(BUSINESS WIRE)--Brazilian Gold Corporation (TSXV: BGC) is pleased to report assay results for the first 5 holes of the Phase Two drill program (approx. 2,500 m) on the VG1 target (Boa Vista project) in the Tapajós region of northern Brazil. Gold mineralization at the VG1 target was intersected by Brazilian Gold and their joint venture partners, Octa Mineração Ltda. and D’Gold Mineral Ltda., in the first quarter of 2011. The discovery hole tested the eastern part of a 2 km long gold in soil anomaly and intersected 1.43 g/t gold over its entire length of 102.3 m and ended in mineralization. The road accessible project is located approximately 170 km southwest of the town of Novo Progresso, which is located along the recently paved BR163 highway.

Highlights

• VGD-009-11 intersected 4 m grading 8.06 g/t gold within a larger mineralized envelope of 78 m grading 0.97 g/t gold.
• VGD-009-11 is located approximately 80 m east of previously reported drill hole VGD-001-11, which intersected 29.6 m grading 3.09 g/t and 13.58 m grading 2.80 g/t gold within a larger mineralized envelope of 102.3 m grading 1.43 g/t gold; VGD-001-11 ended in mineralization.
• The nine holes completed in this program at VG1 have intersected wide intervals of alteration and mineralization over a strike length of 600 m; assays for 4 holes pending.
• Near surface gold mineralization at the VG1 target has the potential to be mined by low cost open pit extraction.
• VG1 target represents one of several highly prospective gold targets identified on the Boa Vista project.
• Induced polarization (IP) survey (approx. 60 line km) is currently in progress.
• IP survey has identified resistivity ± chargeability anomalies coincident with a 2 km long ridge formed by silica veined and brecciated rock at the Planalto target.

Table 1: Drill results from the VG1 target, Boa Vista project.
Hole ID	Section	From (m)	To (m)	Interval (m)*	Au g/t
VGD-006-11	600-VG	50.00	54.00	4.00	1.05
VGD-006-11	600-VG	158.00	186.00	28.00	0.41
VGD-007-11	600-VG	34.00	42.00	8.00	0.42
VGD-007-11	600-VG	74.00	82.00	8.00	2.11
VGD-007-11	600-VG	230.00	261.30	31.30	1.06
VGD-008-11	500-VG	58.50	65.00	6.50	0.75
VGD-009-11	400-VG	92.00	170.00	78.00	0.97
Includes	400-VG	140.00	144.00	4.00	8.06
VGD-010-11	300-VG	89.00	101.00	12.00	0.53
*True thickness uncertain at this time.

Ian Stalker, CEO of Brazilian Gold, commented “The Company is delighted with these encouraging drill results from the Boa Vista project. The VG1 target is developing nicely into a bulk open pit mining scenario evident by the drill intersections received to date along the 2 km long anomaly. The attractive grades and thicknesses reported suggest a positive economic opportunity. It is also positive to note the number and quality of our other targets at the Boa Vista project.

In addition to the current drill program on VG1, we are completing an IP survey over a number of the high priority targets on the project. At Planalto, the survey has identified a number of coincident high resistivity and chargeability targets that underlay the silica veined and brecciated rock that has been mapped on surface for a distance of over 2 km. Once the drilling has been completed at VG1, the drill will be moved to Planalto to test this high priority target before demobilizing the drill rig to the Batistão project. The Batistão project is located in the Alta Floresta Gold Province approximately 325 km southeast of the Boa Vista project in northern Mato Grosso state”.

Drill holes reported in this News Release are located on four sections spaced approximately 100 m apart; the drill holes were drilled at azimuth 020° and an inclination of -55°. All drill holes intersected significant thicknesses of alteration and mineralization hosted in foliated granitoid and mafic volcanic rocks.

The VG1 prospect was discovered in May 2010 when coarse visible gold was identified in surface rock samples. Since that time, soil geochemistry and geophysics (IP and magnetics) has outlined an anomaly that is 2 km in length, up to 350 m in width and trends east-west. A follow-up trenching program was completed over the eastern half of this anomaly that included the original discovery area and the highest gold in soil values. The trenching program identified a number of silicified and sulphide (oxide) zones that are meter’s to 10’s of meter’s in width and trend parallel or sub-parallel to the gold in soil anomaly. The Phase One drill program (609 m in 5 holes) comprised of a northeast fence of one vertical hole and three angle holes, which intersected wide intervals of gold mineralization and alteration with the best hole, VGD-001, grading 1.43 g/t gold over its entire length off 102.3 m and ended in mineralization. The current drill program will test seven sections spaced 100 m apart both east and west of the discovery holes.

An IP survey (60 km) is currently in progress over the numerous targets on the project. Recent survey results over the Planalto target has identified resistivity ± chargeability anomalies coincident with a ridge that is underlain by multi-episodic quartz veined, silicified and brecciated rock; the ridge trends north-south and is over 2 km long. Some of these anomalies will be drill tested once drilling has been completed at VG1.

Laboratory Procedures

Drill core in this program is sampled at 3 m or smaller intervals using a diamond saw. One half of the sample is archived and the other half is dispatched to Acme Analytical Laboratories Ltd.’s sample preparation facility in Itaituba, Brazil, where the sample is crushed, split and pulverized to 200 mesh. The pulp is shipped to Santiago, Chile or Vancouver, Canada for gold fire assay. Acme Analytical Laboratories Ltd. is an internationally certified ISO 9001 laboratory.

Drill core in the previous program (VGD-001-11 to VGD-005-11) used Acme Analytical Laboratories Ltd. as well, however pulverized samples were divided into samples less than 150 mesh and greater than 150 mesh fractions. The less than 150 mesh samples were analyzed first and if they returned a value of greater than 0.1 g/t gold, the greater than 150 mesh samples were analyzed. The gold value reported was the weighted average of both fractions.

Garnet Dawson, M.Sc., P.Geo. (British Columbia), Vice President, Exploration for the Company and a Qualified Person, as defined by National Instrument 43-101, has reviewed and approved the technical disclosure contained in this News Release.

About Brazilian Gold Corporation

Brazilian Gold is a Canadian-based public company with a focus on the acquisition, exploration and development of mineral properties in northern Brazil. The Company has title to one of the largest land packages (3,750 km²) in the Tapajós and adjacent Alta Floresta gold provinces. The land package contains green fields to more advance stage projects including the Company’s flagship São Jorge project.

The São Jorge project contains an indicated mineral resource of 11.365 Mt grading 1.0 g/t gold (379,000 ounces of gold) and an inferred mineral resource of 20.673 Mt grading 0.8 g/t gold (558,000 ounces of gold) at a 0.3 g/t gold cut-off (Coffey Mining, June 21, 2011).

Some statements in this news release contain forward-looking information, including without limitation statements as to planned expenditures and exploration programs. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include without limitation the completion of planned expenditures, the ability to complete exploration programs on schedule and the success of exploration programs.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or the accuracy of this news release.