Mr. Ian Stalker reports

100% BGC OWNED SAO JORGE PROJECT A UPDATED RESOURCE ESTIMATE INCREASES INDICATED GOLD OUNCES BY 43%

Brazilian Gold Corp.'s updated National Instrument 43-101-compliant mineral resource for the Sao Jorge gold deposit includes 14.23 million tonnes grading 1.18 grams per tonne gold (541,000 ounces) in the indicated category and 27.81 million tonnes grading 0.68 gram per tonne gold (611,000 ounces) in the inferred category at a 0.3-gram-per-tonne cut-off. The estimate incorporates an additional 14,393 metres (38 holes) of diamond drilling completed by Brazilian Gold in 2011 as compared with the previous estimate that was based on 22,762 metres (110 holes) of diamond drilling completed by the previous operators. The mineral resource estimate was completed by Coffey Mining of Toronto, and is documented in an independent National Instrument 43-101 technical report that will be posted on the company's website and SEDAR within 45 days of this news release.

The wholly owned Sao Jorge property (585 square kilometres) is well situated with respect to infrastructure that includes hydroelectric power, a paved highway three kilometres due east of the deposit, and a skilled work force in the nearby town of Novo Progresso located 70 kilometres to the south.

Highlights:

• Indicated ounces have increased by 43 per cent (partly reflecting an 18-per-cent increase in indicated grade) when compared with the previous resource estimate in the 2011 preliminary economic assessment (PEA) by Coffey, both of which were reported at a 0.3-gram-per-tonne-gold cut-off.
• At a 0.5-gram-per-tonne-gold cut-off grade, the indicated gold grade increases to 1.40 grams per tonne gold with a total of 465,000 contained ounces.
• Inferred ounces have increased 9.5 per cent (partly reflecting a 35-per-cent increase in tonnage) when compared with the 2011 PEA.
• Selective mining of internal waste in the deposit and diverting this tonnage to a surface stockpile may result in an increase in the head grade delivered to the process plant.
• Potential robust operating margin suggested by the in situ metal value of $67 (U.S.) per tonne (indicated resource grade of 1.18 grams per tonne and gold price of $1,765 per ounce) and the 2011 PEA operating cost of $16.36 (U.S.) per tonne (note mineral resources that are not mineral reserves do not have demonstrated economic viability).
• An untested 1.5-kilometre-long resistivity plus or minus chargeability anomaly southeast of the Sao Jorge deposit is similar to the geophysical signature over the deposit suggesting potential to find additional zones of gold mineralization to the southeast; potential to find new gold deposits on the largely unexplored Sao Jorge property is considered excellent.

Ian Stalker, chief executive officer of Brazilian Gold, commented: "We are delighted with the results of the updated independent resource estimate on the Sao Jorge deposit. The increase in tonnage and grade of the indicated resource suggests that significantly more ounces will fall within the pit shell as compared to the 2011 PEA, as well as the increase in the inferred ounces that will fall into the same mining inventory.

"In addition, as identified by the recent drilling and more detailed geological interpretation of the deposit, there is potential to increase the overall deposit grade by selectively mining the low-grade internal waste and diverting it to a surface stockpile instead of sending it through the process plant.

"The updated resource numbers along with recently completed metallurgy, power studies, environmental assessments, as well as the depreciation of the Brazilian real will be incorporated in an updated PEA, which should result in substantially better economics than the previous more than acceptable PEA results, and will make the decision to move to production more compelling.

"Finally, with the recently identified geophysical anomaly located directly southeast of the deposit and extending for greater than 1.5 kilometres, the potential to find additional zones of gold mineralization makes us even more confident about the future development of our Sao Jorge project in Brazil."

The Sao Jorge resource estimate is based on 22,762 metres (110 holes) of diamond drilling completed by the previous operators and 14,393 metres (38 holes) of diamond drilling completed by Brazilian Gold since acquiring the project in late 2010. Gold assays (19,590) were composited at one-metre lengths and interpolated into the block model using multiple indicator kriging. A three-dimensional solid model of the primary and oxide mineralization was constructed to constrain the resource estimate. The block model comprises individual blocks measuring five metres by five metres by five metres. The mineral resource estimate (oxide and primary mineralization) at various cut-off grades is shown in the table; the oxide resource makes up a small part (9 per cent) of this overall resource. A preliminary economic assessment on the Sao Jorge deposit was completed in June, 2011, which indicates an economic open-pit cut-off grade of 0.3 gram per tonne gold using a gold price of $1,300 (U.S.) and economic parameters as outlined in the report.

                         SAO JORGE INDICATE AND INFERRED MINERAL RESOURCE 
                         (OXIDE AND SULPHIDE) AT VARIOUS CUT-OFF GRADES

                                   Lower 
                           cut-off grade      Million tonnes   Average grade      Contained gold 
                                 (g/t Au)                            (g/t Au)             (000oz)              

Indicated mineral resource           0.3               14.23            1.18                 541           
                                     0.4               12.00            1.29                 499           
                                     0.5               10.36            1.40                 465           
Inferred mineral resource            0.3               27.81            0.68                 611           
                                     0.4               22.12            0.74                 526           
                                     0.5               18.53            0.78                 467           

The Sao Jorge deposit is approximately 1,400 metres long by up to 200 metres wide and has been intersected in drill holes to 350 metres depth; the deposit strikes northwest and has a subvertical dip. The deposit is hosted in quartz monzogranite and mineralization appears to be spatially associated with a number of discontinuous shear and fracture zones. Alteration minerals included chlorite, epidote, sericite, silica and sulphides that occur along fractures or where the fracture density is high as pervasive alteration. The predominant sulphide is pyrite with minor amounts of chalcopyrite. Gold mineralization is commonly associated with silica-sericite-sulphide alteration and higher gold values are generally associated with higher pyrite content and the presence of chalcopyrite.

Porfirio Cabaleiro, BSc (mining engineer), MAIG, and Hebert Oliveira, BSc (geology), MAIG, are the qualified persons for the National Instrument 43-101 report on the resource estimate of the Sao Jorge gold deposit, and have reviewed and approved the contents of this press release as far as it relates to their work.

Garnet Dawson, MSc, PGeo (B.C.), 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.

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