Mr. Ian Stalker reports

BRAZILIAN GOLD'S OUTLINES 503,000 OUNCES OF GOLD IN THE FIRST RESOURCE ESTIMATE AT THE JAU TARGET(SURUBIM GROUP), NORTHERN BRAZIL

Brazilian Gold Corp. has released the results of the first National Instrument 43-101-compliant mineral resource estimate on the Jau target (Surubim group) in the Tapajos region of northern Brazil. Brazilian Gold discovered gold mineralization at the Jau target in the first quarter of 2011.

The inferred mineral resource for the Jau mineralization is 19.44 million tonnes grading 0.81 gram per tonne gold (503,000 contained ounces) at a cut-off of 0.3 g/t. The mineral resource estimate was completed by Giroux Consultants Ltd. of Vancouver, B.C., Canada, and is documented in an independent National Instrument 43-101 technical report that will be posted on the company's website and on SEDAR. The Jau target is located approximately 65 kilometres southwest of the company's advanced-stage Sao Jorge project and is accessed by the Transgarimpeiro Highway.

Highlights

• Initial independent National Instrument 43-101-compliant mineral resource estimate for the company's new (2011) discovery at its 100-per-cent-owned Jau target, Tapajos region, Brazil;
• Declared inferred mineral resource of 19.44 million tonnes grading 0.81 g/t gold (503,000 ounces) at a cut-off of 0.3 g/t;
• At a higher cut-off grade of 0.8 g/t gold, the inferred mineral resource is 6.66 million tonnes grading 1.42 g/t gold (303,000 ounces);
• Mineralization is open at depth and to the west, with potential to expand the existing resource;
• Small area of project explored to date with excellent potential for discovery of new gold mineralization;
• Jau target shares exploration and development synergies with nearby targets (Patoa, Colonia and Tucunare) as well as the Sao Jorge project;
• Builds on the company's stated objective of identifying road-accessible, near-surface, bulk-minable deposits that could potentially be processed at a central processing facility, or alternatively developed as a stand-alone operation.

Ian Stalker, chief executive officer of Brazilian Gold, commented: "We are delighted with the results of the first, independent NI 43-101 mineral resource estimate on the Jau target, completed only one year after intersecting gold mineralization in our first holes on this target. This achievement highlights the quality of our work and diligence, and underlines the potential for large-scale gold mineralization across our extensive land package in Brazil.

"The mineralization is open at depth and to the west, which will be the focus of future drill programs. The resources identified at Jau will further add to our overall gold inventory when resource estimates currently in progress on the Sao Jorge and VG1 (Boa Vista project) deposits are completed in Q3 [third quarter] 2012."

Twenty drill holes containing 2,978 gold assays have been completed on the project. Gold assays were composited at 2.5-metre lengths and interpolated into the block model using ordinary kriging. A three-dimensional solid model of the mineralization was constructed to constrain the resource estimate. The block model comprises individual blocks measuring 20 metres by 20 metres by five metres with the long dimensions of the block orientated east-west and north-south. The mineral resource estimate at various cut-off grades is shown in the accompanying table. At this time, no economic studies have been completed on this property, and as a result the economic cut-off is unknown. A gold cut-off of 0.3 g/t has been highlighted as a possible open pit cut-off.

     JAU INFERRED MINERAL RESOURCE(1) AT VARIOUS CUT-OFF GRADES

Au cut-off         Tonnes     Cut-off grade    Cut-off contained metal
(g/t)                               (g/t Au)                    (oz Au)

0.10           41,780,000              0.47                    627,000
0.15           32,590,000              0.56                    590,000
0.20           25,940,000              0.66                    554,000
0.25           21,920,000              0.75                    525,000
0.30           19,440,000              0.81                    503,000
0.40           15,230,000              0.93                    456,000
0.50           11,960,000              1.06                    409,000
0.60            9,520,000              1.20                    366,000
0.70            7,750,000              1.32                    329,000
0.80            6,660,000              1.42                    303,000
0.90            5,790,000              1.50                    279,000
1.00            4,880,000              1.60                    252,000
1.10            3,910,000              1.74                    219,000
1.20            3,080,000              1.90                    188,000
1.30            2,510,000              2.05                    165,000

Note to table

1. According to National Instrument 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) (2005), an inferred mineral resource is that part of a mineral resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, workings and drill holes. Due to the uncertainty that may be attached to inferred mineral resources, it cannot be assumed that all or any part of an inferred mineral resource will be upgraded to an indicated or measured mineral resource as a result of continued exploration. Confidence in the estimate is insufficient to allow the meaningful application of technical and economic parameters or to enable an evaluation of economic viability worthy of public disclosure.

The 2011 drill program was designed to test an east-west-trending chargeability and magnetic anomaly that was coincident with auriferous quartz-sulphide veins exposed in a historic garimpeiro pit. Twenty drill holes (5,950 metres) were completed on 10 sections (7900E to 8800E) spaced 100 metres apart. The holes were drilled toward the north or south at minus 55 to minus 60 degrees.

The drill holes intersected an east-west-striking, steeply dipping mineralized zone hosted in felsic volcanic (ignimbrites) and granitoid rocks. The mineralized zone is up to 70 metres thick and comprises quartz-plus-calcite-plus-sulphide veinlets with envelopes of sericite-silica-pyrite. Sulphides include pyrite, sphalerite, galena and chalcopyrite. Drilling has delineated the zone over a strike length of 700 metres and up to 250 metres below surface. The zone is open at depth and to the west.

Laboratory procedures

Drill core in this program is sampled at three-metre 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 Cuiaba, 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.

Jim Cuttle, BSc, PGeo, and Gary H. Giroux, MASc, PEng, are the qualified persons for the National Instrument 43-101 report on the resource estimate of the Jau target, and have reviewed and approved the contents of this press release.

We seek Safe Harbor.