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Brazauro to Acquire New Property in the Tapajos Mineral Province, Brazil

Posted on: Tuesday, 5 August 2008, 09:01 CDT

Brazauro Resources Corporation has entered into an option agreement to acquire 100% of the Piranhas property in the Tapajos Mineral Province, Para state, Brazil. The agreement, signed with an individual, covers three claims that total 20,688 hectares.

The Piranhas property lies approximately 20 kilometers southwest of the Company's Tocantinzinho project and is also located within the northwest-trending Tocantinzinho-Cuiu Cuiu gold belt, which hosts the most important gold deposits and garimpos in the province, including Tocantinzinho, Cuiu Cuiu, Palito, Sao Jorge, Sao Domingos, Agua Branca and Bom Jardim. Piranhas is a well-known and traditional garimpo in the Tapajos, having been in production for the last forty years. Unofficial artisanal gold output from this property has been reported as more than 26,000 kilos (836,000 ounces).

Mark Jones, chairman and CEO, said, "We are very pleased to acquire an area that is so clearly highly prospective. We will use the expertise and experience gained at Tocantinzinho to thoroughly explore this new property. With the addition of this property, Brazauro is now one of the three largest mineral interest holders in the corridor controlling more than 120,000 hectares."

To maintain the agreement in good standing Brazauro has the option to make installment payments over a three-year period as follows (R$1 = US$0.638):

-- R$ 18,000 on execution (paid)

-- R$ 22,000 after issue of the exploration licenses and filing of a transfer agreement with the Brazilian mineral authorities

-- Payments every six months thereafter, for the next five six-month intervals, totaling R$315,000, or approximately US$200,000

-- And, if Brazauro still chooses to exercise the option, a final payment of R$ 1,445,000, or approximately US$920,000, thirty-six months after issue of the exploration license and filing of the transfer agreement.

Mark E. Jones III Chairman, CEO Brazauro Resources Corporation

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Certain statements contained in this press release constitute forward-looking statements which are not historical facts and are made pursuant to the "safe harbour" provisions under the United States Private Securities Litigation Reform Act of 1995. When used in this release, words like "anticipate", "believe", "estimate", "expect", "will", "intend" and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are inherently subject to significant business, economic, political and competitive uncertainties and contingencies. Readers are cautioned that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance, achievements or position of the parties to be materially different from the estimated or anticipated future results, performance, achievements or position expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future results, performance, position or achievements. The risks, uncertainties and other factors include, but are not limited to: changes in the worldwide price of gold or certain other commodities (such as fuel and electricity) and currencies;; changes or disruptions in the securities markets; legislative, political or economic developments in the jurisdictions in which the companies carry on business; the occurrence of natural disasters, hostilities, acts of war or terrorism; the need to obtain permits and comply with laws and regulations and other regulatory requirements; the possibility that actual results of work may differ from projections/expectations or may not realize the perceived potential of the company's projects; risks of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in development programs; operating or technical difficulties in connection with exploration, mining or development activities; the speculative nature of gold exploration and development, including the risks of diminishing quantities of grades of reserves and resources; and the risks involved in the exploration, development and mining business.

Brazauro disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

Source: Business Wire

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