Brazil Resources To Acquire Cachoeira Project

VANCOUVER - Brazil Resources Inc. has entered into a definitive share purchase agreement with Luna Gold Corp. to acquire all of the issued and outstanding shares of Luna Gold (International) Corp., a wholly-owned subsidiary of Luna, which owns an indirect 100% interest in the Cachoeira gold project in Parç State, Brazil.

Amir Adnani, Chairman of the Company, stated: "We are very pleased to announce the Agreement to acquire the Cachoeira Project, with its substantial prior exploration and mineral resource estimate. This will make the Company's fourth and most advanced project in the prolific Gurupi Gold Belt, with similar geology and lying on-trend and 85 km. northwest of the other three projects. The acquisition is consistent with the Company's strategy to increase its exposure in this richly endowed mineral province."

Steve Swatton, President and CEO, added, "The geological team here is qualified and standing by to get on-site, and to start developing this resource with additional definition drilling, extension drilling, initial economic studies and licensing. It should be noted that all or most of the greenstone-hosted resource is near-surface and is believed to be open-pittable, with substantial room for growth laterally and to depth."

The Cachoeira Project is located on the Gurupi Gold Belt, approximately 220 kilometres southeast of the Parç State capital of BelÄm and about 270 kilometres northwest of the port city of Sïo Luis, Maranhïo State. The Cachoeira Project comprises one contiguous block consisting of two mining and three exploration licenses covering approximately 4,742 hectares. Between 1985 and 2008, Luna and prior operators, completed drilling programs at the Cachoeira Project consisting of 183 diamond core holes (23,263 m), 94 RC holes (6,732 m), eight combined diamond/RC holes (1,307 m), and 488 auger holes (5,798 m) for a total of 773 holes drilled (37,100 m).

Luna previously completed a National Instrument 43-101 ("NI 43-101") technical report respecting the Cachoeira Project dated February 3, 2011, which was prepared by Scott Wilson Roscoe Postle Associates Inc. and entitled "Technical Report on the Cachoeira Project, Para State, Brazil."