Gold Mineralization Intersected At The Butia Deposit

TORONTO - Lavras Gold Corp. reported on 18 new drill holes testing the Butiá Gold Deposit, located at the western edge of the LDS Project in southern Brazil. Gold mineralization was intersected in all 18 holes reported at Butiá, which hosts a Mineral Resource Estimate of 377,000 ounces of gold in the Measured and Indicated categories and 115,000 ounces of gold in the Inferred category. Several of these 18 new holes returned more than 100 metres of continuous gold mineralization characterized by higher-grade subintervals. Several holes were designed to increase the confidence in the Butiá gold resource (converting the Inferred Resource into the Measured & Indicated categories) and others to potentially increase the gold endowment.

These new drill results and initiatives continue to move Lavras Gold toward its short-term corporate goal of defining an economically feasible gold resource on the LDS Project, focused on the Butiá Gold Deposit and the adjacent Fazenda do Posto gold target.

"In addition to making new discoveries in this highly prospective gold district, our short-term goal remains the delineation of an economically feasible gold mine on the LDS Project. The results from this new round of drilling are critical to our understanding of the Butiá Gold Deposit and the northeast/southwest trending structures that play a significant role in the pattern and nature of mineralization at Butiá and, ultimately, the 'mineability' of the deposit," commented President & CEO Michael Durose.

"The new drilling results continue to demonstrate the excellent near-surface gold grade and continuity of the Butiá Gold Deposit. Long continuous intervals of gold mineralization over more than 100 metres typically with higher-grade subintervals and beginning at or near surface confirm the bulk-tonnage nature of Butiá. This drilling has also significantly increased our depth of understanding of the geological controls to mineralization. Part of the on-going drilling program at Butiá is testing the potential for extensions to mineralization based on our increasingly more detailed and evolving geological model. We have also initiated a detailed metallurgical testing program for Butiá as part of the overall derisking strategy for the project.

An update of drilling results for Fazenda do Posto target is expected as soon as final assay results are received and the geological interpretation is completed. Drilling is on-going in this area as well as to the north on the Caneleira Concession, where we made our most recent discovery, Olaria."