New Gold Deposit Discovered At The LDS Project

TORONTO - Lavras Gold Corp. announced that the LDS Project in southern Brazil discovered a significant new gold deposit at the Matilde target. These results come just two months after Lavras Gold announced bonanza gold grades at Zeca Souza and three months after a NI 43-101 compliant resource for the Cerrito Deposit increased the Company’s consolidated gold resources to 1 million ounces.

“We are very gratified with these results from Matilde,” said Michael Durose, President and Chief Executive Officer. “We are seeing long broad zones of continuous intercepts of important gold mineralization accentuated with multiple narrower higher-grade intervals and in certain instances, bonanza gold grades associated with visible gold. Long continuous zones of gold mineralization both laterally and to a vertical depth of more than 480 meters where it is still open, indicate a very strong and large gold system at Matilde. Our next steps will be to follow up on these results to test for extensions to gold mineralization along strike to the west and to the northeast where we are drilling at Matilde Extension. Work will also focus on better defining the nature of the structures that host the gold, alteration styles associated with mineralization, and their relationship to the large 3-kilometer-long gold in soil anomaly that is centered on the Matilde target.”