Brazilian Gold Corporation. : Brazilian Gold Commences Phase Two Drill Program on the Batistão Project

Further to its successful Phase One drill program (News Release 12/12, May 30, 2012), Brazilian Gold Corporation (TSXV: BGC) is pleased to announce the start of the Phase Two drill program on its wholly owned Batistão project located approximately 30 km southwest of the town of Peixoto de Azevedo in Brazil's northern Mato Grosso state. This region was the focus of a gold rush in the 1980's where 5 million ounces of unofficial production, mostly from shallow alluvial and laterite workings, is reported to have taken place. The region benefits from excellent infrastructure including road access, electrical power and the availability of a local skilled workforce.

Ian Stalker, CEO of Brazilian Gold, commented "We are delighted the Phase One drill program confirmed the results of the historic drilling on the Batistão project and contingent on the results of the Phase Two program expect to be in a position to complete an initial resource estimate on this deposit soon after the drill program is completed. Resources from this project will add to the two gold discoveries (Jau deposit - Surubim project and VG1 deposit - Boa Vista project) by Brazilian Gold and subsequent resource estimates, as well as the expansion and upgrading of gold resources on the Company's flagship São Jorge project in 2011. In a relatively short time period, the Company has increased its global gold resource ounces by 114% and indicated resource ounces by 43%."

Batistão Phase Two Program

• The Phase Two drill program (900 m) will follow up on encouraging results intersected in the Phase One program that included 20 m grading 2.02 g/t gold within a larger interval of 43 m grading 1.10 g/t gold (BTD-003-12).
• The program is designed to infill the current 200 m spaced sections to 100 m spacing from surface to approximately 100 m depth along the eastern part of the deposit (500 m strike length).
• The deposit is coincident with a gold-in-soil anomaly that is approximately 2,000 m long and open in both directions.
• Concurrent with the drill program, a small soil sampling program will be completed to close off the gold-in-soil anomaly along strike.

The Batistão target was previously explored by a major Australian mining company from 1992 to 1995. The gold mineralization was discovered during a regional stream sediment program and was delineated by soil sampling, geophysics, auger drilling (109 holes in 762 m) and short reverse circulation (RC) drill holes (24 holes in 1,287 m). The program outlined a west to northwest trending gold-in-soil anomaly that is over 2,000 m in length. Short RC holes tested 500 m of this strike length to a depth of approximately 50 m; the mineralized zone is up to 30 m thick and is open in all directions. Gold mineralization is associated with sericite-silica-sulphide altered granitic rocks; sulphide minerals include pyrite (<5%) and minor chalcopyrite.

Garnet Dawson, M.Sc., P.Geo. (British Columbia), Vice President, Exploration for the Company and a Qualified Person, as defined by National Instrument 43-101, has reviewed and approved the technical disclosure contained in this News Release.

About Brazilian Gold Corporation

Brazilian Gold is a Canadian-based public company with a focus on the acquisition, exploration and development of gold properties located in northern Brazil. The Company has title to one of the largest mineral exploration land packages (3,753 km²) in the Tapajós and adjacent Alta Floresta gold provinces. The land package contains green fields to more advance stage projects including the Company's flagship São Jorge project. Rapid improvements to regional infrastructure continue to provide underlying support to Brazilian Gold's activities in northern Brazil.

Resource Inventory

Brazilian Gold has a resource inventory of 541,000 ounces of gold grading 1.18 g/t gold in the indicated category and 1,497,000 ounces of gold grading 0.79 g/t gold in the inferred category at a 0.3 g/t cut-off that is hosted in three deposits (Table 1).

Table 1: Brazilian Gold 2012 Global Resource at a 0.3 g/t cut-off.
Project				Deposit				Classification				Cut-off Grade (g/t)				Tonnage				Grade (g/t)				Ounces
São Jorge				São Jorge				Indicated				0.3				14,230,000				1.18				541,000
								Inferred				0.3				27,810,000				0.68				611,000
Surubim				Jau				Inferred				0.3				19,440,000				0.81				503,000
Boa Vista				VG1				Inferred				0.3				12,130,000				0.98				383,000
				All deposits				Indicated								14,230,000				1.18				541,000
				All deposits				Inferred								59,380,000				0.79				1,497,000

At a 0.5 g/t cut-off, the resource inventory is 465,000 ounces grading 1.40 g/t gold in the indicated category and 1,212,000 ounces grading 0.97 g/t gold in the inferred category (Table 2).

Table 2: Brazilian Gold 2012 Global Resource at a 0.5 g/t cut-off.
Project				Deposit				Classification				Cut-off Grade (g/t)				Tonnage				Grade (g/t)				Ounces
São Jorge				São Jorge				Indicated				0.5				10,360,000				1.40				465,000
								Inferred				0.5				18,530,000				0.79				467,000
Surubim				Jau				Inferred				0.5				11,960,000				1.06				409,000
Boa Vista				VG1				Inferred				0.5				8,470,000				1.23				336,000
				All deposits				Indicated								10,360,000				1.40				465,000
				All deposits				Inferred								38,960,000				0.97				1,212,000

Some statements in this news release contain forward-looking information, including without limitation statements as to planned expenditures and exploration programs. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include without limitation the completion of planned expenditures, the ability to complete exploration programs on schedule and the success of exploration programs.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or the accuracy of this news release.

Brazilian Gold Corporation
Ian (John) Stalker, CEO and Director
Joanne Yan, President and Director
[phone]
or
Investor Relations
Renmark Financial Communications Inc.
Peter Mahzari: [e-mail]
Laurence Lachance: [e-mail]
Tel: [phone] or [phone]
www.renmarkfinancial.com