Brazauro Drills 258 Meters of 2+ G/T Gold at Tocantinzinho in Brazil; Initiates Independent Scoping Study.

HOUSTON -- Brazauro Resources Corporation (TSX VENTURE:BZO) is pleased to announce the results of an additional eight core holes out of a total of 18 holes that have been completed this year at the Company's Tocantinzinho ("TZ") Gold Project in Brazil. The Company has drilled a total of 65 core holes at TZ for a total of 16,126 meters.

The current program was designed to fill in some of the gaps in the main deposit, to delineate possible southeasterly and northwesterly extensions of the main deposit and to test three outlying targets to the southeast. Drilling of the outlying targets consisted of nine holes.

In addition, based on the positive results to date and the coherent distribution of mineralization in the main deposit, Brazauro has decided to contract an independent engineering firm to commence a scoping study to assess the economics of this project.

Drilling Results

Complete assay results have been received for eight core holes, confirming continuous mineralization within the previous gaps within the center of the main deposit, including the outlining of a high-grade core comprising the southeastern half of the main deposit. This high-grade core stretches over an area of approximately 300 x 80 meters in size and is still open-ended at a depth of +250 meters. The results will enhance the inferred resource that is already more than two million ounces of gold, and improve the ratio of indicated to inferred resources significantly.

The following results were received:

[TABLE OMITTED]

The results from holes TOC-58, -59 and -63 have closed off the extension of the main deposit to the southeast. Drilling to the northwest continues with holes TOC-66, -67, 68 and 69.

Outlying Targets

A total of nine core holes were drilled at three targets outside of the main TZ deposit. Except for two holes at the Jesse Garimpo that encountered two mineralized zones of 75.8 m @ 0.33 g/t Au and 5.8 m @ 1.01 g/t Au, no significant zones of mineralization to the southeast were encountered. Exploration outside the main TZ deposit is now focusing on soil sampling the contact area between two granitic intrusions to the southeast of TZ, as well as the continuation of the shear zone to the northwest. Based on the results of this sampling program, the Company may initiate additional drilling in the near-term.

Engineering Scoping Study

Brazauro is requisitioning in an independent, preliminary scoping study at TZ based on the continuation of strong mineralization within the main TZ deposit, the surface expression of the mineralization, the existence of the high-grade core with grades above 2 g/t Au and the free milling nature of the mineralization. This study will examine the economics of a potential mining operation in this area and will include cost estimates for improving the infrastructure including power and access. Results from this study are anticipated this year.

Drill core samples are collected by Brazauro's experienced geotechnicians under supervision of Brazauro's qualified geological staff on site. All reported assays and chemical analyses are made by SGS-Geosol Laboratories of Belo Horizonte, Brazil, and are handled in the same manner as previously announced.

The content of this release has been reviewed and approved by Stephen Zahony, consultant to the Company and a Qualified Person.

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. The news release includes certain "forward-looking statements." All statements other than statements of historical fact included in this release, including, without limitation, statements regarding potential mineralization, exploration results and future plans and objectives of Brazauro Resources are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Brazauro's expectations are exploration risks detailed herein and from time to time in the filings made by the Company with securities regulators.