Brazilian Resources Acquires Santa Maria Gold Mine.

CONCORD, NEW HAMPSHIRE--(BUSINESS WIRE)--Sept. 25, 1997-- (CANADIAN DEALING NETWORK: BZIN. ) Brazilian Resources, Inc. ("BRAZILIAN") has purchased a 70 percent interest in the Santa Maria gold mine, a fully permitted, producing open pit operation located in the Brazilian portion of the Guyana Shield within the Vila Nova Group greenstone belt.

Daniel Titcomb, President and CEO of BRAZILIAN explains, "Acquisition of the Santa Maria mine and surrounding property fits our corporate strategy of acquiring gold properties with near term or initial stage production in multi-million ounce geological settings. CCO Mineracao Ltd., our Brazilian partner, brings years of experience and local knowledge to this project. The mine has outstanding access and infrastructure, big geological potential in a greenstone belt, readily upgradeable resources, and will soon contribute cash flow."

Over the last six months, independent contractors and BRAZILIAN personnel have completed extensive due diligence on the 8,345 hectare (20,862 acre) Santa Maria property. This includes a full-site environmental audit, geological report, revised reserve calculation, and a scoping study analyzing the economic feasibility of the project. The open pit heap leach facility, which has produced over 41,000 ounces of gold since 1992, is covered by a federal mining decree, the highest form of mineral rights in Brazil.

BRAZILIAN estimates Santa Maria's current gold resources to be 365,000 oz, of which 150,000 oz (1.95 million tonnes grading 2.44 g Au/t) are classified as minable reserves. This estimate utilizes data from only the 1,400 m pit region, where drilling was limited to shallow depths, and does not include data from the balance of the 9 km shear zone or the conglomerate gold mineralization zones. A drill program will commence immediately in order to upgrade resources and expand reserves. Production of 25,000 oz is expected over the next twelve months at a cash cost of US$240/oz. Significant transportation cost reductions should be realized when a second heap is constructed adjacent to the current pit. Production is scheduled to increase to an annual rate of 35,000 to 40,000 oz by the fourth quarter of 1998.

Pursuant to the US$3.2 million purchase agreement, BRAZILIAN has already paid US$1 million with the remainder due to the vendor in installments over the next three years. BRAZILIAN has assumed management of the mine, and expects to spend an additional US$3.4 million on plant and equipment upgrades and drilling during that period, part of which will be provided by BRAZILIAN's previously announced US$3 million financing agreement with McCarvill Corporation (MCR-TSE). In addition, BRAZILIAN is entitled to 100 percent of the cash flow from production over the next two years.

BRAZILIAN is a gold and diamond exploration company and emerging gold producer quoted on the Canadian Dealing Network under the symbol "BZIN". BRAZILIAN currently has 35,805,321 common shares outstanding, of which officers and directors control approximately 23 percent.

BRAZILIAN's securities have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered, sold or resold in the United States or to a U.S. person absent registration or an applicable exemption from the registration requirements.

CONTACT: Brazilian Resources Inc.

Daniel Titcomb, 603/224-4800

603/228-8045 (FAX)

[e-mail]

http://www.brazilianresources.com

or

Brazilian Resources Inc.

Jeffrey Kirchhoff, 603/224-4800

603/228-8045 (FAX)

[e-mail]

http://www.brazilianresources.com