Brazilian resources acquires remaining interest in Sabara Gold Property.

CONCORD, N.H.--(BUSINESS WIRE)--June 26, 1997--Brazilian Resources, Inc. ("BRAZILIAN") has acquired William Resources Inc.'s ("William") 50 per cent interest in BW Minera ao Ltda. ("BW"), the Brazilian company that controls the Sabar gold property.

BRAZILIAN now owns a 100 per cent interest in BW and the property.

The Sabar property is located in a major mining district known as the Quadril tero Ferrifero (Iron Quadrangle) which is host to numerous gold deposits in banded iron formations. The concessions cover approximately 6,000 acres abutting Anglo American's Lamego mine, about 40 km east of Belo Horizonte, the capital of the state of Minas Gerais, Brazil.

The property is divided into several exploration zones. Through its subsidiary BW, BRAZILIAN has completed extensive exploration, including diamond drilling, in Zones A and B ("the Core Area") of the property. At the conclusion of the 1996 work program, an independent technical report by Roscoe Postle Associates Inc. of Toronto audited the gold resource estimate for the Core Area prepared by Pearson, Hofman & Associates Ltd. The aggregate gold resource for the Core Area is 5,336,800 tonnes grading 1.8 g Au/t (308,000 oz). Several other significant targets, yet to be fully explored, are not included in the resource calculations.

In December 1996, BRAZILIAN entered into a binding letter agreement with Placer Dome (Brazil) Empreendimentos Ltda. ("Placer"), a subsidiary of Vancouver-based Placer Dome Inc., for Placer to acquire options to earn a seventy percent (70 per cent) interest in the Sabar gold property. Under the terms of the agreement, BRAZILIAN may receive up to US $21,500,000 in option payments over the next two years. BRAZILIAN expects to receive reports on Placer's initial ground work within two weeks.

Under the contract with William, BRAZILIAN has issued a series of 8 per cent debentures totaling US $2,750,000 with maturity dates from February 1997 to June 2001. Two debentures totaling US $200,000 from this series have already been repaid. The US $800,000 debenture in the series is not convertible. Of the remaining two debentures in the series, the US $750,000 debenture is convertible into 2,000,000 common shares of BRAZILIAN at any time, and the US $1,000,000 debenture is convertible into common shares only if the debenture is not repaid by March 1999, at a conversion price of the lower of Cdn. $0.60 per share and the average price of the last ten days prior to the due date.

Additional contingent payments totaling up to US $3,000,000 are to be made to William if certain payments are made to BRAZILIAN by Placer under the option agreement mentioned above. An additional US $1,500,000 8 per cent debenture was issued with conversion terms similar to the US $1,000,000 debenture. This debenture will be cancelled should William become entitled to receive the contingent payments. William will also receive a 2 per cent Net Smelter Royalty payable after the first 50,000 ounces of production from the Core Area, and a 0.6 per cent NSR after the first 100,000 ounces of production outside the Core Area.

BRAZILIAN currently has 35,805,321 common shares outstanding, of which officers and directors control approximately 22 per cent. Conversion of the convertible debentures related to the Sabar contract should not materially affect control of BRAZILIAN.

BRAZILIAN also controls 100 per cent of the mineral rights of its 50,000 acre Cedro Bom property in the Juruena region of the Central Brazil Shield in northern Mato Grosso. In the state of Amapa, BRAZILIAN has acquired the right to purchase 70 per cent of the Santa Maria Mine, a fully permitted operating gold mine located in the Brazilian portion of the Guyana Shield. BRAZILIAN is entering the last 30 days of its 90 day due diligence period regarding the property. Independent consultants have recently completed a scope study, environmental audit and resource calculation, and management anticipates final reports within ten days.

BRAZILIAN is a gold and diamond exploration company and emerging gold producer quoted on the Canadian Dealing network under the symbol "BZIN".

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 or Jeffrey Kirchhoff, 603/224-4800

[e-mail]

http://www.brazilianresources.com