BGC Brazilian Gold Corporation

Brazilian Gold Corporation (TSX VENTURE:BGC) ("Brazilian Gold" or the "Company")
is pleased to announce they have started a diamond drill program at their wholly
owned, highly prospective Rio Novo gold project ("Rio Novo" or "Project")
located 91 kilometres south of Morais de Almeida along the Transgarimpeiro
highway in Para state, northern Brazil. Please click this link
http://www.braziliangold.ca/projects/map.html for the Project Location Map.


This Project is within a cluster of projects under the ownership of the Company
that management believes will have significant synergies (logistics, management,
etc.) with its Sao Jorge project. At Sao Jorge, a +800,000 ounce NI43-101
compliant resource has been defined and drilling is underway with the intention
of adding to this resource (see News Release 1/11, January 18, 2011). A
Preliminary Economic Assessment (PEA), under the management of the highly
respected independent engineering firm of Coffey Mining, has recently commenced
on the Sao Jorge project.


The drill program will test auriferous stockwork mineralization and an
associated chargeability anomaly outlined in a geophysical survey that was
completed in December, 2010. The Company has contracted two diamond drill rigs
and budgeted 2,500 metres for this program.


The Rio Novo gold project consists of five exploration concessions for a total
area of 44,576 hectares. The Project covers a number of garimpeiro workings and
exploration targets including the Jau target. The Jau target consists of
quartz+sulphide stockwork mineralization that is exposed in a garimpeiro pit.
The mineralization is greater than 50 metres wide and historic grab samples (25
samples) of the quartz+sulphide veins returned several grams to 10's of
grams/tonne gold and intervening altered granite commonly grades from less than
1 to 2 grams/tonne (Table 1). The mineralization strikes east-west and dips
steeply. 




Table 1: Examples of selected grab samples from the Jau pit.               
---------------------------------------------------------------------------
Sample No.                      Gold grams/tonne(i)                 Comment
---------------------------------------------------------------------------
RNK-1                                         0.82          Altered granite
---------------------------------------------------------------------------
RNK-6                                        12.81       Quartz-pyrite vein
---------------------------------------------------------------------------
RNK-13                                        1.26       Quartz-pyrite vein
---------------------------------------------------------------------------
RNK-18                                      107.10       Quartz-pyrite vein
---------------------------------------------------------------------------
RNK-24                                        0.06          Altered granite
---------------------------------------------------------------------------





(i) The reader is cautioned that the grab samples are historic in nature and
have not been verified by Brazilian Gold Corporation.                       



An induce polarization survey completed along strike of this mineralization has
identified a strong chargeability anomaly that is 1,400 metres long by up to 400
metres wide and extends from surface to greater than two hundred metres depth.
The drill program will test below the Jau pit and its associated chargeability
anomaly along strike. Assay results from this drill program will be released as
they are received and once they have been verified by the Company's geologists. 


The Rio Novo project fits with the Company's strategy of identifying high
quality exploration projects that are road accessible (ranch land), close to
electrical transmission lines and adjacent to the Company's development stage
Sao Jorge project. The Company has five exploration projects (Pista Manual,
Surubim, Rio Novo, Ouro Mil and Santa Julia) within a 100 kilometre radius of
Sao Jorge, which will allow for lower cost exploration and development, and may
provide synergies whereby product from more than one project are trucked to a
central processing facility.


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 Corporation is a Canadian based public company with a focus on
acquisition, exploration and development of mineral properties in northern
Brazil. The Company has a portfolio of ten grass-roots to development stage gold
projects (8 projects in the Tapajos and 2 projects in the nearby Alta Floresta
Gold Province) with drill programs (4 drill rigs) currently underway on the Sao
Jorge and Rio Novo projects. The Company has also recently completed a Phase One
drill program (13 holes in 1,188 m) on the Boa Vista project in January 2011;
the assay results are pending and a review underway in conjunction with our JV
partner to further define targets for a second phase drilling campaign.


The Sao Jorge development project hosts an NI 43-101 indicated resource of
343,000 ounces (8.3Mt grading 1.3 g/t gold) and an inferred resource of 458,000
ounces (12.6 Mt grading 1.1 g/t gold) using a 0.5 gram/tonne cut-off (Coffey
Mining, Sept. 14, 2010). The Company has commissioned Coffey to complete a
Scoping Study or Preliminary Economic Assessment (PEA) that will look at various
development and production scenarios to determine the economic viability of the
project. The study is expected to be completed in April 2011 and will include an
updated resource estimate incorporating new drill holes completed by Brazilian
Gold. Dependent on project economics, the Company plans to embark on a
pre-feasibility/feasibility study soon thereafter.


Brazilian Gold owns a 75% interest in the Rea Uranium Project in northeastern
Alberta, which is currently being operated by AREVA, who are earning up to a 50%
interest by completing an additional Cdn$2.84 million in expenditures by Dec.
31, 2013. 


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.

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