BrazAlta Resources Corp.

BrazAlta Resources Corp.

October 12, 2005 09:49 ET

BrazAlta Announces $10 to $15 Million Syndicated Brokered Private Placement

CALGARY, ALBERTA--(CCNMatthews - Oct. 12, 2005) - BrazAlta Resources Corp, ("BrazAlta"), (TSX VENTURE:BRX) is pleased to announce that is has entered into an agreement with a syndicate of underwriters, led by Research Capital Corporation and including Dundee Securities Corporation and Westwind Partners Inc., to raise $10,000,000 on a best efforts basis with an option to increase the offering size ("Offering") to $15,000,000.

BrazAlta will issue units at a price of $0.60 per unit, with each unit consisting of one common share and one-half of one common share purchase warrant. Each whole warrant will be exercisable for a period of 18 months following the closing of the Offering and will entitle the holder thereof to acquire one additional common share of BrazAlta at a price of $0.80 per share. The securities will be subject to a four-month hold period.

BrazAlta plans to use the net process of this Offering to fund its development and exploration activities in the Reconcavo area, in Bahia, Brazil. BrazAlta has signed an agreement to acquire a 47.50% working interest in four land blocks, ("Blocks"), in Brazil known as the Reconcavo area. Collectively these Blocks produce 300 barrels of oil per day and comprise of 160 sq. km of land located in central eastern Brazil.

The Reconcavo area is in the State of Bahia, Brazil, and is approximately 50 km Northwest of the City of Salvador and the Atlantic Ocean. The area has 12 producing oil wells and 40 suspended wells. These Blocks have been in production since 1981 and to date have produced in excess of 2 million bbls of light sweet oil (approximately 40 degree API) and have extensive pipeline and road infrastructure. BrazAlta also acquires a 47.50% working interest in two oil batteries each with 1,500 barrels per day of capacity.

Tracy Hecker has been appointed as Chief Financial Officer of BrazAlta and Al Albertson has been appointed Vice President, Exploration.

The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approval and is expected to close on or about November 7, 2005.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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