BrazAlta Resources Corp.
TSX VENTURE : BRX

BrazAlta Resources Corp.

November 30, 2006 09:00 ET

BrazAlta Resources Corp. Announces Successful Round 8 Brazil Land Auctions Subject to Final ANP Approval

CALGARY, ALBERTA--(CCNMatthews - Nov. 30, 2006) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

BrazAlta Resources Corp. (TSX VENTURE:BRX) ("BrazAlta") is pleased to announce that the Agencia National De Petroleum, ("ANP"), Brazil's National Petroleum Agency has awarded BrazAlta 2 onshore blocks and W.Washington Empreendimentos E. Participacoes Ltda., BrazAlta's joint venture partner, 1 onshore blocks, combined for a total of 3 blocks. Each block represents approximately 180 square kilometers.

The Blocks were acquired in Round 8 are known as Blocks 161, 172 and 177 in the Tucano Basin area of Central Eastern Brazil. These blocks are exploration blocks which are for a total of three years.

Brownstone Ventures Inc ("Brownstone") also was awarded two onshore blocks in the Round 8 auction. The Brownstone Blocks acquired in Round 8 are known as Blocks 131 and 132 in the Tucano area of Central Eastern Brazil. These blocks are also 180 Square Kilometer exploration blocks which are for a total of three years.

BrazAlta and W.Washington and Brownstone also wish to announce that they have entered into an agreement (the "Agreement") pursuant to which BrazAlta, W.Washington and Brownstone will co-operate on the ownership and development of the combined five blocks awarded in the recent Round 8 land auctions. The Agreement involves Brownstone paying the initial commitments for all Round 8 Concessions to a maximum of USD$2.5 million, obtained by BrazAlta, W.Washington and Brownstone and the parties have agreed to allocate the ownership of the Round 8 Concessions obtained by the parties as to 50% to Brownstone and 50% to BrazAlta and W.Washington. BrazAlta and W.Washington will also have the right to earn a further 50% of Brownstone's interest by satisfaction of 100% of the work commitments on the five Concessions awarded.

About Round 8

The Brazilian National hydrocarbons regulator ANP has awarded 38 explorations blocks offered in the Round 8 Hydrocarbon licensing round known as Round 8. However, a federal judge in Brasilia on Tuesday afternoon of November 28,2006 issued an injunction suspending the auction after a congresswoman of the governing Workers Party, had challenged a rule of the auction that limits the number of bids each company is allowed to place at the auction.

The ANP, has made a statement on November 29, 2006 saying that it was not successful in overturning the suspension of the Round 8 auction and, as a result, has declared the auction ended. The ANP still expects to overturn the injunction.

"We regret this. We think the (judicial) process is incorrect," ANP President Haroldo Lima said. "We know some companies have prepared themselves months for this."

At this time it is unclear whether the awarded licenses will continue to be valid after the suspension of the auction. During previous Round's Brazil's oil block auctions have been challenged in the courts, with ANP having success to overturn any judicial actions against them.

BrazAlta is a publicly traded Canadian based international oil and gas corporation with operations in Brazil, Northern Ireland and Canada.

This press release may contain statements within the meaning of safe harbour provisions as defined under US Laws and Regulations. The above statements are based on the current expectations and beliefs of BrazAlta's management and are subject to a number of risks and uncertainties that may cause the actual results to differ materially from those described above. BrazAlta does not undertake any responsibility with regard to the accuracy of this press release nor the obligation to update the abovementioned information.

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

Contact Information

  • BrazAlta Resources Corp.
    David R. P. Mears
    President & CEO
    (403) 561-1648
    Email: dmears@brazalta.com