Brazauro Resources Corporation

August 12, 2005 10:02 ET

Brazauro Closes $9,500,000 Financing

HOUSTON--(CCNMatthews - Aug 12, 2005) -

Brazauro Resources Corporation (TSX VENTURE:BZO) is pleased to announce that it has now closed its previously announced private placement of 5,000,000 units at $1.90 per unit for gross proceeds of $9,500,000.

Each unit consists of one share and one half of one share purchase warrant. Each whole warrant will entitle the holder to purchase one additional share of Brazauro at $3.80 for a period of one year. If the shares of Brazauro trade at $4.80 or higher on each trading day during a thirty day period, the exercise period of the warrants will accelerate and holders will have a period of 30 days thereafter to exercise their warrants, failing which they will expire. The shares and warrants comprising the Units are subject to a hold period and may not be traded in British Columbia until December 12, 2005 except as permitted by the Securities Act and the Rules made thereunder and the TSX Venture Exchange.

The proceeds from the private placement will be used to continue the company's drilling and exploration program at its Tocantinzinho and Mamoal Projects in the Tapajos region of Brazil.

The Tocantinzinho and Mamoal projects lie along a major west-northwest to east-southeast mineralized trend in Tapajos that hosts several significant productive garimpos all of which host extensive primary gold mineralization.

"Mark E. Jones III"

Chairman of the Board

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. The news release includes certain "forward-looking statements." All statements other than statements of historical fact included in this release, including, without limitation, statements regarding potential mineralization, exploration results and future plans and objectives of Brazauro Resources, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Brazauro's expectations are exploration risks detailed herein and from time to time in the filings made by the Company with securities regulators.

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