SOURCE: Brazil Gold Corp.

February 16, 2011 09:00 ET

Brazil Gold Arranges $5 Million Bridge Financing Facility

BELLEVUE, WA--(Marketwire - February 16, 2011) - Brazil Gold Corp. (OTCBB: BRZG) ("Brazil Gold"), a precious metals exploration company focused on Brazil, today announced that it has entered into a bridge financing arrangement with a US-based private company for up to $5,000,000 in funding.

"This arrangement to fund the Company for up to $5,000,000 allows us to continue with implementation of our exploration strategy. This facility is an indication of confidence in the future of our projects and will help ensure the future growth of the Company," stated Mr. Phillip Jennings, President of Brazil Gold. "The exercise price of the convertible notes at between $1.00 and $1.50 per share also demonstrates the lender's confidence in the Brazil Gold team to provide results through the Company's program," added Mr. Jennings.

The agreement provides Brazil Gold the right to call upon funds for up to $5,000,000 by issuing notes to the lender convertible into shares of the Company's common stock at prices ranging between $1.00 and $1.50 per common share. The securities to be issued under the agreement will not be registered under the Securities Act of 1933 and may not be offered or sold in the United States absent a registration or an applicable exemption from the registration requirements.

Forward-Looking Statements
Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Words such as "expects," "intends," "plans," "may," "could," "should," "anticipates," "likely," "believes" and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management. The statements by our officers, and other statements regarding: optimism related to the business; expanding exploration and development activities; conversion of an LOI into, and completing, a binding agreement for mineral project acquisitions; as well as the prospects, forecasts and projections for such mineral projects under LOI or owned; and other statements in this press release are forward-looking statements. Such statements are based on current expectations, estimates and projections about the Company's business. Actual results could vary materially from the description contained herein due to many risk factors that affect the industry the Company operates in and other risk factors listed from time to time in the Company's Securities and Exchange Commission (SEC) filings under "risk factors" and elsewhere. The forward-looking statements contained in this press release speak only as of the date on which they are made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.

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