SOURCE: Brazil Minerals, Inc.

Brazil Minerals, Inc.

December 18, 2015 10:25 ET

Brazil Minerals, Inc. Announces Extinguishment of Its Largest Convertible Debt Note

PASADENA, CA--(Marketwired - Dec 18, 2015) - Brazil Minerals, Inc. (OTC: BMIX) (the "Company" or "BMIX") announced today that its largest convertible debt note, with an original face value of $378,000, has been fully extinguished.

Group 10 Holdings, LLC ("Group 10"), the investor that held this note, had been the largest debt holder in the Company. As of now, Group 10 no longer has any debt of BMIX. 

Currently, besides a note held by St. George Investments, LLC, which is under consideration for acquisition by a long-term oriented investor group, the Company has five variable rate convertible notes outstanding held by other short-term oriented investors and which total $126,611 in principal. One of these notes, for $25,000 in principal, is in discussion for acquisition by a long-term oriented investor group.

The Company considers "short-term oriented" holders those entities that work daily in the business of investing capital into issuers in the form of variable rate convertible debt. These investors, upon conversion of their debt to equity, normally do not remain as equity holders for a significant amount of time.

In contrast, the Company refers to "long-term oriented" holders as those that focus on the operations and potential of the issuer, and disclose to it that, if and when any of their debt is converted to equity, they plan to hold the converted shares for capital appreciation.

The Company has continued the effort on clearing its balance sheet from any remaining debt held by short-term oriented holders. It is worth noting that, from inception and until now, no current member of the Company's management team has ever sold one single share of BMIX stock.

About Brazil Minerals, Inc.

Brazil Minerals, Inc. (OTC: BMIX) is a U.S. holding company with Brazilian mining properties that produce rough diamonds, gold, and sand, and a business that manufactures and sells mortar. More information on BMIX can be found at www.brazil-minerals.com.

Safe Harbor Statement

This press release contains forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon the current plans, estimates and projections of Brazil Minerals, Inc.'s management and are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. Such statements include, among others, those concerning market and industry segment growth and demand and acceptance of new and existing products; any projections of production, reserves, sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in Brazil, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. Therefore, you should not place undue reliance on these forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: business conditions in Brazil, general economic conditions, geopolitical events and regulatory changes, availability of capital, BMIX's ability to maintain its competitive position and dependence on key management. This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

Cautionary note regarding estimates of Indicated and Inferred Mineral Resources of Diamonds and Gold as found in MDB's NI 43-101 Technical Reports.

We advise U.S. investors that while these terms and amounts are recognized by Canadian regulations, the U.S. Securities and Exchange Commission ("SEC") does not recognize them. U.S. investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into mineral reserves as defined by the U.S.'s Industry Guide 7.

Cautionary note regarding estimates of Mineral Reserves of Diamonds and Gold as found in MDB's Bankable Feasibility Study.

We advise U.S. investors that while these terms and amounts are recognized by Brazilian regulations, the SEC does not recognize them. U.S. investors are cautioned not to assume that any part or all of the mineral deposits in this category will ever be converted into mineral reserves as defined by the U.S.'s Industry Guide 7.

Cautionary note regarding estimates of Volume and Weight of Sand as found in MDB's studies filed with the local Brazilian regulatory agencies.

We advise U.S. investors that while sand volume and weight terms and amounts as filed in Brazil are recognized by Brazilian regulations, the SEC does not recognize them. U.S. investors are cautioned not to assume that any part of such are not considered mineral reserves as defined by the U.S.'s Industry Guide 7.

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