SOURCE: Brazil Minerals, Inc.

Brazil Minerals, Inc.

August 14, 2014 10:05 ET

Brazil Minerals, Inc. Increases Ownership to Over 86% of the Largest Diamond Recovery Plant in Latin America

BELO HORIZONTE, BRAZIL--(Marketwired - Aug 14, 2014) - Brazil Minerals, Inc. (OTCQB: BMIX), (the "Company" or "BMIX"), a U.S. holding company with revenues from diamonds and gold, announced today that it had completed the purchase and received title free and clear to another 13.13% of Mineração Duas Barras Ltda. ("MDB") in Brazil, thereby increasing its current ownership in MDB to 86.88%. MDB mines diamonds and gold, has 1,404 acres of mineral rights including a mining concession, operates the largest alluvial processing plant in Latin America, and has a bankable feasibility study completed.

Marc Fogassa, Chairman and CEO of BMIX, commented, "Expanding our ownership of a producing gold and diamond mine that we understand extremely well is a great use of capital. MDB is a premier property in Brazil, as evidenced by the Gemological Institute of America's visit this week, and the numerous unsolicited contacts we get from buyers worldwide for our production. Additionally, and most importantly, from the initial time that BMIX became involved in MDB, we have taken great care to upgrade multiple aspects of MDB and to embark on certain strategic initiatives that will increase the value of MDB. We are proud of the transformation of MDB undertaken with our help and guidance in the last 15 months."

Through its stake in MDB, BMIX posted revenues of $791,780 in 2013. Of this revenue, approximately 69% was derived from rough diamond sales and 31% from gold sales. In 2014, the revenue mix also includes sales of polished diamonds, which on a per-carat basis sell for a multiple of the revenues of rough diamonds. To further expand its ability to process a small part of its production into polished diamonds, BMIX recently built a diamond cutting and polishing facility in Brazil.

MDB's mining concession has had extensive geological studies leading to the publication of an NI 43-101 technical report in 2007, and an updated NI 43-101 technical report in 2008, as required by the rules of the Canadian securities administrator, since the previous owner of the property was a Canadian listed company. The technical report from 2008 shows mineralized materials amounting to 1,639,200 cubic meters with 0.16 carats of diamonds per cubic meter and 182 milligrams of gold per cubic meter. The detailed drilling program underscoring this result was performed on approximately 7% of the entire area of the mineral rights available to MDB.

About Brazil Minerals, Inc.

Brazil Minerals, Inc. (OTCQB: BMIX) is a U.S. holding company with revenues from sales of polished and rough diamonds as well as gold. Its 86.88% subsidiary Mineração Duas Barras Ltda. mines diamonds and gold, has 1,404 acres of mineral rights including a mining concession, operates the largest alluvial processing plant in Latin America, and has a bankable feasibility study completed. BMIX also has ownership of other mineral rights for diamond and gold areas in Brazil. 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 as found in MDB's NI 43-101.

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 Feasibility Study, filed with the Brazilian national mining department.

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.

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