SOURCE: Brazil Minerals, Inc.

Brazil Minerals, Inc.

August 05, 2015 11:15 ET

Brazil Minerals, Inc. Reports Progress Towards Elimination of Convertible Debt From Short-Term Noteholders

PASADENA, CA--(Marketwired - Aug 5, 2015) - Brazil Minerals, Inc. (OTC: BMIX) (the "Company" or "BMIX") reported today steady progress towards the complete elimination of its convertible debt held by short-term noteholders. In this release, convertible debt investors that convert debt to common stock periodically and expeditiously sell such stock into the open market are referred to as short-term noteholders.

Group 10 Holdings, LLC ("G10"), at one time BMIX's largest short-term noteholder, has only approximately $85,000 left to convert on its last note. At the current pace of its conversion requests and the Company's average trading volume, G10's last note could be extinguished within August. However, no assurance can be given as to when any noteholder will make a request for conversion.

One of the two convertible notes from St. George Investments, Inc. ("SGI"), another short-term noteholder, has been entirely extinguished. Its second note is currently being converted at a rate contractually limited to $45,000 per month until extinguishment. This amount is relatively small given the current average monthly trading volume of BMIX's common stock. Recently, certain long-term oriented investors have approached the Company with the desire to purchase the remaining SGI debt and these conversations are ongoing.

The three other remaining convertible notes available for conversion from other short-term noteholders are between approximately $15,000 and $25,000 each, and could be extinguished in short timeframes of a few days given current trading volume.

Overall, BMIX is pleased with the process of complete elimination of its convertible debt held by short-term noteholders.

About Brazil Minerals, Inc.

Brazil Minerals, Inc. (OTC: BMIX) is a U.S. publicly-traded company with revenues from sales of rough and polished diamonds, gold, and sand. Our goal is to become a diversified and profitable company, and an attractive and liquid alternative for investment in Brazil, one of the largest global economies. Our team combines Brazilian business expertise and American experience in finance, private equity and venture capital.

BMIX owns 100% of MDB, a Brazilian producer and seller of polished and rough diamonds, gold bars and industrial-use sand. MDB operates a fully-operational mining concession with the largest alluvial processing plant for diamonds and gold in Latin America and has the Brazilian permit to export its production.

BMIX also owns 50% of RST Recursos Minerais, Ltda. ("RST"), a Brazilian company with 10 mining concessions and 12 other mineral rights for diamond and gold. A number of the RST areas are located near MDB's plant, in the Jequitinhonha River valley, a well-known area for diamonds and gold for over two centuries.

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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