Brownstone Ventures Inc.

Brownstone Ventures Inc.

November 30, 2006 09:27 ET

Brownstone Ventures Announces Successful Round 8 Brazil Land Auctions

TORONTO, ONTARIO--(CCNMatthews - Nov. 30, 2006) -


Brownstone Ventures Inc. (TSX VENTURE:BWN) ("Brownstone") is pleased to announce that the Agencia National De Petroleum ("ANP"), Brazil's National Petroleum Agency has awarded Brownstone two onshore blocks in Round 8 of the Brazilian Land Auctions.

The Blocks acquired are known as Blocks 131 and 132 in the Tucano Basin area of Central Eastern Brazil. These are exploration blocks and are valid for a total of three years. Each Block represents approximately 180 square kilometers.

BrazAlta Resources Corp. (TSX VENTURE:BRX) ("BrazAlta") also was awarded two onshore blocks and W.Washington Empreendimentos E. Participacoes Ltda. ("W.Washington"), BrazAlta's joint venture partner was awarded one block, combined for a total of three. The Blocks acquired by BrazAlta and W.Washington are known as Blocks 161, 172 and 177, also in the Tucano area of Central Eastern Brazil. These blocks are also 180 Square Kilometer exploration blocks which are in force for a total of three years.

Brownstone, BrazAlta and W.Washington and also wish to announce that they have entered into an agreement (the "Agreement") pursuant to which Brownstone, BrazAlta and W.Washington will co-operate on the ownership and development of the combined five blocks awarded in the recent Round 8 land auctions. The Agreement involves Brownstone paying the initial commitments for all Round 8 Concessions obtained by Brownstone, BrazAlta and W.Washington, to a maximum of US$2.5 million, and the parties have agreed to allocate the ownership of the Round 8 Concessions obtained by the parties as to 50% to Brownstone and 50% to BrazAlta and W.Washington. BrazAlta and W.Washington will also have the right to earn a further 50% of Brownstone's interest by satisfaction of the work commitments on all five Blocks.

About Round 8

The Brazilian National hydrocarbons regulator ANP has awarded 38 explorations blocks offered in the Round 8 Hydrocarbon licensing round known as Round 8. However, a federal judge in Brasilia on the afternoon of November 28, 2006 issued an injunction suspending the auction after a congresswoman of the governing Workers Party had challenged a rule of the auction that limits the number of bids each company is allowed to place at the auction.

The ANP issued a statement on November 29, 2006 saying that it was not successful in overturning the suspension of the Round 8 auction and, as a result, has declared the auction ended. The ANP still expects to overturn the injunction.

"We regret this. We think the (judicial) process is incorrect", ANP President Haroldo Lima said. "We know some companies have prepared themselves months for this." At this time it is unclear whether the awarded licenses will continue to be valid after the suspension of the auction. During previous Round, Brazil's oil block auctions have been challenged in the courts, with ANP successfully overturning any judicial actions against them.

About Brownstone - Brownstone Ventures Inc. ("Brownstone") is a Canadian based, energy focused investment company with direct interests in oil and gas exploration projects as well as equity investments in uranium and oil & gas. For additional information, please see Brownstone's website:

Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Corporations' periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The corporation does not assume the obligation to update any forward-looking statement.

The TSX Venture Exchange does not take responsibility for the adequacy or accuracy of this release.

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