Brazil Minerals Inc. Updates on Gold, Diamond, and Potential Manganese Opportunity

PASADENA, June 27, 2016 - Brazil Minerals, Inc. (OTC: BMIX) (the "Company" or "BMIX") announced today several developments: 1) the successful recovery of diamond and gold and the unexpected finding of larger alluvial deposits of free gold from a new mining area; 2) a new manganese opportunity; and 3) the visit by an investor representative to the Company's Brazilian operations.

During the initial excavation of one of its more than two dozen mineral rights along the banks of the Jequitinhonha River in the state of Minas Gerais, Brazil, the Company uncovered alluvial gold at much earlier depths than the targeted gravel layer, which was unexpected. Such widely scattered deposits are of the alluvium type, most likely from the Quarternary geological age. Photographs of the excavation and of material from two of the aforementioned deposits are attached to the version of this release posted on the Company's website (www.brazil-minerals.com).

The alluvium material containing gold varies according to specific locale but is mostly made of sand, silt, and clay and as such does not run properly in BMIX's recovery plant. The plant was built to process diamondiferous gravel and not auriferous sands. The main conclusion reached after careful study by the Company's mining engineer and consultants, is that to optimize revenue and lower costs, extractions for gold and diamonds, performed jointly to date, are best if dissociated. If the Company proceeded with the previously planned methodology, gold would be inadvertently discarded from earlier layers, or contaminated as any oil or lubricant droplets (from the excavator, trucks, or bulldozer) reaching the desired alluvium makes extraction of gold from such material nearly impossible.

For its deposits of alluvial gold, after deliberate analysis of available technologies, BMIX plans to use centrifugal separators, a well-accepted and chemical-free methodology. Centrifugation offers several potential advantages, such as: 1) it is known to provide extraction yields above 90% (with some newer centrifuges yielding over 99%); 2) it can capture fine gold in almost twice the particulate size range as spiral concentrators (the technology used in the plant); 3) it will reduce the operational cost of diesel and labor by 75% or more; 4) it will substantially diminish transportation costs if placed near the excavation site; and 5) it will permit project scalability, such that additional centrifuges may be added to work in parallel.

In particular, centrifugation will allow BMIX to extract gold from a type of material that it did not plan to process. As stated before, the Company's recovery plant was built to optimize diamond production, not gold recovery. In particular, the plant's gold-recovery circuit is fed only such material washed off from gravel that is processed in its diamond-recovery circuit. Its gold extraction occurs via spiral concentrators followed by a shaking table. Based on published studies, the Company estimates that the yield in this gold-recovery circuit is only approximately 40% as compared to a yield of approximately 90% expected from centrifuges.

Observed alluvial gold concentration is directly dependent on the selection of material that is processed. Using the plant, BMIX has noticed gold concentrations from gravel mixed with sand to be as high as 0.9 and as low as 0.1 grams per cubic meter. Because of this lack of homogeneity, it is nearly impossible to ascribe one singular concentration to a wide area. However, with centrifugation, the Company believes that the operational cost will be sufficiently attractive that it can essentially run all alluvium material. Furthermore, BMIX believes that most, if not all, of its various mineral areas along the Jequitinhonha basin will be found to have auriferous sands to varying degrees and thus will be targets for this type of modular extraction.

After the identification of alluvial gold, which modified the planned methodology, the amount excavated for diamonds was enough to confirm recovery but not to ascertain a reliable concentration over a wide area. For optimization of diamond production, and given its now separation from gold processing, BMIX believes that the best method is pre-processing of gravel in situ with a mini-plant followed by transportation of only concentrated material to its current plant. That plant's diamond-recovery circuit has seven jigs, but needs only four. The Company intends to use one or two of these available jigs to build its mini-plant. Diamond extraction using a mini-plant has several potential advantages. The first is portability, as the mini-plant is deployable next to an excavation, and movable to a new location within days. Its output is a concentrate of high-potential material for diamonds, and only this concentrate is transported to the large plant, with substantial reduction in the costs of truck rentals, diesel, and labor. The final step, processed in a secure facility in the main plant, is the passage of the concentrate through the hands-off flow-sort diffraction recovery separator for identification of diamonds.

Separately, BMIX has received a proposal from a local, experienced diamond expert and operator to mine its new area for diamonds. In this scenario, the Company would not have operational costs and in return, it would receive a percentage of profits. BMIX is evaluating such alternative.

To move ahead with the above-described extraction methodologies, BMIX has identified four gold-separating centrifuges, and is initially renting two of them. The Company has received the first centrifuge, and will be adapting it to use. BMIX has also identified a local company that can build the diamond mini-plant in a few weeks. The Company is in discussions with equity investor groups regarding financing of certain costs for these plans. Over time, BMIX believes that the deployment of separate, modular, portable extraction units for gold and diamonds is replicable, possibly in parallel, to several of its multiple mineral rights areas in the Jequitinhonha River Valley.

In other news, the Company is in final stages of securing, from the Brazilian mining department, the mineral rights for a certain manganese claim, which is attractive for several reasons: 1) favorable local geology and formations; 2) good transportation logistics; and 3) the fact that manganese is in demand for use in batteries and steel. A new wholly owned Brazilian subsidiary of BMIX has title of this asset in order to facilitate possible transactions with groups focused on non-precious metals. The Company recognizes that although it has its hands full as mentioned above, it keeps informed of special, high-impact situations that may arise from time to time.

Finally, BMIX is pleased to report that a representative from one its investor groups recently visited the Company's operations in Minas Gerais. He has endorsed its progress, and in fact has referred the Company's CEO to other business contacts and potential investors, and invited him for a formal presentation.


About Brazil Minerals, Inc.

Brazil Minerals, Inc. (OTC: BMIX) is a producer of diamonds, gold, sand, and industrialized mortar. We also own 30 mineral rights for gold and diamonds, including 10 mining concessions, the highest level of right to mine 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 of Diamonds and Gold as found in MDBs 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 MDBs 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 MDBs 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.

Cautionary note regarding estimates of potential mineralization for gold of the Apui/Borba Project with the local Brazilian regulatory agencies.

We advise U.S. investors that potential mineralization for gold of the Apui/Borba Project with Brazilian regulators is not recognized by the SEC. U.S. investors are cautioned not to assume that any part of such potential mineralization is or will ever become mineral reserves as defined by the U.S.'s Industry Guide 7.



Contact:

Marc Fogassa, CEO
Brazil Minerals, Inc.
(213) 590-2500
info@brazil-minerals.com
www.brazil-minerals.com