DGAP-News

Brazil Resources Inc. Issues Letter to Shareholders and Reports on Company Outlook for 2016 - Seite 2

of the ongoing challenges in the resource markets. We are assessing
opportunities in superior mining jurisdictions for acquiring resource
projects at prices far below their replacement drilling and development
costs. We expect to have more to report on this as the year develops.

Advances in Brazil

The Company has had a good year with our core projects in Brazil, Sao Jorge
and Cachoeira. Both gold projects are now at the permitting stage and the
Company's expenditures moving forward on the projects are minimal.
Concurrently, the Brazilian Real has fallen from 52 cents Canadian in 2012,
to 40 cents Canadian in 2015, and we benefit by getting more done at less
cost. Similarly, the strengthened United States dollar has resulted in the
Brazilian Real denominated costs trending lower in relation to gold prices,
which are generally quoted in U.S. dollars. We continue to advance both
projects without major expenditures.

At the Sao Jorge Gold Project in Para State, the Company has submitted a
comprehensive final report to the DNPM for the exploration concession
overlying the deposit recommending that it be converted to a mining
concession. With DNPM approval, we plan to initiate environmental and
engineering studies and apply for the necessary permits to further advance
the project.

For the Cachoeira Gold Project in Para State, we have commenced
environmental and mine permitting for the project, including having
submitted the EIA/RIMA (Environmental Impact Assessment Report) to the
state environmental agency and completed the public hearings that were
validated by the state environmental agency in order to continue with the
licensing process. The EIA/RIMA report is now under review and the Company
is waiting to hear back from the agency.

Uranium Exploration Planned in 2016

We also anticipate developments in 2016 with the Company's Rea Uranium
Project. This project gives BRI a very unique exposure to the uranium
market in addition to our gold focus.

We acquired a 75% interest in the Rea project as part of our acquisition of
Brazilian Gold Corporation in November 2013. The project covers
approximately 88,400 hectares and is located in the western portion of the
Athabasca Basin, one of the most exciting areas for uranium exploration in
the world today due to recent, large, high-grade, near-surface discoveries.
Areva, with exceptional experience in exploration and production within the
Athabasca Basin, is our partner holding a 25% interest.

Prior operators have expended over $10 million in exploration on the