The Surubim project covers extensive garimpeiro working and was the focus of an exploration program from 2005 to 2008 that included diamond drilling. This work outlined three mineralized stockwork zones and a number of targets that require follow-up exploration.

The 2011 exploration program will include ground geophysics followed by diamond drilling (2,500 m).

Ownership

• Brazilian Gold owns 100% of the project subject to a 1.5% NSR (<2M ounces of production) and an additional 0.5% NSR (on >2M ounces of production) payable to vendor and a 1.5% NSR to the underlying property owner.
• The NSR payable to each royalty holder can be reduced by making cash payments.

Land

• Three exploration concessions for a total area of 8,476 Ha.

History

• 1970's to present, garimpeiro mining of alluvials.
• 2005-2008, geochemistry, geophysics and diamond drilling (36 holes in 4,621 m).

Description

• The project is underlain by granitic rocks that host quartz veins and quartz+sulphide stockwork zones.
• Drill program identified three zones of stockwork mineralization that strikes east-west and dips steeply. Selected drill hole assays are shown in the table below.

  Hole Number	From (m)	To (m)	Interval (m)	Gold (g/t)
  DD05SB01	82.29	93.05	10.76	1.27
  DD05SB04	13.71	25.90	12.19	12.22
  DD05SB04	60.22	70.18	9.96	0.97
  DD05SB08	47.24	65.53	18.29	1.89
  DD05SB12	39.62	56.10	16.48	1.72
  DD06SB13	77.00	105.00	28.00	1.04
  DD06SB18	7.20	41.20	34.00	2.71
  DD06SB20	59.60	65.60	6.00	2.86
  DD06SB20	71.60	80.70	9.10	1.27
  DD07SB25	48.10	60.10	12.00	6.97

2011 Exploration Program

• Brazilian Gold will complete an exploration program consisting of geochemistry and geophysics.
• Phase One (2,500 m) drill program planned to start in Q3 2011.