Brazil Minerals Inc.: Announces Its First Royalty Deal & Positive Initial Results For Its Fine Gold Recovery Platform

PASADENA, July 5, 2016 - Brazil Minerals, Inc. (OTC: BMIX) (the "Company" or "BMIX") announced today that it had signed an agreement with a Brazilian group that will be exploring and processing material for diamonds and gold in one of the Company's properties. This group will bring its own mini-plant to one of BMIX's areas; all work will be open for supervision by the Company at all times. The deal is attractive in that BMIX will have essentially no costs, and in return will receive 25% of the gross production of gold and diamonds. Today's announcement marks BMIX's first royalty agreement. The royalty business model is an established way to monetize, for little to no cost, high quality mineral assets. The Company plans to expand the number of such deals, and is in conversations regarding two other mineral rights it owns.

In other news, BMIX successfully tested a portable centrifuge for extraction of fine gold. The target material used in the test was the post-processing sandy waste from the main plant, i.e., material that had passed through in either the gold-recovery circuit or the diamond-recovery circuit of the plant. From this waste, the centrifuge recovered an average of 2 grams of pure fine gold per cubic meter, a higher result than expected by the Company. This finding clearly demonstrates that centrifugation is superior to spiral gravity concentration, the method employed in the recovery plant. This result also appears to indicate that portable centrifuges will be a highly efficient way to extract fine gold from both the Company's large availability of virgin alluvial sands as well as past previously processed material. With expected confirmation of the low operational cost of centrifugation, BMIX already has in storage piles a very large volume of material with varying degrees of gold content to process with this method over time.

As an immediate next step in building its fine gold recovery platform, BMIX plans to broaden the test of centrifugal processing to the various types of alluvial sands retrieved from its new mining area, as well as to an initial six other deposits from other nearby areas. These tests will allow the Company to determine various operational metrics such as optimal speed of axis rotation and water/sand mixture ratio, and other parameters, as well as to test gold concentrations of these various locales.

In parallel with advancing its new gold separation methodology, BMIX is studying designs and specifications of mini-plants for diamond recovery to finalize the type that it will build for portable use in its new area. As described in the Company's prior press release, the focus is on lower cost, possibly higher return, portable, modular and scalable recovery units for gold and diamond.


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 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.

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