Brazil Minerals Inc.: Updates on Gold, Diamonds, Manganese and Discusses Strategy

PASADENA, July 13, 2016 - Brazil Minerals, Inc. (OTC: BMIX) (the "Company" or "BMIX") today gave brief updates on its gold retrieval platform and first royalty contract for diamonds and gold, disclosed the receipt of two mineral rights for manganese, and announced an ongoing strategy to strengthen its capital structure over time.

BMIX has continued to progress well with its gold retrieval platform, as described in previous releases. Each centrifugal separator, with its associated water-pump and portable generator, is a Gold Retrieval Unit (GRU). The Company has received its second GRU and will be installing it. Additionally, the diamond and gold group that has signed BMIX's first royalty contract for diamonds and gold already has moved equipment, personnel and part of its diamond processing mini-plant to one of the Company's mining areas.

This week BMIX formally received title from the local mining department to two manganese claims, both placed in a new wholly owned subsidiary. These mineral rights cover 4,700 acres and are located 75 and 110 miles, respectively, from the Company's gold and diamond operations, in the state of Minas Gerais in Brazil. Both of these claims intersect known colluvial laterite deposits with high potential for mineralization of manganese and possibly iron ore as well.

In recent conversations with potential investors, the Company observed that certain groups want to be more heavily involved with diamonds, others prefer gold, and yet others are only interested in commodity-type minerals. Additionally, BMIX noted that its multi-faceted expertise in Brazil, a country bigger than the continental U.S. territory and with vast mineral resources, was seen as a strong competitive edge. Based on such observations and other data, the Company believes it to be in the best interest of its shareholders to create certain mineral-specific subsidiaries.

Such strategy will accommodate specific investor demand, and allow each subsidiary to raise its own capital, instead of diluting BMIX. The initial focus will be on new high potential mineral areas or projects that the Company either obtains or options. The outcome, for example, would be that a group interested only in gold could invest directly in the Company's gold subsidiary with mineral rights and projects for gold. Alongside this strategy, it is the current intent of BMIX to maintain for itself its core properties.

The Company will maintain an ongoing ownership stake in each subsidiary it creates; such percentage will depend both on the valuation given to the subsidiary at any point in time and the amount of capital it raises from outside sources. Additionally, BMIX intends to receive contractual cash flows from each subsidiary for oversight and administration. Furthermore, to expand its royalty platform, the Company intends that each subsidiary provide ongoing royalty payments to BMIX on revenue-generation from projects. Most subsidiaries will remain private, but others may become publicly traded, thus enabling the stock market the opportunity to value more accurately such mineral-specific enterprises. It is unlikely that any subsidiary would take on variable-rate convertible debt, since the focus will be on equity raises from groups holding interest in a given mineral.


About Brazil Minerals, Inc.

Brazil Minerals, Inc. (OTC: BMIX) is a producer of diamonds, gold, sand, and industrialized mortar. We have title to 32 mineral rights for gold, diamonds, manganese, and sand, including 10 mining concessions for gold and diamonds, the highest level of right to mine in Brazil. More information on BMIX is 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:

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