Brazauro Announces a Revised Scoping Study Indicates 13 Year Mine Life at 123,000 Ounces Per Year with a 5% Discounted NPV of $267.3 Million at Current Gold Price of $800

    HOUSTON, December 12 /CNW/ - NCL Brasil Ltda has completed a revised
Preliminary Assessment for Brazauro's 100%-controlled Tocantinzinho Project in
Brazil ('TZ'). The report will be filed on SEDAR as a National Instrument
43-101 report. The revised assessment reflects an annual production rate of 3
million tonnes as compared to 2 million tonnes per year in the report
announced September 26, 2007.

    The study indicates a thirteen-year mine life based on current indicated
and inferred mineral resources (20,717,000 tonnes at 1.48 grams per tonne gold
for 984,000 ounces indicated and 17,833,000 tonnes at 1.34 grams per tonne
gold for 768,000 ounces inferred) with production of 123,000 ounces of gold
per year.

    Financial analysis

    The 5% discounted Net Present Value and Internal Rate of Return of the
Tocantinzinho Project at various gold prices are provided in the following
table. All values are in US Dollars.

        Gold Price                 NPV at 5%                   IRR
           (US $)                    (US $)
            $550                 $42.1 Million                 9.6%
            600                   87.6 Million                 14%
            650                  132.7 Million                 18%
            700                  177.6 Million                21.65
            750                  222.4 Million                 25%
            800                  267.3 Million                30.8%
            850                  312.2 Million                34.1%

    Operation summary

    Flowsheet: Conventional open-pit drill and blast, shovel and truck
operation followed by crushing, grinding, flotation, cyanidation of the
flotation concentrate and electrolytic gold casting and production of dore

    Throughput rate: 8,000 tons per day

    Recovery: 91%

    Capital expenditure: $128-million

    Total cash costs: $367 per ounce produced

    Average annual gold production: 123,000 ounces

    This preliminary economic assessment is based partially on Inferred
Resources, and its accuracy does not match the pre-requisites of a
Pre-Feasibility Study, which is the minimum requirement for the conversion of
Measured and Indicated Resources to Reserves. This preliminary assessment
includes inferred mineral resources that are considered too speculative
geologically to have the economic considerations applied to them that would
enable them to be categorized as mineral reserves, and there is no certainty
that the results of the preliminary assessment will be realized.

    The principal differences between this assessment and the assessment
announced September 26, 2007 are:

    --  An increased production rate of 3 million ore tonnes per annum
reflecting the potential availability of sufficient electrical power

    --  Capital estimates were increased to accommodate the increased rate of
production, and for a more conservative estimate of expenditure for the
tailings dam.

    --  The exchange rate used is 1.75 R$/1US$, to reflect the depreciation
of the US dollar

    Based on the positive results of the scoping study Brazauro will proceed
in the new year with more infill drilling to increase the indicated resource
and to follow-up on the results of the auger-soil sampling survey that
recently was carried out over the remainder of the 43,800 hectares at

    Mr. Rodrigo Mello, the author of the revised preliminary assessment, who
is a qualified person as defined in NI 43-101, has read and approved the
contents of this release.

    Mark E. Jones III

    Chairman, CEO Brazauro Resources Corporation

    The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release. No stock exchange, securities commission or other
regulatory authority has approved or disapproved the information contained
herein. Certain statements contained in this press release constitute
forward-looking statements which are not historical facts and are made
pursuant to the "safe harbour" provisions under the United States Private
Securities Litigation Reform Act of 1995. When used in this release, words
like "anticipate", "believe", "estimate", "expect", "will", "intend" and
similar expressions identify forward-looking statements. Forward-looking
statements are necessarily based upon a number of estimates and assumptions
that, while considered reasonable, are inherently subject to significant
business, economic, political and competitive uncertainties and contingencies.
Readers are cautioned that such forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause the actual
financial results, performance, achievements or position of the parties to be
materially different from the estimated or anticipated future results,
performance, achievements or position expressed or implied by those
forward-looking statements and the forward-looking statements are not
guarantees of future results, performance, position or achievements. The
risks, uncertainties and other factors include, but are not limited to:
changes in the worldwide price of gold or certain other commodities (such as
fuel and electricity) and currencies; changes or disruptions in the securities
markets; legislative, political or economic developments in the jurisdictions
in which the companies carry on business; the occurrence of natural disasters,
hostilities, acts of war or terrorism; the need to obtain permits and comply
with laws and regulations and other regulatory requirements; the possibility
that actual results of work may differ from projections/expectations or may
not realize the perceived potential of the company's projects; risks of
accidents, equipment breakdowns and labour disputes or other unanticipated
difficulties or interruptions; the possibility of cost overruns or
unanticipated expenses in development programs; operating or technical
difficulties in connection with exploration, mining or development activities;
the speculative nature of gold exploration and development, including the
risks of diminishing quantities of grades of reserves and resources; and the
risks involved in the exploration, development and mining business.

    Brazauro disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information, future
events or otherwise.

For further information:

For further information: Brazauro Resources Corporation Chairman Mark E.
Jones, III, 281-579-3400

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