Brazil Minerals, Inc.’s Duas Barras Diamond Mine Increases Sales of Rough Gems 155% Quarter to Quarter

SAO PAULO, BRAZIL–(Marketwired – Jul 1, 2013) –
Brazil Minerals, Inc. (
OTCQB:
BMIX) (the “Company” or “BMIX”), a
diamond and gold producer with resources and assets in Brazil,
today announced that its 55% owned subsidiary, Mineração
Duas Barras Ltda. (“Duas Barras”), sold 155% more carats of rough
diamonds in the second quarter ended June 30, 2013, as compared to
the first quarter of 2013. Duas Barras sold 354.00 carats of rough
diamonds in the first quarter of 2013, and it sold 902.10 carats of
rough diamonds in the second quarter of 2013.

For the second quarter, the average price realized on rough
diamonds sold from Duas Barras was within a few percentage points
of the average price realized for sales in the first quarter of
2013. BMIX will report its second quarter 2013 financial
results as part of its 10-Q to be released on or before August 15,
2013. Following such release, BMIX intends to host its first
earnings conference call to discuss its second quarter and
six-month results. Announcement of the date and time of the
earnings call will be provided in press before the call.

Marc Fogassa, Chairman and CEO, commented, “We expect the
positive trend in production growth to continue. The Duas Barras
barge operation began in June and is being optimized; we expect
such dredging efforts to retrieve diamondiferous gravel, at times
from under 50 feet of water, to contribute meaningfully to our
production in the coming quarters. On the revenue side, it
should be noted that the Duas Barras mining concession has
indicated and inferred carats and alluvial gold for years of
production ahead. On the cost side, Duas Barras remains
competitive; it has 13 employees, pays good local wages, and its
employee costs are reasonable at approximately $11,000 per month,”
added Fogassa. ”Very recently, the Duas Barras team has been
able to reach a lower depth of diamondiferous gravel extraction in
one location allowing for an average daily diamond production rate
significantly higher than the daily average to date,” Fogassa
concluded.

While the Company will continue to focus on selling rough gems
for the great majority of its production, BMIX’s plan is to begin
sales of some cut and polished diamonds from Duas Barras by the end
of the third quarter. Sales of such cut and polished diamonds
will have substantially higher margins Brazil Minerals,
Inc. 

The Duas Barras mine benefits from the largest alluvial diamond
and gold processing plant in Latin America, built at a cost of over
$2.5 million USD by a previous owner of the concession. Its
location is on the Jequitinhonha River bank, in the state of Minas
Gerais, a well-known area for alluvial diamonds.

The Company has not performed any geological studies in the Duas
Barras mining concession, but has relied on the report entitled ”

Technical Report Duas Barras Diamond Project, Brazil, Presenting
Details of Diamond Resources Compliant with Canadian National
Instrument 43-101” issued by Qualified Person and Professional
Geologist Paul J. Daigle, Senior Project Geologist at Vaaldiam
Resources, Ltd., on March 30th, 2007.” The Duas Barras NI
43-101 is on file with Canada’s securities commission at
www.sedar.com, a copy of which
can also be accessed online at

http://www.brazil-minerals.com/producing-mines/diamond/duas-barras/

The Duas Barras NI 43-101
contains on its page 9 the table of resources listed below.

About Brazil Minerals, Inc.

Brazil Minerals, Inc. (
OTCQB:
BMIX), a U.S. corporation, is a
diamond and gold producer with resources and assets in
Brazil. Its mining assets include a 55% ownership in Duas
Barras, a diamond and gold producing mine located in the state of
Minas Gerais. BMIX is also exploring for gold in the state of
Amazonas, and has a healthy pipeline of other sizeable
opportunities throughout Brazil. Its Brazilian headquarter is in
São Paulo, the financial hub of Latin America, with an
operational office in Belo Horizonte, the capital of Minas Gerais,
a name that means “General Mines”, and serves as reminder of the
strength of that region of Brazil for natural resources. More
information on BMIX, including an investor presentation, 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, the 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.