Brazauro Completes $8.36 Million Private Placement with Eldorado Gold Corporation

HOUSTON--(BUSINESS WIRE)--Brazauro Resources Corporation (“Brazauro”) is pleased to announce that Eldorado Gold Corporation (“Eldorado”) has now completed the private placement required as part of its earn-in on an option to acquire an initial 60% interest in the Company’s Tocantinzinho project in Brazil. (See July 9, 2008 news release. All amounts are in Canadian dollars).

As a result, 8.8 million units of the Company (the “Units”) have been issued to Eldorado at the price of $0.95 per Unit for proceeds of $8,360,000. Each Unit consists of one common share and one-half of one non-transferable share purchase warrant. Each full warrant is exercisable to acquire one additional share at a price of $1.30 per share for a period of eighteen months. The shares, warrants and any shares issued upon exercise of the warrants are subject to a four month hold period during which the securities may not be traded except as permitted by the Securities Act and the Rules made thereunder and the TSX Venture Exchange.

To complete its earn-in of the option to acquire an initial 60% interest in the Company’s Tocantinzinho gold project in Brazil (the “Project”) Eldorado is required to incur $9.5 million in expenditures on the Project within 24 months or pay the cash equivalent to the Company. Subject to completing the earn-in Eldorado will be entitled to exercise the option to acquire an initial 60% in the Project by paying $40 million dollars to the Company. Conditional upon exercise of the first option, Eldorado will have a second option to acquire a further 10% interest exercisable after a construction decision has been made on the Project by paying an additional $30 million dollars, subject to increase to up to $40 million dollars based on the proven and probable reserves outlined in the feasibility study, and a third option to acquire within two years of the construction decision a further 5% interest (for a total of 75%) by paying a further $20 million dollars.

Eldorado reports that it holds 8.8 million shares in the capital of the Company representing 10.32% of the current issued and outstanding shares and warrants exercisable to acquire an additional 4.4 million shares. Assuming exercise by Eldorado of its warrants and no other issuance of shares by the Company, Eldorado would hold 13.2 million shares, representing 14.73% of the current issued and outstanding shares.

Proceeds of the private placement will be used for further exploration on the Company's Bom Jardim property and for potential acquisitions and general corporate purposes.

Mark E. Jones III
Mark E. Jones III
Chairman and CEO

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. Statements contained in this press release respecting the intended use of the proceeds of the private placement, constitute forward-looking statements under Canadian securities legislation 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. Such forward-looking statements are based upon the Company's reasonable expectations and business plan at the date hereof, which are subject to change depending on economic, political and competitive circumstances and contingencies. Readers are cautioned that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause a change in such assumptions and the actual outcomes and estimates to be materially different from those estimated or anticipated future results, achievements or position expressed or implied by those forward-looking statements. Risks, uncertainties and other factors that could cause the Company's plans to change include changes in demand for and price of gold and other commodities (such as fuel and electricity) and currencies; changes or disruptions in the securities markets; legislative, political or economic developments in Brazil; 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.