Brascan Gold Inc. announced that is has entered into a letter of intent with RTB Geologia E Mineracao Ltda., contemplating the entry into a definitive option agreement pursuant to which the Company will be granted the right to acquire up to a 100% interest in a copper (Cu) project known as the Parana Cu project (the "Project") located in Parana State, southern Brazil. The Project is composed of mineral claims covering 729 hectares and was subject to considerable localized exploration in the 1970s, including 240 m of underground galleries, four drill holes and almost 300 samples, as described in a geological report filed with the government in 1978 (the "Historical Report"). Historical Cu mineralization is reported over 200 m in the galleries and at surface, based on atomic absorption laboratory results, with potential extension in all directions.

Due to its historical nature, the data in the Historical Report does not meet Canadian National Instrument 43-101 standards but does provide Brascan with a potential copper target for immediate follow up in the field. Brascan's first goal with the Project is to verify and replicate the old sample results and then expand the target on strike, where possible. Access to the claim area is approximately a 2.5 hour drive on a paved highway from Curitiba, the capital city of Parana and home to 3.8 million people.

The climate is mild, and relatively dry in contrast to the tropical conditions to the north in Brazil, permitting year-round field work. The LOI requires a payment of $4,000 to the registered claim holders in addition a commitment to incur $50,000 of in the ground field work over the next year. Brascan then has the option of paying the claim holders $70,000 in shares in the capital of the Company to acquire up to a 100% interest in the Project, subject to a 2% net smelter royalty, 1% of which may be repurchased by Brascan for $500,000, and the second 1% may be repurchased for an additional $1,000,000.

In addition, Brascan to pay a $10,000 penalty fee to RTB in the event $50,000 of in the ground field work is not incurred within one year of signing the Definitive Agreement. The penalty will be prorated depending on the percentage of the field work completed.