Intersections At The Butiá Gold Deposit - LDS Project

TORONTO - Lavras Gold Corp. reported on seven new drill holes totaling 1,825 metres, testing the Butiá Gold Deposit, located at the western edge of the LDS Project in southern Brazil. Gold mineralization was intersected in seven holes at Butiá, which hosts a Mineral Resource Estimate of 377,000 ounces of gold in the Measured and Indicated categories and 115,000 ounces of gold in the Inferred category. Several of these new holes returned long intervals of continuous gold mineralization characterized by higher-grade subintervals with striking similarities to previously disclosed results. These holes were designed to increase the confidence in the Butiá gold resource (converting the Inferred Resource into the Measured & Indicated categories) and to potentially increase the gold endowment and footprint of known mineralization of the Butiá Gold Deposit.

Lavras Gold recently renewed a 25,000-metre drilling contract, seamlessly continuing the ongoing drilling program. The Butiá metallurgical test program continues to advance using the SGS Laboratory in Belo Horizonte, Brazil. Also, three 150-kilogram composite samples from the Fazenda do Posto gold target have been sent to the lab for investigation following up on a comprehensive metallurgical test program for Butiá mineralization.

These new drill results and initiatives continue to move Lavras Gold toward its short-term corporate goal of defining an economically feasible gold resource on the LDS Project, focused on the Butiá Gold Deposit and the adjacent Fazenda do Posto gold target.

"We are pleased with the drilling progress we are making at Butiá and are achieving our goal of increasing the confidence of the gold resource estimate by converting inferred gold resources into measured and indicated gold resources and expanding the footprint of gold mineralization," said, CEO Michael Durose. "Drill hole 25BT047 is noteworthy for its length of 371.0 metres grading 1.0 g/t gold. The lower portion of this hole shows a 50.0 metre interval grading 3.4 g/t gold from 317.0 metres to approximately 367.0 metres. This not only extends the previously known zone of mineralization, but it also demonstrates that this extension has a significantly higher grade than the mineralization above it. Adjusted for the angle of the drillhole, this 50-metre extension of gold mineralization begins at a vertical depth of approximately 275.0 and extends to 318.0 metres. The mineralized footprint has also increased in size to the south of Butiá as defined by drillhole 25BT045, and to the southeast via drillhole 24BT042."