Well, Tobin, thanks for inviting us. It's an honor to be here.

Transcription

1 BRAZIL MINERALS, INC_FXTC Page 1 of 6 Hey, this is Tobin Smith. We are looking for the next big thing. This is Next Big Thing Investor, and you know what? In the mining business, they have probably been the worst stocks in the last 9 to 12 months, and one of the reasons is the industry is so capital intensive, and after we had the big meltdown and so on and so forth, it's been hard to get that capital engine going. Well, Marc Fogassa and Brazil Minerals has a different formula. He's actually sort of taken what we think is an innovative way of building resource assets in diamonds and gold and other assets, doing it in a way that he they own a royalty interest, so they get paid from stuff that's working right now. We like that very much, and now we're gonna talk about maybe the idea of having diamond dividends. I don t want to give anything away, but So tell us, what is Brazil Mineral's what's the big concept? You're one of those smarty pants private equity guys. So, what do you bring in, like good, neat structures to an old-fashioned business? Well, Tobin, thanks for inviting us. It's an honor to be here. Thank you. Well, we're applying a judicious, good use of private equity ideas to three great verticals. One is Brazil. It's a big country, big markets. The other one is natural resources, of which Brazil excels, and the third one is some big areas, including diamonds, gold, and other minerals; and so, the model is quite simple. We're not going to be focusing solely in one commodity, in one mineral, per se. And why is that? Because it's too risky. I mean, gold today is at $1, It could be at $1, tomorrow, and so we're not gonna sink $50 million in one hole in the ground, like some people are, because it is way too volatile. We prefer to spread out risk royal gold, that kind of Yeah, it's a great. where you have perhaps the few minds that are profitable working for you in different minerals. We're beginning with partial ownership in production from in mine that happens to Page 1 of 6

2 BRAZIL MINERALS, INC_FXTC Page 2 of 6 provide us with diamonds, which is a great commodity, is a new asset that people are buying, particularly in Asian Yeah, no question. and holding in appreciating value, and building upon it, and we also are holding interest in vs. right now, go there, that I think is terrific in the Amazon region, and we are with a pipeline of terrific other minerals of which we're gonna. All right, so tell me about why Brazil? I mean, we know the world comes there. We know the Olympics are coming there. We know Brazil has been one of the growing countries, but you're from Brazil. You know the country. Why does an American investor want to participate in the Brazilian emergence, if you will. Several reasons, one of which is that Brazil has one of the best mining codes in the world. Codes. In other words, how they treat miners. Exactly. So, it begins with the fact that mining concessions are held in perpetuity, and so, for instance, our mine for which we have the rights to, is called [speaking foreign language] Duas Bahas. Duas Bahas is as long as the company owning Duas Bahas continues to mine Duas Bahas, Duas Bahas is help in perpetuity. Which means the government can't come in and, like in Peru or other places, and change the rules in the middle of the ball game. Exactly, exactly, and that has never happened in the Brazilian mining. Yeah,. So we feel extremely comfortable that So you have security number one. Exactly. The laws are very strongly written in favor of the mining holder of the rights, more so than the farmer or whoever owns the land. So the subsoil, the mining rights trumpet the owner of the farm. Page 2 of 6

3 BRAZIL MINERALS, INC_FXTC Page 3 of 6 I gotcha. All right, so we're come back. We're gonna talk about a little bit more about diamonds, how exciting that is, the other sharks here. And again, you guys have taken a really successful business ball, which is a Royal Gold company, and you're saying, "Listen, you can create the next sort of Royal Gold in maybe some different asset classes, but focused in Brazil. So we'll be right back, but the next big thing in mining in Brazil is right here. [End Marc Fogassa 1] [ Begin Marc Fogassa 2] All right, Tobin Smith, back here with Next Big Thing Investor. We're here with Mark Fogassa, who's the CEO of Brazil Minerals, and so Marc, you sort of told us why we want to be doing business in Brazil, because they are very beneficial to be in the mining business, 'cause they have very strong rule of law, so they're not gonna come in and change the rules in the middle of the game. How is it that you guys are able to get this deal flow? Because you're not gonna just be diamonds. You're not just gonna be gold. You're gonna have a portfolio of precious metals, minerals, diamonds, correct? Yeah, I think we have a phenomenal management team, in a sense, that we combine the best of both worlds. We have resilience in Brazil on the team, but also we have people here in the U.S. that are experts in various facets, from the legal team, from the auditing team, from investment banking team, and so and we gel it altogether in a very cohesive situation. You have a few ambassadors on your board of directors as well, right? We're very blessed to have both Ambassador Russian Ruega, former U.S. Assistant Secretary of State on our board, as well as Ambassador Paul Durand, former Ambassador of Canada to Chile and Costa Rica, and they ve been terrific. They ve been with us for a number of years and they're very active. Well, the story here is that and let's just talk about the diamonds first, 'cause I'm excited about this whole. Me too. Page 3 of 6

4 BRAZIL MINERALS, INC_FXTC Page 4 of 6 Diamonds are a) holding value; b) there's very high quality, if you believe in the whole Pangea thing of the world. I was just in South Africa. It lines up quite well. They have the same type of structures, et cetera. So, you own 20 percent, which turns into 11 percent after royalty basis of this diamond mining operation. It's already operating right now, right? It is. It is. It is operating, and it's gonna continue to get better, and we're not gonna stop there, clearly because now that we are a known quantity to the Brazilian operators that are mom and population, mine boxes is overflowing with opportunities. You inbox is overflowing, yes, all right. Now, here's a point. These mom and pops, they don t have any other way to play it. I mean, we don t really understand Brazil like China We can't consolidate the whole state, and so, we're a public company, so there's a limit to how much excitement I can provide to the public, but let me say that in a I wish the days were longer than 24 hours. Well, it's interesting that in Brazil when I was down there, it was amazing to me you have sort of the of companies, which is like $500 or $600 million market cap minute. There's nothing else. There's no NASDAQ. There's no small. There's no American Stock Exchange, et cetera. So, if you're able to come and bring capital and bring marketing expertise, for instance, in diamonds, not only are you getting diamonds, but you would also then help in selling them, help in the whole part of the business? Absolutely. In fact, today, we have on our website a page called Diamond Sales, and we already signed up a jewelry chain in Italy that wants to be a buyer of our product. On the other hand, we've already signed up a seller of colored stones that wants through our site. That's interesting. All right, when we come back, final section, we're gonna talk about sort of the big picture here, about how this company is going to become, I think, a $100 million market cap company pretty soon and beyond, and I know you think you're gonna become much bigger than that, so we're gonna talk about that. Page 4 of 6

5 BRAZIL MINERALS, INC_FXTC Page 5 of 6 Next big thing in Brazil when it comes to basically resources, is right here. [End Marc Fogassa 2] [ Begin Marc Fogassa 3] Hey, this is Tobin Smith with Next Big Thing Investor. We're here with Marc Fogassa from Brazil Minerals. All right, Marc, now I have been told by geologists and other people that maybe only five percent of Brazil has really been mapped in terms of minerals and gold. We know they found tens of billions of oil offshore only like three or four years ago. It's been there for 500 or 500 million years. So, really, the story here is that this is just the beginning, and if you guys do this right, you're gonna own a lot of pieces of stuff that had never been explored. There's got to be some big winners in there. That's exactly why. I think that's why we're so excited about being in Brazil because we are so connected in that country. We have so much expertise into that country, that dominated in that vertical, and being a vertical there, that you only know five percent about gives you enormous opportunity to find the next big thing over and over again, and so, remember, in the United States, capital markets today, you have Vale, V-A-L-E, as a public traded company worth $120 billion. Nothing else trades in U.S. today. It's a great point. You realize that one of the only Brazilian companies that's listed in the United States is a company that owns Bob's Big Boy, for crying out loud. So there is very zero exposure. So really, what you guys are a pure play, on Brazil, on the 95 percent that hasn t been explored, as well as some of the five percent. You're bringing in a capital structure where you go in and you own essentially a non-working interest in some cases, so you get a royalty. So you're very capital efficient. How much money do you have to ultimate raise, do you think, to be able to have enough of these pieces to be sort of this mini-royal Gold, which we're using as a model? Sure, I mean the next raise is going to be a $5 million raise, and the next I can tell you right away, from looking at our pipeline, the next acquisition is an acquisition. Page 5 of 6

6 BRAZIL MINERALS, INC_FXTC Page 6 of 6 Okay, well, that's another part of this story, is that if you're gonna make accretive deals, meaning that they're already cash-flow positive when you bring them in, then you're gonna actually build to the point now we talked about the idea of diamond. I have talked about this. Diamond dividends the idea that if somebody had a certain amount of shares, you could actually pay your dividend, or pay a dividend in diamonds. What do you think there, boss? I think the idea is very enticing, because it would certainly at least make people believe that here is a store value that people should look, as opposed to only looking at gold or silver, the usual suspects, in terms of commodity evaluation. Diamonds is a terrific store value, and I think Asians are way ahead of Americans in identifying diamonds as a terrific investment. Well, sure, I mean, Chinese, Indians.. All right, so you heard it here first. If you're working on a concept of dividend I just love that diamond dividend, it would put you on the map, and let me tell you that from a media standpoint, we would have your smiling mug all over the place, talking about dividend diamonds. This is Tobin Smith for the Next Big Thing Investor, and guess what? If you're talking about Brazil and this huge untapped potential, Next Big Thing is right here. [End of Audio] Page 6 of 6