On August 18, 2022, Brazil Minerals, Inc. consummated a transaction in which it acquired four lithium mineral rights totaling 3,811.23 hectares (9,418 acres) owned by a group of six persons, all unrelated to the Company. In particular, the Company acquired one mineral right which is immediately north and two mineral rights which are immediately south of one of its premier claims, the Neves Area (“Neves”), part of the Company's 100%-owned Minas Gerais Lithium Project. The Company is currently drilling on Neves and has identified multiple hard rock pegmatites with attractive lithium concentrations; several of such pegmatitic ore bodies continue to the north and south into these newly acquired mineral rights.

The addition of such claims expands the Neves footprint from 67.50 hectares (168 acres) to 2,683.90 hectares (6,632 acres), or approximately 39.5 times its current surface area. This is a highly important acquisition for two main reasons: i) the large additional area gives the Company the opportunity for increased lithium resources; b) it also creates the possibility of developing Neves into a producing lithium mine of significant size. The Company's obligations under the Transaction are: Payment of 250,000 already made on August 18, 2022 and issuance of 1,000,000 worth of shares of common stock of the Company; Payment of 750,000 to be made upon the publication in the official gazette of the government of the title transfer of the Lithium Mineral Rights to the Company; Thirty days after the payment described in item b above, the initiation of ten monthly payments of 100,000; If any combination of the Lithium Mineral Rights yields at least five million tons of spodumene containing at least an average of 1.3% Li2O, as determined by a technical report prepared by an independent consulting firm under the Regulation SK1300 standard (“SK1300 Report”), then an additional payment of 1,000,000 and an additional issuance of 500,000 worth of shares of common stock of the Company are to be made; If any combination of the Lithium Mineral Rights yields at least ten million tons of spodumene containing at least an average of 1.3% Li2O, as determined by an SK1300 Report, then an additional payment of 1,000,000 and an additional issuance of 500,000 worth of shares of common stock of the Company are to be made; and If any combination of the Lithium Mineral Rights yields more than ten million tons of spodumene containing at least an average of 1.3% Li2O, as determined by an SK1300 Report, then a payment of 0.20 per each ton above ten million tons is to be made.