Files 2010 Audited Financials and MD&A

TORONTO, ONTARIO--(Marketwire - May 13, 2011) - Dia Bras Exploration Inc. (News - Market indicators) ("Dia Bras" or the "Company") is pleased to present the Company's 2010 audited Financial Statements and Management's Discussion & Analysis. All currency in this release is in Canadian dollars unless otherwise indicated. For a full explanation of results and mining statistics, please visit the Company's website at www.diabras.com or on SEDAR at www.sedar.com.

2010 Highlights

• During the year ended December 31, 2010, the Company recorded a net loss of $1.6 million, compared with a loss of $1.1 million for the same period in 2009. The higher loss is mainly related to higher metal prices offset by lower grades being processed in 2010 compared to 2009 and to an increase in production cost, higher administrative cost, higher share-based compensation expense and to the write-off of some mining options. This will be positively impacted by the lower costs of the Piedras Verdes Mill when it is operational in June 2011.
• The Company shows net working capital of $20.5 million at the end of 2010, compared with net working capital of $2.8 million at the end of 2009.
• Bolívar Mine pilot-mining costs for the year ended December 31, 2010, were 18.3% higher than in 2009, as a result of a 17.02% increase in tonnage processed and an increase in costs of diesel, transportation and general items.
• Bolívar Mine pilot-mining sales were $19.9 million for the year ended December 31, 2010, up 16.9% compared with $17.0 million in the same period of 2009. The increase from 2009 is primarily due to significantly stronger commodity prices, in particular copper and zinc; copper increased from an average of US$2.33 (Can $2.23) per pound in 2009, to an average of US$3.42 (Can $3.44) per pound during 2010, and zinc increased from an average of US$0.75 (Can $0.72) per pound in 2009, to US$0.98 (Can $.99) per pound in 2010. The Company produced 0.73% more zinc and 7.11% less copper in 2010.
• During 2010, the Cusi advanced development mining project (non-operating project in which revenues are offset against capitalized cost of the project) generated net revenues of $3.1 million ($0.5 million in 2009), with operating costs totaling $2.7 million ($0.5 million in 2009), resulting in a recuperation of the investment capitalized of $0.36 million ($0.06 million in 2009).
• Operating cash costs(1) for the year ended December 2010 were US$98.20 per tonne milled versus US$92.10 per tonne milled for the year of 2009, an increase of 6.62%. The completion of the Piedras Verdes Mill in June 2011 will have an impact on reducing these costs. During 2010, the Company installed a new electric line to the plant site, completed the site preparation for the plant, and invested $8.6 million in process equipment in the development of the Piedras Verdes Mill.

(1) "Operating Cash Cost" is a non GAAP measure defined as the cost of mining, transport to the mill and milling divided by the tonnes milled.

SUMMARY OF OPERATIONS

Bolívar Mine Pilot-mining Summary of the year 2010

During the fourth quarter of 2010, the Company processed 22,625 tonnes of material from the Bolívar Mine, averaging grades of 1.45% Cu and 7.33% Zn, producing 638,300 lbs. of copper and 3,180,200 lbs. of zinc which, as shown in Table 1 below, produced approximately 16.46% less copper and 25.98% less zinc than the fourth quarter of 2009 on approximately 5% more tonnage processed. During 2010, the Company processed a cumulative 104,822 tonnes averaging grades of 1.45% of copper, and 8.59% of zinc, producing 2,900,700 lbs. of copper and 17,556,100 lbs. of zinc, which represents a decrease of 7.1% in copper and a 0.73% increase in zinc produced compared to 2009. Quarter-to-quarter and year to year comparisons are shown in Table 1 below. The decrease in production was mainly due to a reduction in the head grades to the mill, by 19.89% in copper and 14.61% in zinc.

Bolívar Property 2010 and 2011 Exploration Program

The main focus of the Company's exploration program at the Bolívar Property will be to provide a continued source of feed for the Malpaso Mill, in the short-term, and the Piedras Verdes Mill once operating. Exploration to expand underground resources in the areas of Guadalupe, San Angel, Fernandez, Selena, Rebeca, Titanic (collectively, the Bolívar Mine) and La Increible deposit, El Gallo deposit and others has been carried out and will continue.

Favorable exploration results in areas of disseminated copper-zinc mineralization prompted the exploration team to increase exploration efforts on the Bolívar NW, Bismarck, San Francisco (all part of the Bolívar Mine) and El Gallo deposit, where each of these areas could host individual open-pitable deposits of moderate tonnage.

An on-going exploration drilling program during 2009 focused on locating high-grade copper-zinc mineralization. At the end of 2010, 39 surface holes totaling 5,546 metres plus 33 underground holes totaling 2,918 metres had been reported, for a total of 72 holes totaling 8,464 metres. For 2009, Dia Bras completed 3,627 metres of drilling at different areas of the Bolívar Property that was focused on expanding the resource previously identified at the Guadalupe zone.

During 2010, the Company completed 83% of its target for drilling at the Bolívar Mine, drilling 2,084 metres from surface in the Bolívar Norte zone, 1,195 metres from surface in the El Gallo zone, 1,752 metres from surface in the Guadalupe zone, 66 metres underground in the Guadalupe zone, 911 metres from surface in the San Angel zone, 461 metres underground in the Rebeca zone, 1,043 metres underground in the San Angel zone, 648 metres from underground in the Fernandez zone and 467 metres from underground in the Titanic zone, 727 metres from surface area in the La Narizona zone and 361 metres from underground in the Selena zone. The Company continues to encounter significant intervals of good grade material in its ongoing drilling and underground sampling program in the area. The Guadalupe and San Angel zones remain open in all directions and will continue to be explored.

A total of 12,000 metres were planned to be drilled at the Bolívar Property in the fourth quarter of 2010 to increase and upgrade the inferred resources of the copper-zinc mineralization to Indicated and Measured categories, with 4,200 metres planned for the Guadalupe area. In the fourth quarter of 2010, an aggregate 9,655 metres were drilled, with 1,818 m completed in the Guadalupe area.

Construction of the New Piedras Verdes Mill at the Bolívar Property

During 2009 and the first quarter of 2010, the Company commenced studies for the construction of the Piedras Verdes Mill, such as permitting, water supply analysis, energy supply review and environmental studies. The work associated with the detailed engineering construction plan of the mill was completed by Ingenieria VICA of Mexico. Site preparation for the new mill and tailings sites is complete and construction of the facilities is nearing completion. A new power line to the mill site has been completed. A source of water has been identified, and construction of water storage facilities is also in its final phase. The new Piedras Verdes Mill is on schedule to commence processing of Bolivar ores during June. From November 1, 2009, to the date of this MD&A, the Company has raised $30,100,000 for these and other projects and for general corporate purposes, through the exercise of warrants throughout the period and a Rights Offering that closed in May 2010.

The Company cautions that, although economic viability of the mineral resources at the Bolívar Property has not been determined, the Company and its Management intend to complete the construction of an up to 2,500 tpd mill near the Bolívar mining concession. Until the economic viability of the Bolívar Property has been determined and mineral resources have been converted to mineral reserves (by at least a preliminary feasibility study and confirmed in a technical report, as required by NI 43-101), there can be no assurance that the new mill will be economically viable.

Cusi Advanced Development Summary

During the fourth quarter of 2010, the Company continued its development of the Cusi Property and its shipments of mined material from its advanced development-scale operations at the Santa Eduwiges mine, processing 6,454 tonnes of material and producing a total of 48,229 ounces of silver from milling and leaching processes. Advanced development during the fourth quarter of 2009 processed 3,945 tonnes of material and produced a total of 23,662 ounces of silver. During the year 2010, the Company processed an aggregate of 24,737 tonnes of material averaging grades of 0.85% of lead, and 278 grams of silver per tonne, producing 166,965 ounces of silver and 234,081 pounds of lead. In 2009, the Company processed 6,232 tonnes of material averaging grades of 0.90% of lead and 283 grams of silver per tonne and produced a total of 36,489 ounces of silver and 66,655 pounds of lead. Revenues and costs of this advanced development mining project are accounted as a recovery of the original investment in exploration and development costs.

The objective of advanced development mining at the Cusi Property is to obtain factual information on the metallurgy of silver, lead and zinc mineralization, recovery rates, per tonne revenues at various commodity prices, mining costs, extent of mineralization and other factors. This information is essential for evaluation of the property's economic potential. The Company continues to optimize the leaching circuit in order to achieve the ultimate goal of a combined flotation/leaching recovery of 85%. The full level of planned throughput through the leaching circuit has not been attained due to space limitations, which are being resolved in the first half of 2011 by construction of additional vats.

Metallurgical testing indicates an additional 13-20% recovery of silver can be obtained above the recovery percentage from the flotation circuit. Forty-eight doré bars have been produced from December 2009 through December 2010, containing 14,522 ounces of silver.

Quarter to quarter and year to year comparisons are shown in Table 2 below.

Cusi Property Exploration – 2009 and 2010

The Company holds 60 concessions in the Cusi area covering 11,319 hectares. During the first half of 2009, the Company conducted compilation and interpretation of previous work and historical data, as well as mapping and some drilling. New targets and ore shoots of high-grade mineralization in the veins systems of the Santa Eduwiges and Promontorio mines were identified as well as other nearby areas (refer to Dia Bras' News Release of July 23, 2009). Subsequent to this work, drilling in San Juan identified a previously untested area for further exploration (refer to Dia Bras' News Release of August 4, 2010).

The objectives for Cusi are twofold: 1) Define and expand the resources along a) the Santa Marina and San Antonio veins, b) along the vein intersections of Santa Marina and Rosario, Santa Marina and San Bartolo, and c) along the Tascates and Mexicana veins; and, 2) Evaluate and test the Promontorio vein intersections, the Santa Rosa Chimney and the structure at San Juan with the objective of defining and expanding resources in these areas. Drilling in the Santa Eduwiges and Promontorio mine areas resulted in intercepts that extended the mineralized portions of the veins laterally and to depth and guided mine exploration development (refer to Dia Bras' News Releases of February 18, July 23, September 28, and December 8 and 16, 2009).

In 2010, the Company has been redeveloping the facilities of Cusi and developing new areas with the intention of expanding resources, establishing headings and achieving a level of stable and growing production of up to 100 tonnes per day and then to 200 tonnes per day over approximately the next two years, at an average grade of between 250–350 grams/tonne Ag. During the period from June 2009 to December 31, 2010, the Company generated net revenues of $3,763,972. The Company also spent a total of $3,467,830 in operating activities and invested capital of $2,225,355 (resulting in a net amount invested in this phase at Cusi Advanced Development Mining Project of $1,929,223) and achieved an upper level of production of 87 tonnes per day in June 2010. Further, the best average grade produced was 361 grams/tonne in April 2010, and the average grade for 2010, was 278 grams/tonne.

The Company continues to develop areas underground where sufficient tonnes and headings can be established to meet the reserves and goals of production stated above. Due to the excess of water encountered in the underground workings at Promontorio, the Company has not yet established sufficient headings. Dia Bras now intends to concentrate on Santa Eduwiges, to dewater Promontorio and to develop and drill prospective areas there in 2011.

Results of Operations

During the year ended December 31, 2010, the Company recorded a loss of ($1,653,879) compared with a loss of ($1,132,786) in 2009 – ($0.03) per share and ($0.03) per share.

As at December 31, 2010, the Company has working capital of $20,544,237 and an accumulated deficit of ($58,865,925). The Company is fully funded and will continue with the construction of its new mill on site at the Bolívar Property that will reduce operating costs and optimize the life of mine resource.

The following Table 3 sets forth selected quarterly financial information for each of the eight most recently completed quarters:

The 2010 period results are explained as follows:

Sales

For the year ended December 31, 2010, revenues increased to $19,915,761 compared with $17,037,002 in 2009. The increase was driven by higher commodity prices and tonnage processed, offset by a decrease in the ore grades of 36.1% in silver, 19.9% in copper and 14.6% in zinc. The increase in the average prices of copper and zinc was 46.78% and 30.67%. For 2010, copper production decreased by 7.11% and zinc production increased by 0.73%. The Company's concentrates are sold under pricing arrangements whereby final settlement prices are determined by quoted market prices in a period subsequent to the date of sale. Concentrates are provisionally priced at the time of shipment using forward prices for the expected month of final settlement and then, soon thereafter, a fixed price for 90% of the metal sold in concentrate is contracted. Subsequent variations of the price and final quantities credited to the Company are recorded in the Consolidated Statement of Operations.

Expenses

During the year ended December 31, 2010, cost of sales increased mainly due a 17% increase in throughput in the Malpaso Mill (net of cost reductions in the mine) and due to general inflationary pressure that added an approximate 4% to the costs of production. Also, transportation costs for deliveries of Bolívar mineralized rock to the Malpaso Mill rose due to higher fuel prices and increased rail charges.

During the first half of 2010, the market prices of the Company's products fell, on average, during its quotation period, compared to the same period in 2009, but, in the third and fourth quarters, prices improved. Additionally, the forward prices the Company locked in, once its trading partner declared the date of the close of the quotation period, were at lower levels than the original spot price at the date of the provisional sales.

Transportation of concentrate costs decreased during the year of 2010 as compared to the same period of 2009, due to a decreased amount of concentrate shipped in 2010 due to a decrease in zinc and copper concentrates produced of 11.4%, partially offset by a general increase in freight rates and related costs at the port.

The Company continued to pursue its exploration plans for its large concession holdings, but at a moderately reduced rate, as it focused on the construction of the processing facilities at the Piedras Verdes Mill, until the fourth quarter, when additional exploration was incurred in the area of the mining operations.

The Company incurred its first reduction of concessions from its acquisition of EXMIN, generating a write-off of the carrying value in the amount of $691,954. No other impairment of value has been estimated by Management at this time.

Gain/(loss) on foreign exchange – The foreign exchange rate during 2010 varied within a narrow range for the first three quarters but generated a significantly larger gain in the fourth quarter of 2010. There was a similar pattern in 2009 but with no gains in the foreign exchange of the Canadian dollar versus the Mexican peso.

LIQUIDITY AND WORKING CAPITAL

The Company's liquidity position is directly related to the amount of financing procured for its continued development as a mining enterprise, the level of concentrate production, the cost of this production, the final settlement billing adjustments recorded for zinc, copper, lead and silver in concentrate that is sold and the amount of exploration and development expenditures incurred each year, among other factors. As at December 31, 2010, the Company's working capital amounted to a positive $20,544,237, including $14,957,269 in cash and cash equivalents compared with a positive $2,847,197 as at December 31, 2009, including $2,821,277 in cash and cash equivalents.

As at December 31, 2010, sales tax and other receivables amounted to $3,044,442 ($2,178,391 as at December 31, 2009) and are mostly comprised of Mexican recoverable Value Added Tax credits ("IVA").

As at December 31, 2010, accounts payable and accrued liabilities amounted to $3,005,629 ($3,532,102 as at December 31, 2009) which represents balances of normal business transaction activity. In 2009, an amount of $1,129,000 relating to the Minera Cusi agreement was included in current liabilities while this balance is nil as of December 31, 2010.

As at December 31, 2010, the Company´s wholly owned subsidiary, Dia Bras Mexicana, S.A. de C.V. (DBM) had a trade receivable of $2,024,571 and no trade payable with MRI Trading AG ("MRI") (receivable of $1,319,167 and payable of $1,593,480 as at December 31, 2009). The decrease in the balance of trade payables is due to the payments discounted from the provisional invoices. Actual final settlement billings will not differ significantly from the current provision due to the fact that DBM has fixed the prices for most of its unsettled lots.

Prior to the fourth quarter of 2010, DBM had outstanding balances owing to its sole trading client, MRI, which arose from negative settlement balances related to its sales of concentrate to MRI in 2008. In July 2009, DBM signed a new agreement with MRI to limit the payments of the outstanding short-term debt and trade payable, to rationalize the repayment of the obligation. Under this new agreement, DBM made a commitment to sell its future production of zinc and copper concentrates from its Bolívar Mine to MRI, on an exclusive basis, up to the end of December 2014. The agreement was revised again, and, during the year ended December 31, 2010, DBM paid a total amount of $2,280,000 to MRI for both trade payables and for advance payable under the new schedule of payments, repaying both in full.

SHARE CONSOLIDATION

On December 7, 2010, the Company consolidated its common shares on a 1-for-7 basis. Immediately following the Consolidation, the number of shares issued and outstanding was reduced from 517,563,844 to 73,937,692. Trading on a post-Consolidated basis commenced on December 8, 2010. The Consolidation was approved by the shareholders of the Company at a Special Meeting of the Shareholders held on August 21, 2010.

SUBSEQUENT EVENTS

a) On January 7, 2011, 9,948,051 warrants were exercised at the price of $0.70 per warrant, for a total cash consideration of $6,963,626. The warrants were exercised by shareholders and Directors of the Company. Consequently, the Company issued 9,948,051 post-consolidation common shares.

b) On March 4, 2011, the Company announced that it entered into a binding agreement dated March 3, 2011 (the
"Letter Agreement") to acquire (the "Acquisition") approximately 92% of the voting shares (representing approximately 82% of the total equity) of Sociedad Minera Corona S.A. ("Corona") from a group of shareholders (the "Selling Shareholders") in an arm's length transaction. Please refer to the Company´s News Releases 7 and 8, on March 4 and 7, 2011, for additional details. The aggregate purchase price for the Acquisition will be US$285.46 million ($283.9 million) based on a total equity value for Corona of US$350 million ($348.1 million). The Selling Shareholders will be entitled to elect to use up to 20% of the proceeds from the Acquisition to purchase common shares of Dia Bras ("Dia Bras Shares") at an issue price of $2.86 per share.

2011 PRIORITIES

Dia Bras' biggest current challenges are to complete the construction of the Piedras Verdes Mill at the Bolívar Property on time and on budget. In parallel, the Company's plans for 2011 include the following:

• Increase production and recoveries from the Bolívar Property;
• Increase the amount of resources at the Bolívar and Cusi Properties which can be converted into reserves;
• Increase production and recoveries at the Cusi advanced development mining project;
• Expand capacity of the new Piedras Verdes Mill;
• Maximize cash flow in this uncertain economic environment;
• Reduce direct operating costs;
• Conduct exploration programs to expand and upgrade resources at Bolívar and Cusi projects;
• Explore and drill promising areas at La Cascada, Melchor Ocampo, Batopilas and Bacerac;
• Explore the regional exploration projects, to initiate drilling;
• Complete in-process and formulating discussions with potential JV partners for exploration.

International Financial Reporting Standards ("IFRS")

In 2006, the Canadian Accounting Standards Board ("AcSB") published a new strategic plan that significantly affects financial reporting requirements for Canadian companies. The AcSB strategic plan outlines the convergence of Canadian GAAP with IFRS over an expected five-year transitional period. In February 2008, the AcSB announced that 2011 is the changeover date for publicly listed companies to use IFRS, replacing Canadian GAAP. The effective date is for the Company's interim and annual financial statements for the year beginning January 1, 2011. The transition date will require the restatement for comparative purposes of amounts reported by the Company for the prior year.

The Company has finalized its IFRS conversion plan, with detailed assessment ongoing. The Company has identified presentation and disclosure, stock based compensation, plant and equipment, future income taxes, asset retirement obligations and financial instruments as areas where the adoption of IFRS will have a significant effect on the Company's financial reporting, processes and controls. The Company has also assessed the available elections under IFRS to determine the effect of each election to the Company.

External advisors were engaged and a team within the finance group coordinated the implementation among the various departments of the organization. The Company obtained preliminary training on IFRS for its internal implementation team and participated in ongoing training to develop a thorough understanding of IFRS in order to finalize the assessment of accounting policies and to prepare for the 2011 changeover.

The Company is now at Stage 4 of its implementation plan.

Stage 4: Implementation

• Develop a complete set of IFRS accounting policies for Dia Bras Exploration Inc. and its subsidiaries.

• Prepare draft financial statements, including notes, with preliminary figures and/or opening balance sheets under IFRS in advance of the transition date to become comfortable with financial results and their presentation.

• Continually monitor changes in IFRS standards.

• Provide end-user training as needed.

• Finalize revised internal control policies and procedures.

• Prepare final IFRS-compliant financial statements.

During the fourth quarter of 2010, the Company significantly advanced its IFRS conversion project which included a detailed review of several IFRS standards which impact the Company, the engagement of consultants to aid in the documentation and conversion process and the training of finance personnel and information sessions for executive management. Position papers on functional currency, share-based payments, decommissioning liabilities, capitalized assets and depreciation, impairments, mining assets valuation and capitalized interest were drafted for review by the executive management team and for discussion with the Audit Committee. Preliminary quantitative analysis of the Company´s potential opening balance sheet adjustment was analyzed related to share-based payments, capitalized assets and depreciation, functional currency, decommissioning liabilities, impairments, mining assets valuation and capitalized interest. These calculations are currently in the process of being reviewed and adopted. Templates have been developed to support this implementation phase, and are being reviewed by outside consultants.

The Company has reviewed the impact of IFRS on its systems, processes and controls. No significant impacts were identified in relation to its information systems or day to day accounting processes. The Company is reviewing its disclosure controls and procedures and is updating these during the first quarter of 2011, as required, to ensure that they are appropriate for reporting under IFRS.

IFRS 1 Exemptions from Full Retrospective Application

Transition of the Company to IFRS is following IFRS 1, which offers the possibility to utilize certain exemptions from full retrospective implementation of IFRS. We are currently evaluating the impact of the available exemptions in the areas of cumulative translation differences, business combinations, decommissioning liabilities, fair value as deemed cost, share-based payments. A summary of these transitional exemptions is given below:

A) Cumulative translation differences

IFRS 1 provides the option to reclassify the cumulative translation account within Accumulated Other Comprehensive Income (AOCI) to retained earnings as of the date of transition to IFRS as an alternative to establishing a retrospective cumulative translation difference under the principles of IAS 21.

B) The Company has recorded all prior translation differences to net income and does not have any AOCI. Therefore, there is no impact for this issue in the Company´s financial statements. Fair value as deemed cost.

IFRS 1 provides the option to record certain assets at fair value on transition or at an earlier date as an alternative to full retrospective application of IFRS in accounting for the asset. The option is available on an individual asset by asset basis.

The Company has evaluated the impact of this exemption but has chosen cost as the basis for asset valuation. As such, no difference in valuation methodology from its books under Canadian GAAP exists and no adjustment to the Company´s opening balance sheet for this issue is needed.

C) Stock-based payments

IFRS 1 provides the option to adjust the share-based payments and related expense only to those instruments that have not yet vested as at the transition date. Under this exemption, stock-based payments that vested prior to the transition date do not get retrospective application of IFRS 1. The Company has evaluated the impact of this exemption and has elected not to apply it.

D) Business combinations

IFRS 1 provides the option to account for its asset acquisitions under Canadian GAAP, instead of under IFRS rules requiring the restatement of past financial statements for such acquisitions. This election would affect the Company's accounting for the acquisition in 2009 of EXMIN. The Company has evaluated the impact of this exemption and has elected to apply it.

E) Decommissioning liabilities

IFRS 1 provides the option to account for changes in its decommissioning liabilities before the implementation of IFRS under Canadian GAAP. The Company has evaluated the impact of this exemption and has elected not to apply it.

IFRS-GAAP Difference

The Company has determined the following with respect to the differences between Canadian GAAP and IFRS:

A) Stock Based Compensation

Under Canadian GAAP, the Company recorded stock based compensation based upon the Black-Scholes pricing model utilizing exercise price, expected life, risk-free interest rates, and the actual volatility. In addition, it adjusted stock based compensation cost for forfeitures, using an estimate of future forfeitures, which rate was periodically reviewed to reflect actual experience. Under IFRS, the Company will evaluate the fair value of stock based compensations based upon the separate vesting portions of the grants and the associated exercise price, expected duration, expected volatility and related risk-free interest rate of each individual tranche. It will continue to estimate forfeiture rates at the date of grant, and update them periodically for actual experience. In addition, the Company had followed and will continue to follow the graded method of recording stock-based compensation expense which more heavily weights such cost in the vesting period for the grants.

B) Decommissioning and Closure Provision

Under Canadian GAAP, the Company's calculation of its Asset Retirement Obligation as of December 31, 2010 and 2009, yielded $317,000 and $105,000 respectively. The Company is in the process of finalizing the assessment of the decommissioning liabilities under IFRS. Capitalized Assets and Depreciation.

Under Canadian GAAP, the Company did not separately list components of its assets, as they were not significantly large or did not have significantly different estimated lives. Under IFRS in the future, all components of acquired or constructed assets will be separately categorized and recorded in the books and records of the Company if these separate components have distinct depreciation methods or rates.

The Company's Property, Plant and Equipment classifications, depreciation rates and lives were reviewed for comparison of its previous accounting policies under Canadian GAAP and its future policies as guided by IFRS, and it was concluded that the depreciation recognized on its assets and under its policies for Canadian GAAP were not materially different from that required under the guidance of IFRS. The Company will continue to review its estimates for asset categorization, depreciation methods and lives/rates under the guidance of IFRS in the future, particularly as relates to the assets being constructed at its Piedras Verdes Plant in the area of the Bolívar Project and any future developments of its other projects.

C) Cumulative translation differences

IFRS 1 provides the option to reclassify the cumulative translation account within AOCI to retained earnings as of the date of transition to IFRS as an alternative to establishing a retrospective cumulative translation difference under the principles of IAS 21.

The Company is currently evaluating the impact of this exemption but does not anticipate it will result in a material adjustment to the Company´s opening balance sheet.

D) Functional currency

The Company has evaluated the factors which in aggregate indicate the functional currency for itself and its individual subsidiaries, and has concluded that there is no difference under Canadian GAAP or IFRS.

E) Exploration and Evaluation expenditures

The Company has analyzed the accounting for its Exploration and Evaluation expenditures under both Canadian GAAP and IFRS, and concludes that there are no differences for the projects it currently holds. There is no difference in the disclosures it makes under either Canadian GAAP or under IFRS, except that it discloses that all of its E & E assets as of December 31, 2010, are tangible.

F) Taxes

The Company will be evaluating the impact of IFRS on the accounting for Taxes in the first quarter of 2011 in order to determine the impact of the guidance of IFRS on this area of its accounting and reporting.

About Dia Bras

Dia Bras is a Canadian exploration mining company focused on precious and base metals in Chihuahua State and other areas of northern Mexico. The Company is pursuing the development and exploration of its most advanced assets – the Bolivar Property (copper-zinc-silver) and the Cusi Property (silver). Dia Bras is also exploring several precious metal targets such as La Cascada project at the Bolivar Property, the Las Coloradas project at Melchor Ocampo (Zacatecas State), the Bacerac Property (Sonora State) and the Corralitos-Satevo and La Verde projects at the Batopilas Property (Chihuahua State).

Forward-looking Statements:

This news release contains certain statements that constitute forward -looking statements. Forward-looking information includes, but is not limited to, information concerning Dia Bras' 2009 guidance respecting pilot mining production and potential plans for Bolívar and Cusi projects, as well as the acquisition of EXMIN Resources. Forward-looking statements are subject to a variety of risks and uncertainties, which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to foreign currency fluctuations; risks inherent in the mining industry including environmental hazards, industrial accidents, unusual or unexpected geological formations, ground control problems and flooding; risks associated with the estimation of mineral resources and the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; the potential for and effects of labour disputes or other unanticipated difficulties or shortages of labour or interruptions in production; actual rocks mined varying from estimates of grade, tonnage, dilution and metallurgical and other characteristics; the inherent uncertainty of pilot-mining activities and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations; uncertain political and economic environments; changes in laws or policies, foreign taxation, delays or the inability to obtain necessary governmental permits; and other risks and uncertainties. Refer to "Risk and Uncertainties".

Forward-looking information is, in addition, based on various assumptions including, without limitation, the expectations and beliefs of management, the assumed long-term price of zinc, copper, lead and silver; the regulatory and governmental approvals for the Company's projects and other operations on a timely basis; access to financing, appropriate equipment and sufficient labour. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Although the forward -looking statements contained in this MD&A are based upon what management believes to be reasonable assumptions, the Company cannot guarantee that actual results will be consistent with these forward -looking statements. These forward -looking statements are made as of the date of this MD&A, and the Company does not assume any obligation to update or revise them to reflect new events or circumstances, except as required under applicable securities regulations.