Brazilian Court Judgment Becomes Final in Civil Litigation Involving June 5, 2004 Serra Pelada Agreements

Final Judgment Declares Shareholder Exclusion Null, Orders Immediate Reinstatement, and Concludes Litigation

DETROIT, July 1, 2026 /PRNewswire/ -- Phoenix Gems today announced that the judgment entered by the Tribunal de Justiça de Pernambuco (State Court of Pernambuco, Brazil) in Civil Case No. 0034186-18.2011.8.17.0001 has become final (transitado em julgado), concluding the litigation and making the judgment no longer subject to ordinary appeal.

The litigation arose from disputes concerning the exclusion of Brent Evan Smith from Phoenix Gems do Brasil Ltda. and the legal validity of corporate acts and subsequent legal transactions arising from that exclusion. Brent E. Smith was a 49% shareholder of Phoenix Gems do Brasil Ltda. when the June 5, 2004 agreements that became the subject of the litigation were executed.

According to the Court's final dispositive orders, the Court:

• Declared the contractual amendment excluding Brent Evan Smith from Phoenix Gems do Brasil Ltda. null and void.
• Ordered Brent Evan Smith's immediate reinstatement as a shareholder, with restoration of all corresponding rights.
• Declared subsequent legal transactions that depended upon the validity of the exclusion to be null, with their concrete effects to be determined during the judgment enforcement phase while preserving the rights of good-faith third parties.
• Dismissed the defendants' counterclaim.

The judgment has now become final (transitado em julgado).

Phoenix Gems' Response

Following the Court's final judgment, Phoenix Gems has completed a formal Petição de Terceiro Interessado for submission to Brazil's Agência Nacional de Mineração (ANM), requesting that the agency consider the Court's final judicial determination in matters within its administrative jurisdiction.

"The judicial proceedings have concluded," said Brent E. Smith, Founder and President of Phoenix Gems. "Our focus now shifts to the administrative procedures available under Brazilian law. Phoenix Gems intends to pursue those procedures in an orderly and transparent manner and will continue to report material developments as they occur."

Public Record

This announcement summarizes the Court's final dispositive orders. The complete judgment forms part of the public record of the Tribunal de Justiça de Pernambuco and may be reviewed through the Tribunal's PJe Public Consultation portal using Civil Case No. 0034186-18.2011.8.17.0001.

PJe Public Consultation Portal

https://pje.cloud.tjpe.jus.br/1g/ConsultaPublica/listView.seam

About Phoenix Gems

Phoenix Gems is a privately held U.S. corporation specializing in international mineral exploration and strategic asset acquisition.

Media Contact
Phoenix Gems
Brent E. Smith
Founder and President
+1 (248) 429-7273
[email protected]

SOURCE Phoenix Gems