It happened at Kiss in Santa Maria, about 02:00 BRST.
Hundreds of college students had packed into the club to hear a popular country band, Gurizada Fandangueira.
Part of the show included on stage pyrotechnics, and those are being blamed for starting the fire.
According to witnesses, security had the doors locked and were not letting people exit, as in Brazil concert goers pay for their tickets, after the show.
Other witnesses said that those outside tried tearing down the walls, with their hands, to try and rescue people.
Authorities say most of the dead died from smoke inhalation and being trampled in the panic.
Investigators are looking into the stories about security, at whether the club was over capacity, and if the exits were clearly marked.
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