Luna Gold Announces Closing of Previously Announced Private Placement Financing

VANCOUVER, BC--(Marketwired - August 29, 2016) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES

Luna Gold Corp. (TSX: LGC) ("Luna" or the "Company") has completed its private placement offering of units in the Company as previously announced on August 15 and August 16, 2016. Under the private placement, a total of 35,000,000 units were sold at a price of C$0.20 per unit for gross proceeds of C$7.0 million. Each Unit consisted of one common share of the Company, and one common share purchase warrant (a "Warrant"). Each Warrant is exercisable at a price of C$0.25 per common share for a period of 60 months from the closing of the Offering.

Proceeds from the Financing will be used to complete technical work required to restart the Aurizona Gold Mine, as well as for general working capital purposes.

About Luna Gold Corp.

Luna is engaged in the exploration and redevelopment of its past producing Aurizona Gold Mine, which was placed on care and maintenance in 2015. The Company expects to publish a National Instrument 43-101 compliant technical report for the Aurizona Gold Mine in 2016.

On behalf of the Company

LUNA GOLD CORP.

Christian Milau, Chief Executive Officer and Director
Website: www.lunagold.com

NOT FOR DISTRIBUTION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES

Forward-Looking Statements

This release contains certain "forward looking statements" and certain "forward looking information" as defined under applicable Canadian and U.S. securities laws. Forward-looking statements can generally be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans" or similar terminology. Forward-looking statements include, but are not limited to, statements with respect to returning the Aurizona mine to production, the Company's intended use of the proceeds of the Offering, the timing of the Company's release of a technical report in 2016 relating to its Aurizona mine, and future gold production and/or the results of analysis on gold production. Forward-looking statements are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking statements are subject to various risks and uncertainties concerning the specific factors identified in Luna Gold Corp.'s periodic filings with Canadian Securities Regulators. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drill results and other exploration data, the potential for delays in exploration or development activities, 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, accidents, equipment breakdowns, title matters, labor disputes or other unanticipated difficulties with or interruptions in production and operations, fluctuating metal prices, unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, regulatory restrictions, including environmental regulatory restrictions and liability, competition, loss of key employees, and other related risks and uncertainties. The Company undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.