Luna Gold Announces Closing of Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 30, 2011) -

NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Luna Gold Corp. (TSX VENTURE:LGC)(BVLAC:LGC) ("Luna Gold" or the "Company") is pleased to announce the completion of its previously announced private placement of units ("Units") to investors in South America (the "South American Placement").

Under the terms of the South American Placement, 23,749,338 Units were sold at a price of $0.52 for gross proceeds of approximately $12.35 million. Each Unit consists of one common share of the Company plus one half of one common share purchase warrant (each whole warrant, a "Warrant"), with each Warrant being exercisable to acquire one common share at a price of C$0.70 until September 29, 2013.

Celfin Capital S.A. SAB acted as lead agent for the South American Placement and received a cash commission equal to $150,000 plus 6.0% of the gross proceeds raised. The common shares and warrants underlying the Units issued in the South American Placement are subject to a four month hold period in Canada until January 31, 2012.

Luna Gold intends to use the net proceeds of the South American Placement and its recent public offering for Aurizona expansion scoping study, Aurizona resource definition expansion, Maranhão Greenfields discovery exploration, Cachoeira social impact study, corporate development, debt reduction and for general corporate purposes.

About Luna Gold Corp.

Luna Gold is a producing gold company with development and exploration projects. Gold production is from the Aurizona Mine in Maranhão, Brazil, and development is focused on the Cachoeira deposit in Para, Brazil. The Company is exploring Maranhão Greenfields, a large strategically placed land position in Maranhão, Brazil.

On behalf of the Board of Directors

LUNA GOLD CORP.

John Blake – President and CEO

Regulatory Footnotes

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the United States Securities Act of 1933 and applicable state securities laws or an exemption from such registration is available.

Forward-Looking Statements

All statements other than statements of historical fact included in this news release are forward-looking information that involve various risks and uncertainties, including, without limitation, statements regarding the proposed use of proceeds. These statements are identified through the words "intend", "plan" and "expected" (or derivations thereof) in this news release. Such forward-looking information represents management's best judgment based on information currently available. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's plans or expectations include risks detailed from time to time in the filings made by the Company with Canadian securities regulators. These factors include the inherent risks involved in equity finance activities and the capital markets as a result of frequent and significant shifts in commodity prices and uncertainties in the global economy, 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 exploration and operations, fluctuating metal prices, 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, currency fluctuations, regulatory restrictions, including environmental regulatory restrictions and liability, competition, loss of key employees, and other related risks and uncertainties. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements or information whether as a result of new information, future events or otherwise, except as otherwise required by applicable securities legislation.