Luna Gold Defines Priority Gold Target at Maranhao Greenfields and Further Extends Landholding by 20,000 Hectares

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 10, 2011) - Luna Gold Corp. (TSX VENTURE:LGC)(BVLAC:LGC) ("Luna Gold" or the "Company") announces positive surface exploration results from the Areal target located within Luna Gold's 100% owned prospective Maranhão Greenfields project area. Areal is located 20 km due southwest from the Aurizona mine and is one of several greenfields gold targets being advanced by Luna Gold. Data from geochemical and geophysical surveys combined with geological mapping indicate that a large shear hosted gold mineralizing system exists at Areal. Project maps have been uploaded to the Luna Gold website at www.lunagold.com or to view directly click below. Areal is a priority drill target for 2012 and can be summarized as:

• Major gold in soil anomaly measuring 1.70 km X 0.45 km at a 50 ppb Au cut-off with maximum values of 8.97 g/t Au associated with garimpeiro workings, mineralized quartz vein sets and sulfidized felsic intrusives

• Gold anomaly is associated with elevated Bi and Mo values and is hosted within a major NW trending shear corridor with well defined footwall mafic volcanics – prospective structural corridor

• Reconaissance rock grab and channel sampling program returned gold values up to 1.60 g/t Au

• Follow-up programs to commence in Q3 to advance Areal to drill stage in 2012

Areal Location Map: http://www.lunagold.com/i/pdf/Areal_Locatinon_Map.pdf

Areal Geology Map: http://www.lunagold.com/i/pdf/Areal_Geology_Map.pdf

Areal Geophysical (RTP) Map: http://www.lunagold.com/i/pdf/Reduced_to_Pole_Geophysical_Map.pdf

Luna Gold's President and CEO, John Blake, comments, "We are very pleased with the exploration results from Areal which is one of several gold targets being generated by Luna Gold. Our exploration team is focused on the discovery of multimillion ounce gold deposits hosted within regional shear corridors at Maranhão Greenfields which holds significant potential in becoming a new Brazilian gold district. The addition of a further 20,000 ha to the Maranhão Greenfields project adds to our dominant landholding now totaling 190,000 ha in this emerging gold district and further strengthens Luna Gold's growth profile."

Areal was an active garimpo (artisanal mine) in the 1980's where miners worked northwest trending quartz veins hosted within sulfidized tonalities, syenogranites and granites. Luna Gold conducted a geochemical survey followed by a ground magnetic survey and geologic mapping program which has identified a 1.7 km long gold in soil anomaly within a northwest trending shear zone. Gold mineralization is associated with outcropping quartz veins and hydrothermal alteration and is coincident with a pronounced magnetic low that is associated with altered felsic intrusives within the shear corridor. The geophysical anomalies correlate very well with the geologic mapping and importantly have identified a mafic volcanic footwall sequence providing a strong structural control to the mineralization. Gold shows certain correlation with molybdenum, bismuth and lead consistent with a shear hosted intrusive mineralizing system. The scale of the anomaly and geological and geophysical associations are consistent with Luna Gold's Greenfields target criteria. Luna Gold's geologists collected 303 reconnaissance rock chip and channel samples from across the Areal target with a maximum gold value of 1.60 g/t Au.

Luna Gold's VP Exploration, Titus Haggan, states, "Luna Gold's objective at Maranhão Greenfields in 2011 is to discover district scale gold mineralizing systems and advance the best targets to drill stage for the 2012 exploration season. The exploration results at Areal are very encouraging and indicate a major surface gold anomaly associated with elevated Bi, Mo and Pb values hosted within a series of sheared and altered felsic intrusives. Geologic mapping has groundtruthed the soil anomalies and points to a clear association of gold with quartz veining and sulfidation of the intrusives. Ground magnetic surveys have confirmed the target structure and geology which is hosted within a major NW-trending shear zone. A project grid has been established at Areal and an auger program will commence in Q3 followed by a trenching program ahead of drilling in 2012. This is the first target to be reported from Maranhão Greenfields and several more are in the pipeline. Following the receipt of these excellent results we have extended the soil grid targeting extensions to Areal and will report results from this and other ongoing programs at Maranhão Greenfields project in due course."

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 a large strategically placed greenfields land position in Maranhão, Brazil.

On behalf of the Board of Directors

LUNA GOLD CORP.

John Blake – President and CEO

Regulatory Footnotes

Luna operates a rigorous QA/QC protocol on all aspects of geochemical sampling and analytical procedure. Soil sampling programs are supervised by mining technicians and samples are collected on regular grids surveyed using total stations. Soil samples are collected at a nominal 0.50 meter depth or deeper corresponding to the B soil horizon. Several types of ancillary data are recorded including soil type, granulometry, magnetism, and the presence of laterite. Channel and rock sampling is supervised by geologists and mining technicians and recorded on special log sheets. All areas intended for sampling are assessed and marked-up for sampling by geologists. For surface channel sampling all sample faces are cleaned to a depth of 15 centimeters and marked for sampling which is conducted at nominal 1 meter intervals using appropriate sampling tools which are cleaned between each sample. Sample intervals are surveyed using a Total Station. All samples are stored in secure locked areas under Company supervision. Samples are transported from the Aurizona project to the ALS Chemex sample preparation facility in Belo Horizonte, Minas Gerais accompanied by Luna personnel. Soil and rock channel samples are assayed for gold via fire assay (30 and 50 grams) at ALS Chemex, Lima, Peru. Luna operates a rigorous QA/QC program for soil and rock samples which involves the insertion of blanks, CRM and sample duplicates. These QA/QC procedures provide several measures of data quality and assure the Company that the assay data is representative of the original sample.

Titus Haggan, Ph.D., EurGeol Certified Professional Geologist #746, Luna's Vice President Exploration is the Qualified Person as defined under National Instrument 43-101 responsible for the scientific and technical work on the exploration program and has supervised the preparation of and reviewed the technical disclosure in this press release. Non- qualified persons currently work on Luna's exploration programs under the guidance of Titus Haggan. Dr. Haggan takes responsibility for work, information and advice generated by non-Qualified persons and has taken the steps required to ensure that the work, information and advice is sound.

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

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 the exploration program for the Company's Aurizona, Areal and Maranhão Greenfields projects and any planned resource upgrades. 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. Certain of the statements made herein by Luna Gold Corp. are forward-looking and subject to various risks and uncertainties, both known and unknown, many of which are beyond the ability of Luna Gold Corp. to control or predict. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Forward-looking information is subject to known and unknown risks and uncertainties that may cause Luna Gold Corp.'s actual results, performance or achievements may be materially different from those expressed or implied by such forward-looking information, and are developed based on assumptions about such risks, uncertainties and other factors set out here in, including but not limited to 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, mine development and production costs, the projected life of the Company's mines, future production levels, 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.