Luna Gold Provides Update on Proposed Financing & Restructuring

VANCOUVER, BC--(Marketwired - June 16, 2015) - Luna Gold Corp. (TSX: LGC) (LMA: LGC) (OTCQX: LGCUF)

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Luna Gold Corp. (TSX: LGC) (LMA: LGC) (OTCQX: LGCUF) ("Luna" or the "Company") is pleased to announce that the Company has received a waiver from Sandstorm Gold Ltd. ("Sandstorm") from the condition that the Company raise C$20 million in equity (the "Equity Raise") in connection with the restructuring (the "Restructuring") of Sandstorm's existing gold stream and debt facility. Concurrent with the Restructuring, the Company expects to raise the previously announced C$20 million in debt and C$12.5 million in equity financing including C$10 million from affiliates of Pacific Road Resources Funds ("Pacific Road") (the "Proposed Financing").

The Proposed Financing and Restructuring are subject to a number of conditions. The Company anticipates completion of the Proposed Financing and the Restructuring on or around June 30, 2015. The Company may complete the remainder of the Equity Raise through an additional private placement of equity on the same terms as the Pacific Road subscription after closing of the Proposed Financing and Restructuring.

As previously announced, the Company intends to use the proceeds from the Proposed Financing to: (i) repay its existing debt facility with Société Générale (Canada Branch) and Mizuho Corporate Bank (the "Senior Lenders"); (ii) commence an infill drilling program, prepare engineering studies and submit updated permits at Aurizona; and (iii) for general working capital and corporate purposes.

If the Proposed Financing and Restructuring are not completed, the Senior Lenders will be in a position to accelerate Luna's senior debt due to previously announced covenant breaches and commence enforcement proceedings against the Company and its assets. The Company cannot give any assurance that the Senior Lenders will continue to forbear from taking such actions if the Proposed Financing and Restructuring fail to complete.

Any securities issued in the transactions described in this press release will be subject to a four month hold period which will expire four months plus one day from the closing date.

About Luna Gold Corp.
Luna is a gold production and exploration company engaged in the operation, discovery, and development of gold projects in Brazil.

On behalf of the Company

LUNA GOLD CORP.

Marc Leduc P.Eng.- President, Chief Executive Officer and Director

Website: www.lunagold.com

For further information contact Investor Relations at +1 (604) 568-7993.

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 successful completion of the Proposed Financing, the Restructuring or any transaction or transactions similar in nature, regulatory and shareholder approvals of any such transactions, the Company's ability to continue as a going concern, future or continued mining operations, expected gold production and/or the results of analysis on gold production, expected grades, anticipated tailings facility cost, anticipated timing for the release of the new resource and reserve estimates and the Company's compliance with its debt and other financing arrangements. 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 a significant transaction such as the Proposed Financing, the Restructuring or other related transactions, regulatory and shareholder approvals, use of proceeds from the Proposed Financing and the Restructuring, financial performance or results, suspension and potential restart of operations, the effect of the Company's non-compliance with certain covenants in its debt and other financing agreements, 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, uncertainties with respect to non-compliance with credit facility covenants 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.