Luna Gold Corp. Announces Results for the Second Quarter of 2012

Luna Gold Corp. (TSX VENTURE:LGC)(OTCQX:LGCUF)(LMA:LGC) ("Luna" or the
"Company") today announced its operational and financial results for the
three-month period ended June 30, 2012 ("second quarter of 2012").


SECOND QUARTER OF 2012 AND YEAR TO DATE HIGHLIGHTS



--  Gold production of 17,269 ounces in the quarter and 33,332 ounces in the
    year to date 
--  Record net income of $7.8 million for quarter and $7.3 million for year
    to date 
--  Earnings per share of $0.07 for the quarter and year to date 
--  Average unit cash cost of production of $750 per ounce for the quarter
    and $767 per ounce for the year to date 
--  Record gross profit at the Aurizona operation of $9.3 million for the
    quarter and $15.8 million for the year to date 
--  Operating cash inflow before working capital movements was $6.1 million
    for the quarter and $10.2 million for the year to date 
--  Deep drill program completed at the Piaba deposit at Aurizona, extending
    mineralization to below 600 metres vertical depth 
--  Brownfield resource drilling completed at Aurizona near mine targets 
--  Completed both Phase 1 expansion scoping study and EPCM estimate to
    produce 100,000 ounces per annum 



STRATEGIC OUTLOOK

Aurizona Project Development

Luna remains on target to deliver on its goals for 2012, which are outlined in
the Management's Discussion and Analysis report dated March 1, 2012. Foremost
among these goals are the production of 60,000 ounces of gold at an average unit
cash cost of $750 per ounce in 2012. The Company is on target to achieve this
goal.


Aurizona's Phase 1 expansion scoping study reached completion in July. An
Engineering, Procurement, and Construction Management ("EPCM") estimate has also
been completed, and is currently being reviewed by the Luna's Board of
Directors. Further guidance for the market will follow this review. 


Exploration

At Aurizona, Luna will assess the recent positive results of the Piaba deep
drill program, which will lead to planning of the next steps of brownfield
exploration. At the Luna Greenfields district, the Company is focused upon the
initiation of drilling at its top priority targets. 


COMMENTARY

"Luna's second quarter results mark our fifth consecutive quarter of production
growth," stated John Blake, Luna's President and CEO. "At the beginning of 2012,
we outlined several challenging goals, most notably the annual production of
60,000 ounces of gold at an average unit cash cost of $750 per ounce. We are
confident on achieving our market guidance, and have already achieved our
targeted cash cost. I am very pleased with our progress over the first half of
this year."


Mr. Blake concluded, "I am also pleased by the progress Luna has made in both
project development and exploration. I look forward to announcing not only the
results of our recent analyses at Aurizona, but also our findings as we continue
the exploration of both that property and the Luna Greenfields district." 


For the full version of Luna's Second Quarter of 2012 Financial Statements and
Management, Discussion and Analysis, please visit www.lunagold.com.


On behalf of the Board of Directors

LUNA GOLD CORP. 

John Blake - President and CEO

Non IFRS Financial Measures

This press release refers to cash cost per ounce of gold produced because
certain investors use this information to assess the Company's performance and
also determine the Company's ability to generate cash flow for investing
activities. These measurements capture all of the important components of the
Company's production and related costs. In addition, management utilizes these
metrics as an important management tool to monitor cost performance of the
Company's operations. These measurements have no standardized meaning under IFRS
and may not be comparable to similar measures presented by other companies.
These measurements are intended to provide additional information and should not
be considered in isolation or as a substitute for measures of performance
prepared in accordance with IFRS.


Forward Looking Statements

This MD&A includes certain statements that constitute "forward-looking
statements", and "forward-looking information" within the meaning of applicable
securities laws ("forward-looking statements" and "forward-looking information"
are collectively referred to as "forward-looking statements", unless otherwise
stated). These statements appear in a number of places in this MD&A and include
statements regarding our intent, or the beliefs or current expectations of our
officers and directors. Such forward-looking statements involve known and
unknown risks and uncertainties that may cause our actual results, performance
or achievements to be materially different from any future results, performance
or achievements expressed or implied by such forward-looking statements. When
used in this MD&A, words such as "believe", "anticipate", "estimate", "project",
"intend", "expect", "may", "will", "plan", "should", "would", "contemplate",
"possible", "attempts", "seeks", "goals", "targets" and similar expressions are
intended to identify these forward-looking statements.

Forward-looking statements may relate to the Company's future outlook and
anticipated events or results and may include statements regarding the Aurizona
property (including amount of production, cost of production, future potential)
and other development projects of the Company, the Company's future financial
position, business strategy, budgets, litigation, projected costs, financial
results, taxes, plans and objectives. We have based these forward-looking
statements largely on our current expectations and projections about future
events and financial trends affecting the financial condition of our business.
These forward-looking statements were derived utilizing numerous assumptions
regarding expected growth, results of operations, performance and business
prospects and opportunities, general business and economic conditions, interest
rates, the supply and demand for, deliveries of, and the level and volatility of
prices of gold and related products, the timing of the receipt of regulatory and
governmental approvals of our projects and other operations, our costs of
production and production and productivity levels, as well as those of our
competitors, power prices, continuing availability of water and power resources
for our operations, market competition, the accuracy of our resource and reserve
estimates (including with respect to size, grade and recoverability) and the
geological, operational and price assumptions on which these are based,
conditions in financial markets, the future financial performance of the
Company, our ability to attract and retain skilled staff, our ability to procure
equipment and operating supplies, positive results from the studies on our
projects, our gold inventories, our ability to secure adequate transportation
for our products, our ability to obtain permits for our operations and
expansions, and our ongoing relations with our employees and business partners
that could cause our actual results to differ materially from those in the
forward-looking statements.

While the Company considers these assumptions to be reasonable, based on
information currently available, they may prove to be incorrect. Accordingly,
you are cautioned not to put undue reliance on these forward-looking statements.
Forward-looking statements should not be read as a guarantee of future
performance or results. To the extent any forward-looking statements constitute
future-oriented financial information or financial outlooks, as those terms are
defined under applicable Canadian securities laws, such statements are being
provided to describe the current anticipated potential of the Company and
readers are cautioned that these statements may not be appropriate for any other
purpose, including investment decisions.


Forward-looking statements are subject to risks and uncertainties that could
cause actual performance or results to differ materially from those expressed in
or suggested by the forward-looking statements. Risks and uncertainties that may
cause actual results to vary materially include, but are not limited to, changes
in gold prices, changes in interest and currency exchange rates, acts of foreign
governments, inaccurate geological and metallurgical assumptions (including with
respect to the size, grade and recoverability of mineral reserves and
resources), unanticipated operational difficulties (including failure of plant,
equipment or processes to operate in accordance with specifications or
expectations, cost escalation, unavailability of materials and equipment,
government action or delays in the receipt of government approvals, adverse
weather conditions and unanticipated events related to health, safety and
environmental matters), labour disputes, political risk, social unrest, failure
of counterparties to perform their contractual obligations, changes in our
credit ratings and changes or further deterioration in general economic
conditions, uncertainties with respect to operating in Brazil, including
political unrest, theft, uncertainties with respect to the rule of law,
corruption and uncertain court systems and other risks discussed elsewhere in
this MD&A and our latest AIF filed on SEDAR at www.sedar.com.


Forward-looking statements speak only as of the date those statements are made.
Except as required by applicable law, we assume no obligation to update or to
publicly announce the results of any change to any forward-looking statement
contained or incorporated by reference herein to reflect actual results, future
events or developments, changes in assumptions or changes in other factors
affecting the forward-looking statements. If we update any one or more
forward-looking statements, no inference should be drawn that we will make
additional updates with respect to those or other forward-looking statements.
You should not place undue importance on forward-looking statements and should
not rely upon these statements as of any other date. All forward-looking
statements contained in this MD&A are expressly qualified in their entirety by
this cautionary statement. 


Other Technical Information

Peter Mah, P.Eng., Certified Mining Engineer, the Company's Vice President
Operations is the Qualified Person as defined under National Instrument 43-101
responsible for the scientific and technical work on the development programs
and has reviewed and approved the corresponding technical disclosure throughout
this MD&A. Titus Haggan Ph.D., EurGeol Certified Professional Geologist #746,
the Company's Vice President of Exploration, is the Qualified Person as defined
under National Instrument 43-101 responsible for the scientific and technical
work on the exploration programs and has reviewed and approved the corresponding
technical disclosure throughout this MD&A.