Luna Gold Announces The Closing of a US $30 Million Senior Secured Credit Facility

Vancouver, Canada, July 26, 2011 - Luna Gold Corp. (TSXV-LGC/BVL-LGC) ("Luna Gold" or the "Company") is pleased to announce the closing of a US$ 30 million senior secured credit facility (the "Facility") with WestLB AG. This Facility is comprised of a US$ 20 million senior secured term loan (the "Term Loan") and a US$ 10 million (Brazilian Real equivalent) senior secured revolving loan (the "Revolving Facility"). The purpose of the Facility is to refinance the Company's existing debt with RMB Resources and to fund additional capital expenditures and working capital needs at the Aurizona gold mine.

The Term Loan is a 5 year loan with semi-annual instalments commencing on July 1, 2012 and will bear interest at LIBOR plus 3.625%. The Revolving Facility will be denominated in Brazilian Reais, matures on July 1, 2014 and will bear interest at CDI plus 3.25%. Any outstanding commitments under the Revolving Facility shall be repaid in full on the final maturity date.

Luna Gold's President and CEO, John Blake, comments, "We are very pleased with the WestLB facility as it provides additional financial flexibility to assist the Luna team in achieving its target to deliver feasibility level gold production and also re-emphasizes the confidence in management and the growth potential of the Aurizona gold mine."

The Company will use the Facility to repay the remaining US$ 10 million RMB Resources term facility, fund working capital, capital and sustaining capital of approximately US$ 20 million.

About Luna Gold Corp.
Luna Gold is a producing gold company with development and exploration projects. Gold production is from the Aurizona Mine in Maranh�o, Brazil, development is the Cachoeira deposit in Para, Brazil and the Company is exploring in a large strategically placed land position in Maranh�o, Brazil.


On behalf of the Board of Directors

LUNA GOLD CORP.

John Blake - President and CEO


Website: www.lunagold.com
For further information contact Investor Relations at (604) 558 0560

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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 Company's exploration programs, any planned resource upgrades, production estimates and any planned upgrades to processing facilities. 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, labour 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.