Vancouver, July 20, 2011 - Luna Gold Corp. (TSXV-LGC) ("Luna Gold" or the "Company") announces that it has entered into an agreement with Brascan Natural Resources S.A. ("Brascan") and Eldorado Gold Corporation ("Eldorado") to amend the outstanding debt of the Company to Brascan and Eldorado. Luna Gold had issued promissory notes in the aggregate amount of US$3,000,000, respectively, to each of Eldorado and Brascan in connection with the 2006 Purchase Agreement pursuant to which Luna Gold acquired the Aurizona project from Brascan and Eldorado. In satisfaction of the aforementioned promissory notes, Brascan and Eldorado will each receive:

US$1,500,000 in cash on or before December 2, 2011; and
such number of common shares of Luna Gold, on or about July 25, 2011, as is equal to the Canadian dollar equivalent of US$1,500,000 divided by C$0.59 per share.

The proposed share issuance remains subject to approval by the TSX Venture Exchange.

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, development is the Cachoeira deposit in Para, Brazil and the Company is exploring in a large strategically placed land position in Maranhão, Brazil.

On behalf of the Board of Directors

LUNA GOLD CORP.

John Blake -- President and CEO

Website: www.lunagold.com