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 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.