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Luna Gold Increases Proven and Probable Mineral Reserve to 2.36 Million Ounces at Its Piaba Gold Deposit in Brazil

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VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 04/09/13 -- Luna Gold Corp. (TSX: LGC)(OTCQX: LGCUF)(LMA: LGC) ("Luna Gold" or the "Company") today announced the completion of a mineral Proven and Probable Reserve update at its Aurizona Gold Mine in Brazil.

Highlights

-- Piaba deposit Proven and Probable mineral gold Reserve of 2.36 million ounces including 56 million tonnes of ore with life of mine average 1.32 grams of gold per tonne ("g/t", and the "April 2013 Reserve")-- New reserve represents a 222% increase in Proven and Probable Reserves when compared to the Piaba July 2010 Reserve statement-- Piaba deposit reserves are contained within Aurizona property, which also contains Measured and Indicated gold Resources of 3.63 million ounces with inferred resource of 1 million ounces of gold (as announced on March 14, 2013)-- The Piaba deposit remains open along strike and at depth. In addition, brownfields exploration potential at Aurizona is exceptional as demonstrated by the emerging Boa Esperanca, Ferradura, Conceicao, and Tatajuba deposits-- Based on the April 2013 Reserve and the anticipated completion of Phase I Expansion nameplate processing capacity of 10,000 tonnes per day, Piaba's expected mine life has been extended to 2027 (approximately 15 years). Completion of the Phase I expansion is expected in the fourth quarter of 2013-- As a result of an increase of Piaba's Proven and Probable Reserves average gold grade combined with the Phase I expansion, the Aurizona average life of mine gold production is now estimated between 125,000 and 140,000 ounces per annum



"Luna Gold is very pleased to announce this substantial increase in reserves at Piaba. The April 2013 Reserve, when combined with the current Phase I expansion, will lead to greater than anticipated gold production at Aurizona," stated John Blake, Luna Gold's President and CEO. "The 15-year mine life at Piaba does not include the measured and indicated resources outside of Piaba that are within the wider Aurizona mine area. Brownfields exploration at Aurizona has the potential to add meaningful increases to both resources and reserves. The Phase I expansion is the first step in Luna's plan to incrementally increase gold production and ultimately establish Aurizona as one of Brazil's leading gold mines. We look forward to completing Aurizona's Phase I expansion at the conclusion of this year, and to achieving gold production within its increased range during 2014."

Table 1. Piaba deposit, Aurizona project mineral Reserve table, effective as at January 29, 2013(3)

----------------------------------------------------------------------------Deposit Classification Tonnes Au g/t Au Ounces---------------------------------------------------------------------------- Proven 19,810,270 1.26 807,389Piaba Probable 35,643,165 1.35 1,547,887 ------------------------------------------------------------------ Proven & Probable 55,453,435 1.32 2,355,276----------------------------------------------------------------------------Notes:1. Luna Gold Mineral Resource upgrade as at January 29, 20132. April 2013 Reserve is based on a gold price of US$1,350 per ounce3. The model was depleted to the end of month topography December 20124. Includes 98% mining recovery5. Includes 10% mine dilution6. Includes foreign exchange conversion rate of 1.95 Brazilian Real to 1 US Dollar7. Break even cut off grades of 0.44 g/t, 0.49 g/t and 0.51 g/t were used for saprolite and laterite, transition and fresh rock ore types, respectively8. Metallurgical recoveries are included in the cut-off grade calculations and calculated to be 92% for saprolite and laterite, 91% for transition and 91% for fresh rock, respectively9. Au ounces exclude metallurgical recoveries10. April 2013 Reserve is presented in accordance with the classification standards established by the Canadian Institute of Mining, Metallurgy and Petroleum11. The estimates of mineral reserves may be materially affected by geotechnical, environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues12. The mineral reserve estimate has been prepared and overseen by Qualified Persons Alberto Reyes, Chartered Professional with the Australian Institute of Mining and Metallurgy (AusIMM) and G. Peter Mah P Eng Ontario and independently reviewed by Sam Shoemaker, Registered SME Member, Micon International Limited



The updated Piaba resource announced on March 14, 2013 serves as the basis for the April 2013 Reserve which has been estimated assuming a spot gold price of $1,350 per ounce, mining recovery of 98%, and dilution of 10%. These assumptions result in a life of mine strip ratio (waste: ore) of 6.6:1.

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/lgc-0409-fig1.pdf.

Figure 1 illustrates the Piaba pit and resource block model. The open pit extends along a strike length of 3,200 metres and has an average width of 540 metres, and a pit depth of 300 metres. The ore body as a whole dips sub-vertically with the saprolite and laterite ore extending along the full strike of the ore body from surface to an average depth of 85 metres. The mineralization at the Piaba deposit remains open to the North East, South West and at depth.

The Company is currently undertaking further optimization studies to assess additional improvements to the April 2013 Reserve. These studies include (i) optimizing the life of mine expected operating costs related to the Phase I expansion production rate of 10,000 tonnes per day of ore; (ii) evaluating the possible conversion of the near mine resource deposits Tatajuba, Boa Esperanca, Ferradura, and Conceicao with the view of integrating them under the Aurizona Mineral Proven and Probable Reserves; and (iii) the Aurizona Phase II expansion prefeasibility study. The Company is targeting a subsequent reserves update during 2014.

Table 2. Comparison of July 2010 and April 2013 mineral Reserve statements, Piaba deposit, Aurizona

---------------------------------------------------------------------------- Ore Au OuncesYear Type Classification Tonnes (kt) Au g/t (000's)---------------------------------------------------------------------------- Proven 1,418 1.46 67 -------------------------------------------------------July 2010 Reserves Probable 15,749 1.36 664 ------------------------------------------------------- Proven and Probable 17,167 1.36 731---------------------------------------------------------------------------- Proven 19,810 1.26 807 -------------------------------------------------------April 2013 Reserves Probable 35,643 1.35 1,548 ------------------------------------------------------- Proven and Probable 55,453 1.32 2,355----------------------------------------------------------------------------



Conversion factors and parameters are presented on Table 3. The parameters for the April 2013 Reserve use historical cost figures from the 2012 year as the basis while reflecting any estimated cost changes associated with the Phase I plant expansion and new mine model. It is worth noting that the second half of 2012 showed costs trending down while production increased quarter-on-quarter (refer to the 2012 Annual Financial Statements and MD&A filed on www.sedar.com). For the purpose of the April 2013 Reserve estimation only Measured and Indicated Resource material type were considered. Inferred and material below 0.3 g/t were considered waste in the conversion. For the purpose of the April 2013 Reserve estimation, only Measured and Indicated Resource material was considered. Inferred and material below 0.3 g/t were considered waste in the conversion. For detailed information with respect to the 2010 reserve estimate please refer to the technical report available at www.sedar.com entitled "NI 43-101 Technical Report, Mineracao Aurizona S.A., Aurizona Project", dated September 1, 2010.

Table 3. July 2010 and April 2013 mineral reserve conversion factors, Piaba deposit, Aurizona

July 2010 April 2013 Reserves Declaration Reserves Declaration----------------------------------------------------------------------------Price of Gold (US$/oz) 750 1350----------------------------------------------------------------------------Mining Costs: Mining Costs (US$/t): Mining Costs (US$/t): Saprolite & Laterite 1.69 1.66 Transitional 2.19 1.87 Fresh Rock 2.19 1.99----------------------------------------------------------------------------Processing Costs: Processing Costs (US$/t): Processing Costs (US$/t): Saprolite & Laterite 5.87 11.00 Transitional 6.07 12.65 Fresh Rock 6.07 13.20----------------------------------------------------------------------------G&A (US$/t): 1.89 4.50----------------------------------------------------------------------------CoG: CoG: CoG: Saprolite & Laterite 0.35 0.44 Transitional 0.37 0.49 Fresh Rock 0.41 0.51----------------------------------------------------------------------------Annual Processing Limits ('000 t) 1.53 3.65----------------------------------------------------------------------------



The technical report for the Resource update and this Reserve update will be filed under the Company's profile on SEDAR by the end of April 2013.

Table 4. Aurizona project consolidated mineral resource table inclusive of reserves effective as at January 29th 2013

Deposit Type Class Tonnes Au g/t Au Ounces---------------------------------------------------------------------------- Measured 19,510,000 1.36 850,000 Indicated 59,010,000 1.40 2,652,000Piaba Pit constrained Measured and Indicated 78,520,000 1.39 3,502,000 ------------------------------------------- Inferred 6,990,000 1.61 362,000 ---------------------------------------------------------------- Outside Pit Shell Inferred 9,450,000 1.95 592,000----------------------------------------------------------------------------Tatajuba Pit constrained Indicated 1,380,000 1.40 62,000 Inferred 810,000 1.39 36,000----------------------------------------------------------------------------Boa Pit constrained Indicated 1,430,000 0.79 36,000Esperanca Inferred 970,000 1.00 31,000----------------------------------------------------------------------------Conceicao Pit constrained Indicated 160,000 0.75 4,000 Inferred 60,000 0.82 2,000----------------------------------------------------------------------------Ferradura Pit constrained Indicated 500,000 1.65 27,000 Inferred 260,000 1.65 14,000---------------------------------------------------------------------------- Measured 19,510,000 1.36 850,000 Indicated 62,480,000 1.38 2,781,000Total Pit Constrained and Measured Outside Pit and Indicated 81,990,000 1.38 3,631,000 ------------------------------------------- Inferred 18,540,000 1.74 1,036,000----------------------------------------------------------------------------



For detailed information on the Aurizona project consolidated mineral resource, Table 4 above refer to the press release entitled, "Luna Gold increases measured and indicated resources to 3.63 million ounces and inferred resources to 1.04 million ounces at Aurizona" dated March 14, 2013.

About Luna Gold Corp.

Luna is a gold production company engaged in the operation, expansion, and exploration of gold projects in Brazil.

On behalf of the Board of Directors

LUNA GOLD CORP.

John Blake - President and CEO

Regulatory Footnotes

The Qualified Persons under National Instrument 43-101 who prepared the estimate of the mineral reserves is Alberto Reyes, Chartered Professional Australian Institute of Mining and Metallurgy (AusIMM), Luna Gold Corp. Operating, project development and studies reviewed by G. Peter Mah, Professional Engineer Ontario, Luna Gold Corp. The mineral reserves estimate was independently reviewed by Sam Shoemaker, Registered SMA Member, Micon International Ltd.

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, mineral reserves and resource estimates, statements with respect to future life of mine, production rates and gold production and/or the results of analysis on gold production. Forward-looking statements are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that while believed by management and qualified persons to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. In addition, 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, including, without limitation, its latest annual information form. These factors include 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, 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, uncertainties inherent to mineral reserve and resource estimates, 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, and other risks and uncertainties, including those described in the Company's latest annual information form filed at www.sedar.com. 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.



Contacts:
Luna Gold Corp.
Investor Relations
(604) 568-7993
www.lunagold.com



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