LGC Lavras Gold Corp

Luna Gold Corp. (TSX VENTURE:LGC)(OTCQX:LGCUF)(LMA:LGC) ("Luna" or the
"Company") is pleased to announce that an agreement has been reached with
Sandstorm Gold Ltd ("Sandstorm") to contribute to funding of the Phase I
expansion of gold production at the Company's Aurizona gold mine in Brazil to a
targeted 125,000 ounces per year. Sandstorm will contribute 17% of the required
Phase I expansion capital expenditure to a maximum of US$10 million. In
addition, Sandstorm has agreed to provide a US$20 million Debt Facility to Luna
for both production expansion and future drilling costs at the Aurizona gold
mine. 


The Phase I expansion project will be funded from a combination of internally
generated cash at the Aurizona gold mine and Sandstorm's 17% capital
contribution.


John Blake, Luna's President and CEO, stated, "Luna Gold is now financially
positioned to undertake the Phase I Expansion Project. We expect this Project to
increase annual production to a targeted 125,000 ounces of gold at the Aurizona
gold mine. With the available debt facilities, cash on hand, and capital
contributions from Sandstorm, Luna is now poised to both increase cash flows
from additional production and further strengthen our balance sheet." 


The Company cautions that the potential increased production target for the
expansion program discussed above, as well as the Phase I expansion's associated
costs, are estimates approved by Luna's Board of Directors. There has been
insufficient work to support these statements with a NI 43-101 compliant
technical report as of the date of this release. 


About Luna Gold Corp. 

Luna is a gold production and exploration company engaged in the operation and
expansion of the Aurizona Gold Mine in Brazil, as well as the exploration for
gold within the adjacent Luna Greenfields.


On behalf of the Board of Directors

LUNA GOLD CORP. 

John Blake, President and CEO

Forward Looking Statements

This press release 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 press release 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 press release, 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 press release 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 press release 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 press release. 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 press release.

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