LUNA GOLD DRILLS 32.00 M @ 3.20 G/T AU AND 15.00 M OF 2.66 G/T AU INCLUDING 4.00 M OF 7.49 G/T AU AT AURIZONA

Dec 14, 2010, 09:25 ET from Luna Gold Corp.

VANCOUVER, Dec. 14 /PRNewswire/ - Luna Gold Corp. (TSXV-LGC) ("Luna" or the "Company") is pleased to announce positive assay results from the first seven holes from its ongoing resource drill program at the Piaba gold deposit, Aurizona. An updated drill plan map has been uploaded to the Luna Gold website at www.lunagold.com or to view directly click here. Significant mineralized intercepts are highlighted below.

  • 15.00 m @ 2.66 g/t Au including 4.00 m @ 7.49 g/t Au in BRAZD278

  • 30.00 m @ 1.32 g/t Au including 1.00 m @ 7.37 g/t Au and 3.00 m @ 5.06 g/t Au in BRAZD279A

  • 32.00 m @ 3.20 g/t Au including 1.00 m @ 60.60 g/t Au and 16.00 m @ 2.13 g/t Au including 4.00 m @ 6.57 g/t Au and 6.00 m @ 2.87 g/t Au in BRAZD282

  • 5.00 m @ 4.45 g/t Au and 7.00 m @ 2.01 g/t Au including 1.00 m @ 9.74 g/t Au in BRAZD283

Luna's President & CEO, John Blake, comments, "Our drill results continue to be very encouraging and fully support the confidence we have that the overall Aurizona gold resource has potential to grow significantly as we continue to drill the Piaba deposit. The structurally controlled mineralization in these latest drill holes confirms our deposit model which is consistent with other gold deposits in the Guiana Shield."

The 2010 drill program commenced at the start of September and the Company currently has five rigs in operation. Drilling is currently focused on infilling over the 3 kilometer strike length of the Piaba deposit to increase measured and indicated resources. Holes are being drilled on 100 meter spaced sections to a maximum depth of -300 meters RL.

Complete assay results have been received for seven drill holes totaling approximately 2379 m drilled on three sections in the central portion of the Piaba deposit. For several holes core was not recovered from surface to accelerate drill production and reduce costs. All drill holes intersected gold mineralization and the deposit remains open at depth on all sections. Significant mineralized intercepts are tabulated below.

                 
SECTION HOLE ID AZI DIP DEPTH (M) FROM (M) TO (M) INT (M) AU (G/T) UNCAPPED
000 BRAZD279A* 168 80 388.65 236.00 242.00 6.00 1.48
          262.00 292.00 30.00 1.32
        INCLUDING 266.00 267.00 1.00 7.37
        INCLUDING 278.00 281.00 3.00 5.06
  BRAZD280 168 73 318.55 177.95 179.00 1.05 21.50
          209.00 210.00 1.00 41.30
          212.00 244.00 32.00 0.81
  BRAZD283 168 64 256.30 149.00 154.00 5.00 4.45
          170.00 186.00 16.00 1.09
          190.00 197.00 7.00 2.01
        INCLUDING 193.00 194.00 1.00 9.74
200W BRAZD278 168 75 391.80 301.00 312.00 11.00 1.00
          321.00 336.00 15.00 2.66
        INCLUDING 326.00 330.00 4.00 7.49
  BRAZD282 168 68 330.30 208.00 240.00 32.00 3.20
        INCLUDING 236.00 237.00 1.00 60.60
          241.00 250.00 9.00 1.04
          260.00 276.00 16.00 2.13
        INCLUDING 266.00 270.00 4.00 6.57
          280.00 286.00 6.00 2.87
400W BRAZD277 168 80 394.75 340.00 341.00 1.00 71.70
          348.00 351.00 3.00 1.83
  BRAZD281** 168 76 298.25 226.00 230.00 4.00 1.25
          290.00 298.25 8.25 1.01
*BRAZD279  was lost at 114.40m. Hole BRAZD279A was sited on the same pad and core was recovered from 100.00m.
**BRAZD281 ended in mineralization due to difficult ground conditions.

Table1. Mineralized drill intercepts from the 2010 Piaba deep drill program. Intervals are calculated as composites using a 0.30 g/t Au cut-off and maximum 2 meter internal waste. True widths to be established.

Luna's VP Exploration, Titus Haggan states, "This is a good start to the drill program. All holes intersected the deposit and demonstrate strong vertical continuity to the ore body. Gold mineralization is associated with quartz veining and strong hydrothermal alteration in the core of the deposit. Drilling is ongoing at Piaba and new results will be released as assays are received."

About Luna Gold Corp

Luna is a gold mining and exploration company engaged in the exploration and development of gold deposits and advanced stage gold exploration projects in Brazil. The Company is currently commissioning its Aurizona gold mine in Maranhão, Brazil.

On behalf of the Board of Directors

LUNA GOLD CORP.

John Blake - President and CEO

Website: www.lunagold.com

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.

Regulatory Footnotes

Luna operates a rigorous QA/QC protocol on all aspects of sampling and analytical procedure. Drill core is checked, logged, marked for sampling and sawn in half. One half of the HTW (71 mm diameter) core is maintained for future reference and one half of the core is sent for analysis. Samples are collected at approximately 2 meter intervals, which is reduced to 1 meter interval or less when a mineralized zone is encountered. All core and samples are stored in secure locked areas. Samples are transported from the Aurizona project to the ALS Chemex sample preparation facility in Belo Horizonte, Minas Gerais accompanied by Luna personnel. Samples are assayed at ALS Chemex Labs in Lima, Peru using a 50 gram fire assay with AAS finish. Each sample batch contains 10% of randomly inserted internal control samples consisting of certified analytical standards, blanks (barren rock) and duplicates. These QA/QC procedures provide several measures of data quality and assure the Company that the assay data is representative of the original sample. Additional technical information about the Piaba Gold deposit is available in our technical report dated September 1, 2010, filed on SEDAR.

Titus Haggan Ph.D., EurGeol Certified Professional Geologist #746, Luna's VP Exploration is the Qualified Person as defined under National Instrument 43-101 responsible for the scientific and technical work on the exploration program and has supervised the preparation of and reviewed the technical disclosure in this press release. Non qualified persons currently work on Luna's exploration programs under the guidance of Titus Haggan. Dr Haggan takes responsibility for work, information and advice generated by non-Qualified persons and has taken the steps required to ensure that the work, information and advice is sound.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States.  The securities have not been and will not be registered under the United States Securities Act of 1933, as amended or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the United States Securities Act of 1933 and applicable state securities laws or an exemption from such registration is available.

Forward-Looking Statements

This release contains certain forward looking statements. 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. 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, 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 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.

SOURCE Luna Gold Corp.