LUNA GOLD RELEASES UPDATED NI 43-101 TECHNICAL REPORT FOR AURIZONA GOLD
PROJECT

VANCOUVER, Sept. 3 /CNW/ - Luna Gold Corp. (TSXV-LGC) ("Luna" or the "Company") is pleased to announce the results of the updated NI 43-101 compliant technical report, entitled "NI 43-101 Technical Report Mineracao Aurizona S.A, Aurizona Project, Maranhao, Brazil, dated September 1, 2010" (the "Report") for its 100% owned Aurizona Gold Project ("Aurizona") located in the state of Maranhao, northeastern Brazil between the cities of Sao Luis and Belém. The Report was completed by SRK Consulting (U.S.) Inc. ("SRK"), using a base case Measured and Indicated Mineral Resource of approximately 0.9 million ounces of gold (21.1 million tonnes grading 1.3 g/t gold at a cut-off grade of 0.3 g/t which relates to the economic cut-off in the Report) based on January 15, 2009 estimates. Using a base case gold price of $1,000 per ounce, the Report shows that Aurizona has a net pre-tax cash flow (undiscounted) of $153 million with an after tax Net Present Value (NPV) of $81 million using a 8% discount rate. The mine would recover approximately 670,000 ounces of gold at a waste to ore strip ratio of 3.4 to 1 over a 12-year mine life.

Mineral Resources as at January 15, 2009

    
    -------------------------------------------------------------------------
                                                kt      Au g/t     Au Ounces
    -------------------------------------------------------------------------
    Measured                                 1,500        1.44        69,000
    -------------------------------------------------------------------------
    Indicated                               19,621        1.29       835,300
    -------------------------------------------------------------------------
    Measured and Indicated                  21,121        1.33       904,300
    -------------------------------------------------------------------------
    

The Inferred Mineral Resource is 0.4 million ounces of gold (10.9 million tonnes grading 1.14 g/t gold at the same cut-off grade).

The Report is based on and supports the resource estimate previously disclosed in January 2009 and demonstrates strong financial returns in the current economic climate and will be the foundation for further growth as Aurizona continues with the commissioning of its process plant and exploration programs.

"This report continues to demonstrate the robust economics of Aurizona. Management sees this as a good start to build upon in the coming years", commented Jim Bahan, Luna's President & CEO. "We are now focused on ramping up production in the coming months and launching our aggressive exploration program to expand the company's total gold resources."

All dollar amounts presented in this press release are expressed in US dollars. An exchange rate of 1.80 Brazilian Reais to US dollars was used where costs were based on Brazilian expenditures.

The report will be filed and made available on SEDAR.

Summary Highlights

    
    -------------------------------------------------------------------------
    Estimated Contained Gold                                729,000       oz
    -------------------------------------------------------------------------
    Estimated Net Recoverable Gold (based on 92% recovery)  670,000       oz
    -------------------------------------------------------------------------
    Mill throughput rate
    -------------------------------------------------------------------------
    Daily                                                    4,100    Tonnes
    -------------------------------------------------------------------------
    Annual (million)                                           1.5    Tonnes
    -------------------------------------------------------------------------
    Life of Mine                                                12     Years
    -------------------------------------------------------------------------
    Overall Strip Ratio                                        3.4
    -------------------------------------------------------------------------
    Capital Expenditure
    -------------------------------------------------------------------------
    Initial                                                  $65.2         M
    -------------------------------------------------------------------------
    Sustaining                                               $17.7         M
    -------------------------------------------------------------------------
    Total                                                    $82.9         M
    -------------------------------------------------------------------------
    Total Operating Cost per ounce(1)                         $516
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                               Years 1 to 3     Life of Mine
    -------------------------------------------------------------------------
    Gold Production (oz per year)                        51               56
    -------------------------------------------------------------------------
    Average feed grade to mill (grams per tonne)       1.25             1.32
    -------------------------------------------------------------------------
    Operating cost per ounce                           $481             $516
    -------------------------------------------------------------------------
    

Sensitivity Analysis

Economic results for the Base Case plant throughput of 1.5Mtpa and 1.8Mtpa are as follows:

    
    -------------------------------------------------------------------------
                                                 Base Case    Base Case + 20%
    -------------------------------------------------------------------------
                                                (1.5 Mtpa)         (1.8 Mtpa)
    -------------------------------------------------------------------------
    Net Present Value (NPV) at 8% Discount Rate       $81M             $100M
    -------------------------------------------------------------------------
    Net Cash flow (NPV at 0% Discount Rate)          $153M             $170M
    -------------------------------------------------------------------------
    Internal Rate of Return (IRR)                      44%               58%
    -------------------------------------------------------------------------
    

The basis of this assumption is that the Company's operations can increase production from 1.5Mtpa to 1.8Mtpa without any significant capital investment. It should be noted that the 1.8Mtpa sensitivity merely accelerates the 1.5Mtpa production schedule and does not account for seasonality of mining rate assumed in the 1.5Mtpa base case.

    
    (1) Total operating costs per ounce is a non-GAAP measure. It does not
        have a standardized meaning prescribed by GAAP and may not be
        comparable to similar measures presented by other mining companies.
    

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 Maranhao, Brazil.

On behalf of the Board of Directors

LUNA GOLD CORP.

Jim Bahan- 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

Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Leah Mach, Eric Olin and Bret Swanson of SRK Consulting are the qualified persons ("QP") under NI 43-101 who have prepared the technical information contained in this press release. All of the QP's are independent of the Company as defined under NI 43-101. For additional information with respect to the assumptions and parameters related to the technical information disclosed herein, refer to the Report.

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

Statements in this release that are 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. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement, including without limitation the expectations and goals of management as to the defining of further mineral resource estimates and timing thereof, can be guaranteed and actual future results may vary materially. Additionally, the economic analysis disclosed herein and other forward looking information are subject to various assumptions and parameters discussed in the Report. Luna Gold does not assume the obligation to update any forward-looking statement unless otherwise required by law.

For further information: Investor Relations at [phone] or toll free at 1-866-689-7317