Luna Gold Identifies Onix Gold Target at Luna Greenfields

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 24, 2012) - Luna Gold Corp. (TSX VENTURE:LGC)(OTCQX:LGCUF)(LMA:LGC) ("Luna Gold" or the "Company") announces the identification of the Onix target located within the Company's 100% owned Luna Greenfields project. Onix contains three gold targets spread over a 2 km² area associated with a southwest trending shear zone 26 km due SW from the Aurizona Mine (Figure 1). Geochemical and geophysical data combined with geological mapping indicate that this new target holds potential to host high-grade gold mineralization. Project maps can be viewed on the Luna Gold website at www.lunagold.com or click below. Highlights are:

To view Figures 1 and 2, please visit the following link: http://media3.marketwire.com/docs/luna.pdf

New mineralized Onix Shear Zone (OXSZ) located 6 km WSW from the Areal gold target with several newly mapped artisanal workings located between these targets

• Onix North gold in soil anomaly measuring 0.70 km x 0.15 km at a 50 ppb Au cut-off with maximum value of 1.45 g/t Au within which lie 6 artisanal workings along a strike of 0.3 km with numerous vertical shafts and collapsed galleries
• Onix North - reconaissance rock and tailings grab sampling program (26 samples) returned gold values up to 9.12 g/t Au
• Onix South - gold in soil anomaly measuring 0.25 km x 0.10 km at a 50 ppb Au cut-off with maximum value of 37.10 g/t Au within which lie 2 artisanal pits with several vertical shafts nearby
• Onix South - reconaissance rock and tailings grab sampling program (15 samples) returned gold values up to 2.63 g/t Au
• Discovery of sub-cropping high-grade gold mineralization in a new area between Onix North and Onix South with the 3 highest grade samples returning values of 41.00 g/t Au, 27.40 g/t Au and 4.49 g/t Au (5 samples in total)

Luna Gold's President and CEO, John Blake, comments, "Luna Gold is pleased to confirm another gold target in the Luna Greenfields project. Onix demonstrates potential to host a high grade mineralized deposit and is the third target defined to date. The Company is planning to risk-rate and prioritize targets to commence a diamond drilling program at Luna Greenfields in Q3 2012."

Onix

The Onix target was an active garimpo (artisanal mine) in the 1980s where quartz veins hosted by tonalites and weathered basic volcanics were mined along diverse elongate structures. Outcrop is scarce and limited to garimpo pits. Onix is located 6 km due WSW from the Areal target and several artisanal workings occur between both these targets and are currently being followed-up. Gold is hosted in pyrite-bearing quartz veins with occasional tourmaline. Onix North is a narrow structure with pits extending along a 0.3 km strike length. The presence of vertical shafts and collapsed galleries coupled with elevated gold grades in quartz veins and tailings suggests potential for high-grade mineralized zones along the structure. Rock grab sampling from around the pits and pit walls returned several high-grade samples including 9.12 g/t Au, 5.06 g/t Au and 3.46 g/t Au. Grab sampling of tailings dumps also returned encouraging grades including best values of 4.24 g/t Au, 2.31 g/t Au and 2.16 g/t Au.

Onix South is located 0.5 km SE from Onix North and consists of two NE-trending pits and several vertical shafts. Rock grab sampling around the pits returned best values of 1.37 g/t Au and 0.51 g/t Au. Grab sampling of tailings dumps returned best values of 2.63 g/t Au, 1.80 g/t Au and 1.52 g/t Au. Onix North and Onix South are separated by a strong magnetic low anomaly representing the OXSZ.

Luna's field teams have also discovered a new sub-cropping mineralized structure located between the main Onix workings described above. Samples of quartz, some of which contain visible gold, assayed 41.00 g/t Au, 27.40 g/t Au and 4.49 g/t Au. Forty-two out of forty-six rock and tailings grab samples collected across the entire Onix target assayed greater than 0.10 g/t Au. Table 1 contains a summary of Luna's reconnaissance rock and tailings sampling program at Onix.

Onix Geology Map http://www.lunagold.com/en/projectsoperations/lunagreenfields.asp
Onix Geophysical (RTE) Map http://www.lunagold.com/en/projectsoperations/lunagreenfields.asp
Onix Geophysical (TMI) Map http://www.lunagold.com/en/projectsoperations/lunagreenfields.asp
Onix Geophysical (AS) Map http://www.lunagold.com/en/projectsoperations/lunagreenfields.asp
Onix Detail Geology Map http://www.lunagold.com/en/projectsoperations/lunagreenfields.asp

Luna Gold's VP Exploration, Titus Haggan, states, "The Onix pits were identified through a reconnaissance program in 2011. Luna field teams subsequently opened north-south soil lines spaced 100 meters apart and collected samples at 25 metre stations along the lines as shown in the accompanying maps. A ground magnetic survey was also conducted to determine the structural controls at this target. Limited rock and tailings samples were also collected to determine grade of potential mineralized samples and tailings dumps left from historic artisanal mining activity. Onix is the latest target to be added to the Luna Greenfields portfolio. Field teams are now focused on exploring the artisanal workings located within the 6 km trend between the Areal and Onix targets to understand the relationship between these occurrences in addition to advancing gold targets in prospective new areas."

SAMPLE_NO	SAMPLE_TYPE	TARGET	LITHOLOGY	AU (PPM)
R-05425	Grab Sample	Onix	Quartz Vein	41.00
R-05422	Grab Sample	Onix	Quartz Vein	27.40
R-05420	Grab Sample	Onix	Quartz Vein	9.12
R-05421	Grab Sample	Onix	Quartz Vein	5.06
R-05424	Grab Sample	Onix	Quartz Vein	4.49
R-05418	Grab Sample	Onix	Quartz Vein	3.46
R-05404	Grab Sample	Onix	Quartz Vein	3.32
R-05440	Grab Sample	Onix	Quartz Vein	3.19
R-05401	Grab Sample	Onix	Quartz Vein	2.85
R-05417	Grab Sample	Onix	Quartz Vein	2.74
R-05423	Grab Sample	Onix	Quartz Vein	2.03
R-01907	Grab Sample	Onix	Quartz Vein	1.90
R-05402	Grab Sample	Onix	Quartz Vein	1.56
R-01766	Grab Sample	Onix	Quartz Vein	1.37
R-05400	Grab Sample	Onix	Quartz Vein	0.68
R-05438	Grab Sample	Onix	Quartz Vein	0.62
R-00825	Grab Sample	Onix	Quartz-Tourmaline Vein	0.51
R-05439	Grab Sample	Onix	Quartz Vein	0.36
R-05436	Grab Sample	Onix	Quartz Vein	0.35
R-05426	Grab Sample	Onix	Quartz Vein	0.33
R-00821	Grab Sample	Onix	Quartz Vein	0.13
R-05416	Grab Sample	Onix	Garimpo Tailings	4.24
R-05304	Grab Sample	Onix	Garimpo Tailings	2.63
R-05432	Grab Sample	Onix	Garimpo Tailings	2.63
R-05415	Grab Sample	Onix	Garimpo Tailings	2.31
R-05414	Grab Sample	Onix	Garimpo Tailings	2.16
R-05419	Grab Sample	Onix	Garimpo Tailings	2.12
R-05413	Grab Sample	Onix	Garimpo Tailings	1.93
R-05431	Grab Sample	Onix	Garimpo Tailings	1.80
R-05405	Grab Sample	Onix	Garimpo Tailings	1.55
R-05434	Grab Sample	Onix	Garimpo Tailings	1.52
R-05408	Grab Sample	Onix	Garimpo Tailings	1.51
R-05407	Grab Sample	Onix	Garimpo Tailings	1.50
R-05303	Grab Sample	Onix	Garimpo Tailings	1.49
R-05409	Grab Sample	Onix	Garimpo Tailings	1.45
R-05410	Grab Sample	Onix	Garimpo Tailings	1.41
R-05435	Grab Sample	Onix	Garimpo Tailings	1.05
R-05406	Grab Sample	Onix	Garimpo Tailings	1.02
R-05412	Grab Sample	Onix	Garimpo Tailings	0.90
R-05429	Grab Sample	Onix	Garimpo Tailings	0.26
R-05428	Grab Sample	Onix	Garimpo Tailings	0.20
R-05430	Grab Sample	Onix	Garimpo Tailings	0.20

Table 1. Gold grades of initial surface sampling of rock and tailings material, Onix target. Mineralized samples above a 0.10 g/t Au cut-off grade are reported. A total of 46 samples were collected over the entire Onix target. Assay values for samples not reported here range between below detection limit (<0.05 g/t Au) to 0.09 g/t Au. These samples were neither part of, nor alone do they constitute, a statistically representative sampling program.

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, and development is focused on the Cachoeira deposit in Para, Brazil. The Company is aggressively exploring the large strategically placed Luna Greenfields project.

On behalf of the Board of Directors

LUNA GOLD CORP.

John Blake - President and CEO

Website: www.lunagold.com

Regulatory Footnotes

Luna operates a rigorous QA/QC protocol on all aspects of geochemical sampling, drilling and analytical procedure. Soil sampling programs are supervised by mining technicians and samples are collected on regular grids surveyed using total stations. Soil samples are collected at a nominal 0.50 meter depth or deeper corresponding to the B soil horizon. Several types of ancillary data are recorded including soil type, granulometry, magnetism, and the presence of laterite. Rock and tailings sampling is supervised by geologists and mining technicians and recorded on special log sheets. All areas intended for sampling are assessed and marked-up for sampling by geologists. For surface channel sampling all sample faces are cleaned to a depth of 15 centimeters and marked for sampling which is conducted at nominal 1 meter intervals using appropriate sampling tools which are cleaned between each sample. Sample intervals are surveyed using a Total Station. Auger drilling is conducted using Company owned motorized Honda auger drills. Auger drill teams are supervised by mining technicians. Auger samples are collected at continual 1 meter intervals using a 10.16 centimeter diameter collector. Sample weight averages 16 kilograms. All data including depth, sample number and geologic information are recorded on special log sheets. All samples are stored in secure locked areas under Company supervision. Samples are transported from the Aurizona and Luna Greenfields projects to the ALS Chemex sample preparation facility in Belo Horizonte, Minas Gerais and to the ACME Labs sample preparation facility in Goiania accompanied by Luna personnel. Soil and rock channel samples are assayed for gold via fire assay (30 and 50 grams) at ALS Chemex, Lima, Peru. Auger samples are assayed for gold via fire assay (50 grams) at ACME Laboratories, Santiago, Chile. Luna operates a rigorous QA/QC program for soil and rock samples which involves the insertion of blanks, CRM and sample 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.

Titus Haggan Ph.D., EurGeol Certified Professional Geologist #746, Luna's Vice President 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" 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, statements with respect to the exploration program for the Company's Aurizona, Areal and Luna Greenfields projects and any planned resource upgrades. Forward-looking statements are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that, while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Certain of the statements made herein by Luna Gold Corp. are forward-looking and subject to various risks and uncertainties, both known and unknown, many of which are beyond the ability of Luna Gold Corp. to control or predict. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Forward-looking information is subject to known and unknown risks and uncertainties that may cause Luna Gold Corp.'s actual results, performance or achievements may be materially different from those expressed or implied by such forward-looking information, and are developed based on assumptions about such risks, uncertainties and other factors set out here in, including but not limited to 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, mine development and production costs, the projected life of the Company's mines, future production levels, 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.