Luna Gold Corp. announces today a proposed consolidation (the Share Consolidation) of its share capital on the basis of up to five (5) existing common shares for one (1) new common share. Currently, a total of 522,550,895 common shares in the capital of the Company are issued and outstanding. Accordingly, if put into effect on the basis of five (5) existing common shares for one (1) new common share, a total of 104,510,179 common shares in the capital of the Company would be issued and outstanding following the Share Consolidation, assuming no other change in the issued capital.

The Share Consolidation will affect all of the Company's stock options and warrants issued and outstanding at the effective date. At the time of the Share Consolidation, the number, exchange basis or exercise price of all stock options and warrants issued and outstanding will be adjusted to reflect the one-for-five Share Consolidation. The actual adjustment will be made by the Company in consultation with its advisors.

The Board of Directors of the Company will ask the shareholders of the Company to approve the Share Consolidation at a Special Meeting of shareholders to be held on Tuesday, February 14, 2012.
The Share Consolidation is subject to shareholder approval and acceptance of the TSX Venture Exchange.

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 exploring Maranhão Greenfields, a large strategically placed land position in Maranhão, Brazil.

On behalf of the Board of Directors

LUNA GOLD CORP.

John Blake - President and CEO

Website: www.lunagold.com
For further information contact Investor Relations at (604) 558 0560

NEITHER THE TSX VENTURE 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.