Luna Gold Announces Closing of Strategic Investment by Sandstorm Gold Ltd.

VANCOUVER, BC--(Marketwired - August 11, 2014) - Luna Gold Corp. (TSX: LGC) (LMA: LGC) (OTCQX: LGCUF) "Luna" or the "Company") is pleased to announce that it has closed the first tranche of its previously announced non-brokered private placement financing (the "Placement") of up to 30,000,000 common shares (the "Placement Shares") of the Company at a price of $1.02 per Placement Share for aggregate gross proceeds of up to $30,600,000. Pursuant to the closing of the first tranche of the Placement, Sandstorm Gold Ltd. ("Sandstorm") purchased 19,500,000 Placement Shares at $1.02 per Placement Share for aggregate gross proceeds of $19,890,000. As a result of the closing of the first tranche of the Placement, Sandstorm now holds 28,000,000 common shares of the Company representing approximately 19.8% of the issued and outstanding shares of the Company.

Pursuant to the Placement, Sandstorm was also granted the right (for so long as Sandstorm owns greater than 15% of Luna) to maintain its ownership percentage through future private placements or public offerings by Luna. Sandstorm was also granted the right to appoint one member to Luna's Board of Directors (the "Board") and, accordingly, has appointed David Awram, Senior Executive Vice President of Sandstorm, to the Board. In addition, Mr. Luis Baertl has stepped down as Chairman of Luna's Board and has been succeeded as Chairman by Luna's current lead independent director, Mr. Steven Krause.

The Placement Shares purchased by Sandstorm will be subject to a four month plus one day hold period. The proceeds from the Placement will be used by the Company for expenditures related to the Aurizona mine, ongoing brownfields and greenfields exploration at and around the Aurizona mine, and for general working capital purposes.

About Luna Gold Corp.

Luna is a gold production and exploration company engaged in the operation, discovery, and development of gold projects in Brazil.

On behalf of the Board of Directors

Luna Gold Corp.

Geoff Chater - President and CEO

Website: www.lunagold.com

For further information contact Patrick Balit, Investor Relations Manager, at +1 (604) 568-7993.

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 future gold production and/or the results of analysis on gold production and statements with respect to the outcome of the negotiation relating to the potential modification of the existing gold stream agreement with Sandstorm. 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. 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.