Santa Fe Gold Reports Increasing Sales of Silver and Gold in March Quarter

Santa Fe Gold Corporation (OTCBB: SFEG) reported silver and gold
revenues of $2,894,007 for the March 2011 quarter, as compared to
$261,532 for the corresponding quarter in 2010. Revenues for the nine
months ended March 31, 2011 were $4,144,269, as compared to $274,978 for
the nine months ended March 31, 2010. The increases in revenues reflect
the start up of the Summit silver-gold mine located in southwestern New
Mexico. The mine is expected to achieve commercial production in 2011.

QUARTER MARCH 2011 HIGHLIGHTS

• 
  Record revenue of $2.9 million
  
• 
  Net income of $0.04 per share
  
• 
  Revenue streams from smelter contracts
  
• 
  Production ramping up during 2011
  
• 
  Strong earnings projected in 2012
  
• 
  Processing mill with extra capacity
  
• 
  Proposed acquisition of additional silver assets
  

Santa Fe′s President and Chief Executive Officer, Dr. Pierce Carson,
stated, 'The record revenues of $2.9 million and net income per share of
$0.04 for the quarter mark another milestone in Santa Fe′s progress
towards becoming a significant precious metals producer. Further
substantial increases in sales volumes are expected as production from
our Summit silver-gold mine ramps up from the current rate of 100-150
tons per day to full production of 400 tons per day.?

Dr. Carson continued, 'To date the underground ore processed has come
from mine development work, which has resulted in diluted grades.
Currently we are carrying out the development necessary to begin
mechanized mining of the vein deposit, which is scheduled for Q3 - Q4 of
2011.?

'Our flotation mill has extra capacity, and we plan to acquire
additional precious metal assets for processing through the mill. This
will further increase production levels to take advantage of the current
price environment,? Dr. Carson added.

Santa Fe reported that during the March 2011 quarter it delivered its
products to two smelters under previously announced sales contracts. It
delivered regular monthly shipments of high-value silver-gold
concentrates to Aurubis AG in Germany, and shipments of siliceous flux
material for precious metals recovery to Asarco LLC in Arizona.

About Santa Fe Gold:

Santa Fe Gold is a U.S.-based mining and exploration enterprise focused
on acquiring and developing gold, silver, copper and industrial mineral
properties. Santa Fe controls: (i) the Summit mine and Lordsburg mill in
southwestern New Mexico, which began processing operations in 2010; (ii)
a substantial land position near the Lordsburg mill, comprising the core
of the Lordsburg Mining District; (iii) the Ortiz gold property in
north-central New Mexico; (iv) the Black Canyon mica deposit and
processing equipment near Phoenix, Arizona; and (v) a deposit of
micaceous iron oxide (MIO) in western Arizona. Santa Fe Gold intends to
build a portfolio of high-quality, diversified mineral assets with an
emphasis on precious metals.

To learn more about Santa Fe Gold, visit www.santafegoldcorp.com.

Cautionary Note Regarding Forward-Looking Statements:

This press release contains forward-looking statements and
forward-looking information (collectively, 'forward-looking statements?)
within the meaning of applicable US and Canadian securities legislation.
All statements, other than statements of historical fact, included
herein are forward-looking statements. Although the Company believes
that such statements are reasonable, it can give no assurance that such
expectations will prove to be correct. Forward-looking statements are
typically identified by words such as: believe, expect, anticipate,
intend, estimate, postulate and similar expressions, or are those which,
by their nature, refer to future events. The Company cautions investors
that any forward-looking statements by the Company are not guarantees of
future results or performance, and that actual results may differ
materially from those in forward-looking statements as a result of
various factors, including, but not limited to, variations in the
nature, quality and quantity of any mineral deposits that may be
located, variations in the market price of any mineral products the
Company may produce or plan to produce, the Company's inability to
obtain any necessary permits, consents or authorizations required for
its activities, the Company's inability to produce minerals from its
properties successfully or profitably, to continue its projected growth,
to raise the necessary capital or to be fully able to implement its
business strategies, and other risks and uncertainties disclosed in the
Company′s Annual Report on Form 10-K for the year ended June 30, 2010
and its most recent quarterly reports filed with the United States
Securities and Exchange Commission (the 'SEC?), and other information
released by the Company and filed with the appropriate regulatory
agencies. All of the Company's US public disclosure filings may be
accessed via www.sec.gov
and its Canadian public disclosure filings may be accessed via www.sedar.com,
and readers are urged to review these materials.

See Accompanying Tables

The following information summarizes the financial condition of
Santa Fe Gold Corporation at March 31, 2011 and June 30, 2010, its
results of operations for the three months and nine months ended March
31, 2011 and 2010, respectively, and its cash flows for the nine months
ended March 31, 2011 and 2010. The summary data for the three and nine
months ended March 31, 2011 and 2010, respectively, are unaudited; the
summary data for the financial year ended June 30, 2010 are taken from
our audited financial statements contained in our annual report on Form
10-K for the financial year ended June 30, 2010, but do not include the
footnotes and other information that is included in the complete
financial statements. Readers are urged to review the Company′s Form
10-K in its entirety, which can be found on the SEC′s website at www.sec.gov.

Santa Fe Gold Corp

W. Pierce Carson, President and Chief Executive
Officer

505-255-4852