Santa Fe Gold Gears up for Full Production at Summit Silver-Gold Mine

Santa Fe Gold Corporation (OTCBB: SFEG) today reported it is
gearing up for full production of 400 tons per day later this year at
its Summit silver-gold mine in southwestern New Mexico. Output at full
production is expected to increase by 400% from current levels. Once
full production is reached, annual revenues are anticipated to
approximate $40 million at recent gold and silver prices. Operating
costs are projected to be $364 per ounce of gold equivalent produced.
Ore reserve grades over the life of mine are estimated to average 10.78
ounces per ton silver and 0.143 ounces per ton gold.

'Management is committed to maximizing production at the Summit
operation,? said Dr. Pierce Carson, President and Chief Executive
Officer. 'We are preparing to begin high volume mechanized mining and
are nearing completion of four sublevel drifts in the vein deposit as
part of the pre-development required. We also have applied for and in
August expect to receive a permit that will allow us to generate
additional necessary power. In addition, we have purchased specialized
drills and other equipment. We intend to begin mechanized operations as
soon as possible.?

Dr. Carson continued, 'In line with the ramp up, earlier this month we
increased operations at the Lordsburg mill to two 8-hour shifts, five
days a week. The Summit underground mine has continued to operate two
10-hour shifts a day, seven days a week. We have added to our operating
staff and instituted an aggressive training program with a strong
emphasis on safety. Currently our work force totals 56, the majority
employed at the mine and the mill.?

Santa Fe has established a schedule of regular monthly shipments of
concentrates to the Aurubis smelter in Germany and silica flux to the
Asarco smelter in Arizona. When production increases, the company plans
to expand its customer base and also sell its products to other
smelters. Both the concentrates and silica flux are premium quality
products and Santa Fe anticipates no problem in selling all it can
produce.

'Looking to the future, our flotation mill has extra capacity and an
important priority will be to acquire additional precious metal assets
for processing through the mill,? Dr. Carson said. 'We believe this will
enable production to be doubled to 800 tons per day and possibly
greater. This will further increase production levels to take advantage
of the favorable price environment.?

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.

Santa Fe Gold Corp

W. Pierce Carson, President and Chief Executive
Officer

505-255-4852