Santa Fe Gold Reports Strong Operating Results for September Quarter

Santa Fe Gold Corporation (OTCBB: SFEG.OB
- News)
is pleased to announce its financial results for its 2012 fiscal
first quarter ending September 30, 2011.

Continued Growth in Revenue and Profitability

Santa Fe recorded revenue of $2,550,724 for its 2012 fiscal first
quarter ended September 30, 2011, up 228% from revenue of $776,822 in
the corresponding quarter of fiscal 2011. Net income increased to
$702,862, up from a loss of ($3,951,706) in the corresponding quarter in
fiscal 2011. Full financial results are available in the Company′s Form
10-Q filed with the SEC and available at www.sec.gov.

'We continue to increase production at our Summit silver-gold mine in
New Mexico and remain on track to achieve commercial production by
year-end,? said Pierce Carson, CEO of Santa Fe. 'With higher production
and continued strength in gold and silver prices, we are optimistic that
we will see even stronger operating results in the coming quarters.?

Columbus Silver Acquisition

Santa Fe continues its due diligence of its pending acquisition of
Columbus Silver Corporation (TSXV: CSC) pursuant to which Santa Fe will
conditionally acquire Columbus Silver for cash. The company expects to
have more to report on this pending transaction in the coming weeks.

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, 2011
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 September 30, 2011, including its balance
sheets for the three months ended September 30, 2011 and twelve months
ended June 30, 2011, respectively, its results of operations for the
three months ended September 30, 2011 and 2010, respectively, and its
cash flows for the three months ended September 30, 2011 and 2010. The
summary data for the three months ended September 30, 2011 and 2010,
respectively, are unaudited; the summary data for the financial year
ended June 30, 2011 are taken from our audited financial statements
contained in our annual report on Form 10-K for the financial year ended
June 30, 2011, 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 Corporation

W. Pierce Carson

President and Chief
Executive Officer

505-255-4852