Santa Fe Gold Achieves Commercial Production at Summit Silver-Gold Mine

Santa Fe Gold Corporation (OTCBB: SFEG) is pleased to report it
has declared the beginning of commercial production at its Summit
silver-gold mine in southwest New Mexico. Initial development of the
mine has been successfully completed, mechanized mining of the ore body
has begun and production levels are steadily increasing. Beginning with
the June 2012 quarter, for accounting purposes certain costs will be
classified as operating costs rather than capitalized as development
costs. Santa Fe Gold is the first company in recent years to have
launched commercial-scale operations for a precious metals mine in New
Mexico.

Ramp up to full production levels is continuing and revenues are
expected to increase over the course of 2012 reflecting increases in
both tonnage and grades. At full production, annual life of mine revenue
is estimated to be approximately $40 million at recent gold and silver
prices. Ore reserves are estimated to average 10.78 ounces per ton
silver and 0.143 ounces per ton gold (0.35 ounces per ton gold
equivalent). At full production levels, direct operating costs are
projected to average $364 per ounce of gold equivalent produced over the
life of the mine.

Pierce Carson, President and CEO said, 'We are very pleased to be able
to declare commercial production at Summit, which is a significant
milestone. However, it is important to recognize we are still at an
early stage in mine development. We have not yet reached the richer
parts of the ore body that constitute the majority of the reserves.
Daily production rates are variable and we are continuing to make
improvements in operating efficiencies.?

Carson continued, 'On the positive side, mechanized long-hole mining has
proved to be very successful and we are confident of attaining our
target mining rate of 10,000 tons per month, or 400 tons per day.
However, due to limited mechanical availability of underground mining
equipment, we have not yet reached our target.?

During the months of December through March the Lordsburg mill processed
the following number of tons of ore:

Tonnage processed has increased every month over the past six months.
March production increased in spite of one week of down time due to
equipment repairs, which now have been completed. Also in March a new
fan changeover was accomplished that has resulted in significantly
improved mine ventilation, which will allow further increases in mine
production.

As a result of recent improvements in mine equipment and continued
improvements planned for April and May, the company anticipates
significantly increased production in the second calendar quarter of
2012.

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.

Santa Fe Gold Corp

W. Pierce Carson, President and Chief Executive
Officer

505-255-4852