Santa Fe Gold Reports Strong Operating Results for March 2012 Quarter

Santa Fe Gold Corporation (OTCBB: SFEG) is pleased to announce
the financial results for the three and nine months ended March 31,
2012. Santa Fe reported record revenues of $8.1 million for the nine
months ended March 31, representing a 97% increase over the same period
of the prior fiscal year. The Company′s earnings from mining operations
also grew significantly over the period to $3.9 million, a 110% increase
over the comparable nine month period in 2011. Revenues for the three
months ended March 31, 2012 increased by 27% to a record $3.7 million,
while earnings from mining operations increased by 59% to $2.1 million.
The full version of the financial statements and management's discussion
and analysis 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 recently announced commercial production effective the
current quarter,? said Pierce Carson, CEO of Santa Fe. 'Our record
breaking third quarter is indicative of the Company′s commitment to
achieve its objectives for fiscal 2012. We look forward to fiscal 2013
as an established and growing producer of silver and gold with even
stronger operating results.?

2012 Third Quarter Highlights

• 
  110% increase in revenue to a record $3.7 million for the three months
  ended March 31, 2012.
  
• 
  59% increase in earnings from mining operations to $2.1 million for
  the three months ended March 31, 2012.
  
• 
  1,879% increase in EBITDA to $248,120 for the three months ended March
  31, 2012.
  
• 
  97% increase in revenue to a record $8.1 million for the nine months
  ended March 31, 2012.
  
• 
  110% increase in earnings from mining operations to $3.9 million for
  the nine months ended March 31, 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.

See Accompanying Tables

The following information summarizes the financial condition of
Santa Fe Gold Corporation at March 31, 2012, including its balance
sheets at March 31, 2012 and June 30, 2011, respectively, its results of
operations for the three months and nine months ended March 31, 2012 and
2011, respectively, and its cash flows for the nine months ended March
31, 2012 and 2011. The summary data for the three and nine months ended
March 31, 2012 and 2011, 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

Pierce Carson, President and Chief
Executive Officer

505-255-4852

or

Investor Relations:

Torrey
Hills Capital

Clay Chase

858-456-7300

cc@sdthc.com