Santa Fe Gold Announces Early Termination of Unit Offering Effective August, 17, 2012 and Suspension of Equity Financing Facility

Santa Fe Gold Corporation (OTCBB: SFEG) today announced that its
board of directors has elected to terminate early its previously
announced 16,666,667 unit offering to existing stockholders and a few
institutional investors, with each unit consisting of one share of
common stock and a warrant to purchase an additional share of common
stock. Each unit is offered for sale at a price of $0.30. Each warrant
has an exercise price of $0.40 per share of common stock, and is
exercisable for a period of three years commencing immediately.

The prospectus supplement related to the offering, which was filed with
the SEC on August 1, 2012, provides that the offering will expire at
5:00 p.m., August 31, 2012, Pacific Time, unless Santa Fe terminates it
earlier. In this regard, Santa Fe has elected to terminate the offering
effective 5:00 PM, Mountain Standard Time on Friday, August 17, 2012. As
such, Santa Fe will accept subscriptions from existing shareholders only
until 5:00 PM, Mountain Standard Time on Friday, August 17, 2012.

The securities described above are being offered by Santa Fe Gold
Corporation pursuant to a shelf registration statement on Form S-3,
together with a base prospectus, previously filed and declared effective
by the Securities and Exchange Commission (SEC) and a prospectus
supplement. The securities may be offered only by means of a prospectus,
including a prospectus supplement, forming a part of the effective
registration statement. A prospectus supplement related to the offering
was filed with the SEC on August 1, 2012.

Stockholders may obtain copies of the final prospectus supplement and
accompanying base prospectus relating to this offering at the Securities
and Exchange Commission web site at http://www.sec.gov,
or from Santa Fe Gold Corporation, 1128 Pennsylvania NE, Suite 200,
Albuquerque, New Mexico 87110 or via telephone at 505-255-4852.

In addition, Santa Fe′s board of directors has adopted a resolution
suspending, effective immediately, any further draw-downs under its
previously announced $15 million equity financing facility with
Glengrove Small Cap Value, Ltd.

This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities of Santa Fe Gold
Corporation nor shall there be any sale of the securities in any state
or jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities
laws of any such state or jurisdiction.

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 commercial production in 2012; (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 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

Pierce Carson, President and Chief Executive
Officer

505-255-4852

or

Investor Relations:

Torrey
Hills Capital

Clay Chase

858-456-7300

cc@sdthc.com