Vancouver, December 21, 2010 -- Luna Gold Corp. (TSXV-LGC) ("Luna Gold" or the "Company") is pleased to announce that 13,718,448 warrants have been exercised under its previously announced warrant incentive program (the "Warrant Program") for an aggregate of $10,974,758.40 in proceeds to the Company.

The Warrant Program was designed to encourage the early exercise of outstanding unlisted warrants (the "Warrants"). Holders of the Warrants who exercised their Warrants by 5:00 p.m. (Vancouver time) on December 20, 2010 received an incentive half warrant (each whole warrant an "Incentive Warrant"), in addition to the common share issuable for each Warrant. Accordingly, 6,859,224 new Incentive Warrants have been issued under the Warrant Program. The terms of the Incentive Warrants are described in our November 29, 2010 press release. The Incentive Warrants are subject to a four-month hold period.

The proceeds generated by the Warrant Program will strengthen Luna Gold's current cash position and provide the Company with additional working capital to accelerate the exploration and development of its Aurizona Gold Mine in Brazil. Warrants that remain unexercised following the completion of the Warrant Program continue to be exercisable for common shares on the same terms as previously existed.

About Luna Gold Corp.
Luna Gold is a gold mining and exploration company engaged in the exploration and development of gold deposits and advanced stage gold exploration projects in Brazil. The Company is currently commissioning its Aurizona gold mine in Maranhão, Brazil.