Luna Gold provides development update

VANCOUVER, July 13 /PRNewswire-FirstCall/ - Luna Gold Corp. (TSXV-LGC) ("Luna"
or the "Company") is pleased to provide an update on its wholly owned Aurizona
gold project in Maranhao State, Brazil.

Progress Highlights

- New life of mine pit design based upon January 2009 Resource Estimate

- Estimated total Proven & Probable gold reserves increased to 729k oz
of gold

- Nominal mine life increased to 11 years

- Basic engineering revision completed and detailed engineering in
progress

- Site preparation commenced and long lead items being procured

Luna's CEO, Jim Bahan, comments, "Our team has made excellent progress in
enhancing the quality of the project and taking it closer to production. The
engineering and procurement phase is progressing on schedule. Site clearance
is approximately 60% completed and with the seasonal rains expected to finish
in the coming weeks, civil engineering site preparation will commence with the
view to commencing commercial gold production in the second quarter of 2010 at
the Feasibility Study ("FS") rate of 60,000 oz per year. Clearly, the increase
in the estimated gold reserves, together with the potential from satellite
deposits, provides a platform for a production increase that will be addressed
once the current project has reached designed capacity and producing revenue."

Mining Reserves

SRK Consulting (U.S.) Inc was retained to carry out a full pit optimization
analysis, revised pit design and detailed production schedule on the updated
Piaba resource update announced January 15th, 2009. The gold price used to
calculate the cut-off grade (CoG) for the revised mine plan was increased to
US$750/oz Au from the US$650/oz Au used in the 2008 Feasibility Study CoG
calculation. The resource and price increases resulted in a Proven and
Probable (P P) reserve tonnage estimate increase of 51% to 17.2Mt of ore with
a gold grade of 1.32g/t.

A summary of changes from the reserve statement from the July 2008
feasibility are as follows in Table 1. The full breakdown of reserves can be
found in Table 2:

Table 1: Summary of Changes in Reserves from July 2008 to July 2009
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July 2008 July 2009 % Change
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In-situ Au ozs in Total P&P Reserves 500,000 729,000 46%
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Tonnage 11,332,000 17,119,000 51%
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Grade 1.37 1.32 -7%
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In-situ Au ozs in Saprolite P&P
Reserves 328,000 383,000 18%
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In-situ Au ozs in Transition P&P
Reserves 94,000 101,000 7%
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In-situ Au ozs in Fresh P&P Reserves 82,000 245,000 200%
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Mine Life 7.5 years 11 years 46%
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Gold Price $650.00 $750.00 15%
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Stripping Ratio 2.64 3.32 26%
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The estimated global Proven and Probable reserves are now as follows:

Table 2 Proven and Probable Reserves for Piaba (As of June 23, 2009)
-------------------------------------------------------------------------
Ore In-situ
Tonnes oz-Au
Category Rock g/t-Au (kt) (000's)
-------------------------------------------------------------------------

Proven Saprolite 1.41 1,069 48

Probable Saprolite 1.19 8,747 335
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Proven and Probable Saprolite 1.21 9,816 383
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-------------------------------------------------------------------------

Proven Transition 1.29 223 9

Probable Transition 1.34 2,138 92
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Proven and Probable Transition 1.33 2,361 101
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-------------------------------------------------------------------------

Proven Fresh 1.79 217 13

Probable Fresh 1.53 4,725 232
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Proven and Probable Fresh 1.54 4,942 245
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Total Proven 1.44 1,509 70
-------------------------------------------------------------------------
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Total Probable 1.31 15,609 659
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Total
Proven and Probable 1.32 17,119 729
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-------------------------------------------------------------------------

Reserves are based on a gold price of US$750/oz;
Full mining recovery is assumed;
Mine reserves are diluted along mineralized boundary to block model SMU
of 10mx10mx3m;
An internal CoG of 0.35g/tAu was used on Saprolite Rock within the pit
design;
An internal CoG of 0.37g/t-Au was used on Transition Rock within the pit
design;
An internal CoG of 0.41g/t-Au was used on Fresh Rock within the pit
design;
Internal CoG determination includes metallurgical recoveries of 95% in
Saprolite, 93% in Transition, and 91% in Fresh ore;
In situ Au ounces do not include metallurgical recovery losses;
Saprolite is rock between topography and an interpreted floor surface
marking the change from highly to moderately weathered rock;
Transition is rock between an (upper) interpreted Saprolite floor surface
and an interpreted moderately weathered rock floor surface; and
Fresh rock is rock below an (upper) interpreted Transition floor surface.

The stripping ratio (waste: ore) has increased due to the greater quantity of
Measured and Indicated reserves contained within the new pit design in deeper
fresh rock. The gold recovery from fresh rock reserves is estimated at 91%,
compared with 93% and 95% for transition and saprolite rock types. As a result
of the expected increase in fresh rock reserves the overall life of mine
recovery grade will be slightly reduced.
The stated Proven and Probable mineral reserves have been prepared in
accordance with Canada's National Instrument 43-101 Standards of Disclosure
for Mineral Projects. The Qualified Person, as defined by National Instrument
43-101, for the mineral reserve update, is Bret C. Swanson, MAusIMM of SRK.

Engineering and Procurement

Following a review of the basic engineering of the project that considered
additional metallurgical tests, site visits to like operations and other site
specific considerations; the contract for detailed engineering of the process
plant was awarded in late May to INFO Design. INFO has been associated with
the project since inception. Luna has an in-house team working with INFO at
its offices at Ipatinga, Minas Gerais, Brazil. Drawings are being released for
construction on an agreed release schedule.
Luna has already purchased much of the milling plant and this equipment is
being assembled at the embarkation port. Other long-lead equipment items are
being procured and to-date, orders have been placed for the plant apron
feeder, induction furnace and leach plant agitators.
The rainy season is drawing to a close and construction preparation has
commenced with bush clearing at the sites of the process plant and tailings
storage facility ("TSF"). Work is almost complete on the TSF coffer dam.
Certain tests have yet to be completed for TSF detailed design purposes. This
data is expected to be completed and available within the next 30 days.
Work is also in progress with expanding stores facilities and lay-down areas,
additional accommodation in anticipation of the increased work force in the
coming months, and site preparation of the analytical laboratory. The project
works are currently on schedule for plant commissioning in the first quarter
of 2010.

Exploration and Definition Drilling

The Company has commenced a limited diamond drill program at Piaba with the
objective of testing the down-dip continuity, width and grade of the ore
deposit in fresh rock. Drilling is being conducted on 200 meter spaced
sections within the central portion of the deposit. The result of this work is
expected to be press released once the program has been completed and all
drill assays received.
In addition, an order has been placed with Atlas Copco for the supply of a
reverse circulation drill rig. This machine is expected to be on site in the
current quarter and will be used to better define mining blocks for production
planning purposes.
A positive final exploration report for the Tatajuba exploration license has
been submitted to the Mines Department. Pending approval of the report, an
application will be submitted for a mining concession covering this license.

About Luna Gold Corp.

Luna is a mining exploration company focused on the acquisition, exploration,
and development of gold resources and advanced stage gold exploration projects
in northeastern Brazil.

On behalf of the Board of Directors

LUNA GOLD CORP.

Jim Bahan - CEO

Website: www.lunagold.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

Statements in this release that are forward-looking statements are subject to
various risks and uncertainties concerning the specific factors identified in
Luna Gold Corp.'s periodic filings with Canadian Securities Regulators. These
factors include the inherent risks involved in the exploration and development
of mineral properties, the uncertainties involved in interpreting drill
results and other exploration data, the potential for delays in exploration or
development activities, the geology, grade and continuity of mineral deposits,
the possibility that future exploration, development or mining results will
not be consistent with the Company's expectations, accidents, equipment
breakdowns, title matters, labor disputes or other unanticipated difficulties
with or interruptions in production and operations, fluctuating metal prices,
the possibility of project cost overruns or unanticipated costs and expenses,
uncertainties relating to the availability and costs of financing needed in
the future, the inherent uncertainty of production and cost estimates and the
potential for unexpected costs and expenses, commodity price fluctuations,
currency fluctuations, regulatory restrictions, including environmental
regulatory restrictions and liability, competition, loss of key employees, and
other related risks and uncertainties. The Company undertakes no obligation to
update forward-looking information except as required by applicable law. Such
forward-looking information represents management's best judgment based on
information currently available. No forward-looking statement can be
guaranteed and actual future results may vary materially. Accordingly, readers
are advised not to place undue reliance on forward-looking statements or
information.

SOURCE Luna Gold Corp.

contact Investor Relations at (604) 689-7317 or toll free at 1-866-689-7317