LUNA GOLD ANNOUNCES COMPLETION OF WARRANT INCENTIVE PROGRAM

VANCOUVER, Dec. 21 /CNW/ - 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.

On behalf of the Board of Directors

LUNA GOLD CORP.

John Blake- President and CEO

Website: www.lunagold.com

NEITHER 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.

Regulatory Footnotes

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States.  The securities have not been and will not be registered under the United States Securities Act of 1933, as amended or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the United States Securities Act of 1933 and applicable state securities laws or an exemption from such registration is available.

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. 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. Luna Gold does not assume the obligation to update any forward-looking statement.

SOURCE LUNA GOLD CORP.

For further information: For further information:

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

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LUNA GOLD CORP.

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