Luna Gold closes private placement of C$9.77 million



    VANCOUVER, Dec. 19 /CNW/ - Luna Gold Corp. (TSXV-LGC) ("Luna" or the
"Company") is pleased to announce the closing of a non-brokered private
placement of 9,770,000 Units as announced on December 5 and December 13, 2007,
for gross proceeds of $9,770,000. Each Unit consists of one common share and
one-half of one share purchase warrant and each whole warrant entitles the
holder to purchase one common share at a price of $1.50 for a period of
18 months.
    The common shares issued pursuant to the Private Placement are subject to
a four month hold period expiring on April 20, 2008.
    A cash finder's fee in the aggregate of $251,700 was paid and an
aggregate of 251,700 broker's warrants were issued to various parties for
introducing investors to the Company. Each broker's warrant entitles the
holder to purchase one common share at a price of $1.00 for a period of
18 months.
    In the event the closing market price of the Company's common shares is
$2.00 or higher over a period of 10 consecutive trading days at any time after
April 20, 2008, the Company will be entitled to accelerate the term of the
warrants and broker's warrants upon notice given by press release and the
warrants and broker's warrants will then expire on the 15th business day after
the date of the press release unless exercised by the holder prior to such
date.

    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.

    Tim Searcy, P. Geo. - President and CEO

    Website: www.lunagold.com

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this press 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.





For further information:

For further information: Investor Relations at (604) 689-7317 or toll
free at 1-866-689-7317

Organization Profile

LUNA GOLD CORP.

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