Luna Gold announces non-brokered private placement of up to C$8 million


    VANCOUVER, Jan. 27 /CNW/ - Luna Gold Corp. (TSXV-LGC) ("Luna" or the
"Company") announces the following:
    The Company has arranged a non-brokered private placement of common
shares ("Shares") at a price of C$0.12 per Share to raise proceeds of up to
C$8 million, subject to the approval of the TSX Venture Exchange. The Shares
will be subject to a four month hold.
    A finder's fee in cash equal to 6% of the gross proceeds raised may be
paid to certain parties who have introduced arm's length investors to the
    The net proceeds of the private placement will be used to reduce current
accounts payable, complete certain works recommended in the Piaba Feasibility
Study and for general corporate purposes.
    The results of the Piaba Feasibility Study were announced in July, 2008.
The capital cost was estimated at US$47.5 million. The NPV at 5% discount was
estimated at US$75 million. The IRR was 46% on a before tax base case scenario
using a life of mine gold price that averaged US$780 per ounce. The exchange
rate to the US dollar used in the study was BRL1.80 throughout. Since that
time, the exchange rate has eased to + BRL2.30, which if maintained, will
provide significant benefits to the project economics in terms of the initial
investment and subsequent operating costs. The project is within a designated
Brazil development zone which allows for income tax benefits for up to 10

    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 north-eastern Brazil.

    On behalf of the Board of Directors


    Marcel de Groot, Chairman


    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. 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, 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 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.

For further information:

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

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