Mr. Marc Leduc reports

LUNA GOLD PROVIDES CORPORATE UPDATE

Luna Gold Corp. has released the initial results from its 2015 drilling program at the Aurizona gold project in Brazil.

2015 drilling program

The company completed a drilling program in December, 2015, consisting of 15,142 metres of oriented core drilling and 3,264 metres of reverse circulation drilling. The primary goal of the program was to infill drill the Piaba mineral resource with approximately 50-metre drill hole spacing versus the previous 100-metre spacing. Although the company has not yet received all of the assay results from the drilling program, the results support Luna's geological understanding and will give the company greater certainty as it develops an updated resource model. Highlight intercepts from the drilling program are included in the attached table. All drill results received to date, which represent 93 per cent of the drilling, can be found on the company's website.

                                       Total length   True width   Gold grade 
Hole No.            From           To            (m)          (m)        (g/t)
   
BRAZD465            81.7        113.0          31.3         26.3         3.46
BRAZD467A          167.8        192.0          24.2         20.5         3.83
BRAZD469           207.8        353.5         145.7        112.3         1.18
BRAZD474            34.0         72.4          38.4         27.2         2.91
BRAZD481           112.5        136.5          24.0         18.2         4.68
BRAZD483           174.0        262.4          88.4         61.0         2.92
BRAZD487           217.3        289.1          71.8         55.4         4.25
BRAZD492           106.0        215.0         109.0         70.1         1.08
BRAZD500            99.0        130.2          31.2         24.6         4.10

Marc Leduc, president and chief executive officer, stated: "We are pleased with the initial results from the 2015 exploration program. The results from the drilling campaign support our previous interpretations of the resource estimate, and the more detailed structural knowledge and the greater drill density from the infill program will allow us to maintain much better control on our geological model. This will be an important planning tool for the preparation of our prefeasibility study."

The 2015 drilling program also included an oriented core structural geological analysis of the Piaba mineral resource to allow Luna to better understand the structural controls and distribution of gold within the mineral resource. The drilling results and structural interpretation from the 2015 drilling program, along with results of previous years of drilling, will be used to create an updated block model, and mineral resource and reserve estimate that will be incorporated into a prefeasibility study for the Aurizona gold project that is scheduled for completion during the second quarter of 2016.

Lycopodium Ltd. has been engaged as the lead engineering firm to optimize the plant design and mine plan as part of the upcoming prefeasibility study. AGP Mining Consultants Inc. has been contracted for the mine planning portion of the study. The prefeasibility study will recommend a new crushing and grinding circuit that will allow mineral bearing rock of all types to be processed through the company's existing gold recovery plant at the Aurizona gold project.

Prospectors and Developers Association of Canada (PDAC)

Luna Gold's president and chief executive officer, Marc Leduc, will be giving a corporate update presentation during the Gold-Americas 2 afternoon session at the 2016 PDAC convention in Toronto, Ont., Canada, on Monday, March 7, 2016, at 4:20 p.m. ET in room 801B. His presentation will be available on the corporate website following the live presentation. The company will also be represented in the investor exchange in booth No. 3041 from March 6 to March 9, 2016. Hours for the exhibit hall can be found on the PDAC website.

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