Luna Gold Corp. - Provides Corporate Update

VANCOUVER, October 09, 2014 - Luna Gold Corp. (TSX: LGC) (LMA: LGC) (OTCQX: LGCUF) ("Luna" or the "Corporation") today announced that it has established a Special Committee comprised of independent members of the Luna Board of Directors with a mandate to explore all strategic alternatives, including the terms thereof, available to the Corporation to offer greater value to the Corporation's shareholders. The Special Committee will evaluate proposals and other alternatives and will provide advice and make recommendations to the Corporation's Board of Directors regarding any such potential transactions.

Messrs. Wayne Kirk (Chairman), Steven Krause, Bill Lindqvist and Federico Schwalb have been appointed as members of the Special Committee.

There can be no assurance that this exploration process will result in any transaction. The Corporation does not currently intend to disclose further developments with respect to this process, unless and until its Board of Directors approves a specific transaction or otherwise concludes the review of strategic alternatives.

Luna also announced that its Board of Directors has adopted an advance notice policy regarding the nomination of directors (the "Advance Notice Policy") effective October 8, 2014. The purpose of the Advance Notice Policy is to provide shareholders, directors and management of the Corporation with direction on the procedure for shareholder nomination of directors. The Advance Notice Policy is the framework by which the Corporation seeks to fix a deadline by which registered or beneficial holders of common shares of the Corporation must submit director nominations to the Corporation prior to any annual or special meeting of shareholders and sets forth the information that a shareholder must include in the notice to the Corporation for the notice to be in proper written form. No person will be eligible for election as a director of the Corporation unless nominated in accordance with the provisions of the Advance Notice Policy.

In the case of an annual meeting of shareholders, notice to the Corporation must be made not less than 30 days and not more than 65 days prior to the date of the annual meeting; provided, however, that in the event that the annual meeting is to be held on a date that is less than 50 days after the date on which the first public announcement of the date of the annual meeting was made, notice may be made not later than the close of business on the 10^th day following such public announcement.

In the case of a special meeting of shareholders (which is not also an annual meeting), notice to the Corporation must be made not later than the close of business on the 15^th day following the day on which the first public announcement of the date of the special meeting was made.

At the next meeting of the Corporation's shareholders, the Corporation intends to seek shareholder approval to amend the articles of the Corporation to include the provisions of the Advance Notice Policy.

About Luna Gold Corp.
Luna is a gold production company engaged in the operation, expansion, and exploration of gold projects in Brazil.

On behalf of the Board of Directors
Luna Gold Corp.
Geoff Chater, President and CEO

Forward-Looking Statements
This release contains certain "forward looking statements" and certain "forward looking information" as defined under applicable Canadian and U.S. securities laws. Forward-looking statements can generally be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans" or similar terminology. Forward-looking statements are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking statements are subject to various risks and uncertainties including, but not limited to, the availability of strategic options or alternatives, the implementation of any alternative transactions, shareholder approval of the Advance Notice Policy and the specific factors identified in Luna Gold Corp.'s periodic filings with Canadian Securities Regulators. 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.