Santa Fe Gold Reports Regular Monthly Shipments and Sales from Summit Silver-Gold Mine

Santa Fe Gold Corporation (OTCBB: SFEG) today provided an update
on shipments and sales from its Summit silver-gold mine located in
southwestern New Mexico. Santa Fe reported that during 2011 it has been
delivering its products to two smelters under previously announced sales
contracts. Santa Fe has delivered regular monthly shipments of
high-value silver-gold concentrates to Aurubis AG in Germany, and
shipments of siliceous flux material for precious metals recovery to
Asarco LLC in Arizona. Shipments delivered to date are valued in excess
of $4.0 million.

Santa Fe′s President and CEO, Pierce Carson, said, 'Because of delayed
payment terms from the smelters, we are still awaiting payment for the
majority of the material shipped to date. However, on the positive side,
settlement prices for a significant portion of the material will be
based on precious metals prices for April and May, so we are fortunate
in realizing the recent record highs in both silver and gold prices.

'Silver has outperformed gold on a relative basis, and two-thirds or
more of our revenue is now derived from silver.?

Carson continued, 'We now have established a schedule of regular monthly
shipments. As the Summit mine ramps from the current production rate of
100-150 tons per day to full production of 400 tons per day during 2011,
we expect sales volumes to increase substantially.

'The present environment of rising silver and gold prices is an exciting
time to be bringing a new silver-gold mine on stream, and we are
confident that the future is bright for Santa Fe and its shareholders.?

The Summit underground mine is operating two 10-hour shifts a day, seven
days a week, and employs a work force of 25 people. The mine is
producing 100-150 tons of ore per day and continues to make satisfactory
progress towards the objective of ramping to full production of 400 tons
per day during 2011. The Lordsburg mill currently is operating one
8-hour shift per day, five days a week and employs 15 people.

About Santa Fe Gold:

Santa Fe Gold is a U.S.-based mining and exploration enterprise focused
on acquiring and developing gold, silver, copper and industrial mineral
properties. Santa Fe controls: (i) the Summit mine and Lordsburg mill in
southwestern New Mexico, which began processing operations in 2010; (ii)
a substantial land position near the Lordsburg mill, comprising the core
of the Lordsburg Mining District; (iii) the Ortiz gold property in
north-central New Mexico; (iv) the Black Canyon mica deposit and
processing equipment near Phoenix, Arizona; and (v) a deposit of
micaceous iron oxide (MIO) in western Arizona. Santa Fe Gold intends to
build a portfolio of high-quality, diversified mineral assets with an
emphasis on precious metals.

To learn more about Santa Fe Gold, visit www.santafegoldcorp.com.

Cautionary Note Regarding Forward-Looking Statements:

This press release contains forward-looking statements and
forward-looking information (collectively, 'forward-looking statements?)
within the meaning of applicable US and Canadian securities legislation.
All statements, other than statements of historical fact, included
herein are forward-looking statements. Although the Company believes
that such statements are reasonable, it can give no assurance that such
expectations will prove to be correct. Forward-looking statements are
typically identified by words such as: believe, expect, anticipate,
intend, estimate, postulate and similar expressions, or are those,
which, by their nature, refer to future events. The Company cautions
investors that any forward-looking statements by the Company are not
guarantees of future results or performance, and that actual results may
differ materially from those in forward looking statements as a result
of various factors, including, but not limited to, variations in the
nature, quality and quantity of any mineral deposits that may be
located, variations in the market price of any mineral products the
Company may produce or plan to produce, the Company's inability to
obtain any necessary permits, consents or authorizations required for
its activities, the Company's inability to produce minerals from its
properties successfully or profitably, to continue its projected growth,
to raise the necessary capital or to be fully able to implement its
business strategies, and other risks and uncertainties disclosed in the
Company′s Annual Report on Form 10-K for the year ended June 30, 2010
and its most recent quarterly reports filed with the United States
Securities and Exchange Commission (the 'SEC?), and other information
released by the Company and filed with the appropriate regulatory
agencies. All of the Company's US public disclosure filings may be
accessed via www.sec.gov
and its Canadian public disclosure filings may be accessed via www.sedar.com,
and readers are urged to review these materials.

Santa Fe Gold Corp

W. Pierce Carson, President and Chief Executive
Officer

505-255-4852

www.santafegoldcorp.com