Santa Fe Gold Closes $5 Million Senior Secured Loan

Santa Fe Gold Corporation (OTCBB: SFEG),a U.S.-based
mining and exploration enterprise focused on gold, silver, copper and
industrial minerals, today announced that it had closed a $5 million
senior secured loan with Victory Park Capital Advisors, LLC ('Victory
Park?), an investment firm that acts as investment manager on behalf of
one or more entities. The company received net proceeds of $4,555,000
after deducting fees and expenses.

The loan bears interest at 15% per annum payable monthly in arrears. The
loan matures and comes due upon the six-month anniversary of the closing
date or earlier upon the occurrence of an uncured event of default or of
certain other events. Santa Fe may repay the loan at any time without
penalty. The company paid a 5% commitment fee at closing.

The senior obligations are secured by a first priority lien on the stock
of Santa Fe′s subsidiaries and on liens covering substantially all of
the assets of the company, including the Summit silver-gold project, the
Black Canyon mica project and the Planet micaceous iron oxide project.
The senior debt contains usual and customary affirmative and negative
covenants for transactions of this nature. The company agreed that any
equity it raises in excess of $5 million must be applied to repayment of
the loan.

In connection with the loan, Santa Fe issued warrants to purchase
500,000 shares of its common stock. The warrants have an exercise price
of $1.00 per share and a term of five years.

Santa Fe will use the net proceeds for general corporate purposes,
including but not limited to, working capital for the Summit silver-gold
project, which is expected to reach full production during the last
quarter of 2011.

Dr. W. Pierce Carson, CEO, said, 'We are delighted to have completed
this financing, which demonstrates confidence in the company′s assets,
its management and its future.?

Dalmore Group, LLC ('Dalmore?), a registered broker dealer and member of
FINRA and SIPC, acted as the exclusive agent in procuring the financing
with Victory Park. The company paid Dalmore a fee of 3.5% of the gross
amount of the loan.

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.

About Victory Park:

Victory Park provides direct financing solutions to small cap and middle
market companies across a wide range of industries. It focuses on
complex situations and seeks to build long-term sustainable value in its
companies. Victory Park is based in Chicago and has offices in Boston
and San Francisco. For more information on Victory Park, please visit www.victoryparkcapital.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 U.S. 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, 505-255-4852

President
and Chief Executive Officer