Santa Fe Gold Announces Death of Chairman Lawrence Olson

Santa Fe Gold Corporation (OTCBB: SFEG) announced with profound
sadness the death of Lawrence G. Olson, Chairman of the Company. Mr.
Olson was removed from life support yesterday after having been in a
coma since collapsing April 16, 2012. Mr. Olson was 74 years old.

Mr. Olson became a director of Santa Fe Gold in 1999 and held the
position of Chairman since 2000, and also formerly held the positions of
President and Chief Executive Officer in 2000 - 2003. Mr. Olson owned
and operated his own business, Olson Precast of Arizona Inc., since
1973. He was a well known entrepreneur in the Phoenix area and supported
the start up of numerous business enterprises. A deeply religious man,
he was dedicated to helping others less fortunate and contributed
significantly to church sponsored organizations worldwide. Mr. Olson
received a B.S. Degree in Civil Engineering from the University of
Southern California.

Dr. Pierce Carson, CEO of Santa Fe Gold and a current director, has been
named Chairman of the Board of Directors.

Dr. Carson commented, 'On behalf of the Board of Directors and the
employees of the Company, we extend our deepest sympathies to the Olson
family. Larry was a good friend as well as a colleague. He was an
inspirational leader and was committed totally to the success of Santa
Fe Gold.?

Dr. Carson added, 'During the past few years, Larry and the Board have
developed a strong management team to carry out growth plans for the
Company. That executive team has guided the technical development,
operations and financial management of the Company. Despite Larry′s
tragic loss, the Board is confident in our management team and its
commitment to successfully take the Company forward.?

The Board will begin searching for one or more additional Board members
immediately and will make an announcement when new directors are
selected.

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, 2011
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