Santa Fe Gold Reports Record Production at Summit Silver-Gold Mine

Santa Fe Gold Corporation (OTCBB: SFEG) is pleased to report that
preliminary results for its fiscal year ended June 30, 2012 indicate
that sales increased over 80% as compared to sales in fiscal 2011. The
results reflect record production at the Summit silver-gold mine in
southwest New Mexico. The company reported recently that the Summit mine
had successfully completed ramp up to the targeted production rate of
10,000 tons per month. Revenues are expected to continue to increase
substantially over the next several quarters as the mine reaches higher
grade portions of the ore body.

'We are pleased to see the mine overcome equipment difficulties
encountered earlier in the year,? said Pierce Carson, CEO. 'We expect
this month, July, to set a record for mining and processing throughput
and a record for shipments of concentrates and silica flux to the
smelters.

'Our focus now is on optimizing the operation to reduce costs. We expect
significant savings will be achievable in power costs at the mine and in
trucking costs of silica flux to the Arizona smelters, among others.?

The Company also is re-evaluating the mining plan and ore schedule for
the potential to bring revenues forward and maximize cash flow. By
modifying the development plan and implementing a work schedule of three
shifts per day, it may be possible both to access richer parts of the
ore body earlier and to increase production levels to 12,000 tons per
month.

Additional announcements reflecting material developments can be
anticipated soon including the appointment of new directors to Santa
Fe′s board.

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 commercial production in 2012; (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 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

Pierce Carson, President and Chief Executive
Officer

505-255-4852

or

Investor Relations

Torrey
Hills Capital

Clay Chase

858-456-7300

cc@sdthc.com