Santa Fe Gold Announces Unit Offering to Existing Stockholders and Institutional Investors

Santa Fe Gold Corporation (OTCBB: SFEG) today announced that it
is offering up to 16,666,667 units for sale to existing stockholders,
with each unit consisting of one share of common stock and a warrant to
purchase an additional share of common stock. Each unit will be offered
for sale at a price of $0.30. Each warrant has an exercise price of
$0.40 per share of common stock, and is exercisable for a period of
three years commencing immediately. The shares of common stock and the
warrants will be issued separately but will be purchased together in the
offering.

The offering will commence as of the date of the supplemental prospectus
and expire on August 31, 2012, unless Santa Fe terminates it earlier or
extends it. Santa Fe′s directors and officers will conduct the offering,
for which they will receive no commissions. Net proceeds of the
offering, after payment of expenses, will be used for working capital
and general corporate expenses. Santa Fe will attempt to honor
subscriptions on a 'first come, first served? basis.

The securities described above are being offered by Santa Fe Gold
Corporation pursuant to a shelf registration statement on Form S-3,
together with a base prospectus, previously filed and declared effective
by the Securities and Exchange Commission (SEC) and a prospectus
supplement. The securities may be offered only by means of a prospectus,
including a prospectus supplement, forming a part of the effective
registration statement. A prospectus supplement related to the offering
was filed with the SEC on August 1, 2012.

When available, stockholders may obtain copies of the final prospectus
supplement and accompanying base prospectus relating to this offering at
the Securities and Exchange Commission web site at http://www.sec.gov,
or from Santa Fe Gold Corporation, 1128 Pennsylvania NE, Suite 200,
Albuquerque, New Mexico 87110 or via telephone at 505-255-4852.

This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities of Santa Fe Gold
Corporation nor shall there be any sale of the securities in any state
or jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities
laws of any such state or jurisdiction.

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

www.santafegoldcorp.com

or

Investor
Relations

Torrey Hills Capital

Clay Chase, 858-456-7300

cc@sdthc.com