Santa Fe Gold Reaches Full Tonnage Production at Summit Silver-Gold Mine

Santa Fe Gold Corporation (OTCBB: SFEG) is pleased to report that
production levels have continued to increase at its Summit silver-gold
mine in southwest New Mexico. The company anticipates the mine will
reach its targeted monthly production rate of 10,000 tons beginning June
2012. Production for April and May averaged 8,262 tons per month, up 88%
from the 4,400 tons mined in March. Delivery of new mining equipment
including underground loaders, drills and trucks is expected to
facilitate sustained mining rates. Revenues are expected to continue to
increase during 2012 and 2013 as the mine reaches higher grade portions
of the ore body.

'We are very pleased to have successfully completed ramp up to the full
production rate of 10,000 tons per month, which is a significant
milestone,? said Pierce Carson, CEO. 'At the mill, we are adding a daily
shift to operate three 8-hour shifts per day, five days a week. At the
mine, we are operating two 10-hour shifts, five days a week, which
allows time for maintenance and is paying off in less down time for
underground equipment.?

Carson continued, 'Now that we have reached the targeted mining rate, we
are turning our attention to optimizing the operation. This will involve
a focus on costs, material movement, power, grade control and
metallurgical recoveries.

'We also will be re-evaluating the development plan and mining schedule
for the potential to more quickly access richer portions of the ore body
and to increase production levels above 10,000 tons per month.?

Carson said the company also is preparing to begin shipments of its
tailings waste product, which contains unrecovered precious metals, to
an Arizona smelter for silica flux trials.

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