Santa Fe Gold Reports Strong Operating Results for 2012 Fiscal First Half

Santa Fe Gold Reports Strong Operating Results for 2012 Fiscal First Half | Bild: © patrickvg

Continued Growth in Revenue

Santa Fe recorded revenue of $4,469,219 for its 2012 fiscal first half ended December 31, 2011, up 257% from revenue of $1,250,262 in the corresponding first half of fiscal 2011. The increase of $3,218,957 is due to increased production at the Summit mine and related shipments of precious metals concentrate, flux material and the sale of refined gold. Full financial results are available in the Company?s Form 10-Q filed with the SEC and available at www.sec.gov.

?We continue to increase production at our Summit silver-gold mine in New Mexico and are closer to our target of commercial production, which we expect to achieve during the current quarter,? said Pierce Carson, CEO of Santa Fe. ?With higher production and continued strength in gold and silver prices, we are optimistic that we will see even stronger operating results in the coming quarters.?

Columbus Silver Acquisition

Santa Fe continues to make progress on its pending acquisition of Columbus Silver Corporation (TSXV: CSC) pursuant to which Santa Fe will conditionally acquire Columbus Silver for cash. The company expects the transaction to be concluded in March or April 2012.

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.

The following information summarizes the financial condition of Santa Fe Gold Corporation at December 31, 2011, including its balance sheets at December 31, 2011 and June 30, 2011, respectively, its results of operations for the three months and six months ended December 31, 2011 and 2010, respectively, and its cash flows for the six months ended December 31, 2011 and 2010. The summary data for the three and six months ended December 31, 2011 and 2010, respectively, are unaudited; the summary data for the financial year ended June 30, 2011 are taken from our audited financial statements contained in our annual report on Form 10-K for the financial year ended June 30, 2011, but do not include the footnotes and other information that is included in the complete financial statements. Readers are urged to review the Company?s Form 10-K in its entirety, which can be found on the SEC?s website at www.sec.gov.

Senior subordinated convertible notes payable, net of discount of $12,819 and $-0-, respectively

Senior secured convertible notes payable, net of discount of $-0- and $2,498,065, respectively

Senior subordinated convertible notes payable, net of discount of $-0- and $19,684, respectively

Common stock, $.002 par value, 300,000,000 shares authorized; 108,294,412 and 94,744,412 shares issued and outstanding, respectively; Includes non-vested shares of 237,500 and 575,000, respectively

Adjustments to reconcile net loss to net cash used in operating activities:

Net Cash Used in Operating Activities