Lordsburg Mill

The Lordsburg flotation mill constitutes a long term strategic asset with flexibility to handle various ore types and has significant extra processing capacity. In addition to the Summit mine, the Company plans to place a strong emphasis on developing new sources of ore for the mill and thereby build Santa Fe's production profile.

Lordsburg Exploration Program

In mid-January 2013 the Company began a drilling program to test several gold-copper targets near the Lordsburg Mill in the Lordsburg Mining District. Initially a 6,000 ft diamond core drilling program is planned. The objective of the drilling program is the discovery of additional ore for processing though the Lordsburg Mill. If new ore can be delineated, it could be placed into production relatively quickly. Additional information on the drilling program will be provided in the near future.

Mogollon Gold-Silver Project

In October 2012 Santa Fe concluded an option agreement with Columbus Silver Corporation to purchase the Mogollon Project, which has substantial recorded production of silver and gold. The Company has made option payments totaling $750,000 toward required payments of $4.5 million through 2014.

The Mogollon Project is within trucking distance of the Lordsburg Mill and fits Santa Fe's strategic objectives very well. The project contains drilled resources of high grade gold-silver mineralization. Mogollon appears to have excellent potential for the development of one or more high grade mines and Santa Fe has assigned a high priority to advancing the project toward production. Drilling is planned in the second quarter of calendar 2013 to be followed with an underground exploration and development program. If this program is successful, production might begin as early as 2015.

Ortiz Gold Project

The Ortiz Gold Project contains substantial undeveloped gold deposits that provide important upside to Santa Fe's long term future. The project has been estimated to contain 2.0 million ounces of gold based on work in the 1980's and early 1990's. Previous drilling was focused on two deposits estimated to contain approximately 1.0 million ounces of gold within open pit designs. A Canadian standard NI 43-101 technical report is being prepared on these two deposits and will be completed in the near future. This report will be followed by a Preliminary Economic Assessment to be completed later in 2013. The two deposits appear to hold promising potential for economic development.

Currently the Company is conducting technical and baseline environmental studies in preparation for possible permitting and mining. Permitting will require a minimum of two years before development can proceed. If development efforts are successful, management believes the Ortiz project has the potential to be a "company maker" for Santa Fe.

Comments by President and CEO Pierce Carson

Pierce Carson, President and CEO stated, "Some time ago we established Santa Fe's goal of becoming a substantial precious metals producer, with production sourced from low cost mines. In pursuit of that goal, we have acquired quality precious metals properties in New Mexico and also have assembled a first rate management and operating team.

"In mid-2012 we were proud to report an important milestone when the Summit gold-silver mine achieved commercial production. That milestone marked Santa Fe's successful transition from an exploration to a producing company. Shareholders can expect to see tangible evidence of continued progress in 2013."

Carson concluded, "Santa Fe's focus on production sets us apart from many junior explorers. With one mine already in production and a second and third in the pipeline, Santa Fe represents an exciting growth story. Despite the current difficult financial markets, management is committed to executing our strategy for growth and we are confident the future is bright."

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 Mogollon project in southwestern New Mexico; (iv) the Ortiz gold property in north-central New Mexico; (v) the Black Canyon mica deposit near Phoenix, Arizona; and (vi) 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.