Luna Gold LGCUD

: RE: Good refinancing profile and payment structu

[mork10]

the explanation for the reduction in mining activity is in the report itself (see below):

The Company mined approximately 460,000 tonnes of material of which approximately 111,600 tonnes was ore at an average head grade of 1.79 grams per tonne during Q1. This represented a reduction of 56% of total material mined and 75% of ore mined compared to the previous quarter. The lower mining activities were due to the onset of the rain season in Q1 and a decision to reduce mining activities while processing ore from the large build-up of the ore stockpile. The rain season in Brazil has been one of the heaviest on record, which has resulted in many disruptions to the mining activities. The Company also began blasting harder materials and focused on increasing the waste stripping in anticipation of mining higher grade ore in future periods and achieving a steady strip ratio over the life of the mine.