• The Red Rock property is a highly prospective property that is incompletely explored and un-drilled.
• Centerra Gold Inc. is currently spending and operating the exploration program to earn a 60% interest on Luna's ground
• Previous exploration on the property defined a substantial north-northwest-trending zone of hydrothermal alteration and gold mineralization
• Soil geochemical sampling on Luna's ground has established that at least three northwest-trending sub-parallel zones of anomalous gold in soil occur in areas of widespread and locally intense hydrothermal alteration in calcareous upper plate rocks.
• Rock geochemistry indicates that anomalous gold (100's to locally 1000's of ppb) occur in highly fractured and brecciated hydrothermally altered and quartz veined rocks with anomalous As, Hg, Sb, and locally Zn, Tl, and Ba.
• The property is located 4 miles west of the Horse Mountain Window, a window of lower plate carbonate rocks which are favourable hosts to disseminated gold deposits

The Red Rock property is located along the west flank of the central Shoshone Range and is situated approximately 25 miles south of Battle Mountain, Lander County, Nevada, approximately 15 miles west of the Pipeline-Gold Acres-Cortez Hills deposit complex. Currently the land package is comprised of 213 lode claims. Luna Gold leased the property from a local landholder in March, 2004 and have a right to acquire 100% interest subject to a retained NSR (3% on the original 80 claims and 1% on the others) by spending $1.4 million over 15 years and making yearly lease payments to the claimant. Luna's ground encloses a group of 10 claims and the southeast boundary borders a second group of 16 claims, both owned by Centerra Gold.

CENTERRA GOLD EARN-IN

In March, 2006, Luna finalized an exploration agreement with Centerra Gold. Centerra will spend USD 1.9 million over six years to earn a 60% interest in the Luna ground. Centerra can earn another 15% by spending another USD 3.1 million within 4 years after their 60% is earned. Centerra will also cover Luna lease payments while they are earning in to the project.

GEOLOGY

The Red Rock property is underlain by a sequence of upper plate siliciclastic rocks that includes the Ordovician Valmy Fm., the Silurian Elder Sandstone, and possibly the Devonian Slaven Chert. Both the Valmy and Slaven Formations are comprised principally of dark chert associated with siltstone, quartzite, and argillite. The Elder is typically comprised of calcareous clastic rock ranging from siltstone to sandstone and contains interbeds of silty limestone and calcareous shale and is the principal host rock of the mineralization identified to date. The upper sequence that underlies the property is approximately 4 miles west of the Horse Mountain Window; a sequence of lower plate carbonate units. Tertiary-age tuffs, flows, and dikes of the Caetano Tuff fill the volcanic trough on the west side of the property and unconformably overlie the lower Paleozoic sequence. This regional trough is a product of a major magmatic event associated with gold mineralization in the Gold Acres, Pipeline, Cortez deposits to the east whose mineralization is of the same age. These tuffs are inturn overlain by lacustrine volcanoclastic rocks and Quaternary (?) basaltic andesite.

The structural geology is complex and consists of low and high-angle faulting. Thrust faulting has juxtaposed the stratigraphic section into a complex stack of imbricate thrust plates and numerous low-angle fault-breccia and fracture zones. High-angle fault sets of a number of varying orientations occur on the property and include NS, NE, NW, and EW-trends. However, the principal mineralized orientation trend N 10-30 W; however, sporadic gold and associated trace metals also occur in other trends.

Hydrothermal alteration is widespread and locally very intense on the Red Rock property. Alteration is typically comprised of moderate to intense silicification, argillic clay alteration, quartz veining, FeOx's and jarosite locally with gossan concentrations, pyritization, and crystallized barite lining open spaces in silicified rocks. Alteration is best focused along NW-trending fault-fracture-breccia zones, although other fault sets are also host significant alteration, especially low-angle breccia-fracture zones.

GEOCHEMISTRY

Previous Sampling: Pre-Luna Gold rock geochemical sampling, albeit insufficient to adequately characterize the mineralization, on the Red Rock property has established that several areas of anomalous gold and trace metals occur on the property and gold values range from 100's to 1000's of ppb with a high of 2450 ppb Au. Gold is invariably associated with one or more anomalous trace elements including As, Sb, Hg, Ba, Zn, etc.

Luna Geochemical Sampling: In the fall of 2004, Luna Gold began geochemical sampling, both rock and soil, in conjunction with some reconnaissance mapping. Luna collected 62 new rock chip samples and 78 new soil samples. The geochemical sampling was focused along the west flank of the property, an area that had received minimal attention during previous exploration programs.

Maps and Photos

Red Rock Cross Section A-A'	Red Rock Geologic Map	Red Rock Gold Anomaly
Red Rock Arsenic Anomaly	Red Rock - Looking East from 305	Red Rock - Silicified Rock