851726--9/28/2010--Santa_Fe_Gold

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Risk Factors Related to Our Business and Operations We are dependent upon production of precious metals and industrial minerals from a limited number of properties, have incurred substantial losses since our inception in 1991, and may never be profitable. We will require significant additional capital to continue our exploration activities, and, if warranted, to develop mining operations. Our industry is highly competitive, attractive mineral lands are scarce, and we may not be able to obtain quality properties. The feasibility of mining our Summit silver-gold property or our Ortiz gold property has not been established, meaning that we have not completed engineering, permitting or other work necessary to determine if it is commercially feasible to develop these properties. Any proposal for commercial mining operations at our Summit silver-gold property or at our Ortiz gold property would be subject to permitting requirements that could cause us to delay, suspend or terminate our development plans. We may not be able to obtain an adequate supply of water to complete desired development and mining of our Summit silver-gold property or of our Ortiz gold property. Titles to unpatented claims can be uncertain, and we are at risk of loss of ownership of our Black Canyon mica property and a portion of our Summit and Lordsburg properties. Our properties have no significant operating history upon which to base estimates of operating costs and capital requirements. The nature of mineral exploration and production activities involves a high degree of risk and the possibility of uninsured losses that could materially and adversely affect our operations. Our ongoing operations, including past mining activities, are subject to environmental risks that could expose us to significant liability and delay, suspension or termination of our operations. In addition to environmental regulations, we are subject to a wide variety of laws and regulations directly and indirectly relating to mining that often change and could adversely affect our business. We depend on a limited number of personnel and the loss of any of these individuals could adversely affect our business. Our Chief Executive Officer may face a conflict of interest relating to the acquisition of mineral properties by the Company. Delaware law and our Articles of Incorporation may protect our directors from certain types of lawsuits. Delaware law provides that our directors will not be liable to our stockholders or to us for monetary damages for all but certain types of conduct as directors of the Company. Risks Related to our Common Stock The sale of our common stock by selling stockholders may depress the price of our common stock due to the limited trading market that exists. Completion of one or more new acquisitions could result in the issuance of a significant amount of additional common stock, which may depress the trading price of our common stock. A small number of existing shareholders own a significant portion of our common stock, which could limit your ability to influence the outcome of any shareholder vote. We have never paid dividends on our common stock and we do not anticipate paying any in the foreseeable future.

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851726--9/28/2010--Santa_Fe_Gold_CORP