San Gold Corporation Announces Results Of Underground Drilling

BISSETT, MB -- Dale Ginn, CEO of San Gold Corporation (TSX-V: SGR), is pleased to announce results from underground drilling below the 5300 foot level on its new gold bearing breccia veins below the Rice Lake Gold Mine . Hole # 473-06-18 encountered four broad intersections including 2.4 meters (8.0 feet) of 24.0 g/tonne (0.70 oz/ton) gold as well as 4.7 meters (15.5 feet) of 13.7 g/tonne (0.40 oz/ton) gold, including individual assays of up to 125 g/tonne (3.66 oz/ton). Additional results are tabulated below:

Hole # From To Length Gold g/tonne (oz/ton)
------ ---- -- ------ --------------------

473-06-07 6.4 m 8.2 m 1.8 m (5.9 ft) 9.3 (0.27)

473-06-08 6.4 m 9.0 m 2.6 m (8.5 ft) 5.5 (0.16)

473-06-09 7.6 m 9.5 m 1.9 m (6.2 ft) 15.8 (0.46)

473-06-10 60.6 m 64.8 m 4.2 m (13.8 ft) 8.6 (0.25)
and 84.2 m 86.9 m 2.7 m (8.9 ft) 11.0 (0.32)

473-06-13 40.2 m 42.3 m 2.1 m (6.9 ft) 13.7 (0.40)

473-06-18 28.6 m 31.0 m 2.4m (8.0 ft) 24.0 (0.70)
including 30.2 m 31.0 m 0.8m (2.6 ft) 56.2 (1.64)
and 37.9 m 42.1 m 4.2m (13.8 ft) 11.3 (0.33)
including 41.4 m 41.7 m 0.3m (1.0 ft) 125.4 (3.66)
and 63.0 m 67.1 m 4.1m (13.5 ft) 7.6 (0.22)
and 68.2 m 72.9 m 4.7m (15.5 ft) 13.7 (0.40)

473-06-21 16.2 m 18.8 m 2.6 m (8.6 ft) 29.1 (0.85)
including 18.1 m 18.8 m 0.7 m (2.3 ft) 90.1 (2.63)
Dale Ginn commented, “This area essentially represents a third independent ore source and continues to validate our strategy of gaining increased flexibility by mining and developing multiple sources. Deep vein systems within Canadian archean gold mines such as Rice Lake have time and time again proven their worth when concentrated exploration and development efforts are applied appropriately.”
The vein systems below the 5300 foot level will constitute a third and separate mining area and access is fully mechanized and trackless. San Gold’s current development program will reach these veins within six weeks via the company’s decline access at the Rice Lake Mine’s lowest levels. The grades and widths encountered by this drilling to date are greater than the historical mine average and it is anticipated that up to ten additional ore faces will be generated in this region. Current ore development is taking place in the tracked levels above 4700 feet where approximately 15 individual ore faces and stopes are underway including the high grade “98” and “93” veins. The Rice Lake Mine vein systems remain open at depth and along strike and the company will continue to focus their exploration efforts on areas with high grade gold potential.

This program was carried out under the supervision of W. S. Ferreira, M.Sc., P.Geo., and D. Ginn, P.Geo., the Qualified Persons for this project under National Instrument 43-101. The drill core was split, with half sent to TSL Laboratories in Saskatoon, SK and fire assayed with an AA and gravimetric finish. Whole metallics were performed on selected samples. Check assays were also performed on pulps and rejects by both TSL and by Accurassay Laboratories of Thunder Bay, ON. The core lengths are actual lengths as drilled and have not been adjusted for the true width of the mineralized zones.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.