San Gold Announces a 60% Increase in Mineral Reserves

San Gold Corporation

TSX : SGR
OTCQX : SGRCF

February 20, 2014 20:00 ET

WINNIPEG, MANITOBA--(Marketwired - Feb. 20, 2014) - San Gold Corporation (TSX:SGR)(OTCQX:SGRCF) today announced an updated mineral reserve and resource estimate for its Rice Lake Mining Complex.

During 2013, extensive definition drilling and detailed mine planning to integrate the Hinge, 007 and Rice Lakes mines resulted in an increase in proven and probable mineral reserves to 2.7 million tons grading 5.24 grams per tonne containing 405,400 ounces of gold as of December 31, 2013. This is a 60% increase from the proven and probable mineral reserves as of December 31, 2012. 

"I am very pleased with the progress made by our technical team over the past year. The increase in reserves has allowed us to complete five years of detailed mine planning, thereby providing improved operational flexibility. Our drilling in 2014 will be primarily from underground locations in closer proximity to known ore bodies. We expect to achieve a further increase in the mineral reserve as the year progresses through the conversion of our large inferred mineral resource," said Ian Berzins, San Gold's President, CEO and Chief Operating Officer.

Notes to Mineral Reserve and Resource Estimate Table

• Mineral reserve and resource estimates are calculated in accordance with the CIM Definition Standards on Mineral Resources and Mineral Reserves adopted by CIM Council, 2010.
• Tonnage and ounce estimates have been rounded to the nearest hundred.
• Proven and probable mineral reserves are included in the measured and indicated mineral resources.
• The mineral reserve estimate is based on a gold price of US$1,250 per ounce.
• A cut-off grade of 3.65 g/tonne gold was used for estimating mineral reserves. A cut-off grade of between 2.74 and 3.43 g/tonne gold was used for estimating mineral resources.
• Inferred mineral resources are not in the current mine plan and therefore do not have demonstrated economic viability.

The estimate of mineral resources was carried out under the supervision of Michael Michaud, Vice-President
of Exploration. The estimate of mineral reserves was carried out under the supervision of Rolando Jeria, Chief Engineer. Mr. Michaud and Mr. Jeria are Qualified Persons as defined by NI 43-101, and have reviewed and approved this news release.

About  San Gold

San Gold is an established Canadian gold producer, explorer, and developer that owns and operates the Rice Lake Mining Complex near Bissett, Manitoba. The Company employs more than 420 people and is committed to the highest standards of safety and environmental stewardship. San Gold is on the Toronto Stock Exchange under the symbol "SGR" and on the OTCQX under the symbol "SGRCF".

Cautionary Note
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This news release includes certain "forward-looking statements". All statements, other than statements of historical fact included in this release, including, without limitation, statements regarding forecast gold production, gold grades, recoveries, cash operating costs, potential mineralization, mineral resources, mineral reserves, exploration results, and future plans and objectives of the Company, are forward-looking statements that involve various risks and uncertainties. These forward-looking statements include, but are not limited to, statements with respect to mining and processing of mined ore, achieving projected recovery rates, anticipated production rates and mine life, operating efficiencies, costs and expenditures, changes in mineral resources and conversion of mineral resources to proven and probable mineral reserves, and other information that is based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management.
Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be "forward-looking statements." Forward-looking statements are subject to a variety of risks and uncertainties that could cause actual events or results to differ from those reflected in the forward-looking statements.
There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include, among others, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of precious metals, as well as those factors discussed in the section entitled "Other MD&A Requirements and Additional Disclosure and Risk Factors" in the Company's most recent quarterly Management's Analysis and Discussion ("MD&A"). Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Exploration results that include geophysics, sampling, and drill results on wide spacings may not be indicative of the occurrence of a mineral deposit. Such results do not provide assurance that further work will establish sufficient grade, continuity, metallurgical characteristics, and economic potential to be classed as a category of mineral resource. A mineral resource that is classified as "inferred" or "indicated" has a great amount of uncertainty as to its existence and economic and legal feasibility. It cannot be assumed that any or part of an "indicated mineral resource" or "inferred mineral resource" will ever be upgraded to a higher category of resource. Investors are cautioned not to assume that all or any part of mineral deposits in these categories will ever be converted into proven and probable reserves.

Contact Information

• 
  
  San Gold Corporation
  Ian Berzins
  President, CEO, and Chief Operating Officer
  Toll Free: 1 (855) 585-4653
  
  San Gold Corporation
  Tim Friesen
  Investor Relations
  Toll Free: 1 (855) 585-4653
  sgr@sangold.ca
  www.sangold.ca

San Gold meets 2013 production forecast

January 23, 2014
San Gold Reports 2013 Production Results

  WINNIPEG, MANITOBA--(Marketwired - Jan. 23, 2014) - San Gold Corporation (TSX:SGR)(OTCQX:SGRCF) today announced preliminary results of operations at its Rice Lake Mining Complex in Manitoba, Canada for the fourth quarter and full year ended December 31, 2013.

2013 Production Highlights
	Fourth Quarter	Annual
Gold production	15,118 oz	75,218 oz
Mill production	148,042 tons	641,710 tons
Mine production	144,165 tons	629,311 tons
Grade	3.78 gpt	4.32 gpt
Recovery	92.7%	93.1%

Fourth Quarter 2013 Preliminary Operating Results
The Company produced 15,118 ounces of gold in the fourth quarter, bringing full year production to 75,218 ounces, consistent with the Company's full-year guidance of between 75,000 and 85,000 ounces. The operation milled 148,042 tons in the quarter at an average daily throughput of 1,609 tons per day and mined 144,165 tons of ore at an average daily rate of 1,567 tons per day. Mill recovery was 92.7% and milled grade was 3.78 grams per tonne. The Company ended the year with approximately 4,000 tons in surface stockpiles.
"2013 was a transitional year for San Gold. While I am disappointed that we did not achieve higher grades during the quarter due to problems with sequencing of stoping activities we did achieve our overall guidance for gold production. On balance we made significant progress during the year towards integrating our Rice Lake operations and developing the underground infrastructure to support the addition of more stoping areas thereby providing better opportunity in future to blend ore zones and add incremental tonnage. During the fourth quarter we successfully developed into the new 710 HW ore zone on 26 Level in Rice Lake where we have begun mining and expect to see higher grade material from this zone in the coming months. In addition we have advanced our development workings on 16 Level underneath the current Hinge workings and we are now positioned to better define the down dip extensions of these zones and add additional stoping areas to the mining mix as the year progresses," said Ian Berzins, San Gold's President, CEO and Chief Operating Officer.
The Company is forecasting production of between 80,000 and 85,000 ounces of gold in 2014 at cash costs of $800 to $900 per ounce. The Company is planning capital expenditures of approximately $36 million related to its underground capital development, definition drilling and investment in property, plant and equipment, a significant reduction compared with capital expenditures of approximately $58 million in 2013. Surface drilling will be largely curtailed and underground drilling will be focused on supporting production and upgrading our large mineral resource. The Company remains well positioned to take advantage of the recent upswing in the Canadian dollar price of gold.

About San Gold
San Gold is an established Canadian gold producer, explorer, and developer that owns and operates the Rice Lake Mining Complex near Bissett, Manitoba. The Company employs more than 420 people and is committed to the highest standards of safety and environmental stewardship. San Gold is on the Toronto Stock Exchange under the symbol "SGR" and on the OTCQX under the symbol "SGRCF".
For further information on San Gold, please visit www.sangold.ca.
Cautionary Note
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This news release includes certain "forward-looking statements". All statements, other than statements of historical fact included in this release, including, without limitation, statements regarding forecast gold production, gold grades, recoveries, cash operating costs, potential mineralization, mineral resources, mineral reserves, exploration results, and future plans and objectives of the Company, are forward-looking statements that involve various risks and uncertainties. These forward-looking statements include, but are not limited to, statements with respect to mining and processing of mined ore, achieving projected recovery rates, anticipated production rates and mine life, operating efficiencies, costs and expenditures, changes in mineral resources and conversion of mineral resources to proven and probable mineral reserves, and other information that is based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management.
Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be "forward-looking statements." Forward-looking statements are subject to a variety of risks and uncertainties that could cause actual events or results to differ from those reflected in the forward-looking statements.
There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include, among others, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of precious metals, as well as those factors discussed in the section entitled "Other MD&A Requirements and Additional Disclosure and Risk Factors" in the Company's most recent quarterly Management's Analysis and Discussion ("MD&A"). Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

San Gold Reports 2013 Q1 Production Results

WINNIPEG, MANITOBA--(Marketwired - April 16, 2013) - San Gold Corporation (TSX:SGR)(OTCQX:SGRCF) today announced preliminary results of operations at its Rice Lake Mining Complex in Manitoba, Canada for the quarter ended March 31, 2013.

Q1 Production Highlights

   -  Gold production of 17,354 ounces.                                     
   -  Mill production of 156,013 tons.                                      
   -  Mine production of 143,859 tons.

First Quarter 2013 Preliminary Operating Results

San Gold produced 17,354 ounces of gold in the first quarter. The operation mined 143,859 tons of ore at an average daily rate of 1,598 tons per day and milled 156,013 tons in the quarter at an average daily throughput of 1,733 tons per day, similar rates to the first quarter of 2012. Mill recovery was 91.9% and milled grade was 4.15 grams per tonne.

"Following the recent restructuring, the Company is in the process of implementing reductions to its operating, capital, corporate overhead, and exploration costs as well as evaluating investments that do not directly contribute to the Company's core operations. Our focus will be to optimize margins per ounce and ensure we are on the most direct path to achieving free cash flows," said Ian Berzins, San Gold's President, CEO and Chief Operating Officer. "We anticipate grade will return to more normalized levels as the year progresses."

The Company expects to produce between 75,000 and 90,000 ounces of gold in 2013 with cash costs between $800 and $900.

The Company is also pleased to announce that it has received formal notice from the Manitoba government confirming the renewal of its mineral operating lease, ML-063, for a second 21-year term from April 1, 2013 to April 1, 2034.

About San Gold

San Gold is an established Canadian gold producer, explorer, and developer that owns and operates the Hinge, 007, and Rice Lake mines near Bissett, Manitoba, approximately 235 kilometres northeast of Winnipeg, Manitoba, Canada. The Rice Lake Project has a permitted, modern gold mill currently processing ore at a capacity of 2,500 tons per day, modern surface infrastructure including a licensed tailings management facility, and is connected to the Manitoba power grid system. The Company employs approximately 450 people and is committed to the highest standards of safety and environmental stewardship. San Gold is on the Toronto Stock Exchange under the symbol "SGR" and on the OTCQX under the symbol "SGRCF".

For further information on San Gold, please visit www.sangold.ca.

Cautionary Note

This news release includes certain "forward-looking statements". All statements, other than statements of historical fact included in this release, including, without limitation, statements regarding forecast gold production, gold grades, recoveries, cash operating costs, potential mineralization, mineral resources, mineral reserves, exploration results, and future plans and objectives of the Company, are forward-looking statements that involve various risks and uncertainties. These forward-looking statements include, but are not limited to, statements with respect to mining and processing of mined ore, achieving projected recovery rates, anticipated production rates and mine life, operating efficiencies, costs and expenditures, changes in mineral resources and conversion of mineral resources to proven and probable mineral reserves, and other information that is based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management.

Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be "forward-looking statements." Forward-looking statements are subject to a variety of risks and uncertainties that could cause actual events or results to differ from those reflected in the forward-looking statements.

There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include, among others, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of precious metals, as well as those factors discussed in the section entitled "Other MD&A Requirements and Additional Disclosure and Risk Factors" in the Company's most recent quarterly Management's Analysis and Discussion ("MD&A"). Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

---

CONTACT INFORMATION:

San Gold Corporation
Ian Berzins
President and CEO, Chief Operating Officer
Toll Free: 1 (855) 585-4653

or

San Gold Corporation
Tim Friesen
Communications Director
Toll Free: 1 (855) 585-4653
info1@sangold.ca
www.sangold.ca

San Gold Drills 15.5 g/t Over 11.1 m in 710 Lens

San Gold Corporation

TSX : SGR
OTCQX : SGRCF

November 26, 2012 07:00 ET

WINNIPEG, MANITOBA--(Marketwire - Nov. 26, 2012) - George Pirie, President and Chief Executive Officer for San Gold Corporation (TSX:SGR) (OTCQX:SGRCF), is pleased to announce recent results from drill hole 607-12-048 in the 710 lens featuring multiple intercepts including 15.5 g/T over 11.1 metres and 12.0 g/T over 6.0 metres within the Company's 100% owned Rice Lake Project located in Bissett, approximately 235 kilometres northeast of Winnipeg, Manitoba, Canada. The Rice Lake Project has a permitted, modern gold mill currently processing ore at a capacity of 2,500 tons per day, modern surface infrastructure including a licensed tailings management facility, and is connected to the Manitoba power grid system.

The 710 lens is located within the Shoreline Basalt mining unit, adjacent existing infrastructure, and has been delineated between 1,100 and 1,300 metres below surface with a strike of approximately 200 metres. The company is currently developing access to the 710 lens and anticipates mining operations to begin in early 2014.

"These results emphasize the down-dip potential of these deposits, none of which have yet been tested below 1,500 metres. While we continue to aggressively develop the deposits located near surface, these results indicate that we are still only beginning to see the full potential of this property," said Mr. Pirie.

Drilling Results:

Hole	Zone	From (m)	To (m)	Core Length (m)	Grade (g/T)	Below Surface (m)
607-12-048	Shoreline Basalt	290.1	296.1	6.0	12.0	1322.5
	including	292.9	294.0	1.1	62.3
	Shoreline Basalt	359.7	363.5	3.8	8.7	1354.8
	Shoreline Basalt	381.9	392.9	11.1	15.5	1368.2
	including	386.5	392.6	6.1	24.0
	Shoreline Basalt	400.7	401.1	0.4	18.1	1373.4

(1) The intersections presented herein may not necessarily represent the true width of mineralization.
Figure 1 at the end of this release provides a longitudinal section of drill hole 607-12-048 in relation to the delineated portion of the 710 lens.
Figure 2 at the end of this release provides a plan view of drill hole 607-12-048 in relation to the delineated portion of the 710 lens.
Figure 3 at the end of this release provides a plan view of drill hole 607-12-048 in relation to the existing 30 Level infrastructure.
Underground drill core samples are assayed on site in the company's assay lab using the fire assay method with an AA and gravimetric finish. San Gold's quality control and assurance program includes the insertion of standards, the retention of pulps and rejects, and spot checks utilizing independent labs including TSL Laboratories in Saskatoon, SK and 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.
This drilling program was carried out by San Gold mine geologists under the supervision of D. Ginn, P.Geo., the Qualified Person for San Gold under National Instrument 43-10, who has reviewed and approved the press release.
About San Gold

San Gold is an established Canadian gold producer, explorer, and developer that owns and operates the Hinge, 007, and Rice Lake mines near Bissett, Manitoba. The Company employs more than 400 people and is committed to the highest standards of safety and environmental stewardship. San Gold is on the Toronto Stock Exchange under the symbol "SGR" and on the OTCQX under the symbol "SGRCF".

Cautionary Note
This news release includes certain "forward-looking statements". All statements, other than statements of historical fact included in this release, including, without limitation, statements regarding forecast gold production, gold grades, recoveries, cash operating costs, potential mineralization, mineral resources, mineral reserves, exploration results, and future plans and objectives of the Company, are forward-looking statements that involve various risks and uncertainties. These forward-looking statements include, but are not limited to, statements with respect to mining and processing of mined ore, achieving projected recovery rates, anticipated production rates and mine life, operating efficiencies, costs and expenditures, changes in mineral resources and conversion of mineral resources to proven and probable mineral reserves, and other information that is based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management.
Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be "forward-looking statements." Forward-looking statements are subject to a variety of risks and uncertainties that could cause actual events or results to differ from those reflected in the forward-looking statements.
There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include, among others, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of precious metals, as well as those factors discussed in the section entitled "Other MD&A Requirements and Additional Disclosure and Risk Factors" in the Company's most recent quarterly Management's Analysis and Discussion ("MD&A"). Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Exploration results that include geophysics, sampling, and drill results on wide spacings may not be indicative of the occurrence of a mineral deposit. Such results do not provide assurance that further work will establish sufficient grade, continuity, metallurgical characteristics, and economic potential to be classed as a category of mineral resource. A mineral resource that is classified as "inferred" or "indicated" has a great amount of uncertainty as to its existence and economic and legal feasibility. It cannot be assumed that any or part of an "indicated mineral resource" or "inferred mineral resource" will ever be upgraded to a higher category of resource. Investors are cautioned not to assume that all or any part of mineral deposits in these categories will ever be converted into proven and probable reserves.
To view the figures associated with this release, please visit the following links:
Figure 1 : http://media3.marketwire.com/docs/SGR4.pdf
Figure 2 : http://media3.marketwire.com/docs/SGR5.pdf
Figure 3 : http://media3.marketwire.com/docs/SGR6.pdf

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Contact Information

San Gold Corporation
George Pirie
President and CEO
Toll Free: 1 (855) 585-4653
info1@sangold.ca

San Gold Corporation
Manish Grigo
Director Investor Relations
Toll Free: 1 (855) 585-4653
www.sangold.ca

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San Gold reports expanded resource base!

San Gold Corporation

TSX : SGR
OTCQX : SGRCF

October 22, 2012 07:00 ET

007 Drill Results Continue to Expand the Deposit

WINNIPEG, MANITOBA--(Marketwire - Oct. 22, 2012) - George Pirie, President and Chief Executive Officer for San Gold Corporation (TSX:SGR)(OTCQX:SGRCF), is pleased to announce interim results of its ongoing 2012 diamond drilling program on the 007 deposit within the Company's 100% owned Rice Lake Project located in Bissett, approximately 235 kilometres northeast of Winnipeg, Manitoba, Canada. The Rice Lake Project has a permitted, modern gold mill currently processing ore at a capacity of 2,500 tons per day, modern surface infrastructure including a licensed tailings management facility, and is connected to the Manitoba power grid system.

Since being discovered in 2009, the 007 deposit continues to demonstrate robust grades and widths across all four lenses of the deposit and it continues to be consistent at depth while structural characteristics are becoming increasingly predictable. 

This drilling activity is part of the Company's program to upgrade resources into higher confidence categories and to increase reserves within the mining complex. Overall results are positive and comparable with the Company's March 31, 2012 resource update. The Company will continue drilling for the remainder of 2012 and provide a resource update in the first quarter of 2013.

"The 007 deposit drilling continues to prove up high-quality resources which are accessible from existing infrastructure. The drilling continues to confirm the continuity of the deposit at depth. The ongoing development of the 16 and 26 Levels will provide drill platforms for further resource and reserve definition. Mining is currently scheduled to begin from these levels in early 2014," said Mr. Pirie.
Highlights of the drilling program include:

Hole	Zone		From (m)		To (m)		Grade (g/t)		Length (m)		Below Surface (m)
DX-12-023	007		1026.7		1038.0		11.3		11.3		718
DX-12-034	007		1044.9		1050.7		15.9		5.7		757
S887-12-021	730		44.2		49.1		24.2		4.9		361
S890-12-007	730		117.7		120.2		42.6		2.5		416
607-12-031	Shoreline Basalt		185.1		187.4		28.8		2.3		1239
607-12-032	Shoreline Basalt		208.1		209.9		20.0		1.8		1246

Drilling for this program was carried out in three regions from drill stations located on surface and underground, with a total of 98 drill holes intercepting the 007 deposit and adjacent regions of the Shoreline Basalt Unit so far this year. The Company is very encouraged by the results of the Shoreline Basalt Unit drilling program as it continues to demonstrate the expansion of existing mineralized zones and the potential of new zones to be discovered along the Shoreline Basalt Unit both east and west and at depth.
The following provides a brief summary of the drilling program in each of the three regions:

1. 61 intersections were obtained between 300 and 595 metres below surface. Drilling in this region occurred both from surface and underground drill stations. These infill targets were identified to support the Company's near-term mining plans within the active mining region accessed by ramp from the Hinge/007 portal.
   
   
2. 7 intersections were obtained from between 700 and 895 metres below surface from surface drilling stations. The Company intends to drill this region more fully once development from 16 Level has reached the Hinge district.
   
   
3. 30 intersections were obtained from between 900 and 1,250 metres below surface. These infill targets were identified to support planned development of the 007 deposit from 26 Level. The 26 Level is the closest portion of the Rice Lake mine infrastructure to the projections of the 007 deposit. Development is currently underway in this region and mining is expected to commence in early 2014.
   
   Table 1 at the end of this release provides the full list of results from this year's drilling program to date.
   
   Figure 1 at the end of this release provides a longitudinal section of the three main drilling regions within the 007 deposit and planned development from 16 and 26 Level.
   
   Figure 2 at the end of this release provides a plan view of planned development of the 007 deposit from 16 Level of the Rice Lake mine.
   
   Figure 3 at the end of this release provides a plan view of planned development of the 007 deposit from 26 Level of the Rice Lake mine.
   
   

Underground drill core samples are assayed on site in the company's assay lab using the fire assay method with an AA and gravimetric finish. San Gold's quality control and assurance program includes the insertion of standards, the retention of pulps and rejects, and spot checks utilizing independent labs including TSL Laboratories in Saskatoon, SK and 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.
This drilling program was carried out by San Gold mine geologists under the supervision of D. Ginn, P.Geo., the Qualified Person for San Gold under National Instrument 43-10, who has reviewed and approved the press release.

About San Gold
San Gold is an established Canadian gold producer, explorer, and developer that owns and operates the Hinge, 007, and Rice Lake mines near Bissett, Manitoba. The Company employs more than 400 people and is committed to the highest standards of safety and environmental stewardship. San Gold is on the Toronto Stock Exchange under the symbol "SGR" and on the OTCQX under the symbol "SGRCF".
Cautionary Note
This news release includes certain "forward-looking statements". All statements, other than statements of historical fact included in this release, including, without limitation, statements regarding forecast gold production, gold grades, recoveries, cash operating costs, potential mineralization, mineral resources, mineral reserves, exploration results, and future plans and objectives of the Company, are forward-looking statements that involve various risks and uncertainties. These forward-looking statements include, but are not limited to, statements with respect to mining and processing of mined ore, achieving projected recovery rates, anticipated production rates and mine life, operating efficiencies, costs and expenditures, changes in mineral resources and conversion of mineral resources to proven and probable mineral reserves, and other information that is based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management.
Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be "forward-looking statements." Forward-looking statements are subject to a variety of risks and uncertainties that could cause actual events or results to differ from those reflected in the forward-looking statements.
There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include, among others, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of precious metals, as well as those factors discussed in the section entitled "Other MD&A Requirements and Additional Disclosure and Risk Factors" in the Company's most recent quarterly Management's Analysis and Discussion ("MD&A"). Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Exploration results that include geophysics, sampling, and drill results on wide spacings may not be indicative of the occurrence of a mineral deposit. Such results do not provide assurance that further work will establish sufficient grade, continuity, metallurgical characteristics, and economic potential to be classed as a category of mineral resource. A mineral resource that is classified as "inferred" or "indicated" has a great amount of uncertainty as to its existence and economic and legal feasibility. It cannot be assumed that any or part of an "indicated mineral resource" or "inferred mineral resource" will ever be upgraded to a higher category of resource. Investors are cautioned not to assume that all or any part of mineral deposits in these categories will ever be converted into proven and probable reserves.
Table 1: 2012 007 Drill Intersections by Elevation ¹

	Drill Hole	Zone		From (m)		To (m)		Grade (g/t)	Length (m)	Below Surface (m)
	Active Mining Region Drilling
1	JH-11-044	700		453.9		457.0		19.4	3.1	300
2	JH-11-047	700		469.3		470.1		1.4	0.8	308
3	CD-11-296	740		433.5		436.9		12.5	3.4	324
4	CD-11-297	740		443.0		444.8		1.6	1.8	335
5	887-12-050	730		2.4		6.4		4.3	3.9	336
6	887-12-051	730		4.1		6.7		11.4	2.7	336
7	CD-12-298	740		446.7		449.4		9.3	2.7	338
8	CD-12-290	730		455.1		456.5		10.3	1.4	338
9	CD-12-311	740		443.6		453.5		1.2	10.0	340
10	CD-12-268	730		453.2		463.5		9.8	10.3	342
11	S887-12-005	730		43.4		44.6		1.5	1.2	346
12	CD-12-317	740		457.6		457.9		20.5	0.3	347
13	CD-12-283	730		460.2		464.4		24.5	4.1	347
14	CD-11-303	740		452.6		453.4		74.6	0.8	348
15	S887-12-001	740		54.4		56.3		18.1	1.9	348
16	CD-12-324	730		461.1		465.9		5.2	4.8	349
17	CD-12-276	730		460.9		466.0		6.0	5.2	353
18	CD-12-289	730		464.8		468.0		3.5	3.2	354
19	S887-12-006	730		46.4		47.7		2.0	1.3	354
20	S887-12-025	730		41.9		46.0		11.1	4.1	357
21	S887-12-002	740		62.3		65.5		17.1	3.2	360
22	CD-12-275	730		466.4		470.4		7.4	4.0	360
23	S887-12-029	730		52.4		57.8		2.6	5.4	361
24	CD-11-304	740		460.5		462.2		3.8	1.7	361
25	S887-12-021	730		44.2		49.1		24.2	4.9	361
26	CD-12-269	730		467.8		473.6		10.5	5.8	364
27	S887-12-026	730		50.1		53.9		4.3	3.8	367
28	JH-11-029	720		512.4		514.9		3.7	2.2	369
29	S887-12-030	730		61.7		63.2		29.3	1.5	369
30	CD-12-263	730		473.8		477.1		4.9	3.3	369
31	S887-12-003	740		76.0		78.0		16.3	2.0	374
32	S887-12-022	730		56.3		60.5		8.3	4.2	377
33	S887-12-017	730		59.6		63.4		5.2	3.8	379
34	JH-11-048	700		486.1		487.3		1.3	1.2	379
35	S890-12-009	730		81.3		89.9		0.3	8.5	382
36	S887-12-027	730		61.9		70.0		5.8	8.1	384
37	S887-12-008	730		76.8		80.3		7.6	3.5	389
38	S887-12-004	740		92.4		94.2		2.5	1.8	396
39	S890-12-001	730		95.0		97.0		8.2	2.0	398
40	CD-12-271	730		496.4		498.1		9.5	1.7	399
41	S887-12-018	730		79.0		85.3		13.9	6.3	402
42	CD-12-264	730		490.7		496.5		3.3	5.8	402
43	CD-12-299	740		495.3		497.3		1.3	2.0	406
44	CD-12-325	740		499.7		501.5		0.5	1.9	414
45	S890-12-007	730		117.7		120.2		42.6	2.5	416
46	CD-12-291	730		505.1		508.1		18.8	3.0	417
47	S887-12-023	730		98.6		104.7		16.1	6.1	420
48	S882-12-008	700		166.5		167.4		5.7	0.9	424
49	CD-12-270	730		506.5		512.1		1.9	5.6	424
50	CD-12-279	730		511.6		513.9		36.0	2.3	433
51	CD-12-274	730		518.3		520.8		0.4	2.5	435
52	S887-12-013	740		118.5		122.3		7.3	3.7	437
53	S882-12-006	700		197.5		201.5		4.4	4.0	440
54	S882-12-004	700		215.4		216.8		0.1	1.4	442
55	S882-12-002	700		239.2		240.2		0.3	1.0	449
56	S882-12-003	700		243.4		244.2		0.0	0.9	473
57	CD-12-301	740		548.5		549.2		1.0	0.6	480
58	CD-12-266	730		545.7		547.3		13.1	1.6	480
59	CD-12-329	730		570.0		574.5		3.8	4.5	505
60	CD-12-267	730		585.7		589.5		6.4	3.7	533
61	CD-12-326	740		592.0		596.8		0.9	4.8	538
	16 Level Access Drilling
62	DX-12-032	007		1025.0		1049.0		1.7	24.0	701
63	DX-12-023	007		1026.7		1038.0		11.3	11.3	718
64	DX-12-034	007		1044.9		1050.7		15.9	5.7	757
65	DX-12-028	007		1059.9		1063.4		1.2	3.5	763
66	DX-11-021	007		1082.8		1084.9		0.2	2.1	819
67	DX-12-026	007		1045.0		1047.9		12.1	2.8	823
68	DX-12-027	007		1094.2		1094.5		32.1	0.3	829
	26 Level Access Drilling
69	607-12-005	Shoreline Basalt		118.7		119.1		56.2	0.4	905
70	607-12-003	Shoreline Basalt		115.0		117.1		3.3	2.1	1128
71	607-12-021	Shoreline Basalt		113.5		123.6		3.8	10.0	1143
72	607-12-017	Shoreline Basalt		151.5		152.2		2.5	0.6	1148
73	607-12-006	Shoreline Basalt		76.6		79.1		3.2	2.5	1148
74	607-12-023	Shoreline Basalt		191.9		192.1		31.6	0.2	1149
75	607-12-020	Shoreline Basalt		180.5		183.5		2.8	3.0	1153
76	607-12-019	Shoreline Basalt		269.8		272.2		4.5	2.4	1169
77	607-12-010	Shoreline Basalt		161.5		162.4		1.5	0.9	1172
78	607-12-001	Shoreline Basalt		192.4		194.0		10.0	1.7	1172
79	607-12-022	Shoreline Basalt		192.0		192.5		8.3	0.4	1175
80	607-12-016	Shoreline Basalt		186.3		187.1		0.1	0.8	1178
81	607-12-009	Shoreline Basalt		69.1		71.6		0.7	2.6	1181
82	607-12-004	Shoreline Basalt		92.0		94.2		0.0	2.2	1182
83	607-12-002	Shoreline Basalt		130.9		135.8		5.2	4.9	1183
84	607-12-011	Shoreline Basalt		8.2		9.1		4.0	0.9	1184
85	607-12-013	Shoreline Basalt		66.0		68.4		1.6	2.4	1185
86	607-12-007	Shoreline Basalt		16.5		16.7		4.8	0.2	1186
87	607-12-024	Shoreline Basalt		152.3		153.1		6.2	0.8	1192
88	607-12-033	Shoreline Basalt		187.5		191.4		3.6	3.9	1194
89	607-12-028	Shoreline Basalt		185.6		186.4		11.5	0.8	1198
90	607-12-025	Shoreline Basalt		175.7		179.2		3.6	3.5	1205
91	607-12-029	Shoreline Basalt		142.4		144.2		0.1	1.9	1207
92	607-12-030	Shoreline Basalt		152.9		154.7		1.2	1.8	1217
93	607-12-039	Shoreline Basalt		222.9		224.4		1.5	1.5	1217
94	607-12-034	Shoreline Basalt		252.8		253.7		2.8	0.9	1224
95	607-12-026	Shoreline Basalt		182.3		183.2		8.4	0.9	1224
96	607-12-035	Shoreline Basalt		260.2		262.9		1.5	2.7	1234
97	607-12-031	Shoreline Basalt		185.1		187.4		28.8	2.3	1239
98	607-12-032	Shoreline Basalt		208.1		209.9		20.0	1.8	1246
1 The intersections presented herein may not necessarily represent the true width of mineralization.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Contact Information

• 
  
  San Gold Corporation
  George Pirie
  President and CEO
  Toll Free: 1 (855) 585-4653
  
  San Gold Corporation
  Manish Grigo
  Director Investor Relations
  info1@sangold.ca
  www.sangold.ca

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