Hinge Zone Drilling Adds New Western Gold Zones and Confirms High Grade

Dale Ginn, CEO of San Gold Corporation (TSX-V: SGR), is pleased to report that ongoing surface definition drilling continues to confirm and extend the high grade, near surface Hinge deposits. Drilling has tested the entire known length of the deposit, highlighted in the east end by drill hole # GS-09-58 which encountered 82 g/tonne (2.4 oz/ton) over 2.1 meters (7.0 ft). Significant widths as well as multiple new footwall zones have now been discovered at the west end of the deposit as demonstrated by hole # GS-09-65 which cut 10.3 g/tonne (0.30 oz/ton) over 6.4 meters (21.0 ft). Hole # GS-09-57 identified two additional significant footwall zones; 27 g/tonne (0.79 oz/ton) over 1.3 meters (4.4 ft) as well as 7.8 g/tonne (0.23 oz/ton) over 2.9 meters (9.4 ft) in zone drilling testing the western extents of the deposit. Hole #57 was drilled in the vicinity of hole #63 (see press release dated April 14, 2009) which encountered 2.3 meters (7.5 ft) of 207 g/tonne (6.05 oz/ton), not only the highest grade hole drilled to date in the Hinge zone, but also an extension of the zone to the west. All of the drill hole intersections as reported below are within 200 meters (650 ft) of surface.

The Hinge #4 zone has now been drill tested between section 0 east and 800 east (feet), (250 m) and to depths of over 1,200 feet (400 m) demonstrating excellent continuity in both structure and grade. This zone remains open along strike to the north-east and to the south-west as well as at depth. Two drill rigs continue to define the known Hinge zones, a third drill rig is searching for parallel veins to the north and a fourth drill has commenced drilling on the next hinge-like target axis located approximately 1 kilometer to the east of the known Hinge zones. Underground drilling has also commenced from stations within the Hinge decline and development. The currently known Hinge zones are located approximately 1.5 kms to the north-east of San Gold's operating Rice Lake and mine and mill, and are fully accessible by San Gold's private road, and all lie within San Gold's fully permitted mine lease.