San Gold drills 13.3 m of 120.9 g/t Au at Rice Lake

2010-04-22 13:45 ET - News Release

Mr. Dale Ginn reports

SAN GOLD DRILLS HIGH GRADE IN NEW RL EAST ZONE INCLUDING 4.9 METERS OF 319 G/TONNE

San Gold Corp. has released encouraging results from underground exploration drilling, following up on the recent discovery of multiple new zones beyond the eastern extremities of the Rice Lake mine (see Stockwatch press releases dated Jan. 25 and March 31, 2010). These zones, collectively known as RL East display remarkable widths as well as grade and are hosted within structures that trend upwards toward the high grade 007 zone near surface. Drill hole #28-10-53 cut 121 g/tonne (3.53 oz/ton) over 13.3 meters (44 ft) and included an extremely high grade segment of 319 g/tonne (9.30 oz/ton) over 4.9 m (15.9 ft) containing coarse visible gold. Drill hole #28-10-80 encountered 5 individual zones within a wider mineralized section of 50 meters (164 ft) grading 4.8 g/tonne (0.14 oz/ton).

New intersections are tabulated below:

Hole #           From (m)   To (m)          Length m (ft)          Gold g/tonne (oz/ton)        Zone/Lens

                    118.6     131.9
28-10-53                                   13.3       43.6           120.9         3.53       RL East

                    122.2     127.1
including                                   4.9       15.9           318.5         9.30       RL East

                    123.6     173.7
28-10-80                                   50.0      164.1              4.8        0.14       RL East

                    123.6     126.4
including                                   2.8        9.1             12.3        0.36        98 FW

                    135.8     140.0
including                                   4.2       13.5              5.5        0.16        98 FW

                    148.9     150.4
including                                   1.5        5.0             33.9        0.99       RL East

                    161.4     164.0
including                                   2.6        8.3             19.5        0.57       RL East

                    168.7     172.3
including                                   3.6       11.8              7 .9       0.23         New

                    296.3     298.3
26-10-57                                    2.0        6.6             74.0        2.16       RL East

                    306.2     307.6
and                                         1.4        4 .6            22.9        0 .67        New

                    297.5     300.8
26-10-61                                    3.3       10.8              7.9        0.23       RL East

                    303.5     306.2
and                                         2.7        8 .7             6.6        0 .19        New
 
Previously released intersections now known to be RL East zone:

                    162.1      170.3
28-10-51                                     8.2       26.9             37.0         1.08       RL East

                    165.8      170.2
including                                    4.4       14.4             67.1         1.96       RL East

                    166.7      168.7
including                                    2.0        6.6            140.4         4.10       RL East

                    318.9      323.0
26-10-60                                     4.1       13.5             23.0         0.67       RL East

                    339.5      360.9
26-09-35                                    21.4       70.2             12.3         0.36       RL East

                    343.5      345.9
including                                    2.4        7.9             56.2         2.35       RL East

Dale Ginn, CEO, stated; "San Gold mine geologists have produced one of the most impressive intersections ever within Rice Lake. Taking into account that this is exploration drilling outside of known Rice Lake mine extents, these results are truly remarkable. The mining team's efforts are demonstrating that this mineralized system is linked to our new surface zones and that our geological model produces results at depth as well as near surface. We look forward to closing this gap and taking a broader approach to a mineralized system that is fast becoming much larger than a collection of individual deposits."

The RL East and 98 zones are located along east-west shear structures that obliquely cross cut the Rice Lake mine host unit and extend into the hanging wall volcanic rocks that host the new near surface zones (Hinge, 007, L13 and Cohiba). The RL East zone is located approximately 150 meters (500 feet) to the east of the high grade "98" vein area currently under development and is beyond the recently discovered 98FW1 and FW2 zones (see press release dated January 20, 2010). The above drill holes are the first results from additional holes that were lengthened or initiated from new drill stations in order to reach the RL East area. Holes that appear out of sequence or do not appear are not yet drilled, logged, or were not long enough to reach RL East.

The main "98" vein above the 28th level (4500 ft below surface) has been developed to over 150 meters (500 feet) in length, has a known dip length of over 600 meters (2000 feet) and is open above the 26th level (4200 ft below surface). Mining is now underway in numerous stopes within this vein above the 29th and 28th levels. The wide spacing and correlation of drill holes within the 98FW and RL East zones are beginning to display similar dimensions as the main 98 vein described above. The numerous new veins being discovered to the southeast and in the footwall of the "98" vein are in previously unexplored areas as there has been no access to this ground in the past.

The above program was carried out by mine geologists under the supervision of D. Ginn, P.Geo., the Qualified Person for San Gold under National Instrument 43-101. Underground drill core samples and chip 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 blanks and 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. In instances where high grade intervals are combined resulting in lower grade, wider intervals, all assays are utilized including any internal waste which may have zero grade, as well, no top or bottom cutting factors are used.

For further information contact San Gold Corporation at 1-800-321-8564 or visit www.sangoldcorp.com.