BISSETT, MB--(Marketwire - October 22, 2008) - Dale Ginn, CEO of San Gold Corporation (TSX-V: SGR), is pleased to report that ongoing surface drilling continues to encounter bonanza gold grades as well as extensions to the newly discovered Hinge #4 zone to depth and along strike to the east and to the west. Hole # GS-08-76 encountered 142 g/tonne (4.1 oz/ton) gold over 2 meters (6.6 ft) at a vertical depth of 140 meters near the elevation intended to be developed first by the ongoing decline ramp access. Over 300 meters (1,000 ft) of decline access has been completed to date, with less than 2 months of access development remaining before reaching the first ore levels. Hole # GS-08-75 encountered high grade as well -- 60 g/tonne (1.74 oz/ton) over 1.4 meters (4.6 ft) in a hole designed to test the zone to depth and to the west. All of the holes listed below contain visible gold within quartz veins that are in clear, sharp contact with the host volcanic rocks, as well, core recoveries were nearly 100%.

Results from the new holes are tabulated below:

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

GS-08-76   122.2 m   124.2 m   2.0 m  (6.6 ft)   141.8  (4.14) visible gold

GS-08-75   256.4 m   257.8 m   1.4 m  (4.6 ft)    59.6  (1.74) visible gold

GS-08-71   308.2 m   310.5 m   2.3 m  (7.6 ft)     8.9  (0.26) visible gold

GS-08-65   223.4 m   225.9 m   2.5 m  (8.2 ft)    13.4  (0.39) visible gold

Dale Ginn, CEO, stated, "We are extremely encouraged by our ongoing success in continuing to grow the Hinge zones in terms of both size and grade. The Hinge area continues to demonstrate width and grades similar to that of the neighboring Red Lake mines to the east, except that the Hinge discoveries are much closer to surface. As well, our new decline is closing in rapidly on these zones at a time when the gold price in Canadian dollar terms is hovering at all time highs in the mid 900s."

The Hinge #4 zone has now been drill tested between section 0 east and 700 east (feet), 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. Current work includes an attempt to correlate this mineralization with similarly textured and similar high grade grade intersections drilled from the Rice Lake mine workings over 5,200 feet down dip from the Hinge #4 zone.

Two diamond drills are currently drilling in the Hinge area, one conducting infill drilling in the areas soon to be developed and mined, the other in zone extensions to depth and along strike. A third drill rig is exploring over a kilometer to the north of the Hinge #4 zone (approximately another km stratigraphically higher than the Hinge #4 zone), looking for parallel structures along or near the hinge or axis in identical host rocks. A fourth drill rig has moved to a parallel hinge axis line to approximately 500 meters to the west of Hinge #4 in order to test other similar structures which include early mine workings. These workings include the Big Four shaft (sunk in 1916), and the #1 and #2 Goldcup veins and an inclined shaft sunk during the 1920s. To date a total of 8 hinge or axis lines have been located, all of which have identical geology and host rocks as the Hinge #4 zone, most contain evidence of early (pre 1930s) exploration and development efforts such as pits, trenches and shafts. There is no known record of these showings having being systematically explored. The new zones are located approximately 1.5 kms to the northeast of San Gold's operating Rice Lake and mine and mill, and are fully accessible by road. The entrance to the Hinge Zone access decline is located approximately 300 meters northeast of the Rice Lake mill.

Please see the San Gold website (www.sangoldcorp.com) for a longitudinal section showing the location of the intersections in the Hinge #4 zone together with prior Hinge Zone press releases and a plan view location map. Additionally, three dimensional and cross sectional drill hole data of the Hinge Zone mineralization is now available at http://www.corebox.net/properties/ri...

This program was carried out under the supervision of W.S. Ferreira, 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 metallic assays were performed on samples containing visible gold. 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.

For further information contact Dale Ginn, CEO of San Gold Corporation, at (204) 794-5818 or investor information at 1-800-321-8564 or visit www.sangoldcorp.com.

FOR FURTHER INFORMATION PLEASE CONTACT:

Dale Ginn
CEO
San Gold Corporation
(204) 794-5818