Dundee Securities Corporation has launched coverage on San Gold with a BUY rating and a 12-month price target of $2.00 per share.

“We consider San Gold to be one of the strongest emerging gold production stories, revolving largely on the recently discovered Hinge zones. San Gold has two operating mines and a mill located in southeastern Manitoba, giving the company a platform for a production ramp-up.

· The high-grade Hinge zones continue to produce impressive drilling results, and they suggest that the Rice Lake belt may have further exploration potential.

· San Gold is poised to quickly bring the high-grade Hinge zones into production. The company expects to produce an initial bulk sample by the end of 2008.

· The company has relatively low political and financing risk. Following a recently completed financing, we believe that the company should have sufficient funds to bring the Hinge zones into production.

Once the high-grade Hinge zones are producing, we expect the company to have an impressive growth profile with relatively low operating costs.”

DUNDEE CAPITAL MARKETS – Dundee Securities Corporation

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