Latest Drill Results Significantly Expand San Gold #1 Zone to Propel Rice Lake

Gold Corp. toward its 1.2 million ounce target.

From To Length Gold g/tonne (oz/ton)

SG-04-04

27.5m 30.5m 3.1m (10ft) 5.8 (0.17)

SG-04-05

46.7m 49.1m 2.5m (8ft) 3.5 (0.10)

SG-04-06

130.2m 133.3m 3.1m (10ft) 5.8 (0.17)

SG-04-07

218.1m 219.9m 1.8m (6ft) 10.7 (0.31)

SG-04-08

234.5m 237.6m 3.1m (10ft) 5.8 (0.17)

SG-04-09

157.1m 165.6m 8.5m (28ft) 1.0 (0.03)

SG-04-10

151.6m 152.8m 1.2m (4ft) 4.5 (0.13)

SG-04-11

41.2m 42.4m 1.2m (4ft) 4.1 (0.12)

A second phase of drilling is now underway, in order to prepare this deposit for a resource calculation,

with the goal of quickly achieving a 1.2 million ounce resource in combination with the existing 550,000

ounces (audited by ACA Howe - 2003) at the neighboring Rice Lake Gold Mine, located 3 kilometers

west by road.

Drilling will also extend the zone towards previously drilled hole (1998) #SN-98-20, the deepest

intersection on San Gold #1 zone at 400 meters (1300 feet) and section 000E. This hole intersected 24.4

meters (80 feet) of 4.8 g/tonne (0.14 oz/ton) including a 3.1m (10ft) section grading 14.4 g/tonne (0.42

oz/ton). The San Gold mineralization occurs on the eastern limb of a fold that hosts the Rice Lake Gold

Mine mineralization. It is anticipated that the gold mineralization at San Gold #1 will extend to a depth of

at least 1,800 metres (approx 5,500 feet) to correspond with the mined depth to date of the Rice Lake Gold

Mine on the opposite limb of the fold.

The drill core was split, with half sent to TSL Laboratories in Saskatoon, SK and fire assayed with an AA

and gravimetric finish. This program was carried out under the supervision of W. S. Ferreira, M.Sc.,

P.Geo., and D. Ginn, P.Geo., the Qualified Persons for this project under National Instrument 43-101.

Please view our web site at

.

San Gold Resources Corporation Gold City Industries Ltd.

Dale Ginn, President Fred Sveinson, President

(204) 794-5818 (604) 682-7677