If this update is true it is disappointing to say the least. All the analyst that we have on board have anticipated SGR producing from the hinge already. More delays, why am I surprised? Still I suppose we should wait for an official release as this is how rumors start. Why can't SGR ever get a break and have a good rumor start for once?????

Dundee Securities, Oct 28/08

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.

San Gold is currently ramping toward the Hinge Discovery, where production is

expected by the end of 2008. This high-grade discovery is slated to comprise a

significant component of future production.

2. San Gold is poised to quickly bring the Hinge zones into production,

supporting an aggressive production growth profile.

The Hinge Discovery has quickly evolved into the centerpiece for San Gold's future

plans. The company is currently advancing a decline toward the Hinge #4 Zone, and

an initial bulk sample is anticipated by the end of 2008.

TD NEWCREST, Dec 16/08

We expect the company to begin mining the high-grade

Hinge Zone in January (only 11 months after its discovery), followed by the

Cartwright Zone in Q3/09. We believe the company is fully funded in respect

of these initiatives.

We anticipate the following events over our target price horizon:

• January – Initial resource estimate for Hinge Zone

• Q1/09 – Commence mining Hinge Zone

• Mid-09 – Expand capacity from 1,250 tpd to 1,800 tpd

• Q3/09 – Commence mining Cartwright Zone

WELLINGTON WEST, Dec 17/08

High-grade Hinge zone should augment near-term production.

Shallow, high-grade Hinge zones to enter production in Q1/09 (200-250

tpd by late 2009); higher grades should improve production and costs.

Our model currently contemplates high-grade Hinge material hitting the mill beginning in Q1/09,

ramping up to 200-250 tons per day by the end of 2009.

Cheers