2008 Annual Report is also on SAN's website:

http://sangoldcorp.com/assets/files/...

The rest of Dale's intro was also very worthy of reading (pasted below):
____________________________________...

Less prominent than the spectacular Hinge Zone discoveries, but still very significant to your Company’s future, are the large high grade breccias vein systems discovered in 2008 at the bottom of the flagship Rice Lake Gold mine. At depths of 5,600 feet about (2 kms deep), these systems are open in all directions, including upward, and will be explored further in 2009.

Gold production from the Rice Lake and San Gold #1 mines failed to meet expectations during 2008, primarily due to a year-long inability to raise development capital during 2007, as collapsed equity markets persisted from January to September 2007. The required development capital was not received until December 2007. This development capital was deployed in 2008 and we anticipate the initiation of profitable production from the Rice Lake mine in 2009.

We also expect to be in a position to forecast Hinge Zone production following the evaluation of a bulk sample production run that is expected to be completed before mid-year 2009. Development and exploration operations at the San Gold #1 mine were suspended in early 2009, since development ore was not yet contributing positive cash flow to the Company. Management elected to redeploy San Gold #1 miners and equipment to develop the Hinge Zone on an accelerated basis. We expect to maintain San Gold #1 on a care and maintenance basis throughout 2009.

In summary, 2009 holds great promise for San Gold Corporation. A positive gold market, multiple deposits, a central mill and new promising high grade discoveries are coming together in a well-funded and aggressive organization.

We thank all shareholders for your continued support and wish you a golden 2009!

R. Dale GinnCEO

3