San Gold Corp
		Symbol			SGR
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San Gold drills 25.4 g/t gold over 2.1 m at Rice Lake

2009-06-11 07:44 ET - News Release

Mr. Dale Ginn reports

SAN GOLD DISCOVERS NEW HIGH GRADE ZONE EAST OF HINGE DEPOSITS

San Gold Corp.'s exploration drilling has discovered a new high-grade gold zone near surface located approximately 0.5 kilometre to the east of the developing Hinge zones and two kilometres to the northeast of San Gold's Rice Lake mine site and mill facility. Drill testing of the next hinge axis or pathway target to the east of the Hinge zone has led to this discovery and has now been confirmed by a number of drill holes. Hole LM-09-22 encountered 25.4 grams per tonne (0.74 ounce per ton) over 2.1 metres (7.0 feet) within 100 metres of surface, with numerous other drill holes confirming continuity over a 100-metre strike length so far. This new discovery appears to be stratigraphically in the same horizon as the Hinge No. 1 lens and may be an extension of that zone. Continuing drilling will continue to fill in the 0.5 kilometre information void between the Hinge No. 1 lens and the new discovery.

All of the drill hole intersections encountered so far, as reported in the attached table, are within 100 vertical metres of surface.

Hole            From           To            Length         Gold g/t     (oz/t)          Zone

LM-09-22       100.6 m     102.7 m            2.1 m  (7.0 ft)   25.4     (0.74)        Cohiba
LM-09-16       115.7 m     117.7 m            2.0 m  (6.6 ft)   14.1     (0.41)        Cohiba
LM-09-14       110.0 m     112.0 m            2.0 m  (6.6 ft)   21.4     (0.63)        Cohiba
LM-09-06       113.8 m     115.5 m            1.7 m  (5.6 ft)    4.1     (0.12)        Cohiba
LM-09-02        99.6 m     100.7 m            1.1 m  (3.6 ft)   13.7     (0.40)        Cohiba

Dale Ginn, chief executive officer of San Gold, stated: "San Gold geologists, led by Bill Ferreira, continue to demonstrate incredible success testing their in-house structural geological model that they are using as an exploration guide. We have discovered and developed six high-grade Hinge deposits within the space of one year, and are now already looking to repeat that success with the discovery of this nearby zone. It is becoming obvious that the Hinge zone is not a 'one-off,' but part of a much larger mineralized system that has infiltrated the multikilometre-thick volcanic sequence that was only partially prospected in the 1920s and 1930s. Our understanding of this large camp-scale system is accelerating rapidly within our large mine lease and land position. Discovery here can lead to immediate development and high grade production as demonstrated by currently initiated operations at the Hinge zones."

The mineralization and geological characteristics of this new discovery are identical to the Hinge zones in every respect including the presence of abundant visible gold. Surface drilling continues to expand this deposit which is completely open along strike and to depth. Drilling is also targeting the next axis or pathway target located approximately 0.5 kilometre to the west of the Hinge deposits. The currently known Hinge zones are located approximately 1.5 kilometres to the northeast of San Gold's operating Rice Lake mine and mill, and are fully accessible by San Gold's private road, and all lie within San Gold's fully permitted mine lease.

Location plans are available in the graphical version of this press release at San Gold's website.

This program was carried out under the supervision of W.S. Ferreira, PGeo, and Mr. Ginn, PGeo, the qualified persons for this project under National Instrument 43-101. Exploration drill core is split, with half sent to TSL Laboratories in Saskatoon, Sask., 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 standards, the retention of pulps and rejects, and spot checks using independent labs including TSL Laboratories in Saskatoon, Sask., and Accurassay Laboratories of Thunder Bay, Ont. The core lengths are actual lengths as drilled and have not been adjusted for the true width of the mineralized zones.

We seek Safe Harbor.