San Gold Increases Treasury by $37 million on Exercise of Warrants - June 16, 2009

Dale Ginn, CEO of San Gold Corporation (SGR: TSX-V) is pleased to announce that it has received proceeds of $36,869,423, pursuant to the recent exercise of $2.00 and $1.50 warrants. San Gold issued 15,148,921 shares in exchange for $2.00 warrants that expired on May 30, 2009, and 4,381,054 shares in exchange for $1.50 warrants that expired on June 15, 2009. As at June 16, 2009, the Company had no remaining warrants outstanding.

Proceeds from the warrant exercises will be used to continue ongoing aggressive development and exploration of the high grade Hinge zones and the recently discovered Cohiba zone as well as to fund further corporate development and operations. San Gold’s current cash position is strong and considerably in excess of its budgeted capital and operating requirements, leaving the Company well positioned for future growth.

Shareholders are reminded that the San Gold Annual General and Special Meeting will be held on June 23rd at 10 a.m. at the Victoria Inn in Winnipeg, Manitoba. All meeting materials were mailed to registered shareholders on June 2nd, 2009 and are also available on the Company’s website www.sangoldcorp.com and at www.sedar.com.