Mr. Dale Ginn reports

SAN GOLD DRILLS HIGH GRADE IN NEW RL EAST ZONE INCLUDING 4.9 METERS OF 319 G/TONNE

San Gold Corp. has released encouraging results from underground exploration drilling, following up on the recent discoveryof multiple new zones beyond the eastern extremities of the Rice Lake mine (see Stockwatch press releases dated Jan.25 and March 31, 2010). These zones, collectively known as RL East display remarkable widths as well asgrade and are hosted within structures that trend upwards toward the high grade 007 zone near surface.Drill hole #28-10-53 cut 121 g/tonne (3.53 oz/ton) over 13.3 meters (44 ft) and included an extremely highgrade segment of 319 g/tonne (9.30 oz/ton) over 4.9 m (15.9 ft) containing coarse visible gold. Drill hole#28-10-80 encountered 5 individual zones within a wider mineralized section of 50 meters (164 ft) grading4.8 g/tonne (0.14 oz/ton).

New intersections are tabulated below:

Hole #           From (m)   To (m)          Length m (ft)          Gold g/tonne (oz/ton)        Zone/Lens

118.6     131.9
28-10-53                                   13.3       43.6           120.9         3.53       RL East

122.2     127.1
including                                   4.9       15.9           318.5         9.30       RL East

123.6     173.7
28-10-80                                   50.0      164.1              4.8        0.14       RL East

123.6     126.4
including                                   2.8        9.1             12.3        0.36        98 FW

135.8     140.0
including                                   4.2       13.5              5.5        0.16        98 FW

148.9     150.4
including                                   1.5        5.0             33.9        0.99       RL East

161.4     164.0
including                                   2.6        8.3             19.5        0.57       RL East

168.7     172.3
including                                   3.6       11.8              7 .9       0.23         New

296.3     298.3
26-10-57                                    2.0        6.6             74.0        2.16       RL East

306.2     307.6
and                                         1.4        4 .6            22.9        0 .67        New

297.5     300.8
26-10-61                                    3.3       10.8              7.9        0.23       RL East

303.5     306.2
and                                         2.7        8 .7             6.6        0 .19        New

Previously released intersections now known to be RL East zone:

162.1      170.3
28-10-51                                     8.2       26.9             37.0         1.08       RL East

165.8      170.2
including                                    4.4       14.4             67.1         1.96       RL East

166.7      168.7
including                                    2.0        6.6            140.4         4.10       RL East

318.9      323.0
26-10-60                                     4.1       13.5             23.0         0.67       RL East

339.5      360.9
26-09-35                                    21.4       70.2             12.3         0.36       RL East

343.5      345.9
including                                    2.4        7.9             56.2         2.35       RL East

Dale Ginn, CEO, stated; "San Gold mine geologists have produced one of the most impressive intersectionsever within Rice Lake. Taking into account that this is exploration drilling outside of known Rice Lake mineextents, these results are truly remarkable. The mining team's efforts are demonstrating that thismineralized system is linked to our new surface zones and that our geological model produces results atdepth as well as near surface. We look forward to closing this gap and taking a broader approach to amineralized system that is fast becoming much larger than a collection of individual deposits."

The RL East and 98 zones are located along east-west shear structures that obliquely cross cut the RiceLake mine host unit and extend into the hanging wall volcanic rocks that host the new near surface zones(Hinge, 007, L13 and Cohiba). The RL East zone is located approximately 150 meters (500 feet) to the eastof the high grade "98" vein area currently under development and is beyond the recently discovered 98FW1and FW2 zones (see press release dated January 20, 2010). The above drill holes are the first results fromadditional holes that were lengthened or initiated from new drill stations in order to reach the RL East area.Holes that appear out of sequence or do not appear are not yet drilled, logged, or were not long enough toreach RL East.

The main "98" vein above the 28th level (4500 ft below surface) has been developed to over 150 meters(500 feet) in length, has a known dip length of over 600 meters (2000 feet) and is open above the 26th level(4200 ft below surface). Mining is now underway in numerous stopes within this vein above the 29th and28th levels. The wide spacing and correlation of drill holes within the 98FW and RL East zones arebeginning to display similar dimensions as the main 98 vein described above. The numerous new veinsbeing discovered to the southeast and in the footwall of the "98" vein are in previously unexplored areas asthere has been no access to this ground in the past.

The above program was carried out by mine geologists under the supervision of D. Ginn, P.Geo., theQualified Person for San Gold under National Instrument 43-101. Underground drill core samples and chipsamples are assayed on site in the company's assay lab using the fire assay method with an AA andgravimetric finish. San Gold's quality control and assurance program includes the insertion of blanks andstandards, the retention of pulps and rejects, and spot checks utilizing independent labs including TSLLaboratories in Saskatoon, SK and Accurassay Laboratories of Thunder Bay, ON. The core lengths areactual lengths as drilled and have not been adjusted for the true width of the mineralized zones. Ininstances where high grade intervals are combined resulting in lower grade, wider intervals, all assays areutilized including any internal waste which may have zero grade, as well, no top or bottom cutting factorsare used.