San Gold Corporation Decreases Bought Deal Offering to $80 Million

BISSETT, MANITOBA, Jul 14, 2010 (Marketwire via COMTEX News Network) --

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

San Gold Corporation ("San Gold" or the "Corporation") (TSX VENTURE:SGR) announces that in connection with its previously announced public offering, that the Corporation and the syndicate co-led by Dundee Securities Corporation and BMO Capital Markets, and including CIBC World Markets Inc., Raymond James Ltd., TD Securities Inc., Cormark Securities Inc., Wellington West Capital Markets Inc., Mackie Research Capital Corporation, Stonecap Securities Inc. and Toll Cross Securities Inc. (collectively, the "Underwriters"), have agreed to decrease the size of the offering. Under the revised terms, the Underwriters have agreed to purchase, on an underwritten basis, 20,000,000 common shares (the "Common Shares") of San Gold at a price of $4.00 per Common Share for aggregate gross proceeds of $80,000,000. As a result, the over-allotment option granted to the Underwriters will now allow them to purchase up to 3,000,000 additional Common Shares for additional gross proceeds of up to $12,000,000. The over-allotment option is exercisable at any time prior to 30 days after the Closing Date.

The aggregate gross proceeds raised from the offering will be $80,000,000 or $92,000,000 if the over-allotment option is exercised in full. The proceeds of the offering shall be used primarily for further exploration and development on the Corporation's Rice Lake Project in Manitoba, for the purchase of equipment and for general and administrative expenses and working capital.

The Common Shares to be sold under the agreement will be offered by way of a short form prospectus in all the Provinces of Canada except Quebec and the Common Shares to be sold under this offering will be offered in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended.

The offering is scheduled to close on August 4, 2010 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange and other applicable securities regulatory authorities.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

SOURCE: San Gold Corporation

San Gold Corporation Dale Ginn CEO (204) 794-5818 San Gold Corporation Investor Information 1-800-321-8564 www.sangoldcorp.com