It has taken them 9 years to figure out that the infrastructure is antiquated? And poor grammer to boot!

"Low volumes combined with older infrastructure and the deeper locations render this ore is relatively expensive to extract compared with San Gold's newer near-surface ore bodies."

San Gold Corporation
Head Office
General Delivery
Bissett MB R0E 0J0
email: dginn@sangoldcorp.com
website: www.sangoldcorp.com
Management Discussion and Analysis
For the six months ending June 30, 2006
Containing information up to and including August 29, 2006
Dated: August 29, 2006

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The main business of Rice Lake Gold Corporation is the production of gold from underground ore
reserves at the Rice Lake Mine in Bissett, Manitoba, Canada and the exploration for new gold deposits in
the Rice Lake gold belt. Rice Lake Gold Corporation was incorporated on March 18, 1998. The Rice
Lake Mine was placed on care and maintenance from August 8, 2001, and resumed limited operation in
the first quarter of 2006 in anticipation of commercial production commencing during the third quarter of
2006. Additionally, the San Gold #1 Mine commenced the production of development ore in the first
quarter of 2006 in anticipation of commercial production commencing in the third quarter of 2006;
together with the continued production of development ore as the mine workings are extended laterally
and at depth. The Rice Lake mill, with a capacity of 1,250 tons per day, commenced break-in operations
in the second quarter of 2006 and achieved commercial production status during the third quarter of 2006,
with an official mine opening date of August 23, 2006. Until such time as both gold mines and the mill
achieve full commercial production and generate positive cash flow, Rice Lake Gold Corporation shall be
dependent on the continued financial support of the Company.