December 13, 2006
San Gold Adds Significant Mineral Resources at Cartwright

Note -- the measured and indicated resources include the proven and probable reserves Key assumptions and parameters used in calculating the mineral reserves are:

Gold price = $600 U.S., minimum mining width = 4 feet, mill call factor = 96%, mill recovery = 93%, cut-off grade = 0.15 oz/ton over 4 feet, dilution varies with width and geometry.

* All of the development capital required to convert the inferred resources to reserves and develop those resources has been included in the financial evaluation. The breakeven life-of-mine gold price is US$375 to allow for recovery of ongoing development capital expenses.
Highlights from the Howe report are listed below:

-- Howe calculates an increase of the mineral resource base to 402,880 ounces gold in the measured and indicated categories in addition to 1,018,150 ounces gold in the inferred category, including over 400,000 ounces of inferred mineral resource in the new Cartwright deposit that was discovered in April 2006. (Note: These estimates do not include recent and significant discoveries at deep levels in the Rice Lake mine (press releases of Oct. 5, Oct. 30, and Nov.1, 2006).

-- Howe concludes that the additional resources identified in the Cartwright and San Gold # 2-3 zones will allow their development to occur over the next two years and that subsequently the mill will reach full capacity of 1,250 tons per day by the end of 2008.

-- Howe is of the opinion that the operating costs used in their economic review in this Report are conservatively high as they are based on the historic operating costs of the Rice Lake Mine, which is a deep, shaft and internal shaft accessed operation. The San Gold #1 Mine, for at least the next ten years, will be a ramp accessed, relatively shallow (less than 1,000 feet below surface operation). The same will apply to the Cartwright and San Gold #2-3 zones. By the end of 2007 after a full year of operations, the Company will be able to better quantify their overall operating costs and then apply that information to a reassessment of their resource and reserve economics.

-- The project is fully paid back at this time as the acquisition costs and costs to bring the project to the production stage have been paid for fully and are basically sunk costs funded by equity financings and convertible debentures.

And the gong show continues.