San Gold reported initial assay results from its newly discovered L4 Zone, located immediately to the south of the main Hinge zones. Drilling to date suggests the L4 Zone is one of the wider zones discovered to date, with grades consistent with the other high-grade zones on the property.

As currently defined, the L4 zone in itself is limited in size; however, the mineralization remains open in all directions, and perhaps more importantly, points to the potential of further discoveries located close to existing infrastructure. The L4 Zone has already been accessed from the Hinge decline and initial mine development is underway.

We continue to view the potential of the Rice Lake property to be far greater than presently quantified, and believe that further drilling will likely result in the discovery of additional high grade gold mineralization located both beneath and parallel to the currently known zones. We expect further discoveries to propel the share price higher, and are maintaining our

BUY rating and 12-month target of C$5.50/share.