San Gold loses $4.63-million in Q3 2010

San Gold Corp (C:SGR)
Shares Issued 300,408,146
Last Close 11/11/2010 $3.49
Friday November 12 2010 - News Release

Mr. Dale Ginn reports

SAN GOLD FILES THIRD QUARTER RESULTS

San Gold Corp. has released its third-quarter financial statements and related management discussion and analysis.

The Company recognized revenue of $13.881 million for the quarter and $40.476 MM for the year to date. The result is a net profit from operations of $4.1 MM for the quarter and a loss of $0.3 MM for the year to date. The comparative quarter in the same period last year showed an operating loss of $6.9 MM and $10.9 MM for the prior YTD. The comprehensive loss from operations for the quarter was $4.6 MM for the quarter and $12.9 MM for the YTD in comparison to a loss of $5.0 MM in the same quarter of the prior year and $24.3 MM for the prior YTD.

"This operating profit of $4.1 MM marks an important milestone for San Gold which, along with the significant financing in August and the TSX listing in October, have served to place San Gold in a strong financial position. We look forward to continuing our aggressive exploration and development programs and production ramp-up," says San Gold CEO Dale Ginn.

San Gold achieved a quarterly record of 71,463 tons mined during the quarter or 776 tons per day and milled a record 75,263 tons of ore or the equivalent of 818 tons. The Company also completed 1,600 feet of ramp development.

The Company closed a short form prospectus financing that saw the issuance of 21,133,100 common shares. This resulted in net proceeds of $79.9 million. The company ended the quarter with $100.7 million in Current Assets.

In September, San Gold released an updated technical report that consolidated its Rice Lake Resources in a single document.

Also in the subsequent period, San Gold received final approval for the listing of the Corporation's shares on the Toronto Stock Exchange (TSX). Shares commenced trading on the TSX on Oct. 20.

                              CONSOLIDATED STATEMENT OF OPERATIONS AND DEFICIT


                                                 Three monthperiod ended             Nine month period ended
                                         September 30,2010  September 30,2009  September 30,2010  September 30,2009

REVENUE                               $       13,881,005 $        8,844,634 $       40,475,961 $      16,088,544

OPERATIONS
 Operations                                    7,240,558          6,525,833         32,403,298        22,578,703
 Asset retirement accretion                       41,780             37,910            125,341           113,728
 Amortization of property, plant
 and equipment                                   724,605            487,732          1,838,976         1,394,932
 Depletion of mineral properties               1,754,270          1,544,290          6,400,513         2,648,131

INCOME (LOSS) FROM OPERATIONS                  4,119,792            248,869          (292,167)      (10,646,950)

 Exploration                                   4,717,997          2,646,155          9,392,300         5,375,503
 General and administrative                    2,311,821          1,172,674          5,669,486         4,697,718
 Accretion of convertible debentures                   -             39,806                  -           119,419
 Amortization of financing fees                        -             50,029                  -           150,087
 Royalty expense                               1,967,708          2,446,795          5,903,123         6,382,211
 Interest expense                                 69,618            284,014            137,399           874,119
 Share-based compensation                      1,791,238          1,111,060          5,328,063         3,204,793

LOSS BEFORE OTHER REVENUE                      6,738,590          7,501,664         26,722,538        31,450,800

OTHER REVENUE AND EXPENSES
 Indemnification fee                              63,788             63,788            191,364           191,364
 Interest income                               2,047,251          2,454,310          6,207,026         7,006,373
 Equity loss of SGX Resources Inc. (N                  -                  -          (503,164)                 -
 Loss on disposal of property, plant             (7,714)                  -            (7,714)                 -

LOSS BEFORE INCOME TAX                         4,635,265          4,983,566         20,835,026        24,253,063

 Future income tax recovery                            -                  -          7,959,465                 -

LOSS AND COMPREHENSIVE LOSS FOR THE P          4,635,265          4,983,566         12,875,561        24,253,063

DEFICIT, BEGINNING OF THE PERIOD             169,994,420        141,442,383        152,254,876       121,011,395

Share issue costs                              4,635,084                  -          6,174,867         1,236,701
Expired Warrants                                       -                  -                  -          (75,210)
Expired Options                                  (8,382)                  -            (8,382)                 -
Future income tax on flow-through sha                  -                  -          7,959,465                 -

DEFICIT, END OF THE PERIOD            $      179,256,387 $      146,425,949 $      179,256,387 $     146,425,949

LOSS PER COMMON SHARE: Basic & di 7)  $             0.02 $             0.02 $             0.05 $            0.10

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