16 Nov 2010 08:42 ET

Marketwire
San Gold Corporation
November 16, 2010 - 08:41:32 AM
Step-out Drilling Discovers Substantial Extension to San Gold's 007 Zone
BISSETT, MB--(Marketwire - November 16, 2010) - Dale Ginn, CEO of San Gold
Corporation (TSX: SGR) (OTCQX: SGRCF), is pleased to report that surface
exploration step-out drilling has discovered a significant eastern extension
to the 007 zone at a depth below surface of 260 meters (850 feet). Drill hole
# CD-10-178 generated 66.1 g/tonne (1.93 oz/ton) over 12.0 meters (39.4 ft) at
over 200 meters to the east of the currently developed strike length extents.
This intersection is flanked evenly by the 007 Zone and the Emperor Zone at
this elevation. Drill hole # CD-10-178 is summarized below, as well a detailed
table with each assay interval comprising this intersection has been made
available in order to show grade distribution and variability:
Hole #    From (m) To (m)   Length m (ft)  Gold g/tonne (oz/ton)  Zone/Lens
----------------------------------------------------------------------------
CD-10-178 351.2    363.2    12.0    39.4   66.1         1.93      007 East
The 007 East Zone, as well as the 007, L10 and Emperor Zones all occur near to
or within a mafic flow known as the Shoreline Basalt, striking roughly
east-west and parallel to the Rice Lake Mine or SAM unit. All of the above
zones are located proximal to a series of identified shears and their
intersections with the mafic flow unit. The above mentioned mineralized zones
on the Shoreline Basalt combine to form a strike length of over 1.5 kms. The
combined strike length of the 007 and Emperor Zones is currently over 500
meters long as demonstrated by drilling to date. Mineralization consists of
free gold and pyrite within quartz-carbonate veining and associated alteration
consistent with the Rice Lake and Hinge Mines and the 007 development.
All of the individual assays that make up this intersection are tabled below:
From       To         Interval         Assay
---------- ---------- ---------- ---------------------
(m)        (m)        (m)        oz/ton     g/tonne
351.2      351.6      0.3        3.67       125.6
351.6      352.9      1.4        3.38       115.8
352.9      353.5      0.5        0.60       20.4
353.5      354.0      0.6        0.80       27.3
354.0      354.5      0.5        0.08       2.8
354.5      355.3      0.9        0.04       1.4
355.3      356.1      0.8        0.92       31.5
356.1      357.3      1.2        0.36       12.3
357.3      357.9      0.6        2.88       98.8
357.9      358.8      1.0        11.87      406.4
358.8      359.3      0.5        0.26       8.9
359.3      359.7      0.3        0.30       10.3
359.7      360.0      0.3        1.16       39.9
360.0      360.2      0.2        0.09       2.9
360.2      360.6      0.4        0.36       12.5
360.6      361.1      0.5        0.10       3.4
361.1      361.5      0.3        0.03       1.0
361.5      362.0      0.5        0.05       1.6
362.0      362.4      0.3        0.01       0.3
362.4      362.8      0.5        0.01       0.2
362.8      363.2      0.4        2.88       98.6
Dale Ginn, CEO stated, "It appears as though the Shoreline Basalt has the
ability to host mineralization wherever it interacts with a shear zone. This
is consistent with the original host rock for the Rice Lake Mine and as such,
we expect that our new zones will have great depth extensions as well. We look
forward to reporting results from the deep exploration drilling that we are
conducting on these zones from the 26th and 28th levels of the Rice Lake
Mine."
The 007 zone is located approximately 2 kms to the north-east of San Gold's
operating Rice Lake mine and mill, is fully accessible by road and is
accessible from the Hinge Mine decline. The 007 zone was initially discovered
by San Gold geologists in November 2009 and mine development towards the zone
began early in 2010 originating from the Hinge Mine.
Sections, plans and diagrams related to this press release are available at
the company's website www.sangold.ca, including a detailed longitudinal
section displaying the results to date.
This program was carried out under the supervision of W.S. Ferreira, P.Geo.,
the Qualified Person for this project under National Instrument 43-101. The
drill core was split, with half sent to TSL Laboratories in Saskatoon, SK and
fire assayed with an AA and gravimetric finish. Whole metallic assays were
performed on samples containing visible gold. Check assays were also performed
on pulps and rejects by both TSL and by Accurassay Laboratories of Thunder
Bay, ON. The core lengths are actual lengths as drilled and have not been
adjusted for the true width of the mineralized zones.
Neither the Toronto Stock Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the Toronto Stock Exchange) accepts
responsibility for the adequacy or accuracy of this release.
FOR FURTHER INFORMATION PLEASE CONTACT:
 Dale Ginn Chief Executive Officer San Gold Corporation (204) 794-5818 
Investor Relations 1-800-321-8564 
 www.sangold.ca www.MyStudio.net