(All amounts are in Canadian dollars, unless stated otherwise)

San Gold Corporation (TSX: SGR)(OTCQX: SGRCF) ("San Gold") announces that it has signed an option agreement to earn an 80% interest in Wildcat Exploration Ltd.'s (TSX VENTURE: WEL) ("Wildcat") Mike Power, Jeep, and Poundmaker gold exploration projects in the Rice Lake area of Manitoba (the "Wildcat Projects").

"This option agreement expands San Gold's property interests in the very prospective Rice Lake area in close proximity to our existing mining operations," stated George Pirie, President and Chief Executive Officer of San Gold. "Recent work conducted by Wildcat has identified an initial inventory of drill-ready targets and we are confident that we will identify additional drill targets through our initial exploration program."

John Knowles, Wildcat's President and Chief Executive Officer, commented, "By partnering with San Gold, with its nearby mill and proven mining and exploration teams, we have reduced the economic hurdle to advance our properties while accelerating the exploration of three projects in the vicinity of San Gold's Rice Lake Project. The transaction also brings up to $2 million into Wildcat's treasury and allows us to leverage our resources on Wildcat's gold and base metal projects in Manitoba and Ontario."

Under the terms of the option agreement, San Gold may earn an 80% interest in the Wildcat Projects by expending $5.1 million on exploration activities over a four-year period. Additionally, San Gold will be required to make cash payments to Wildcat in aggregate of $1.0 million and, subject to regulatory approval, subscribe for an aggregate of $1.0 million of Wildcat shares via private placement over a three-year period. San Gold will be the operator of the exploration program for the duration of the option agreement.

During the first year exploration program, San Gold plans to complete a minimum drill program of 5,000 metres and a high-resolution airborne magnetic geophysical survey. An overview of the Wildcat Projects and a summary of recent exploration work conducted by Wildcat was presented in Wildcat's news release dated June 24, 2011.

About San Gold

San Gold is an established Canadian-based gold producer, explorer, and developer that owns and operates the Hinge, 007, and Rice Lake mines near Bissett, Manitoba. The Company employs over 400 people and is committed to the highest standards of safety and environmental stewardship. The Company has over $40 million in cash and equivalents and is unhedged to the price of gold. As of August 1, 2011, San Gold had 310,966,175 common shares outstanding (327,360,186 shares fully diluted), which are traded on the Toronto Stock Exchange under the symbol "SGR" and on the OTCQX under the symbol "SGRCF".

About Wildcat

Wildcat Exploration Ltd. is a Winnipeg-based company exploring for gold and base metals in Canada. Its portfolio includes: (1) several gold projects in the Rice Lake greenstone belt in Manitoba, (2) the McVicar gold property in the Uchi subprovince of Ontario, (3) the Reed base metal and PGE project in the Flin Flon-Snow Lake greenstone belt in Manitoba, (4) the Burntwood nickel project in the Thompson nickel belt in Manitoba and (5) the Foster zinc-lead-silver project in Saskatchewan. The Company seeks to continuously upgrade its property portfolio through exploration and accretive transactions.

For further information on San Gold, please visit www.sangold.ca.

For further information on Wildcat, please visit www.wildcat.ca.

Cautionary Note

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This news release includes certain "forward-looking statements". All statements, other than statements of historical fact included in this release, including, without limitation, statements regarding forecast gold production, gold grades, recoveries, cash operating costs, potential mineralization, mineral resources, mineral reserves, exploration results, and future plans and objectives of the Company, are forward-looking statements that involve various risks and uncertainties. These forward-looking statements include, but are not limited to, statements with respect to mining and processing of mined ore, achieving projected recovery rates, anticipated production rates and mine life, operating efficiencies, costs and expenditures, changes in mineral resources and conversion of mineral resources to proven and probable mineral reserves, and other information that is based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management.

Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be "forward-looking statements." Forward-looking statements are subject to a variety of risks and uncertainties that could cause actual events or results to differ from those reflected in the forward-looking statements.

There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include, among others, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of precious metals, as well as those factors discussed in the section entitled "Other MD&A Requirements and Additional Disclosure and Risk Factors" in the Company's most recent quarterly Management's Analysis and Discussion ("MD&A"). Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

Exploration results that include geophysics, sampling, and drill results on wide spacings may not be indicative of the occurrence of a mineral deposit. Such results do not provide assurance that further work will establish sufficient grade, continuity, metallurgical characteristics, and economic potential to be classed as a category of mineral resource. A mineral resource that is classified as "inferred" or "indicated" has a great amount of uncertainty as to its existence and economic and legal feasibility. It cannot be assumed that any or part of an "indicated mineral resource" or "inferred mineral resource" will ever be upgraded to a higher category of resource. Investors are cautioned not to assume that all or any part of mineral deposits in these categories will ever be converted into proven and probable reserves.

The TSX and the OTCQX exchanges have not reviewed and do not accept responsibility for the adequacy or accuracy of this release.

Contacts:
San Gold Corporation
Tim Friesen
Director, Communications
+1 (204) 772-9149 ext. 202

San Gold Corporation
Jeremy Link
Vice-President, Corporate Development
+1 (416) 214-0024
www.sangold.ca

CHF Investor Relations
Stephanie Fitzgerald
Account Manager
(416) 868-1079 ext. 222
(416) 868-6198 (FAX)
stephanie@chfir.com

CHF Investor Relations
Cathy Hume
CEO
(416) 868-1079 ext. 231
(416) 868-6198 (FAX)
cathy@chfir.com

SOURCE: San Gold Corporation and Wildcat Exploration Ltd.

http://www.sangold.ca mailto:stephanie@chfir.com mailto:cathy@chfir.com