WINNIPEG, MANITOBA--(Marketwire - June 4, 2012) - San Gold Corporation (TSX:SGR)(OTCQX:SGRCF) announces today that milling operations have been temporarily interrupted at its Rice Lake Mining Complex due to an unexpected failure of its ball mill pinion and related damage to the ball mill motor. Repairs are underway and normal milling operations are estimated to resume within the next three weeks. We will provide updates to this timeframe should initial information change. Mining operations continue and ore stockpiles are being created in the interim.

The Company's milling capacity has improved substantially during the second quarter, achieving peak daily production of 2,500 tons per day and consuming the remainder of the stockpile before this incident occurred. As a result of this increased capacity, the company does not expect this incident to affect the company's 2012 guidance. The Company remains confident in its annual guidance of between 95,000 and 105,000 ounces of gold produced in 2012.

About San Gold

San Gold is an established Canadian gold producer, explorer, and developer that owns and operates the Hinge, 007, and Rice Lake mines near Bissett, Manitoba. The Company employs more than 400 people and is committed to the highest standards of safety and environmental stewardship. San Gold is on the Toronto Stock Exchange under the symbol "SGR" and on the OTCQX under the symbol "SGRCF".

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