Mr. George Pirie reports

SAN GOLD PURCHASES PROPERTIES FROM OPAWICA EXPLORATIONS

San Gold Corp. has entered into a purchase and sale agreement with Opawica Explorations Inc. providing for the purchase by San Gold of a 100-per-cent interest in three mineral properties from Opawica.

The properties include the Atikwa Lake gold property, located in the Rainy River gold district of northwestern Ontario as well as the Whitesides-Carscallen property and the Golden property, both located in the West Timmins gold camp, Ontario.

"These are three highly prospective properties that have the potential to substantially increase San Gold's resource base. The properties are located within safe, established mining jurisdictions with two of the properties building on the Company's strong position in the Timmins gold camp," said George Pirie, San Gold's President and Chief Executive Officer.

San Gold will pay Opawica total consideration of 9,925,000 shares of San Gold for the properties. The sale of the properties is subject to certain closing conditions including Opawica shareholder approval at a special meeting of the shareholders of Opawica to be held on July 30, 2012, and all requisite regulatory approvals, including the approval of the TSX Venture Exchange in the case of Opawica and the Toronto Stock Exchange in the case of San Gold. It is anticipated that the closing of the sale will take place on or before August 31, 2012