WINNIPEG, MANITOBA--(Marketwire - Oct. 22, 2012) - George Pirie, President and Chief Executive Officer for San Gold Corporation (TSX:SGR)(OTCQX:SGRCF), is pleased to announce interim results of its ongoing 2012 diamond drilling program on the 007 deposit within the Company's 100% owned Rice Lake Project located in Bissett, approximately 235 kilometres northeast of Winnipeg, Manitoba, Canada. The Rice Lake Project has a permitted, modern gold mill currently processing ore at a capacity of 2,500 tons per day, modern surface infrastructure including a licensed tailings management facility, and is connected to the Manitoba power grid system.

Since being discovered in 2009, the 007 deposit continues to demonstrate robust grades and widths across all four lenses of the deposit and it continues to be consistent at depth while structural characteristics are becoming increasingly predictable.

This drilling activity is part of the Company's program to upgrade resources into higher confidence categories and to increase reserves within the mining complex. Overall results are positive and comparable with the Company's March 31, 2012 resource update. The Company will continue drilling for the remainder of 2012 and provide a resource update in the first quarter of 2013.

"The 007 deposit drilling continues to prove up high-quality resources which are accessible from existing infrastructure. The drilling continues to confirm the continuity of the deposit at depth. The ongoing development of the 16 and 26 Levels will provide drill platforms for further resource and reserve definition. Mining is currently scheduled to begin from these levels in early 2014," said Mr. Pirie.

Highlights of the drilling program include:

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                                   From      To   Grade  Length        Below
Hole                       Zone     (m)     (m)   (g/t)      (m) Surface (m)
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DX-12-023                   007  1026.7  1038.0    11.3     11.3         718
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DX-12-034                   007  1044.9  1050.7    15.9      5.7         757
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S887-12-021                 730    44.2    49.1    24.2      4.9         361
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S890-12-007                 730   117.7   120.2    42.6      2.5         416
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607-12-031     Shoreline Basalt   185.1   187.4    28.8      2.3        1239
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607-12-032     Shoreline Basalt   208.1   209.9    20.0      1.8        1246
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Drilling for this program was carried out in three regions from drill stations located on surface and underground, with a total of 98 drill holes intercepting the 007 deposit and adjacent regions of the Shoreline Basalt Unit so far this year. The Company is very encouraged by the results of the Shoreline Basalt Unit drilling program as it continues to demonstrate the expansion of existing mineralized zones and the potential of new zones to be discovered along the Shoreline Basalt Unit both east and west and at depth.

The following provides a brief summary of the drilling program in each of the three regions:

1.  61 intersections were obtained between 300 and 595 metres below surface.
    Drilling in this region occurred both from surface and underground drill
    stations. These infill targets were identified to support the Company's
    near-term mining plans within the active mining region accessed by ramp
    from the Hinge/007 portal. 
    
2.  7 intersections were obtained from between 700 and 895 metres below
    surface from surface drilling stations. The Company intends to drill
    this region more fully once development from 16 Level has reached the
    Hinge district. 
    
3.  30 intersections were obtained from between 900 and 1,250 metres below
    surface. These infill targets were identified to support planned
    development of the 007 deposit from 26 Level. The 26 Level is the
    closest portion of the Rice Lake mine infrastructure to the projections
    of the 007 deposit. Development is currently underway in this region and
    mining is expected to commence in early 2014. 
    
    Table 1 at the end of this release provides the full list of results
    from this year's drilling program to date. 
    
    Figure 1 at the end of this release provides a longitudinal section of
    the three main drilling regions within the 007 deposit and planned
    development from 16 and 26 Level.
    
    Figure 2 at the end of this release provides a plan view of planned
    development of the 007 deposit from 16 Level of the Rice Lake mine.
    
    Figure 3 at the end of this release provides a plan view of planned
    development of the 007 deposit from 26 Level of the Rice Lake mine.

Underground drill core samples are assayed on site in the company's assay lab using the fire assay method with an AA and gravimetric finish. San Gold's quality control and assurance program includes the insertion of standards, the retention of pulps and rejects, and spot checks utilizing independent labs including TSL Laboratories in Saskatoon, SK and 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.

This drilling program was carried out by San Gold mine geologists under the supervision of D. Ginn, P.Geo., the Qualified Person for San Gold under National Instrument 43-10, who has reviewed and approved the press release.

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".

Cautionary Note

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.

Table 1: 2012 007 Drill Intersections by Elevation (1)

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                                  From     To     Grade  Length        Below
   Drill Hole              Zone    (m)    (m)     (g/t)      (m) Surface (m)
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                         Active Mining Region Drilling                      
   -------------------------------------------------------------------------
1  JH-11-044                700  453.9  457.0      19.4      3.1         300
   -------------------------------------------------------------------------
2  JH-11-047                700  469.3  470.1       1.4      0.8         308
   -------------------------------------------------------------------------
3  CD-11-296                740  433.5  436.9      12.5      3.4         324
   -------------------------------------------------------------------------
4  CD-11-297                740  443.0  444.8       1.6      1.8         335
   -------------------------------------------------------------------------
5  887-12-050               730    2.4    6.4       4.3      3.9         336
   -------------------------------------------------------------------------
6  887-12-051               730    4.1    6.7      11.4      2.7         336
   -------------------------------------------------------------------------
7  CD-12-298                740  446.7  449.4       9.3      2.7         338
   -------------------------------------------------------------------------
8  CD-12-290                730  455.1  456.5      10.3      1.4         338
   -------------------------------------------------------------------------
9  CD-12-311                740  443.6  453.5       1.2     10.0         340
   -------------------------------------------------------------------------
10 CD-12-268                730  453.2  463.5       9.8     10.3         342
   -------------------------------------------------------------------------
11 S887-12-005              730   43.4   44.6       1.5      1.2         346
   -------------------------------------------------------------------------
12 CD-12-317                740  457.6  457.9      20.5      0.3         347
   -------------------------------------------------------------------------
13 CD-12-283                730  460.2  464.4      24.5      4.1         347
   -------------------------------------------------------------------------
14 CD-11-303                740  452.6  453.4      74.6      0.8         348
   -------------------------------------------------------------------------
15 S887-12-001              740   54.4   56.3      18.1      1.9         348
   -------------------------------------------------------------------------
16 CD-12-324                730  461.1  465.9       5.2      4.8         349
   -------------------------------------------------------------------------
17 CD-12-276                730  460.9  466.0       6.0      5.2         353
   -------------------------------------------------------------------------
18 CD-12-289                730  464.8  468.0       3.5      3.2         354
   -------------------------------------------------------------------------
19 S887-12-006              730   46.4   47.7       2.0      1.3         354
   -------------------------------------------------------------------------
20 S887-12-025              730   41.9   46.0      11.1      4.1         357
   -------------------------------------------------------------------------
21 S887-12-002              740   62.3   65.5      17.1      3.2         360
   -------------------------------------------------------------------------
22 CD-12-275                730  466.4  470.4       7.4      4.0         360
   -------------------------------------------------------------------------
23 S887-12-029              730   52.4   57.8       2.6      5.4         361
   -------------------------------------------------------------------------
24 CD-11-304                740  460.5  462.2       3.8      1.7         361
   -------------------------------------------------------------------------
25 S887-12-021              730   44.2   49.1      24.2      4.9         361
   -------------------------------------------------------------------------
26 CD-12-269                730  467.8  473.6      10.5      5.8         364
   -------------------------------------------------------------------------
27 S887-12-026              730   50.1   53.9       4.3      3.8         367
   -------------------------------------------------------------------------
28 JH-11-029                720  512.4  514.9       3.7      2.2         369
   -------------------------------------------------------------------------
29 S887-12-030              730   61.7   63.2      29.3      1.5         369
   -------------------------------------------------------------------------
30 CD-12-263                730  473.8  477.1       4.9      3.3         369
   -------------------------------------------------------------------------
31 S887-12-003              740   76.0   78.0      16.3      2.0         374
   -------------------------------------------------------------------------
32 S887-12-022              730   56.3   60.5       8.3      4.2         377
   -------------------------------------------------------------------------
33 S887-12-017              730   59.6   63.4       5.2      3.8         379
   -------------------------------------------------------------------------
34 JH-11-048                700  486.1  487.3       1.3      1.2         379
   -------------------------------------------------------------------------
35 S890-12-009              730   81.3   89.9       0.3      8.5         382
   -------------------------------------------------------------------------
36 S887-12-027              730   61.9   70.0       5.8      8.1         384
   -------------------------------------------------------------------------
37 S887-12-008              730   76.8   80.3       7.6      3.5         389
   -------------------------------------------------------------------------
38 S887-12-004              740   92.4   94.2       2.5      1.8         396
   -------------------------------------------------------------------------
39 S890-12-001              730   95.0   97.0       8.2      2.0         398
   -------------------------------------------------------------------------
40 CD-12-271                730  496.4  498.1       9.5      1.7         399
   -------------------------------------------------------------------------
41 S887-12-018              730   79.0   85.3      13.9      6.3         402
   -------------------------------------------------------------------------
42 CD-12-264                730  490.7  496.5       3.3      5.8         402
   -------------------------------------------------------------------------
43 CD-12-299                740  495.3  497.3       1.3      2.0         406
   -------------------------------------------------------------------------
44 CD-12-325                740  499.7  501.5       0.5      1.9         414
   -------------------------------------------------------------------------
45 S890-12-007              730  117.7  120.2      42.6      2.5         416
   -------------------------------------------------------------------------
46 CD-12-291                730  505.1  508.1      18.8      3.0         417
   -------------------------------------------------------------------------
47 S887-12-023              730   98.6  104.7      16.1      6.1         420
   -------------------------------------------------------------------------
48 S882-12-008              700  166.5  167.4       5.7      0.9         424
   -------------------------------------------------------------------------
49 CD-12-270                730  506.5  512.1       1.9      5.6         424
   -------------------------------------------------------------------------
50 CD-12-279                730  511.6  513.9      36.0      2.3         433
   -------------------------------------------------------------------------
51 CD-12-274                730  518.3  520.8       0.4      2.5         435
   -------------------------------------------------------------------------
52 S887-12-013              740  118.5  122.3       7.3      3.7         437
   -------------------------------------------------------------------------
53 S882-12-006              700  197.5  201.5       4.4      4.0         440
   -------------------------------------------------------------------------
54 S882-12-004              700  215.4  216.8       0.1      1.4         442
   -------------------------------------------------------------------------
55 S882-12-002              700  239.2  240.2       0.3      1.0         449
   -------------------------------------------------------------------------
56 S882-12-003              700  243.4  244.2       0.0      0.9         473
   -------------------------------------------------------------------------
57 CD-12-301                740  548.5  549.2       1.0      0.6         480
   -------------------------------------------------------------------------
58 CD-12-266                730  545.7  547.3      13.1      1.6         480
   -------------------------------------------------------------------------
59 CD-12-329                730  570.0  574.5       3.8      4.5         505
   -------------------------------------------------------------------------
60 CD-12-267                730  585.7  589.5       6.4      3.7         533
   -------------------------------------------------------------------------
61 CD-12-326                740  592.0  596.8       0.9      4.8         538
   -------------------------------------------------------------------------
                            16 Level Access Drilling                        
   -------------------------------------------------------------------------
62 DX-12-032                007 1025.0 1049.0       1.7     24.0         701
   -------------------------------------------------------------------------
63 DX-12-023                007 1026.7 1038.0      11.3     11.3         718
   -------------------------------------------------------------------------
64 DX-12-034                007 1044.9 1050.7      15.9      5.7         757
   -------------------------------------------------------------------------
65 DX-12-028                007 1059.9 1063.4       1.2      3.5         763
   -------------------------------------------------------------------------
66 DX-11-021                007 1082.8 1084.9       0.2      2.1         819
   -------------------------------------------------------------------------
67 DX-12-026                007 1045.0 1047.9      12.1      2.8         823
   -------------------------------------------------------------------------
68 DX-12-027                007 1094.2 1094.5      32.1      0.3         829
   -------------------------------------------------------------------------
                            26 Level Access Drilling                        
   -------------------------------------------------------------------------
69 607-12-005  Shoreline Basalt  118.7  119.1      56.2      0.4         905
   -------------------------------------------------------------------------
70 607-12-003  Shoreline Basalt  115.0  117.1       3.3      2.1        1128
   -------------------------------------------------------------------------
71 607-12-021  Shoreline Basalt  113.5  123.6       3.8     10.0        1143
   -------------------------------------------------------------------------
72 607-12-017  Shoreline Basalt  151.5  152.2       2.5      0.6        1148
   -------------------------------------------------------------------------
73 607-12-006  Shoreline Basalt   76.6   79.1       3.2      2.5        1148
   -------------------------------------------------------------------------
74 607-12-023  Shoreline Basalt  191.9  192.1      31.6      0.2        1149
   -------------------------------------------------------------------------
75 607-12-020  Shoreline Basalt  180.5  183.5       2.8      3.0        1153
   -------------------------------------------------------------------------
76 607-12-019  Shoreline Basalt  269.8  272.2       4.5      2.4        1169
   -------------------------------------------------------------------------
77 607-12-010  Shoreline Basalt  161.5  162.4       1.5      0.9        1172
   -------------------------------------------------------------------------
78 607-12-001  Shoreline Basalt  192.4  194.0      10.0      1.7        1172
   -------------------------------------------------------------------------
79 607-12-022  Shoreline Basalt  192.0  192.5       8.3      0.4        1175
   -------------------------------------------------------------------------
80 607-12-016  Shoreline Basalt  186.3  187.1       0.1      0.8        1178
   -------------------------------------------------------------------------
81 607-12-009  Shoreline Basalt   69.1   71.6       0.7      2.6        1181
   -------------------------------------------------------------------------
82 607-12-004  Shoreline Basalt   92.0   94.2       0.0      2.2        1182
   -------------------------------------------------------------------------
83 607-12-002  Shoreline Basalt  130.9  135.8       5.2      4.9        1183
   -------------------------------------------------------------------------
84 607-12-011  Shoreline Basalt    8.2    9.1       4.0      0.9        1184
   -------------------------------------------------------------------------
85 607-12-013  Shoreline Basalt   66.0   68.4       1.6      2.4        1185
   -------------------------------------------------------------------------
86 607-12-007  Shoreline Basalt   16.5   16.7       4.8      0.2        1186
   -------------------------------------------------------------------------
87 607-12-024  Shoreline Basalt  152.3  153.1       6.2      0.8        1192
   -------------------------------------------------------------------------
88 607-12-033  Shoreline Basalt  187.5  191.4       3.6      3.9        1194
   -------------------------------------------------------------------------
89 607-12-028  Shoreline Basalt  185.6  186.4      11.5      0.8        1198
   -------------------------------------------------------------------------
90 607-12-025  Shoreline Basalt  175.7  179.2       3.6      3.5        1205
   -------------------------------------------------------------------------
91 607-12-029  Shoreline Basalt  142.4  144.2       0.1      1.9        1207
   -------------------------------------------------------------------------
92 607-12-030  Shoreline Basalt  152.9  154.7       1.2      1.8        1217
   -------------------------------------------------------------------------
93 607-12-039  Shoreline Basalt  222.9  224.4       1.5      1.5        1217
   -------------------------------------------------------------------------
94 607-12-034  Shoreline Basalt  252.8  253.7       2.8      0.9        1224
   -------------------------------------------------------------------------
95 607-12-026  Shoreline Basalt  182.3  183.2       8.4      0.9        1224
   -------------------------------------------------------------------------
96 607-12-035  Shoreline Basalt  260.2  262.9       1.5      2.7        1234
   -------------------------------------------------------------------------
97 607-12-031  Shoreline Basalt  185.1  187.4      28.8      2.3        1239
   -------------------------------------------------------------------------
98 607-12-032  Shoreline Basalt  208.1  209.9      20.0      1.8        1246
   -------------------------------------------------------------------------
(1) The intersections presented herein may not necessarily represent the    
true width of mineralization.

To view the figures associated with this release, please visit the following links:

Figure 1: http://media3.marketwire.com/docs/SGR1019Figure1.pdf

Figure 2: http://media3.marketwire.com/docs/SGR1019Figure2.pdf

Figure 3: http://media3.marketwire.com/docs/SGR1019Figure3.pdf

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

San Gold Corporation
George Pirie
President and CEO
Toll Free: 1 (855) 585-4653

or

San Gold Corporation
Manish Grigo
Director Investor Relations
info1@sangold.ca