WINNIPEG, MANITOBA--(Marketwire - March 25, 2013) -

(All amounts in Canadian dollars unless otherwise stated)

San Gold Corporation (the "Company") (TSX:SGR)(OTCQX:SGRCF) is pleased to report its quarterly and full-year financial and operating results for 2012 for the Company's 100% owned Rice Lake Mining Complex (the "Property") located in Bissett, approximately 235 kilometres northeast of Winnipeg, Manitoba, Canada. The Property has a permitted, modern gold mill currently processing ore at a capacity of 2,500 tons per day, as well as modern surface infrastructure, including a licensed tailings management facility and is connected to the Manitoba power grid system.

"The Company continues to make significant progress in building the Rice Lake Mining Complex. We have increased production year over year while improving cash flow from operations," said Ian Berzins, President and Chief Executive Officer of San Gold. "Our recent convertible debenture financing ensures that the Company is well funded to finance its development plan. This will enable us to build the infrastructure necessary to exploit the resource well into the foreseeable future. We are confident that markets will recognize that this investment will lead to improved operational and financial performance."

Q4 Financial and Operating Highlights

• Operating income of $3.5 million, compared to an operating loss of $7.5 million in Q4 2011 and Net loss of $3.9 million, compared to a Net income of $3.2 million in Q4 2011.
• Production of 19,019 ounces of gold, a 7% decrease compared to 20,359 ounces in Q4 2011.
• Revenue of $34.0 million on gold sales of 20,251 ounces at a realized price of $1,683 per ounce, a 3% increase from revenue of $33.0 million on gold sales of 19,482 ounces in Q4 2011.
• Average mill throughput of 1,827 tons per day.

Full Year Financial and Operating Highlights

• Operating income of $20.6 million, compared to a 2011 operating income of $30.4 million and a net loss of $13.2 million, compared to a 2011 net loss of $5.1 million.
• Record production of 86,506 ounces of gold, a 16% increase over 2011 production of 74,277 ounces.
• Record cash flow from operating activities before changes in non-cash working capital of $42.1 million, compared to $19.9 million in 2011.
• Record revenue of $142.1 million on gold sales of 85,690 ounces of gold at a realized price of $1,659 per ounce, a 25% increase from 2011 revenue of $114.1 million on gold sales of 71,684 ounces of gold.
• Total cash costs of $855 per ounce of gold sold compared to 2011 cash costs of $848 per ounce.
• Realized a cash operating margin of $804 per ounce of gold sold with a realized price of $1,659 per ounce.
• Mill throughput of 1,719 tons per day, a 36% increase compared to 2011 mill throughput of 1,263 tons per day.
• Cash and cash equivalents balance of $11.6 million as at December 31, 2012.
• Completed 221,191 metres of exploration and definition diamond drilling.
• Continued exploration success along the depth extension of the 007 zone that returned 12.6 g/t gold over 6.0 metres and 15.5 g/t gold over 11.1 metres.
• Appointed Mr. Torben Jensen as Vice-President, Corporate Development, Mr. Michael Michaud VP, Exploration and appointed Mr. Robert (Bob) Brennan as an independent Director of the Company.
• Completed a number of transactions, expanding the Company's land base in the Rice Lake gold camp and in northern Ontario.

2012 marked a year of significant milestones in terms of both financial and operational metrics. In 2012, the Company achieved record operating performance with record gold production of 86,506 ounces, a 16% increase compared to the same period of 2011. Investments made in crushing and milling capacity, the implementation of more cost-effective mechanized mining methods, and the removal of constraints from operations will continue to contribute to increased gold production.

In 2012, the Company completed a significant exploration program within the Rice Lake greenstone belt. Approximately 221,000 metres of exploration diamond drilling were completed by the Company. The Company is very encouraged by the results of the exploration drilling completed to date as it continues to demonstrate the potential for the expansion of existing mineralized zones and the discovery of new zones in the Rice Lake area.

Review of Financial Results

The Company reports a total and comprehensive loss of $13.2 million for 2012, compared with a loss of $5.1 million in 2011. The change was due in large part to the increased rate of depletion of mineral properties expense after the new resource and reserve estimate was released during the second quarter. Depletion expense was $41.2 million in 2012, compared with depletion expense of $18.3 million in 2011. This is a 126% increase in the recognized expense while production levels increased by only 16%.

San Gold earned revenue of $142.1 million in 2012, a 25% increase compared to revenue of $114.1 million in 2011. This increase was a result of both increased gold sales and an increased realized price of gold. The Company sold 85,690 ounces of gold in 2012, a 20% increase compared to gold sales of 71,684 ounces in 2011. The Company realized $1,659 per ounce of gold sold in 2012, a 4% increase compared to the $1,592 the Company realized per ounce in 2011.

The Company generated record cash flow from operating activities before changes in non-cash working capital of $42.1 million in 2012, a substantial increase compared to a $19.9 million in 2011. After changes in non-cash working capital, operating activities generated $51.1 million in 2012, compared to $9.6 million in 2011.

The Company reported income from operations of $20.6 million, compared with income from operations of $30.4 million from operations in 2011.

Capital spending in 2012 was focused on mine development, increasing mill capacity, improving key infrastructure, and sustaining capital. The Company capitalized $62.2 million of mine development and $15.5 million of property, plant, and equipment during the year compared to $50.4 million and $27.8 million in 2011, respectively.

Tables 1 to 4 at the end of this release provide a detailed summary of the Company's key financial and operating metrics for 2012.

Outlook

The Company is pleased to report strong operating and financial results emphasizing its transition from explorer to positive cash flow gold producer while executing its plan to aggressively explore and develop the Rice Lake greenstone belt. Going forward, the Company anticipates improved operating cash flows while reinvesting in its mineral properties.

2013 will mark another significant step forward in the evolution of the Rice Lake Mining Complex by extending operational access beneath the current mining areas at the 007 and Hinge mines. This development will provide the drill platforms required to increase mineral reserves for long-term mine planning and will also provide access for continued exploration of targets located along strike from known deposits at depth. The Company continues to be excited about the resource potential at depth as recent drill results below 26 Level confirms continuity of the geological structures.

Throughout 2013, the Company will be focusing production on the Hinge and 007 areas while developing the Shoreline Basalt deposits and increasing the capacity of the Rice Lake shaft at depth. During the fourth quarter the Company suspended regular mining operations in the Rice Lake Mine in order to concentrate on capital development projects on 16 and 26 levels and on increasing the capacity of the 1,200 metre main shaft. The goal is to accelerate access to the down dip extensions of the existing ore zones in L10 and 007 by drifting into the Shoreline Basalt on 16 and 26 levels. This will result in an increased number of stopes and an improvement in the material handling capabilities in the mine complex. Current engineering studies indicate that A-Shaft may not be shut down as previously announced; its capacity can be improved by a combination of lighter skips and ropes together with increased hoisting and loading pocket capacity. This would allow the Company to meet its ounce guidance and waste development timetable on 16 and 26 Level. This improved infrastructure would enable the Company to access the higher grade Rice Lake Mine earlier than anticipated and defer capital development on the Cohiba deposit. This strategy will continue to be reviewed throughout 2013.

In 2013, the Company will continue its aggressive exploration program within the Rice Lake greenstone belt. The Company has budgeted to drill in excess of 270,000 metres of exploration diamond drilling. Exploration activities for 2013 will continue to focus on definition and extension drilling for both production planning and exploration purposes at the San Antonio Mining Unit, the Shoreline Basalt Unit, the Normandy Creek Shear Zone, and within the intermediate volcanic rock unit north of the Shoreline Basalt Unit. The objectives of the Company's exploration program is to develop a larger mine complex that can be exploited through existing infrastructure. In 2013, the Company will also have exploration activities associated with optioned properties in and around the Rice Lake area.

2012 Financial Results Conference Call

The Company's senior management plans to host a conference call on April 12, 2013 at 11:00 am Eastern Standard Time to discuss the 2012 financial results, and to provide an update of the Company's operating, exploration, and development activities.

Participants may join the conference call by dialing 1 (866) 226-1792 or 1 (416) 340-2216 for participants outside of Canada and the United States. The conference call will also be available by webcast on the Company's website atwww.sangold.ca.

A recorded playback of the conference call can be accessed after the event until April 28, 2013 by dialing 1 (800) 408-3053 or 1 (905) 694-9451 for calls outside Canada and the United States. The pass code for the conference call playback is 1034500. The archived audio webcast will also be available on the Company's website atwww.sangold.ca.

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".

This press release should be read in conjunction with the Company's consolidated financial statements for the quarter ended December 31, 2012 and associated Management's Discussion and Analysis ("MD&A"), which are available from the Company's website (www.sangold.ca), in the "News & Reports" section under "Financial Statements", and on SEDAR (www.sedar.com).

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

Cautionary Non-IFRS Statements

The Company believes that investors use certain indicators to assess gold mining companies. They are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared with International Financial Reporting Standards ("IFRS"). "Total cash operating costs" as used in this analysis is a non-IFRS term typically used by gold mining companies to assess the level of gross margin available to the Company per ounce of gold by subtracting these costs from the unit price realized during the period. This non-IFRS term is also used to assess the ability of a mining company to generate cash flow from operations. There may be some variation in the method of computation of "total cash operating costs" as determined by the Company compared with other mining companies. In this context, "total cash operating costs" reflects the per ounce cash costs allocated from in-process and dore inventory associated with ounces of gold sold in the period and net royalties. "Total cash operating costs" may vary from one period to another due to operating efficiencies, quantity of ore processed, grade of ore processed, and gold recovery rates.

Cautionary Note Regarding Forward Looking Statements

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.

Cautionary Note to United States and Other Investors Concerning Estimates of Measured, Indicated and Inferred Mineral Resources:

This press release uses the terms "Measured", "Indicated", and "Inferred" resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of a Mineral Resource is economically or legally mineable.

Table 1: 2012 Income Statement

Table 2: Financial Highlights

Table 3: Production Summary and Statistics

Table 4: Quarterly Production Summary and Statistics

NOTE: Final refinery settlements, or the effects of rounding, may have resulted in increases or decreases to reported gold production.