BISSETT, MB, Dec. 2 /CNW/ - Dale Ginn, CEO of San Gold Corporation
(SGR:TSX || SGRCF:OTCQX) is pleased to report that exploration
step-out drilling from surface and underground has now confirmed an
eastern extension to the 007 Zone. Drill hole # CD-10-183 intersected
415.0 g/tonne (12.12 oz/ton) over 3.4 meters (11.2 ft) at over 200
meters to the east of the currently developed strike length extent of
the 007 Zone. Additionally, drilling was undertaken from an
underground drill station at the 9220 level (240 meters below surface)
of the 007 decline. The first underground hole (S922-10-60)
intersected substantial grade and width midway between the known
eastern limit of the 007 Zone and the East Extension discovery hole.
This intersection of 20.9 g/tonne (0.61 oz/ton) over 25.5 meters (83.7
ft) is located over 60 meters to the west of discovery hole #CD-10-178
at the same depth below surface of 260 meters. For reference, discovery
hole # CD-10-178 intersected 66.1 g/tonne (0.61 oz/ton) over 25.5
meters (83.7ft) as reported in a Press Release dated November 16, 2010.
The strike length confirmed by drilling of the 007 and 007 East
Extension zones combined is now over 300 meters (1,000 ft) at 260
meters (850 ft) below surface as clearly shown by the detailed plan
view of this elevation and longitudinal section with drill hole pierce
points attached to the graphics version of this press release.

All drill holes for which assays have been received on the 007 East
Extension zone are listed below:

The 007 East Extension Zone, as well as the 007, L10 and Emperor Zones
all occur near to or within a mafic flow rock unit known as the
Shoreline Basalt, striking roughly east-west, parallel to and
stratigraphically above the Rice Lake Mine or SAM unit. More
precisely, the close association of the 007 and recently discovered
eastward extensions with the Shoreline Basalt has produced gold
deposits that are more planar or regular in shape than the
stratigraphically overlying Hinge type deposits and seem, based on
preliminary results, to carry consistently high gold grades. All of the
Shoreline Basalt zones are located proximal to a series of identified
shears and their intersections with the mafic flow unit. The above
mentioned mineralized zones of the Shoreline Basalt system combine to
form a known strike length of over 1.5 kms. The combined strike length
of the 007 and Emperor Zones is currently over 500 meters long as
demonstrated by drilling to date. Mineralization consists of free gold
and pyrite within quartz-carbonate veining and associated alteration
consistent with the Rice Lake and Hinge Mines and the 007 development.

The 007 zone is located approximately 2 kms to the north-east of San
Gold's operating Rice Lake mine and mill, is fully accessible by road
and is accessible from the Hinge Mine decline. The 007 zone was
initially discovered by San Gold geologists in November 2009 and mine
development towards the zone began early in 2010 originating from the
Hinge Mine.

Sections, plans and diagrams related to this press release are available
at the company's website www.sangold.ca, including a detailed longitudinal section displaying the results to
date.

This program was carried out under the supervision of W.S. Ferreira,
P.Geo., the Qualified Person for this project under National Instrument
43-101. The drill core was split, with half sent to TSL Laboratories in
Saskatoon, SK and fire assayed with an AA and gravimetric finish.
Whole metallic assays were performed on samples containing visible
gold. Check assays were also performed on pulps and rejects by both
TSL and by 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.

NOTE: The information in this release may contain forward-looking
information under applicable securities laws. This forward-looking
information is subject to known and unknown risks, uncertainties and
other factors that may cause actual results to differ materially from
those implied in the forward-looking information.

Neither the Toronto Stock Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the Toronto Stock Exchange)
accepts responsibility for the adequacy or accuracy of this release.