Mr. George Pirie of San Gold reports

SAN GOLD CORPORATION AND SGX RESOURCES INC. ANNOUNCE SALE OF CLAIMS FROM SAN GOLD CORPORATION TO SGX RESOURCES INC.

San Gold Corp. and SGX Resources Inc. have reached an initial agreement for SGX to purchase all of the interests of San Gold in its mineral properties in Tisdale township in the Timmins, Ont., mining camp in consideration of the issuance of 8.06 million common shares of SGX at a deemed price of 50 cents per SGX share to San Gold. SGX and San Gold anticipate entering into a formal purchase agreement with respect to the transaction in the near future.

The Tisdale township properties consist of a 31.5-per-cent ownership in 12 mineral claims known as the Davidson-Tisdale property and a 100-per-cent interest in 15 mineral claims known as the North Tisdale property, as well as certain surface rights. The remaining 68.5 per cent of the Davidson-Tisdale property is owned by Lexam VG Gold Inc. San Gold initially acquired the properties from Laurion Mineral Exploration Inc. in January, 2010, but has not undertaken any exploration or development work on the properties since that date.

The transaction is a related-party transaction for the purposes of Multilateral Instrument 61-101 (protection of minority securityholders in special transactions). San Gold and SGX are each relying on an exemption from the minority approval and formal valuation requirements of MI 61-101, due to the fact that the value of the properties does not represent greater than 25 per cent of the market capitalization of either San Gold or SGX.

Upon closing of the transaction, the number of SGX shares owned by San Gold will increase from 26,646,256 to 34,706,256. The percentage of SGX shares owned by San Gold will increase from 33.36 per cent to 39.49 per cent.

SGX anticipates that the closing of the transaction will take place in the next few weeks. The transaction is subject to the final approval of the TSX Venture Exchange.