Mr. Ian Berzins reports

SAN GOLD ANNOUNCES A 60% INCREASE IN MINERAL RESERVES

San Gold Corp. has released an updated mineral reserve and resource estimate for its Rice Lake mining complex.

During 2013, extensive definition drilling and detailed mine planning to integrate the Hinge, 007 and Rice Lakes mines resulted in an increase in proven and probable mineral reserves to 2.7 million tons grading 5.24 grams per tonne containing 405,400 ounces of gold as of Dec. 31, 2013. This is a 60-per-cent increase from the proven and probable mineral reserves as of Dec. 31, 2012.

"I am very pleased with the progress made by our technical team over the past year. The increase in reserves has allowed us to complete five years of detailed mine planning, thereby providing improved operational flexibility. Our drilling in 2014 will be primarily from underground locations in closer proximity to known orebodies. We expect to achieve a further increase in the mineral reserve as the year progresses through the conversion of our large inferred mineral resource," said Ian Berzins, San Gold's president, chief executive officer and chief operating officer.

              RICE LAKE MINING COMPLEX MINERAL RESERVES,
                          AS OF DEC. 31, 2013
 
                                  Tons          Grade                 Gold
                                           g/tonne      oz/ton          oz
Rice Lake mine
Proven reserves                345,600        6.05        0.18      61,000
Probable reserves            1,114,300        5.85        0.17     190,000
Proven and probable          1,459,900        5.89        0.17     251,000
Hinge district
Proven reserves                146,000        4.79        0.14      20,400
Probable reserves              320,500        4.16        0.12      38,900
Proven and probable            466,500        4.36        0.13      59,300
007 deposit
Proven reserves                133,300        4.76        0.14      18,500
Probable reserves              333,900        4.46        0.13      43,400
Proven and probable            467,200        4.54        0.13      61,900
Other deposits
Proven reserves                 52,200        5.06        0.15       7,700
Probable reserves              208,100        4.21        0.12      25,500
Proven and probable            260,300        4.38        0.13      33,200
Total project
Proven and probable          2,653,900        5.24        0.15     405,400

             RICE LAKE MINING COMPLEX MINERAL RESOURCES,
                          AS OF DEC. 31, 2013
                
                                   Tons          Grade                 Gold
                                            g/tonne      oz/ton          oz
Rice Lake mine
Measured resource               281,400        8.32        0.24      68,300
Indicated resource              927,400        7.87        0.23     212,800
Measured and indicated        1,208,800        7.97        0.23     281,100
Inferred resource             6,553,300        7.11        0.21   1,358,100
Hinge district
Measured resource               123,900        6.33        0.18      22,900
Indicated resource              270,600        5.51        0.16      43,500
Measured and indicated          394,500        5.77        0.17      66,400
Inferred resource             1,313,000        4.51        0.13     172,800
007 deposit
Measured resource               109,900        6.47        0.19      20,700
Indicated resource              275,400        6.05        0.18      48,600
Measured and indicated          385,300        6.17        0.18      69,300
Inferred resource             3,634,400        5.25        0.15     556,100
Other deposits
Measured resource                42,000        7.55        0.22       9,200
Indicated resource              759,400        5.85        0.17     129,600
Measured and indicated          801,400        5.94        0.17     138,800
Inferred resource             4,438,600        6.27        0.18     812,200
Total project
Measured and indicated        2,790,000        6.83        0.20     555,600
Inferred                     15,939,300        6.24        0.18   2,899,200

The estimate of mineral resources was carried out under the supervision of Michael Michaud, vice-president of exploration. The estimate of mineral reserves was carried out under the supervision of Rolando Jeria, chief engineer. Mr. Michaud and Mr. Jeria are qualified persons as defined by NI 43-101 and have reviewed and approved this news release.

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