Mr. Ian Berzins reports

SAN GOLD INTERSECTS NEW ZONE AT DEPTH

San Gold Corp. has released drilling results from a new underground drilling station located on 26 level, approximately 1,180 metres underground, at its Rice Lake mining complex in Manitoba, Canada. This new drill location was established in the first quarter of 2013 in order to provide better access for definition drilling of the 007 structures at depth. Drilling will continue for the balance of the year.

Initial results from the 6130 drill station demonstrate robust grades and widths and confirm the strong vertical continuity of the 007 gold mineralization structures to depth. The 007 veins continue to be a large contributor to the planned feed to the mill.

Drill hole 613-13-039 also encountered 14.2 grams per tonne (g/t) gold (Au) (capped) over 4.2 metres in a new structure that is located immediately north of and parallel to the 710 lens of the 007 deposit. Drill hole 613-13-021 also intersected the new structure and returned 8.2 g/t Au over 3.7 metres. Both of these holes were designed to follow up on previous drilling related to drill hole 607-12-048 (released Nov. 26, 2012) which returned 12.0 g/t Au over six metres in the 710 lens and 15.5 g/t Au over 11.1 metres in what is now considered to be the new structure.

Drilling in the main 710 lens was highlighted by drill hole 613-13-022 which returned 15.2 g/t Au (capped) over 3.1 metres.

Both the 710 lens and the new structure are in immediate proximity to existing infrastructure on 26 level of the Rice Lake mine. The company is currently tunnelling toward the 710 lens and expects to reach the lens in the second quarter of 2013. This will provide access to mining of the 710 lens and the opportunity to establish new drill locations in closer proximity to the 007 structures.

  HIGHLIGHTS OF THE PRELIMINARY DRILLING FROM THE 6130 DRILL STATION

                                    Est.
                                    true
                From    To  Core   width Grade (g/t) Grade (g/t) Depth
Hole No.         (m)   (m)   (m)     (m)    (capped)  (uncapped)   (m)

613-13-039     290.1 294.1   4.0     2.5                     2.6 1,164
Including      292.9 293.8   0.9     0.6                     9.7
And            348.8 353.1   4.2     2.7        14.2        22.5 1,159
Including      350.5 351.7   1.2     0.8        45.6        64.3
And            356.9 361.0   4.1     2.5                    15.7 1,158
613-13-021     301.1 304.8   3.7     3.3                     8.2 1,110
613-13-022     155.7 158.8   3.1     2.6        15.2        42.8 1,148
Including      156.2 156.7   0.5     0.4       102.8       266.8
        

"We are extremely pleased with the initial results from this new drilling platform. The first stage of drilling has already identified vertical continuity of the 007 structures from surface as well as additional structures outside of the original geological model that are all within striking distance of our existing mining infrastructure," said Ian Berzins, San Gold's president, chief executive officer and chief operating officer.

The continuing definition drilling program is designed to increase the confidence in the distribution of the gold mineralization and convert the large inferred mineral resource in the 007 deposit to measured and indicated resources, and subsequently, to mineral reserves. The extensive drilling program planned for 2013 is part of the company's aggressive campaign to increase the mineral reserve base and fully develop the deposit for mining.

An image on the company's website provides a graphic illustration showing the interpreted orientation of the new mineralized structure discovered in the hangingwall of the 710 vein.

Another image on the website provides a graphic illustration showing the location of the 6130 drilling station and the region accessible for drilling from this and other 007 drilling platforms.

This program was carried out by San Gold mine geologists under the supervision of Michael Michaud, PGeo, the qualified person for San Gold under National Instrument 43-101 who has reviewed and approved this news release. 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, Sask., and Accurassay Laboratories of Thunder Bay, Ont.

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