Mr. Ian Berzins reports

SAN GOLD ANNOUNCES CLOSING OF PRIVATE PLACEMENT OFFERING

San Gold Corp. has closed its previously announced private placement offering. At the closing of the offering, San Gold issued 32 million units at a price of 12.5 cents per unit for aggregate gross proceeds of $4-million. The units were all purchased by Sprott Asset Management LP on behalf of various funds managed by it.

Each unit consists of one common share of San Gold and one-half of one warrant. Each whole warrant is exercisable into one common share at a price of 18 cents for a period of two years from the date of issuance. The net proceeds from the sale of the units will be used for the development of San Gold's mineral properties and for general corporate purposes.

All securities issued will be subject to a four-month hold period. The closing of the offering is subject to the final approval of the Toronto Stock Exchange.

Primary Capital Inc. acted as a finder for the offering and received a finder's fee of $200,000, which was paid in units at a deemed price of 12.5 cents per unit. Accordingly, an additional 1.6 million common shares and 800,000 warrants were issued to Primary Capital.

We seek Safe Harbor.