San Gold Hinge Bulk Sample Combines High Grades With Low Costs

BISSETT, MB, Jul 14 (MARKET WIRE) --
Dale Ginn, CEO of San Gold Corporation (TSX-V: SGR), is pleased to
present the results of the 11,762 ton Hinge Zone bulk sampling program
that was carried out during the second quarter of 2009. The high grade
nature of the hinge zones were validated as the stope mining grade
reconciled to the mill at 21.7 g/tonne (0.63 oz/ton) with the main #1
lens stope contributing 26.3 g/tonne (0.77 oz/ton). Low total operating
costs (mine and mill) of Cdn $184 ($US 158) per ounce were realized as
well as high mill recoveries of 96%. Total expenditures (operating and
capital) to date in order to build and develop the Hinge Mine are
approximately Cdn $6.5 million with nearly 6,000 ounces recovered to June
30th. A table containing the detailed breakdown of stoping, development,
mill and cost data follows the written portion of this press release.

Highlights and Observations of the Hinge Zone Bulk Sampling
Program
include:

-- 5,938 ounces recovered from 11,762 tons mined and processed.

-- Stoping grades of 21.7 g/tonne (0.63 oz/ton) and development grades of
16.9 g/tonne (0.49 oz/ton).

-- Main Hinge lens #1 grades 26.3 g/tonne (0.77 oz/ton) in stoping and
21.2 g/tonne (0.62 oz/ton) in development.

-- Bulk sample operating costs averaged Cdn $59 per ton for mining and
Cdn $19 per ton for milling, for a total direct operating cost of Cdn $78
per ton, excluding capital expenditures and exploration drilling.

-- Total direct bulk sample operating cost per ounce of gold produced is
Cdn $184 per ounce or approximately US $158 as at June 30, 2009.

-- Total expenditures of Cdn $6.5 million to develop the Hinge Mine.

-- Total decline, lateral and raise development of over 8,000 feet
completed to June 30th.

The bulk sampling program was segmented into stope (i.e. production
mining) and development segments. The two stope segments averaged 20.6
g/t (0.63 oz/t) over 2,738 tons. Four development ore segments averaged
16.0 g/t (0.49 oz/t) over 9,024 tons. The entire 11,762 ton bulk sample
averaged 18.0 g/t (0.53 oz/t) recovered. It is anticipated that the
majority of future ore will be derived from the stoping category versus
the development category as the Hinge Mine progresses to steady-state
production. Waste dilution in the development headings averaged
approximately 40% and approximately 15% in the stope or bench headings.

The Hinge bulk sample program began in late March with initial sill or
level development of the #1 and #2 lenses at the 9650 level or 100 meter
level. Development was conducted using a combination of jackleg and jumbo
drilling depending on vein width. The discovery of the #3 lens during this
phase led to its subsequent development at the same elevation in the
footwall of the #2 lens. The #1 and #2 lenses at this elevation were then
benched (stope ore) in preparation for mechanized cut-and-fill mining.
During this period, the #1 lens was accessed at a higher elevation known
as the 9710 level or 75 meter level. Sill or level development at this
elevation commenced and is currently ongoing, however a portion of this
ore was able to be processed and included in this bulk sample for the
June 30th cutoff date. The Hinge Zone underground mine conditions are
excellent and presently include a portal (decline entrance) located 500 m
(about 1500 feet) to the north-east of the Rice Lake mill, a 1000 m
decline connecting the portal and the Hinge Zone, a ventilation raise and
the initiation of a ramp system for access to additional levels.

The Hinge Zone ore has excellent gold liberating qualities being
especially clean, dry and free of gangue minerals. This led to an
increase in mill throughput to a maximum of 80 tons per hour, nearly
double the historical average rate, during the period of the bulk sample.
Further mill tests will be required to determine if this is a sustainable
rate for the full mill circuit.

Ore development, benching and milling summary March 20 to June 30, 2009

Source/Heading Tons Grade g/tonne (oz/ton) Ounces
-------------- ---- ---------------------- ------
(mill reconciled)
-----------------

9650 01 bench 1389 26.3 (0.77) 1066
9650 02 bench 1349 17.0 (0.50) 671
---- ---------------------- ------
stope subtotal 2738 21.7 (0.63) 1737

9650 01 sill 1634 20.6 (0.60) 984
9650 02 sill 2122 15.2 (0.44) 939
9710 01 sill 3142 21.6 (0.63) 1986
9650 03 sill 2126 8.7 (0.25) 539
---- ---------------------- ------
development subtotal 9024 16.9 (0.49) 4448

Total bulk sample 11762 18.0 (0.53) 6185

Mill
----
Gold ounces recovered 5,938
Overall Mill Recovery % 96%
% Recovered by Gravity 37%
Average throughput per hour 50 tons
Max throughput achieved 80 tons

Cost data ($ Cdn)
-----------------

Cost/ton mill $19
Cost/ton mine $59 Includes definition drilling, access development,
--- pro-rata supervision and overheads.

Total cost/ton $78 Not including capex and surface exploration drilling

Total cost/oz $184

Total expenditure on Hinge project to June 30, 2009 Cdn $6,500,000
Total development footage achieved to June 30, 2009 8000 ft

Dale Ginn, CEO of San Gold, stated, "It is very rewarding to have
completed a successful bulk sample program on this new ore body, but to
return nearly enough gold to cover all of the costs of developing the new
mine is remarkable. These results confirm the high grade nature of Hinge
Zone and the practicality of mining and processing this ore at very low
cost. The results also clearly demonstrate the advantage we possess in
having a full compliment of miners and a fully permitted processing
facility in proximity to an aggressive and potent exploration program. I
am proud to be part of the San Gold team that has achieved so much over
such a short time-span, eighteen months from the discovery drill
intersection to initial and very profitable production. I would
especially like to single out the head of the exploration team, Bill
Ferreira and our COO and head of the development team, Ian Berzins for
their dedication and persistence."

Exploration at the Hinge Zone, the newly discovered Cohiba zone, other
areas in the hanging wall volcanics, and underground at the Rice Lake Mine
is ongoing with 8 drills working continuously. Exploration results will be
announced on an ongoing basis as they become available. The currently
known Hinge and Cohiba zones are located approximately 1.5 kms to the
north-east of San Gold's operating Rice Lake and mine and mill, and are
fully accessible by San Gold's private road, and all lie within San
Gold's fully permitted mine lease.

Location plans are available in the graphical version of this press
release at San Gold's website: www.sangoldcorp.com.

This program was carried out under the supervision D. Ginn, P.Geo., the
Qualified Person for this project under National Instrument 43-101. The
analytical work for the Hinge Zone bulk sampling program was performed at
San Gold's onsite laboratory under the supervision of qualified San Gold
personnel. All samples were assayed using standard fire assay methods with
AA and gravimetric finishes. The quality control and assurance program
includes the insertion of standards and the retention of pulps and
rejects. The production of gold dore bars was performed under the joint
supervision of San Gold's mill and security departments, with final
refining of dore bars completed at a commercial refiner with final ounces
reconciled under a joint referee program.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release. This news
release may contain assumptions, estimates, and other forward-looking
statements regarding future events. Such forward-looking statements
involve inherent risks and uncertainties and are subject to factors, many
of which are beyond the Company's control, which may cause actual results,
performance or circumstances to differ materially from those currently
anticipated in such statements.

For further information contact:
Dale Ginn
CEO
San Gold Corporation
(204) 794-5818

Investor Information
1-800-321-8564

www.sangoldcorp.com

Copyright 2009, Market Wire, All rights reserved.

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