San Gold Corporation

San Gold Corporation

May 24, 2006 13:05 ET

San Gold Continues to Add to New Cartwright Zone

BISSETT, MB--(CCNMatthews - May 24, 2006) - Mr. Dale Ginn, President, reports:

San Gold Corporation (TSX-V: SGR) is pleased to announce the results of seven new drill holes from their continuing drill program on their new Cartwright Zone located one kilometer west of San Gold's Rice Lake Gold Mine. Over 45 holes (11,000 meters) have been drilled in this area to date and will continue with three drill rigs, one continuing to the west and one moving eastward or towards the Rice Lake Gold Mine. A third drill rig has now collared in order to probe beneath the historic Gabrielle workings which lie between the Rice Lake Gold Mine and the Cartwright Zone. Visible gold was a common occurrence within the intersections as listed below.

Hole # From To Length Gold g/tonne (oz/ton)

CW-06-27 182.6 m 184.3 m 1.7 m (5.6 ft) 13.7 (0.40)

CW-06-28 197.8 m 198.9 m 1.1 m (3.6 ft) 12.0 (0.35)

CW-06-29 192.3 m 195.1 m 2.8 m (9.2 ft) 8.9 (0.26)
and 197.7 m 198.8 m 1.1 m (3.6 ft) 7.6 (0.22)

CW-06-31 208.7 m 210.3 m 1.6 m (5.2 ft) 12.3 (0.36)

CW-06-32 216.4 m 217.7 m 1.3 m (4.3 ft) 4.5 (0.13)

CW-06-33 201.1 m 202.1 m 1.0 m (3.3 ft) 3.8 (0.11)

CW-06-35 211.9 m 215.3 m 3.4 m (11.2 ft) 5.2 (0.15)

The number of holes drilled, the zone's size and similarity to the Rice Lake Gold Mine, and its proximity to the mill facilities have led San Gold to initiate resource calculations and internal mine planning. The company has contracted an independent firm to assist in this calculation and to verify the company's internal resource calculation on its San Gold #3 deposit located six kilometers east of the Rice Lake Gold Mine. San Gold will then accelerate its development and mining plans accordingly.

San Gold's wholly owned Rice Lake Gold Mine has produced 1.5 million ounces of gold to date and is currently being mined between 4500 and 5500 foot depths; as well the company continues to develop its new San Gold #1 Mine located 3 km east. The new Cartwright Zone and the San Gold #3 deposit have been discovered within the past year as San Gold continues to fulfill its strategy of discovering and developing nearby gold deposits in order to add flexibility to its current operating mines and mill. A plan view location map of San Gold's mines and new discoveries will be made available on the company's website

This program was carried out under the supervision of W. S. Ferreira, M.Sc., P.Geo., and D. Ginn, P.Geo., the Qualified Persons for this project under National Instrument 43-101. The drill core was split, with half sent to TSL Laboratories in Saskatoon, SK and fire assayed with an AA and gravimetric finish. Whole metallics were performed on selected samples. Check assays were also performed on pulps and rejects by both TSL and by Accurassay Laboratories of Thunder Bay, ON. The core lengths are actual lengths as drilled and have not been adjusted for the true width of the mineralized zones.

For further information contact Dale Ginn, President of San Gold Corporation, at (204) 794-5818 or visit

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information