San Gold Corporation
TSX VENTURE : SGR

San Gold Corporation

January 18, 2007 08:33 ET

San Gold Develops Additional High Grade at Rice Lake

BISSETT, MB--(CCNMatthews - January 18, 2007) - Dale Ginn, President of San Gold Corporation (TSX-V: SGR) is pleased to report that mining development on the 28th level (4200 feet) of the Rice Lake Gold Mine has identified consistent and extremely high face grade values within an upward extension of the "93" Vein. Face sampling so far has averaged 1.76 oz/ton (60.27 g/tonne) over an average true width of 5 feet (1.5 m) and a strike length of 175 feet (53.3 m). Individual face grades assayed up to 4.16 oz/ton (143 g/tonne) over a true width of 6.0 feet (1.83 m). Coarse, visible gold was routinely encountered throughout this development. Development continues toward drill hole #28-98-24 which assayed 0.85 oz/ton (29.11 g/tonne) over 11.4 feet (3.5 m), and is located 200 feet (60.1 m) to the north of the current development face on the 28th level.

This is San Gold's second significant high grade development in as many months at the Rice Lake Gold Mine.

The "93" Vein is a shear hosted tabular quartz vein located 500 feet (152 m) east of and striking parallel to the similar high grade "98" Vein, which is also being developed currently by San Gold (see press release dated Nov. 1, 2006). This vein represents an upward extension of previously mined areas from lower mine levels and is above the current resource extents and not part of any current resource or reserve estimate. This vein remains completely open and untested above the 28th level. Over 175 feet (53.3 m) of lateral mine development has been completed to date on this vein by San Gold, representing less than half of the estimated strike length of this vein. 20 faces were sampled and 140 chip samples were assayed for gold with individual values ranging from 0.08 oz/ton (2.74 g/tonne) to 8.41 oz/ton (288 g/tonne).

The above programs were carried out under the supervision of W. S. Ferreira, M.Sc., P.Geo., and D. Ginn, P.Geo., the Qualified Persons for San Gold under National Instrument 43-101. Chip, muck and mill 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 blanks and standards, the retention of pulps and rejects, and spot checks utilizing independent labs including TSL Laboratories in Saskatoon, SK and Accurassay Laboratories of Thunder Bay, ON.

For further information, contact Dale Ginn, President of San Gold Corporation, at (204) 794-5818 or visit the company's website at www.sangoldcorp.com.

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

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