San Gold Corporation

San Gold Corporation

May 15, 2006 08:34 ET

San Gold Receives New Cartwright Zone Results

BISSETT, MB--(CCNMatthews - May 15, 2006) - Mr. Dale Ginn, President of San Gold Corporation (TSX-V: SGR), reports:

San Gold Corporation is pleased to announce the results of 12 new drill holes from their continuing drill program located one kilometer west of San Gold's Rice Lake Gold Mine. To date, the results of 20 drill holes have been released; remaining holes will be released as soon as they become available. Hole CW-06-26 which encountered 3.1m (10.0 ft) of 13.7 g/tonne (0.40 oz/ton) represents the easternmost intersection and the beginning of efforts to join to and prove the continuity of this new discovery (Cartwright Zone) with the Rice Lake Gold Mine. Over 30 holes have been drilled in this area to date and will continue with two drill rigs, one continuing to the west and one moving eastward or towards the Rice Lake Gold Mine. Visible gold was a common occurrence within the intersections as listed below.

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

CW-06-12 126.7 m 128.7 m 2.0 m (6.5 ft) 5.5 (0.16)
CW-06-13 139.7 m 140.7 m 1.0 m (3.3 ft) 9.3 (0.27)
CW-06-14 198.9 m 199.9 m 1.0 m (3.3 ft) 14.5 (0.42)
CW-06-15 108.8 m 109.9 m 1.1 m (3.5 ft) 2.5 (0.07)
CW-06-16 137.8 m 138.3 m 0.5 m (1.6 ft) 29.7 (0.87)
CW-06-17 243.2 m 245.8 m 2.6 m (8.5 ft) 5.5 (0.16)
CW-06-19 58.9 m 59.1 m 0.5 m (1.6 ft) 120.2 (3.51)
and 134.7 m 135.0 m 0.3 m (1.0 ft) 62.5 (1.83)
and 199.7 m 201.7 m 2.0 m (6.5 ft) 10.8 (0.34)
CW-06-20 208.6 m 210.1 m 1.5 m (5.0 ft) 3.4 (0.10)
and 214.0 m 215.8 m 1.8 m (6.0 ft) 5.5 (0.16)
CW-06-21 194.1 m 196.9 m 2.8 m (9.3 ft) 8.9 (0.26)
CW-06-22 366.4 m 369.1 m 2.7 m (9.0 ft) 7.9 (0.23)
CW-06-23 203.3 m 209.0 m 5.7 m (18.7 ft) 4.8 (0.14)
CW-06-26 197.5 m 200.6 m 3.1 m (10.0 ft) 13.7 (0.40)

All of the drilling on the Cartwright Zone to date has taken place between 0.9 km and 1.2 km west of the currently operating Rice Lake Gold Mine shaft and has encountered identical geology and mineralized veins as compared to the Rice Lake Gold Mine. All of the intersections so far encountered in the Cartwright zone are consistent with mineable grades and thicknesses encountered in San Gold's Rice Lake Gold Mine. The developing grade and geometry of the Cartwright deposit has encouraged San Gold to begin preliminary plans to design a new decline to be collared from the Rice Lake Gold Mine site in order to access the Cartwright mineralization as well as for a number of other purposes. This decline would also provide mechanized access to the Rice Lake Gold Mine's upper levels (for ore extraction and waste rock disposal), as well as providing access to the historical Gabrielle shaft and level development located between the Rice Lake Gold Mine and the newest discovery holes. The Gabrielle shaft and two levels at the 150 and 250 foot elevations were developed in the 1920s on 6 mineralized veins, however no significant mining ever took place. Ground geophysics also indicates that the Cartwright zone may extend at least one kilometer to the west, and join the Rice Lake Gold Mine one kilometer to the east.

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. 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.

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.

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.

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