SOURCE: San Gold Resources Corp.

May 19, 2005 11:50 ET

Gold Resources Increase by 50% for San Gold/Gold City

BISSETT, MB -- (MARKET WIRE) -- May 19, 2005 -- Dale Ginn, President of San Gold Resources Corporation (TSX-V: SGR) and Fred Sveinson, President of Gold City Industries Ltd. (TSX-V: GC) are pleased to report that the gold resource estimation on the San Gold #1 deposit has been completed by A.C.A. Howe International Ltd. ("Howe") of Toronto, Ontario. The results summarized below are in addition to the existing gold resources at the adjacent Rice Lake Gold Mine and represent a 50% increase in total gold resources for the project.

         San Gold #1 Deposit Resource Summary

Category               Tons      Grade    Contained
                               (oz. Au/T)   Ounces
---------------------------------------------------
Indicated Resources   283,178     0.22      62,299

Inferred Resources    694,586     0.22     152,809
The San Gold #1 deposit and the adjoining Rice Lake Gold Mine are located within the Rice Lake greenstone belt at the west end of the Archean Uchi Subprovince in and near the town of Bissett, Manitoba. The above deposits are owned jointly by San Gold and Gold City, who are scheduled to merge to form San Gold Corporation, pending shareholder approvals on June 21st (see news release dated April 29, 2005).

In addition to the above resource summary, Howe has determined that:

--  The resource estimates conform to the guidelines set out by CIMM for
    resource and reserve estimates and those adopted by NI 43-101 and were
    prepared by competent geologists under the supervision of a Qualified
    Person as defined in NI 43-101. The resource categories conform to CIMM
    Resource and Reserve criteria and those set out in NI-43-101
--  The rationale for establishing an indicated resource category is based
    on the consistency of the mineralized zone to a depth of 300 feet below
    surface
--  There are sufficient resources to warrant the underground bulk
    sampling program that is currently underway
--  The zone appears to have a tabular nature and exhibits good hole-to-
    hole continuity of the mineralized zone. The zone has a strike of
    approximately 075 degrees (true), a dip of 70 to 90 degrees to the north
    and plunges approximately 75 degrees to the west
--  Howe concludes that there is potential to increase the resource base
    down plunge from the currently defined resource base, beneath the 1,000
    foot level, as well as in areas that have been sparsely drilled to date
    below the 400 foot level
    
The drill hole data (over 150 holes) for the San Gold #1 deposit is stored in and accessed from a GEMCOM software database. Drill sections and vertical longitudinal sections were produced from the Gemcom database and interpreted by hand. Zone outlines were hand-plotted honouring geological boundaries and resource criteria. Longitudinal section polygonal methods were utilised with areas of influence around drill holes established and horizontal widths derived from drill sections. Weighted average grades were determined across the horizontal width of the mineralization.

San Gold and Gold City also own the adjoining Rice Lake Gold Mine, which has a modern 1,250 ton per day processing plant with a developed underground mine that contains the following resources (Howe 2004):

         Rice Lake Gold Mine Resource Summary

Category               Tons      Grade    Contained
                               (oz. Au/T)  Ounces
---------------------------------------------------
Measured Resources    539,000     0.24     127,600

Indicated Resources   728,100     0.27     198,680

Inferred Resources    734,700     0.31     225,000
W. S. Ferreira, M.Sc., P.Geo., San Gold Director and D. Ginn, P.Geo., San Gold President and Director are the Qualified Persons responsible for this project under National Instrument 43-101. Sections, plans and location maps for the San Gold #1 deposit will be available at the new website www.sangoldcorp.com, scheduled to be active on May 23rd, 2005.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. The statements made in this news release may contain forward-looking statements. Actual events or results may differ from the Company's expectations. Certain risk factors may also affect the actual results achieved by the Company.

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