SOURCE: San Gold Corporation

August 14, 2007 12:20 ET

Phase 1 Drill Program Reveals Multiple New Zones at Rice Lake Deep

BISSETT, MB--(Marketwire - August 14, 2007) - Dale Ginn, CEO of San Gold Corporation (TSX-V: SGR), is pleased to review the completed first phase of drilling below the lowest developed mine workings of the Rice Lake mine. The review of the completed first phase of drilling has revealed numerous new significant veins as well as extended the known veins considerably to depth. The complete set of phase 1 results are tabulated and reviewed below:

                                              Gold g/tonne
Hole #       From      To        Length          (oz/ton)   Vein/Zone
------      ------   ------   -------------   ------------  ---------
473-06-01   50.9 m   52.7 m   1.8 m (5.9 ft)   9.9  (0.29)     New
and         73.2 m   75.8 m   2.6 m (8.5 ft)  10.7  (0.31)     New
and        171.1 m  174.8 m   3.7 m (12.1 ft) 12.8  (0.37)      96

473-06-02   52.9 m   54.6 m   2.1 m (6.9 ft)   5.2  (0.15)     New
and         62.4 m   65.7 m   3.3 m (10.8 ft)  5.5  (0.16)      96

473-06-03   39.6 m   43.0 m   3.4 m (11.2 ft)  7.6  (0.22)       A
and         48.5 m   50.0 m   1.5 m (4.9 ft)  11.4  (0.33)       A
and        144.4 m  148.5 m   4.1 m (13.5 ft)  7.3  (0.21)      96

473-06-04   22.8 m   30.6 m   7.8 m (25.6 ft) 21.6  (0.63)       A

473-06-05    8.9 m    9.9 m   1.0 m (3.3 ft)  20.6  (0.60)       C

473-06-06    5.3 m    7.2 m   1.9 m (6.2 ft)  14.1  (0.41)       C

473-06-07    6.4 m    8.2 m   1.8 m (5.9 ft)   9.3  (0.27)       C

473-06-08    6.4 m    9.0 m   2.6 m (8.5 ft)   5.5  (0.16)       C

473-06-09    7.6 m    9.5 m   1.9 m (6.2 ft)  15.8  (0.46)       C

473-06-10   60.6 m   64.8 m   4.2 m (13.8 ft)  8.6  (0.25)       A
and         84.2 m   86.9 m   2.7 m (8.9 ft)  11.0  (0.32)      96

473-06-12   12.0 m   13.6 m   1.6 m (5.3 ft)  24.7  (0.72)       A

473-06-13   40.2 m   42.3 m   2.1 m (6.9 ft)  13.7  (0.40)       A

473-06-14   28.3 m   31.9 m   3.6 m (11.8 ft) 11.7  (0.34)     New
and         41.7 m   45.4 m   3.7 m (12.2 ft)  6.5  (0.19)     New

473-06-15   21.5 m   25.3 m   3.8 m (12.5 ft) 11.3  (0.33)     New

473-06-16   76.9 m   78.0 m   1.1 m (3.6 ft)  13.4  (0.39)     New
and         98.4 m  105.3 m   6.9 m (22.6 ft) 11.7  (0.34)     New

473-06-17   16.6 m   19.6 m   3.0 m (9.8 ft)   5.1  (0.15)     New
and         23.3 m   27.4 m   4.1 m (13.5 ft) 10.0  (0.29)     New
and         31.0 m   32.3 m   1.3 m (4.3 ft)  10.0  (0.29)     New
and         35.1 m   39.0 m   3.9 m (12.8 ft)  6.9  (0.20)     New

473-06-18   28.6 m   31.0 m   2.4 m (8.0 ft)  24.0  (0.70)       A
and         37.9 m   42.1 m   4.2 m (13.8 ft) 11.3  (0.33)       A
including   41.4 m   41.7 m   0.3 m (1.0 ft) 125.4  (3.66)       A
and         63.0 m   67.1 m   4.1 m (13.5 ft)  7.6  (0.22)      96
and         68.2 m   72.9 m   4.7 m (15.5 ft) 13.7  (0.40)      96

473-06-19   16.4 m   17.2 m   0.8 m (2.6 ft)  20.6  (0.60)       A

473-06-20A  20.3 m   22.3 m   2.0 m (6.6 ft)  14.7  (0.43)       C

473-06-20B  15.4 m   18.8 m   3.4 m (11.2 ft)  8.6  (0.25)       C

473-06-21   16.2 m   18.8 m   2.6 m (8.6 ft)  29.1  (0.85)       A
including   18.1 m   18.8 m   0.7 m (2.3 ft)  90.1  (2.63)       A

473-06-23B  38.1 m   42.7 m   4.6 m (15.1 ft)  5.8  (0.17)       A

473-06-24   12.1 m   18.0 m   5.9 m (19.4 ft)  6.9  (0.20)       A
and         28.1 m   34.3 m   6.2 m (20.3 ft)  5.1  (0.15)       A
and         37.3 m   40.4 m   3.1 m (10.2 ft)  6.2  (0.18)       A
and         49.8 m   52.7 m   2.9 m (9.5 ft)  11.4  (0.33)      96

473-06-25   15.0 m   45.3 m  30.3 m (99.4 ft) 12.4  (0.36)       A
and         58.0 m   60.1 m   2.1 m (6.9 ft)  12.0  (0.35)      96

473-06-26   72.0 m   78.8 m   6.8 m (22.3 ft) 50.1  (1.46)      96

473-07-27  128.3 m  133.0 m   4.6 m (15.2 ft) 18.0  (0.53)      96
within     127.1 m  133.6 m   6.5 m (21.4 ft) 14.6  (0.43)      96
and         50.0 m   51.8 m   1.8 m (5.9 ft)  14.8  (0.43)       A
and         68.5 m   78.2 m   9.7 m (32.0 ft)  5.8  (0.17)     New
and        100.3 m  102.7 m   2.4 m (8.0 ft)   5.9  (0.17)     New
and        105.0 m  109.9 m   4.9 m (16.1 ft) 11.2  (0.33)     New
and        116.1 m  118.2 m   2.1 m (6.9 ft)  10.1  (0.30)     New

HM-06-01    89.9 m   95.9 m   6.0 m (19.7 ft) 17.8  (0.52)       C

HM-06-02   101.3 m  104.1 m   2.8 m (9.2 ft)  17.9  (0.52)       C

HM-06-03     3.0 m    8.5 m   5.5 m (18.0 ft) 12.2  (0.36)       A

HM-06-04    40.4 m    46.8 m  6.4 m (21.0 ft)  8.6  (0.25)       A
and         84.6 m    89.6 m  5.0 m (16.4 ft) 14.8  (0.43)      96

HM-06-05    63.7 m    72.9 m  9.2 m (30.2 ft)  6.0  (0.18)      96

473-06-110  44.8 m    48.2 m  3.4 m (11.1 ft)  5.0  (0.15)     New
And         55.2 m    66.0 m 10.8 m (35.4 ft)  7.2  (0.21)       A
And         81.9 m    86.9 m  5.0 m (16.4 ft)  8.3  (0.24)      96

473-06-113  35.6 m    44.1 m  8.5 m (27.9 ft)  7.6  (0.22)       A

Note: The "06" part of the hole designation refers to 2006, the
      year the hole was planned.

During the phase 1 program, 33 holes were completed with 63 gold intersections of significant value recorded. Drilling targeted the down dip/plunge area of the main vein sets that were mined by the previous operators of the mine during the years 1999 to 2001 and 1932 to 1968. This area has rough dimensions of 700 feet by 400 feet within the host diabase or SAM unit and contains the most prominent vein sets named the "96," "A," "C" as well as others. Phase 1 drilling intersected these veins up to 500 feet below the 4730 Level, the lowest of the developed levels of the mine. All of the above listed veins remain open at depth where subsequent phases of drilling will continue to define and extend from the currently advancing decline access.

The 96 vein has a strike length of 600 to 700 feet, is tabular in nature and has an average dip of 70 degrees. Phase 1 drilling returned 13 intersections with widths of 9 feet to 30 feet and grades that varied from a low of 0.16 oz/ton to 1.46 oz/ton.

The A vein strikes roughly perpendicular to the 96 vein and is classified as a stockwork or breccia type of vein. The dip of the A vein is near vertical, widths are variable and can be quite massive where intersected by other veins, most notably the 96 vein as in the case of hole #25. Phase 1 drilling returned 19 intersections with widths of 3 feet to 100 feet and grades that ranged from a low of 0.15 oz/ton to 0.85 oz/ton. The 96 vein and A vein are currently being developed on two levels at the 5400 foot and 5450 foot by jumbo crews in preparation for mining.

The C vein is located 400 feet east of the 96 vein which is parallel and has similar characteristics. The strike length is 400 to 500 feet and the dip averages 65 degrees. Phase 1 drilling returned 9 intersections with widths of 3 feet to 20 feet and grades that ranged from a low of 0.16 oz/ton to 0.60 oz/ton.

Of great significance is the number and size of new veins discovered during this phase of drilling. 17 intersections were classified as new discoveries with widths that varied between 4 feet and 32 feet and grades that ranged from 0.15 oz/ton and 0.39 oz/ton. The majority of these intersections are located between the 96 and the C vein and are interpreted to be stockwork veins that are parallel to and similar to the A vein. The tonnage factor for Rice Lake mine veining is 11.5 cubic feet per ton (ACA Howe, 2007).

The Phase 1 drill program at Rice Lake Deep has generated strategically significant results that will completely transform the nature of mining at the Rice Lake mine. Previously, since 1932, mining occurred in relatively high-grade and narrow vein deposits using classic shrinkage methods of mining. The exceptional widths and grades encountered with this round of drilling are suitable for more efficient and mechanized mining methods which will be employed in this area by San Gold. This will occur in combination with classic shrinkage mining methods employed in the extreme high grade veins located approximately 1000 feet above this area. The new Phase 1 results, to be succeeded by the Phase 2 program currently underway, have redefined the deep mine area as a very high grade and massive tonnage environment. The updated resource and mine plan study that is currently underway will further quantify the economic significance of the recent Rice Lake Deep discoveries.

Please see the San Gold website (www.sangoldcorp.com) for plan and section diagrams relevant to the areas drilled.

This program was carried out under the supervision of D. Ginn, P.Geo., the Qualified Person 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, CEO of San Gold Corporation, at (204) 794-5818 or investor information at 1-800-321-8564 or visit www.sangoldcorp.com.

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

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