SOURCE: San Gold Corporation

August 05, 2005 08:45 ET

San Gold Drilling Returns 18 g/t Au Over 6 m at New #3 Zone

BISSETT, MB -- (MARKET WIRE) -- August 5, 2005 -- Mr. Dale Ginn, President of San Gold Corporation (TSX-V: SGR) (www.sangoldcorp.com), reports:

San Gold Corporation is further encouraged by the latest results from the deepest holes drilled to date on the San Gold #3 Deposit. This deposit, first encountered with the discovery of a surface outcrop showing late in 2003, is located 6 km east of the company's Rice Lake Gold Mine and 3 km east of the San Gold #1 mine which is currently being developed. The deepest hole, #47 returned the highest and most consistent gold values to date within a very strongly mineralized (pyrite) sheared volcanic host rock at the 366 meter (1200 feet) vertical level. The results listed below are in addition to the holes reported in the corporate update press release of August 3, 2005.

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

SG-05-47   3100   441.8 m   447.8 m    6.0 m  (19.7 ft)   18.0    (0.52)
including         441.8 m   444.3 m    2.5 m  (8.2 ft)    37.3    (1.09)

SG-05-45   3125   382.1 m   384.4 m    2.3 m  (7.5 ft)     1.2    (0.03)
SG-05-46   3150   377.7 m   379.5 m    1.8 m  (5.9 ft)     8.6    (0.25)
SG-05-44   3325   279.8 m   282.0 m    2.2 m  (7.2 ft)     4.5    (0.13)
It appears that the San Gold #2 and San Gold #3 zones, which have so far been intersected by drill holes over a 1,100 meter strike length between sections 2300 East and 3400 East, may be continuous and represent one single large zone of gold mineralization, open at both ends and at depth. San Gold has now encountered gold mineralization along six kms of the "mine" horizon or structure that hosts this new deposit, as well as San Gold #1 and the Rice Lake Gold Mine. Nine kms of this horizon remain unexplored to the east on San Gold property and large under-explored gaps remain between the identified zones to date.

San Gold management considers the results reported in this communication to be truly significant. This further establishes the Rice Lake Gold belt as capable of hosting additional gold deposits, in addition to the two deposits that the Company intends to put into production in October 2005.

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. 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 www.sangoldcorp.com.

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

Contact Information