SOURCE: San Gold Corporation

July 12, 2007 14:23 ET

San Gold Extends High Grade "93" Vein at Rice Lake

BISSETT, MB--(Marketwire - July 12, 2007) - Dale Ginn, President and CEO of San Gold Corporation (TSX-V: SGR), is pleased to report that the new mining development above the 28th level (4200 feet) of the Rice Lake Gold Mine has confirmed consistent and extremely high grade values within the "93" Vein. Face sampling so far has averaged 2.23 oz/ton (76.40 g/tonne) over an average true width of 2.4 feet (0.74 m) and a strike length of 200 feet (61.0 m).

This sublevel development is located 25 feet above the initial level development of the "93" vein on the 28th level and represents the southern half of this vein's strike length as shown on San Gold's website. The sublevel development was designed both to confirm the high grades that were developed on the 28th level (see press releases dated March 22, 2007 and January 18, 2007) and as the predevelopment necessary for the shrinkage mining method. Coarse, visible gold was routinely encountered throughout this development.

This vein remains completely open and untested above the 28th level and is not part of the current mineral resource/reserve (ACA Howe, 2007). Sublevel development continues to the north on this vein and development also is continuing on the high grade "98" and "101" veins on the 29th and 30th levels of the Rice Lake Mine (See pres release dated March 22, 2007). Updates on these veins will be made available when mining development has established their strike lengths. 16 development faces were sampled and 52 chip samples were assayed for gold with individual values ranging from a high of 13.46 oz/ton (461 g/tonne) to a low of 0.19 oz/ton (6.5 g/tonne).

The above programs were carried out under the supervision of D. Ginn, P.Geo., the Qualified Person 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.

San Gold Corporation
Bissett, Manitoba, Canada R0E 0J0
Tel.: +1.204.794.5818
info@sangoldcorp.com

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