San Gold Corporation
TSX VENTURE : SGR

San Gold Corporation

October 30, 2006 10:13 ET

San Gold Finds New Vein at Depth

BISSETT, MB--(CCNMatthews - October 30, 2006) - San Gold Corporation (TSX-V: SGR) www.sangoldcorp.com

Mr. Dale Ginn, President, reports:

San Gold Corporation is pleased to announce that underground drilling from the 5300 foot level has discovered a new gold bearing breccia or "38" style vein at the Rice Lake Gold Mine. Hole # 473-06-110 encountered three broad intersections including 10.8 meters (35.4 feet) of 7.2 g/tonne (0.21 oz/ton) gold as well as 5.0 meters (16.4 feet) of 8.3 g/tonne (0.24 oz/ton) gold. Results to date from holes 110 and 113 which intersected the new zone are tabulated below:



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

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

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


This new vein is located at and below the 5300 feet level near the hangingwall contact of the host SAM unit and lies between the "96" and "C" veins. Breccia or "38" style veins within the Rice Lake Gold Mine exhibit favorable geometry for mining as they are wide (10 feet to 50 feet) and near vertical in dip. This new vein is also immediately accessible from the current decline development and is not a part of the Rice Lake Gold Mine's current resource estimate (ACA Howe, 2004).

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. 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, 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.


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