SOURCE: San Gold Corporation

October 25, 2005 12:27 ET

San Gold Uncovers High Grade Gold at Greenbelt Properties

BISSETT, MB -- (MARKET WIRE) -- October 25, 2005 --


Mr. Dale Ginn, President, reports:

San Gold Corporation (TSX-V: SGR) (www.sangoldcorp.com) is pleased to announce the results of its diamond drilling, surface sampling and mapping program on the Greenbelt and Ross properties, located 3 kilometers south of its Rice Lake Gold Mine in Bissett, Manitoba. San Gold is earning 50% of the Greenbelt property (400 hectares), the Ross claim is 100% owned by San Gold and is contiguous with the Greenbelt property.

The following drill hole and surface sampling results are from the Fox vein system, located on the Ross claim as well as the Greenbelt property. The Fox vein system is a mineralized set of quartz veins within a broad east-west fold within intermediate volcanics on the western flank of the Ross River pluton. Trenching had exposed the veins in the early 1980's, followed up by limited diamond drilling which had focused on the limbs of the fold. San Gold's program identified and tested the north-south axial plane of this fold by diamond drilling and by surface sampling near the intersection of the nose and the axial plane resulting in the following:

Hole #     From     To          Length     Gold g/tonne (oz/ton)
--------   ------   ------   -------------- ---------------------
GB-05-01   33.4 m   34.8 m   1.4 m (4.6 ft)      7.6   (0.22)
GB-05-02   49.3 m   49.9 m   0.6 m (2.0 ft)     16.1   (0.47)
GB-05-06   70.9 m   72.3 m   1.4 m (4.6 ft)      6.7   (0.20)
GB-05-07   56.5 m   57.4 m   0.9 m (3.0 ft)      6.7   (0.20)
GB-05-15   63.9 m   64.5 m   0.6 m (2.0 ft)      7.6   (0.22)
GB-05-17   44.7 m   45.6 m   0.9 m (3.0 ft)      8.5   (0.25)
GB-05-29   12.4 m   12.9 m   0.5 m (1.6 ft)    234.7   (6.85)
Further outcrop stripping on the Fox vein system exposed the zone on surface for over 150 meters. Grab and chip samples were taken in the trenches and exposures with fine visible gold being observed frequently resulting in the following:
Sample                     Length     Gold g/tonne (oz/ton)
                       -------------- ---------------------
Fox Trench Grab                          457.9  (13.39)
Fox Stripping Grab                        87.7   (2.56)
Fox Stripping Grab                        64.0   (1.87)
Fox Trench Grab                            9.3   (0.27)
Fox Trench Grab                            5.0   (0.15)
Fox Trench Grab                            nil
Fox Trench Chip         1.0 m (3.3 ft)    53.1   (1.55)
The axial plane containing mineralized quartz veining has subsequently been exposed on surface for over one kilometer to the south based on a geological model that trends nearly perpendicular to past work on the property that concentrated on the nose and limbs of the fold. Diamond drilling on this trend will commence this winter and prospecting this trend continues as the weather allows.

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 drill core, grab and chip samples.

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