July 30

High Grade Hinge #4 Zone Extended Along Strike and to Depth

Dale Ginn, CEO of San Gold Corporation (TSX-V: SGR), is pleased to report that drilling has extended the newly discovered Hinge #4 zone to depth and along strike to the east. The Hinge #4 zone has now been drill tested between section 0 east and 600 east (feet), and to depths of over 1,200 feet (400 m) demonstrating excellent continuity in both structure and grade. All of the holes listed below contain visible gold within quartz veining displaying clear, sharp contacts with the host volcanic rocks, as well, core recoveries were nearly 100%. San Gold is also pleased to report that the Hinge area drill data is now available for viewing as a \"work in progress\" at http://www.corebox.net/properties/rice_lake/.

Results from the new holes are tabulated below:

                                                  Gold g/tonne
Hole #       From       To        Length            (oz/ton)        Zone
---------   -------   -------   ---------------   -------------   --------
GS-08-45    105.7 m   109.6 m   3.9 m (12.8 ft)   19.9 (0.58)     Hinge #4
                                                   visible gold
GS-08-49    243.4 m   248.8 m   5.4 m (17.5 ft)   12.0 (0.35)     Hinge #4
                                                   visible gold
Including   246.0 m   248.8 m   2.8 m (9.1 ft)    21.0 (0.61)     Hinge #4
                                                   visible gold
GS-08-53    272.7 m   276.1 m   3.4 m (11.2 ft)   19.2 (0.56)     Hinge #4
                                                   visible gold
GS-08-55    201.2 m   207.7 m   6.5 m (21.3 ft)   9.9 (0.29)      Hinge #4
                                                   visible gold

The intersection angles between the above drill holes and the Hinge #4 zone are between 80 degrees and 90 degrees resulting in drilled widths which are very close to the true width of the zone. This zone remains open along strike to the north-east and to the south-west as well as at depth. Exploration of the Hinge zone over the past seven months has been guided by a structural model recently developed by the San Gold exploration team. This model has proven to be an effective and very reliable exploration tool to generate high grade gold intersections. Surface drilling on the Hinge #4 zone has extended high grade gold mineralization to a vertical depth of 1200 feet (400 m). Current work includes an attempt to correlate this mineralization with similarly textured and similar graded intersections drilled from the Rice Lake mine workings over 5,200 feet vertically below the Hinge #4 zone.

The volcanic units which contain the new veins are located in a sequence of rocks which lie approximately 1500 meters into the hanging wall stratigraphically above and geographically to the north of the mineralized mine unit of the Rice Lake Gold Mine. To date a total of at least 4 sub parallel new veins have been discovered in the Hinge area, as well as numerous uncorrelated breccia zones within 100 to 300 meters of surface. Two diamond drills are currently drilling in the Hinge area. The new zones are located approximately 1.5 kms to the north-east of San Gold\'s operating Rice Lake and mine and mill, and are fully accessible by road.

A third drill rig is exploring over a kilometer to the north of the Hinge #4 zone (approximately another km stratigraphically higher than the Hinge #4 zone), looking for parallel structures along or near the hinge or axis in identical host rocks. A fourth drill rig has moved to a parallel hinge axis line to approximately 500 meters to the west of Hinge #4 in order to test other similar structures which include early mine workings. These workings include the Big Four shaft (1916), and the #1 and #2 Goldcup veins and an inclined shaft from the 1920s. To date a total of 8 hinge or axis lines have been located, all of which have identical geology and host rocks as the Hinge #4 zone, most contain evidence of early (pre-1930s) exploration and development efforts such as pits, trenches and shafts. There is no known record of these showings having being systematically explored.

Please see the San Gold website (www.sangoldcorp.com) for prior Hinge Zone press releases, a plan view location map and a longitudinal section showing the location of the intersections in the Hinge #4 zone. Additionally, three dimensional and cross sectional drill hole data of the Hinge Zone mineralization is now available at http://www.corebox.net/properties/rice_lake/.

This program was carried out under the supervision of W.S. Ferreira, 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 metallic assays were performed on samples containing visible gold. 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.

Contact: Dale Ginn CEO San Gold Corporation (204) 794-5818 Investor information 1-800-321-8564 www.sangoldcorp.com

SOURCE: San Gold Corporation

http://www.sangoldcorp.com