SAN GOLD CORPORATION

San Gold reported that underground exploration drilling has discovered multiple new high grade gold zones above the eastern end of the 26th level of the Rice Lake mine in Canada. A series of high grade veins as well as large, broad breccia vein systems have been encountered above the eastern extremity of mine development in an open area above the “D” internal winze (shaft). Drill hole #28-10-38 cut 82 g/tonne (2.4 oz/ton) over 6.4 meters (21 ft) below 26 level extending the high grade “98” vein upward and above mine development that recently reported grades as high as 909 g/tonne (26.5 oz/t) over 3 m (10 ft). Drill hole #26-09-35 intersected three new zones including a large, homogenous breccia vein grading 12 g/tonne (0.36 oz/t) over a 21.4 m (70 ft) width.