San Gold Finds Deep Extensions to 007 and L10 Zones

February 17, 2011


BISSETT, MB, Feb. 17 /PRNewswire/ – George Pirie, CEO of San Gold Corporation
(TSX:SGR) (OTCQX:SGRCF) is pleased to report that recent drilling from
the 26(th) and 28(th) levels of the Rice Lake Mine as reported below traces the Shoreline
Basalt geologic feature to depths of over 1,400 meters (4,900 feet),
with significant gold mineralization. Multiple and variable
intersections were encountered in many of the drill holes, with
significant widths as in hole #28-10-135, which contained a grade 10.3
g/tonne over 18 meters.

The Shoreline Basalt is a second and parallel mine horizon that has been
identified as a key host to the numerous new gold deposits that occur
near surface. Numerous new deposits (L13, L10, 007, 007 East and
Emperor) that lie within or in close proximity to the Shoreline Basalt
have been extensively drilled from surface over the past 18 months to
maximum depths of approximately 420 meters.

“These results strongly suggest that the mineralization associated with
the Shoreline Basalt extends to depths that are completely accessible
for both exploration and development from current infrastructure.  
This is very exciting for the company and continues to confirm San
Gold’s regional exploration model,” stated George Pirie, San Gold’s
President and CEO.

To obtain these results, San Gold geologists targeted the Shoreline
Basalt rock unit down plunge by over 1,000 meters from the L10 and 007
zones to projected locations near the 26(th) level (1,250 meters) of the Rice Lake Mine. Selected drill holes were
sent out to these projected targets from underground drill stations
resulting in the following intersections:

Hole #   From (m)  To (m)  Length  m (ft)  Gold g/tonne   (oz/ton)  Zone/Lens
28-10-134  179.1  180.2  1.1  3.6  33.6  0.98  SB Deep
and  239.4  251.7  12.3  40.4  11.7  0.34  SB Deep
including  239.4  247.7  8.3  27.2  16.1  0.47  SB Deep
28-10-135  191.9  209.6  17.7  58.1  10.3  0.30  SB Deep
including  192.6  197.8  5.2  17.1  23.0  0.67  SB Deep
28-10-136  255.2  257.9  2.7  8.9  4.5  0.13  SB Deep
28-10-137  199.7  201.0  1.3  4.3  15.9  0.46  SB Deep
and  255.0  256.9  1.9  6.2  17.8  0.52  SB Deep
28-10-145  288.5  289.7  1.2  3.9  37.8  1.10  SB Deep
and  321.4  325.7  4.3  14.1  6.6  0.19  SB Deep
26-10-093  255.1  256.7  1.6  5.3  9.9  0.29  SB Deep
and  347.2  348.2  1.0  3.3  20.9  0.61  SB Deep
and  355.9  357.9  2.0  6.6  6.9  0.20  SB Deep
and  391.2  394.7  3.5  11.5  5.2  0.15  SB Deep

The new deposits as listed above generally occur on or near to the
hangingwall (north) contact of the Shoreline Basalt unit which runs
parallel to the Rice Lake Mine or SAM unit which hosts the Rice Lake
Mine. The Shoreline Basalt is located between 300 to 500 meters north
of the SAM unit, dips steeply to the north and is up to 100 meters
wide. The known associated mineralized zones (west to east) are: 334
Vein, L13 Zones, L10 Zone, 007 and 007 East Zones, Emperor Zone, and
occur along a 3 kilometer section of the Shoreline Basalt. The
intersections as listed above appear to be down dip and down plunge
from the L10 and 007 Zones by over 1,000 meters from the nearest
current drill hole information.

The 334 Vein was developed on the 3(rd) level (150 meters) of the Rice Lake Mine over a strike length of 100
meters. This vein also outcrops at surface, strikes roughly east-west
and parallel to the Shoreline Basalt and has not yet been drill tested
by San Gold.

The L13 Zones have now been drill tested between surface and 400 meters
in depth over a strike length of approximately 200 meters. Two main
lenses have been defined which strike north-east, roughly parallel to
the main Hinge zones. Ramp development is underway towards the L13 Zone
from the Hinge decline and is scheduled to intersect the zone at the
250 meter level by the third quarter of this year. Drilling is
currently underway from surface on this zone.

The L10 Zone has now been drill tested between 240 meters and 500 meters
in depth over a strike length of approximately 150 meters. Ramp
development is underway towards the L10 Zone from the 007 decline and
is anticipated to begin initial mining in April, 2011. This zone lies
underneath and offset approximately 75 meters to the south of the Hinge
Mine and was initially thought to be part of the Hinge series of
lenses. It is now understood that this zone strikes approximately
east-west and is located along the hangingwall (north) contact of the
Shoreline Basalt. Drilling is currently underway from drill stations
within the Hinge Mine.

The 007 and 007 East Zones have been drill tested between surface and
400 meters in depth. Mine development has reached the main body of the
007 zone from the Hinge decline and initial development is underway on
multiple levels below 240 meters. Sill development at the 260 meter
level is showing at least 4 mineralized zones over a strike length of
400 meters, including the 007 East. Detailed mill and mine results
including width, grade and recovery will be released upon completion of
bulk sampling in March, 2011. Drilling is currently underway from
surface and underground, especially concentrated on the new 007 East

The Emperor Zone has been sparsely drilled from surface to 200 meters in
depth and lies along strike to the east of the 007 Zone. Drilling from
the 007 Zone will move eastward toward and underneath the Emperor Zone
during 2011.

Deeper exploration of the above mentioned zones in order to fill in the
information void between 400 meters and 1,400 meters in depth is now
underway as part of the 2011 exploration plan.  Drill sites are being
prepared on the 16(th) and 26(th) levels of the Rice Lake Mine in order to aid in the exploration of the
Shoreline Basalt zones.  It is also anticipated that these levels would
be the logical first access for the deeper development of these

Detailed sections and 3-dimesional views displaying the results obtained
to date are available at the company’s website: www.sangold.ca.

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.

NOTE: The information in this release may contain forward-looking
information under applicable securities laws. This forward-looking
information is subject to known and unknown risks, uncertainties and
other factors that may cause actual results to differ materially from
those implied in the forward-looking information.

Neither the Toronto Stock Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the Toronto Stock Exchange)
accepts responsibility for the adequacy or accuracy of this release.

SOURCE San Gold Corporation

Source: newswire

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