Manitoba Mining Information

Manitoba Mining - San Gold Hits High Grade Gold at Rice Lake

San Gold drills 6.22 m of 85.1 g/t Au at Hinge No. 4

2008-05-21 05:37 PT - News Release

Mr. Dale Ginn reports

SURFACE DRILLING INTERSECTS 85 G/TONNE GOLD OVER 6.3 METERS AT HINGE #4

San Gold Corp. has released assay results for drill hole No. GS-08-33 in the new high-grade Hinge No. 4 zone. Hole No. 33 encountered 85.1 grams per tonne (g/t) (2.49 ounces per ton) over 6.22 metres (20.4 feet) at 100 metres (330 feet) below surface in a broad, continuous quartz-carbonate vein containing abundant visible gold throughout. Results from this hole are summarized with an accompanying table demonstrating the even distribution of the high grades throughout the intersection.

Hole No. From To Length Gold assay Zone
(metres) (metres) (feet) (g/t) (oz/t)

GS-08-33 109.1 115.4 6.3 20.7 85.1 2.49 (Visible gold) Hinge #4

DISTRIBUTION OF GRADE WITHIN THE ZONE

From To Length Gold assay
(metres) (metres) (g/t) (oz/t)

109.1 110.1 1.0 61.0 (1.78)
110.1 111.6 1.5 2.1 (0.06)
111.6 112.6 1.0 173.3 (5.06)
112.6 113.9 1.3 193.2 (5.64)
113.9 114.9 1.0 36.7 (1.07)
114.9 115.4 0.5 9.6 (0.28)

Dale Ginn, chief executive officer of San Gold, stated: “Our exploration team led by Bill Ferreira has made a new and promising high-grade discovery near our operating mill and on our mining lease. We look forward to increasing the size and quality of the new Hinge zones, which have unlocked the exploration potential of the entire volcanic sequence to the north of the main mine unit. Hole No. 33 is the most significant gold exploration hole drilled in the Rice Lake belt, and indeed, in Manitoba for some time, and is a credit to persistent drilling near-producing and past-producing mines.”

Assays are pending from the intersections of the same zone on Section line 400E (three holes: GS-08-23, 25 and 27) and the remaining holes on section 500E (two holes: GS-08-29 and 31) and will be reported as received by the company. Drill holes No. 25, No. 29 and No. 31 encountered similar intersections in terms of width and mineralogy with strong mineralization including visible gold observed in each hole. This zone remains open along strike to the northeast and to the southwest as well as at depth.

Please see news in Stockwatch dated Jan. 15, 2008, Feb. 19, 2008, and April 21, 2008, for previously posted results of the Hinge zones as discovered to date. The new zones are roughly parallel, dip to the northwest and are made up of quartz and carbonate veins containing gold mineralization. The volcanic units which contain the new veins are located in a sequence of rocks which lie approximately 1,500 metres into the hangingwall 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 four subparallel new veins have been discovered in the Hinge area, as well as numerous uncorrelated breccia zones within 100 to 300 metres of surface. Two diamond drills are currently drilling in the Hinge area. The new zones are located approximately 1.5 kilometres to the northeast of San Gold’s operating Rice Lake and mine and mill, and are fully accessible by road.

This program was carried out under the supervision of W.S. Ferreira, PGeo, the qualified person for this project under National Instrument 43-101. The drill core was split, with half sent to TSL Laboratories in Saskatoon, Sask., 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, Ont. The core lengths are actual lengths as drilled and have not been adjusted for the true width of the mineralized zones.

San Gold Corp