San Gold Corporation (SGRCF)

[Brookwinn]

Surface Drilling Intersects 85 g/tonne Gold over 6.3 meters at Hinge #4 - May 21, 2008

High grade Hinge Zone intersection photo (pdf file) Plan & Long Section (pdf)

Dale Ginn, CEO of San Gold Corporation (SGR: TSX-V) is pleased to report that assay results have been received for drill hole # GS-08-33 in the new high-grade Hinge #4 zone. Hole #33 encountered 85.1 g/tonne (2.49 oz/ton) over 6.22 meters (20.4 ft) at 100 meters (330 feet) below surface in a broad, continuous quartz-carbonate vein containing abundant visible gold throughout. Results from this hole are summarized below with an accompanying table demonstrating the even distribution of the high grades throughout the intersection:

Hole # From To Length Gold g/tonne (oz/ton)

GS-08-33 109.1 m 115.4 m 6.3 m(20.7 ft) 85.1 (2.49) visible gold

Distribution of grade within the zone:

From To Length Gold g/tonne (oz/ton)

109.1 m 110.1 m 1.0 m 61.0 (1.78)

110.1 m 111.6 m 1.5 m 2.1 (0.06)

111.6 m 112.6 m 1.0 m 173.3 (5.06)

112.6 m 113.9 m 1.3 m 193.2 (5.64)

113.9 m 114.9 m 1.0 m 36.7 (1.07)

114.9 m 115.4 m 0.5 m 9.6 (0.28)

Dale Ginn, CEO 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 #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 (3 holes: GS-08-23, 25 and 27) and the remaining holes on section 500E (2 holes: GS-08-29 and 31) and will be reported as received by the company. Drill holes # 25, 29, and 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 north-east and to the south-west as well as at depth.

Please see press releases dated January 15th, February 19th 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 north-west 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 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.

Please see the San Gold website (http://www.sangoldcorp.com/) for a photo of this high grade intersection and prior Hinge Zone press releases.

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.