San Gold Corporation (SGRCF)

[NYBob]

San Gold Corporation Announces Closing of Private Placement -


BISSETT, MANITOBA--(Marketwire - March 16, 2012) -

Mr. George Pirie, President and CEO of San Gold Corporation
(TSX:SGR)(OTCQX:SGRCF) (the "Company"), is pleased to announce
that it has closed its private placement offering (the
"Offering") with a syndicate of agents led by Primary Capital
Inc. and including Scotiabank, Dundee Securities Ltd. and
Stonecap Securities Inc. (the "Agents") of common shares of
the Company issued as "flow-through shares" within the meaning
of the Income Tax Act (Canada) (the "Flow-Through Shares").
At the closing, the Company issued 10,715,000 Flow-Through
Shares (which included 3,565,000 Flow-Through Shares that were
sold pursuant to an over-allotment option) at a price of $2.10
per Flow-Through Share for total gross proceeds to the Company
of $22,501,500.

The Flow-Through Shares are subject to a hold period of four
months and a day from the date of issuance in accordance with
applicable securities laws.

In connection with the Offering, the Agents received a cash
commission equal to 5% of the gross proceeds raised under the
Offering.

The gross proceeds of the Offering will be used for exploration
on the Company's mineral properties.

These securities being offered have not been, and will not be,
registered under the United States Securities Act of 1933,
as amended (the "U.S. Securities Act") and may not be offered
or sold in the United States or to, or for the benefit of,
U.S. persons (as defined in Regulation S under the U.S.
Securities Act) absent U.S. registration or an applicable
exemption from the U.S. registration requirements.
This release does not constitute an offer for sale of
securities in the United States.

For further information, please visit
http://www.sangold.ca

The TSX and the OTCQX exchanges have not reviewed and do not
accept responsibility for the adequacy or accuracy of this
release.



San Gold Corp. Shoreline Basalt deposits accessed from two ramp portals.
View Shoreline Basalt video -

http://www.sangold.ca/i/videos/2011-06-Shoreline_Basalt/2011-06-Shoreline_Basalt.html

http://www.sangold.ca/i/pdf/2011-corporate_presentation.pdf



http://www.manitoba.ca/iem/mrd/min-ed/minfacts/mbhistory/gallery/san_antonio_lg.html