San Gold Corporation (SGRCF)

[NYBob]

007 Drill Results Continue to Expand the Deposit



http://tmx.quotemedia.com/article.php?newsid=55185910&qm_symbol=SGR

WINNIPEG, MANITOBA--(Marketwire - Oct. 22, 2012) -
George Pirie, President and Chief Executive Officer for

San Gold Corporation
(TSX:SGR)(OTCQX:SGRCF), is pleased to announce interim results of
its ongoing 2012 diamond drilling program on the 007 deposit
within the Company's 100% owned Rice Lake Project located in
Bissett, approximately 235 kilometres northeast of Winnipeg,
Manitoba, Canada.
The Rice Lake Project has a permitted, modern gold mill currently
processing ore at a capacity of 2,500 tons per day, modern
surface infrastructure including a licensed tailings management
facility, and is connected to the Manitoba power grid system.

Since being discovered in 2009, the 007 deposit continues to
demonstrate robust grades and widths across all four lenses of
the deposit and it continues to be consistent at depth while
structural characteristics are becoming increasingly predictable.

This drilling activity is part of the Company's program to upgrade
resources into higher confidence categories and to increase
reserves within the mining complex.
Overall results are positive and comparable with the Company's
March 31, 2012 resource update.
The Company will continue drilling for the remainder of 2012 and
provide a resource update in the first quarter of 2013.

"The 007 deposit drilling continues to prove up high-quality
resources which are accessible from existing infrastructure.
The drilling continues to confirm the continuity of the deposit
at depth.
The ongoing development of the 16 and 26 Levels will provide
drill platforms for further resource and reserve definition.
Mining is currently scheduled to begin from these levels in early
2014," said Mr. Pirie.

Highlights of the drilling program include:
http://sangold.mwnewsroom.com/manual-releases/007-Drill-Results-Continue-to-Expand-the-Deposit

http://www.sangold.ca/s/Ops.asp?ReportID=402510&_Type=Operations-Items&_Title=007-Deposit

http://www.sangold.ca/s/Operations.asp

http://www.sangold.ca/s/Home.asp