2008-08-06 08:54 ET - News Release

Mr. Dale Ginn reports

MULTIPLE HIGH GRADE GOLD ZONES DRILLED AT RICE LAKE 30 LEVEL

San Gold Corp. has released the results of exploration drilling from the 30th level (4,500 feet depth) of the Rice Lake gold mine. This program was designed to extend known mineralization eastward and to test the unexplored footwall of the host gabbro mine unit. New high-grade zones discovered by this program are highlighted by drill hole No. 07-12 which intersected 6.4 metres of 28 grams per tonne in the footwall area and by drill hole No. 08-18, intersecting 7.2 metres of 21 g/t in a new eastern zone. A total of 27 intersections were encountered giving an average length of 3.6 metres (12 feet) with an average grade of 19.3 g/t (0.56 ounce per ton).

Results from the new holes are shown in the attached table.

                                             Length                 GoldHole No.      From (m)     To (m)        (m)       (ft)      (g/t)       (oz/ton)30-07-01       21.7        24.7          2.9       9.6        8.90         0.2630-07-02       21.7        25.1          3.4      11.3        8.25         0.2430-07-03       26.2        28.1          1.9       6.2        5.14         0.1530-07-04       22.9        26.2          3.4      11.0        7.88         0.2330-07-06       19.5        21.1          1.6       5.2       17.81         0.5230-07-07       17.6        19.7          2.1       6.8        7.53         0.2230-07-08        4.0         4.6          0.6       2.0       43.15         1.26and            17.8        20.5          2.7       8.7       10.96         0.3230-07-11       28.9        31.8          2.9       9.4       14.04         0.4130-07-12       24.2        25.8          1.6       5.4       15.41         0.45and            31.2        37.7          6.4      21.1       27.84         0.81including      31.2        32.7          1.5       4.8      113.01         3.3030-07-13       37.5        50.1         12.6      41.3        9.25         0.27including      47.0        49.0          2.0       6.6       30.17         0.8830-07-32       24.8        27.5          2.7       8.8        7.88         0.2330-07-33       26.2        29.3          3.0      10.0        5.82         0.1730-07-34       28.5        30.6          2.1       6.9        5.82         0.1730-07-35       12.5        15.0          2.5       8.2       13.70         0.40and            17.8        21.4          3.6      11.8       12.67         0.3730-07-36        8.9        10.3          1.4       4.5       19.52         0.57and            15.2        27.7         12.5      41.1        7.64         0.2230-08-15       31.2        33.1          2.0       6.4        7.53         0.2230-08-17       19.8        25.1          5.2      17.1        8.22         0.2430-08-18       24.8        32.0          7.2      23.5       20.89         0.61including      28.4        29.8          1.3       4.4       67.47         1.97and            37.6        39.6          2.0       6.4       15.41         0.4530-08-19       25.2        32.3          7.1      23.3        8.22         0.24

The bulk of the holes as listed in the attached table were designed to extend known mineralization from previous development on the 30th and 31st levels including the 101 vein, where drift sampling gave an average of 63.4 g/t over an average width of two metres (see news in Stockwatch on May 22, 2007). Many of the holes listed contain multiple intersections as well as frequent additional mineralized zones requiring follow-up exploration and/or drilling. All of the intersections are near to and accessible via current mine workings, and are not a part of the current resource report, and will be incorporated into an upcoming technical and resource report. The results are a part of an important expansion program targeting potential high-grade mineralization within undeveloped and open areas of the Rice Lake mine.

Other current drill exploration programs within the mine include:

• 26 level or upper D-shaft, an undeveloped target area potentially containing veins similar to the high-grade 98 vein;
• Open and undeveloped areas between the main Rice Lake orebodies and the Deep East zones;
• Phase 2 drilling on the downward extensions of the main Rice Lake orebodies.

A general section showing the location of the current drilling, development and mining areas within the Rice Lake mine is available at the company's website.

The program was carried out under the supervision of James Harvey, chief mine geologist, and Dale Ginn, PGeo, the qualified persons for San Gold under National Instrument 43-101. Underground drill core samples are assayed on-site in the company's assay lab using the fire assay method with an atomic absorption and gravimetric finish. San Gold's quality control and assurance program includes the insertion of blanks and standards, the retention of pulps and rejects, and spot checks using independent labs including TSL Laboratories in Saskatoon, Sask., and 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.

Investor Information: 1-800-321-8564

Email: info@sangoldcorp.com

Website: www.sangoldcorp.com