Drilling Discovers New High Grade Vein at Rice Lake

May 29, 2007

Dale Ginn, CEO of San Gold Corporation (SGR: TSX-V) is pleased to report that diamond drilling has discovered a new high grade gold vein via hole #RL071 which intersected 1.16 oz/ton (39.7 g/tonne) over 4.4 feet (1.4 m). This new vein is located on the 28th level of the Rice Lake Gold Mine and is parallel and offset by 65 feet (20 m) to the west of the high grade "93" vein ( see press release dated March 22, 2007).

This discovery was made as a result of short hole drilling from the newly developing "93" vein workings. The intersection was from 64.3 feet (19.6 m) to 68.7 feet (21.0 m) and is expected to represent 90% to 95% of the true width of the vein at that point. Visible gold was observed in this intersection numerous times.

Mine development will begin shortly in order to access this vein and the exploration program continues in the search for new parallel veins within this high grade vein system. An update on the development of the high grade "93", "98" and "101" veins located on the 28th, 29th and 30th levels of the Rice Lake Gold Mine will be made available once the full strike lengths of these veins have been established.

The above programs were carried out under the supervision of D. Ginn, P.Geo., the Qualified Person for San Gold 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 metallics were performed on selected samples. Check assays were also performed on pulps and rejects by both TSL and by Accurassay Laboratories of Thunder Bay, ON.

For further information contact Dale Ginn, President of San Gold Corporation, at (204) 794-5818 or visit the company's website at www.sangoldcorp.com.

This news release may contain forward looking statements, being statements which are not historical facts, including, without limitation, statements regarding potential mineralization, exploration results, resource or reserve estimates, anticipated production or results, sales, revenues, costs, "best-efforts" financings or discussions of future plans and objectives. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

San Gold Corporation

Bissett, Manitoba, Canada R0E 0J0
Tel.: (204) 794 5818 or 1-800 321 8564

info@sangoldcorp.com