San Gold Land Acquisition Includes Two High Grade Past Producers

Market Wire , October, 2004

Mr. Dale Ginn, President of San Gold Resources Corporation (TSX-V: SGR) is pleased to advise that San Gold has entered into an option agreement to acquire an additional 728 hectare land position known as the Oro Grande Property in the Rice Lake Greenstone Belt. This property is located in the Beresford Lake area, 25 kilometers by road south east of San Gold and Gold City Industries (TSX-V: GC) Rice Lake Gold Mine in Bissett, Manitoba. The Oro Grande property is host to two former past producers: the Gunnar Mine -- 101,000 ounces of gold produced at a grade of 12 g/T (0.35 oz/t), and the Oro Grande Mine -- 5,000 ounces of gold produced at a grade of 20 g/T (0.58 oz/t), which operated during the 1930's and 40's. Numerous other high grade gold showings also exist in addition to the strike and plunge potential of the two past producers.

The terms of the agreement to acquire a 100% interest in the Oro Grande property are:

1st year - $25,000 cash payment, 30,000 San Gold shares, $175,000 work commitment.

2nd year - $30,000 cash payment, 50,000 San Gold shares, $250,000 work commitment.

3rd year - $50,000 cash payment, 100,000 San Gold shares, $500,000 work commitment.

The vendor will retain a 3% NSR upon completion of the terms above.

San Gold's geologists are currently prioritizing targets at the Oro Grande property in preparation for an intensive fall and winter diamond drilling program. This acquisition is consistent with San Gold's strategy to source gold and produce from a number of properties within the Rice Lake Greenstone belt by mid-2005 together with their joint venture partner Gold City Industries.

San Gold Resources Corp.

Signed “Dale Ginn”