San Gold's Rice Lake at 2.46Mt of 11.7 g/t Au M+I
Ticker Symbol: C:SGR

San Gold's Rice Lake at 2.46Mt of 11.7 g/t Au M+I

San Gold Corp (C:SGR)
Shares Issued 300,158,146
Last Close 9/2/2010 $3.94
Friday September 03 2010 - News Release

Mr. Dale Ginn reports

SAN GOLD TABLES MINERAL RESOURCE ESTIMATE UPDATE FOR RICE LAKE PROJECT AREA

San Gold Resources Corp. has completed a comprehensive, NI 43-101-compliant report for the Rice Lake project area that includes the Rice Lake, Hinge and SG1 mines, as well as the 007, Cartwright, SG2/3 and Cohiba zones. This report was undertaken in order to make current all mineral resources deemed to be within the Rice Lake project area, to account for mining adjustments and to upgrade inferred resources at the 007 zone. The resources are summarized in an attached table.

                                     SUMMARY OF RESOURCES
                                                    Tons         Grade               Contained
                                                                 oz./ton (g/tonne)    Ounces
Rice Lake Mine
       Measured Mineral Resources                   388,200       0.24   (8.2)        93,140
       Indicated Mineral Resources                  679,240       0.26   (8.9)       176,960
       Total Measured and Indicated Resources      1,067,440      0.25   (8.6)       270,100
       Inferred Mineral Resources                  1,519,750      0.29   (9.9)       439,090

Hinge Mine
       Measured Mineral Resources                    91,790       0.29   (9.9)        26,510
       Indicated Mineral Resources                  425,670       0.40   (13.7)      171,190
       Total Measured and Indicated Resources       517,460       0.38   (13.0)      197,700
       Inferred Mineral Resources                  1,375,200      0.39   (13.4)      538,700
SG1 Mine
       Indicated Mineral Resources                  214,200       0.24   (8.2)        52,150
       Inferred Mineral Resources                   936,500       0.22   (7.5)       206,900

007 Zone
       Indicated Mineral Resources                  305,240       0.75   (25.7)      230,330
       Inferred Mineral Resources                   398,200       0.47   (16.1)      186,980
Cohiba Zone
       Indicated Mineral Resources                   55,970       0.23   (7.9)        12,675
       Inferred Mineral Resources                    25,210       0.16   (5.5)         4,050
Cartwright Zone
       Indicated Mineral Resources                  136,200       0.22   (7.5)        29,830
       Inferred Mineral Resources                  1,761,200      0.21   (7.2)       388,940
 SG-2 and SG-3 Zones
        Indicated Mineral Resources                     173,100        0.20   (6.8)     34,600
        Inferred Mineral Resources                      195,600        0.26   (8.9)     50,860
Rice Lake Project
Total Measured plus Indicated                         2,469,610        0.34   (11.7)    828,105
Total Inferred Resources                              6,211,660        0.29   (9.9)    1,814,870

Tonnage in the indicated category increased significantly at the 007 Zone due to a high level of drilling activity during the first half of 2010 in order to upgrade from the inferred category. The 007 Zone database is now comprised of 135 drill holes completed in 2009 and 2010 both within and outside of the mineralized area for a total of 135,000 feet (41,150 meters). The mineral resource estimate is based upon 163 composited vein intersections comprised of a total of 482 individual assays. The total area covered by the measured, indicated and inferred mineral resources estimate for the 007 zone is a strike length of 600 feet (183 meters) and a vertical extent of 1,500 feet (460 meters) between 100 feet (30 meters) and 1,600 feet (490 meters) of depth from surface. The zone is open up and down dip and along strike to the west. Exploration and definition drilling as well as initial development will continue throughout the last half of 2010. Minor changes in mineral resources at the other deposits were mainly due to adjustments in order to account for mining. A portion of the Cohiba zone that is planned to be accessed from the new 007 ramp was incorporated into this report as well.

The Hinge Mine is located 1.5 kms to the north east of the Rice Lake Mine and mill and is accessed by an independent decline. The Hinge deposit was discovered in March, 2008, development towards the deposit began in July, 2008 and a bulk sample was completed in July, 2009. The 007 zone is located 2,100 feet (650 meters) to the south east of the Hinge Mine and was discovered in November, 2009. Initial development within the 007 Zone is now underway, originating from the Hinge decline. Site preparation has started in order to collar a new decline to be used for access to the upper 007 Zone, an initial area of the Cohiba zone, and for exploration and potential access to the Emperor zone and historic Wingold Mine. For reference, the nearby Rice Lake mine has been mined from the surface to 5,500 feet (1,680 meters) below surface (7,000 feet (2,130 meters) down the dip of the zone) with current development and production between 4,500 feet (1,370 meters) and 5,500 feet (1,680 meters) from surface.

The mineral resources are in-situ, undiluted, and uncapped and have not had economic parameters applied to them. The mineral resources are defined in terms of NI 43-101 regulations and their estimation was carried out using industry standard polygonal longitudinal section methodology. The drill hole data was evaluated in plan and section in three dimensional AutoCAD to determine continuity between holes. Vein structures in the Rice Lake Mine area have vertical extents from 4 to 8 times their strike length. Because of this, areas of influence used around drill hole pierce points on the longitudinal section for purposes of defining measured and indicated resources are ellipses, elongated down dip and plunge. For measured resources an ellipse with a short axis of 50 feet (15 meters) and a long axis of 100 feet (30 meters) was used and for indicated resources an ellipse with a short axis 75 feet (23 meters) and a long axis of 150 feet (46 meters) was used. Inferred resources are based on projection of measured plus indicated resources to a depth four times the strike length of the mineralized zone. A tonnage factor of 11.4 cubic feet per ton (equivalent to a specific gravity of 2.8) was used to convert polygon volumes to tons.

Peter George, P.Geo. of Geoex Limited is the independent qualified person in accordance with NI 43-101 responsible for the report referenced in this news release. Mr. George has made numerous site visits to this project over the past ten years, is a geologist with over 40 years of experience and has prepared evaluation reports for a number of significant mining operations. During the past 5 years, Mr. George has completed mineral resource reports on a number of significant Archean gold projects including the Gold Eagle (now Goldcorp) Bruce Channel deposit in Red Lake, Ontario, Valgold's (now Northern Gold) Jonpol deposit in the Timmins area, Black Pearl's (now Canadian Lithium) Tully deposit in the Timmins area, and San Gold's Rice Lake Mine, Cartwright, SG-1, SG-2, and SG-3 deposits in Bissett, Manitoba. Dale Ginn, P.Geo., CEO of San Gold is the qualified person responsible for this news release.

� 2010 Canjex Publishing Ltd.