Definitely a WTF release that the lamen needs a decoder ring to figure out. They know what the market wants to hear, yet it seems they do everything in their power to confuse something so simple and do the exact opposite.

Reserves and Resources

The Company increased its ore resources and reserves from Measured plus Indicated (M plus I) resources of 326,280 ounces [1,267,100 tons at 0.26 oz/ton] and inferred resources of 225,000 ounces [734,000 tons at 0.31 oz/ton] of gold in 2004, when its predecessor companies acquired Harmony Gold (Canada) Inc., to M plus I resources of 402,880 ounces [1,556,600 tons at 0.26 oz/ton] and inferred resources of 1,197,670 ounces [4,772,800 tons at 0.26 oz/ton] of gold as further described in the National Instrument 43-101 compliant technical report dated December 1, 2006.

During the prior quarter on March 1, 2010, the Company released its updated 43-101 compliant resource tables with the complete document made available on April 14th, 2010. The disclosure updates Measured and Indicated resources for the Hinge mine to 239,180 ounces [612,600 tons at 0.39 oz/ton (13.4 g/tonne)] and Inferred resources
to 538,700 ounces [1,375,200 tons at 0.39 oz/ton (13.4 g/tonne)] of gold. Results from the 007 zone are also summarized with 193,695 Indicated ounces [74,960 tons at 2.58 oz/ton (88.4 g/tonne)] and 522,857 Inferred ounces [293,740 tons at 1.78 oz/ton (61.0 g/tonne)] of gold. Taken together the two zones increase Measured plus Indicated
by 432,875 ounces [687,560 tons at 0.63 oz/ton (21.6 g/tonne)] and Inferred by 1,061,557 ounces [1,668,940 tons at 0.64 oz/ton (21.9 g/tonne)].

A tabular summary of the Company’s published Reserve and Resource information is presented on the following page. San Gold’s combined project-wide Resources and Reserves include Measured plus Indicated resources of 835,755 ounces [2,244,160 tons at 0.37 oz/ton] and Inferred resources of 2,259,227 ounces [6,441,740 tons at 0.35
oz/ton]. Readers are cautioned that these totals result from the sum of two separate NI 43-101 compliant technical reports.

The terms Mineral Resource, Measured Mineral Resource, Indicated Mineral Resource and Inferred Mineral Resource are def ined in and required to be disclosed by National Instrument 43-101. The methods used to develop these estimates and any relevant economic conditions are described within each of the NI 43-101 documents
identified here. Investors are cautioned not to assume that any part or all of the Mineral deposits in these categories will ever be converted into reserves. Inferred Mineral Resources have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian securities laws, estimates of Inferred Mineral Resources may not form the basis of a Feasibility Study or Prefeasibility Study, except in rare cases.

In interpreting National Instrument 43-101 and applying the criteria set forth in Companion Policy 43-101CP Standards of Disclosure for Mineral Projects, the Corporation had determined that the properties covered by the Geoex Technical Report constitute a separate property for the purposes of National Instrument 43-101. In the course of a continuous disclosure review, staff at the Ontario Securities Commission have noted to the Corporation that they interpret National Instrument 43-101 in a manner such that a single property, for the purposes of National Instrument
43-101, includes interests represented by multiple claims or other documents of title that are contiguous or in such close proximity that any underlying Mineral deposits likely would be developed using common infrastructure. The interpretation of staff of the Ontario Securities Commission is reflected in the proposed amendments to National
Instrument 43-101 and Companion Policy 43-101CP Standards of Disclosure for Mineral Projects, which were published for comment on April 22, 2010 and for which the comment period expired on July 23, 2010. In response to the comments received from staff at the Ontario Securities Commission during the continuous disclosure review, the
Corporation will file a single updated technical report in respect of properties covered by the Howe Technical Report and the Geoex Technical Report.