The Difference:

September 2, 2010

"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 now comprises 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 metres). The mineral resource estimate is based upon 163 composited vein intersections comprising 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 metres) and a vertical extent of 1,500 feet (460 metres) between 100 feet (30 metres) and 1,600 feet (490 metres) of depth from surface. The zone is open up and downdip, 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."

February 26, 2010

"The 007 zone database consists of 16 holes completed in 2009 for a total of 21,151 feet (6,447 metres). The mineral resource estimate is based upon 14 composited vein intersections consisting of a total of 111 individual assays. One hole was terminated before intersecting the zone due to extreme deviation in the bearing of the hole. Fourteen holes intersected the vein zone and one passed just to the east of the eastern limit of the zone. The total area covered by the measured, indicated and inferred mineral resources estimate for the 007 zone is a strike length of 300 feet (92 metres) and a vertical extent of 1,400 feet (427 metres) between 100 feet (30 metres) and 1,500 feet (457 metres) of depth from surface. The zone is open up and down dip and along strike to the west. Exploration drilling will continue throughout the first half of 2010."

The Explanation:

"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 Method:

"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 were evaluated in plan and section in 3-D AutoCAD to determine continuity between holes. Vein structures in the Rice Lake mine area have vertical extents from four to eight 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 downdip and downplunge. For measured resources, an ellipse with a short axis of 50 feet (15 metres) and a long axis of 100 feet (30 metres) was used and for indicated resources an ellipse with a short axis of 75 feet (23 metres) and a long axis of 150 feet (46 metres) 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."

The Disclaimer:

Then:

"Peter George, PGeo, of Geoex Limited was retained by San Gold in order to prepare a technical report which is an initial third party estimate of mineral resources of the Hinge and the 007 zones. The report was prepared in accordance with the guidelines set out in National Instrument 43-101 and NI Form 43-101F1."

Now:

"Peter George, PGeo, of Geoex Ltd., 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 10 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 five years, Mr. George has completed mineral resource reports on a number of significant Archean gold projects, including the Gold Eagle Mines Ltd. (now Goldcorp Inc.) Bruce Channel deposit in Red Lake, Ont., ValGold Resources Ltd.'s (now Northern Gold Mining Inc.) 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, Man."

SUMMARY OF RESOURCES -September 2, 2010

 Tons Grade Grade Contained

(oz/t) (g/t)ounces

Hinge mine

Measured mineral resources91,7900.29(9.9)26,510

Indicated mineral resources425,6700.40 (13.7)171,190

Total measured and indicated resources517,4600.38 (13.0) 197,700

Inferred mineral resources 1,375,2000.39 (13.4) 538,700

007 zone

Indicated mineral resources305,2400.75 (25.7)230,330

Inferred mineral resources398,2000.47 (16.1)186,980

SUMMARY OF RESOURCES – February 26, 2010

TonsGradeContained

(oz/t) (g/t)ounces

Hinge mine

Measured mineral resources116,3000.53(18.3)61,980

Indicated mineral resources496,3000.36(12.3)177,200

Total measured and indicated resources612,6000.39 (13.4)239,180

Total inferred resources1,375,2000.39(13.4)538,700

007 zone

Indicated mineral resources74,9602.58(88.4)193,695

Inferred mineral resources293,7401.78(61.0)522,857