From their website

http://www.sangold.ca/s/Investors.asp

Trading Symbols: TSXV:SGR, Pink Sheets - OTCQX:SGRCF

2009 was a remarkable year for San Gold Corporation. Exploration breakthroughs have changed the way we understand the region and have resulted in many new high-grade gold discoveries. Production continues to improve, achieving near break even at year end during a period when the Rice Lake and Hinge mines were still in mixed development and production mode.

Four new high-grade gold discoveries continue to be explored within 2 km of the Rice Lake mine at the Hinge and 007 mines and in the Cohiba and L13 zones. Significant new discoveries are also noted in the Rice Lake Mine at Deep East, Deep West and in the 98 Vein. We are now viewing Rice Lake as a single, very large interconnected mineralized system rather than a series of discreet deposits.

The Hinge mine went into production during Q3 2009, producing at tonnage levels similar to the Rice Lake Mine and effectively doubling production. The Hinge provides a second mine portal that gives increased flexibility for allocating mining equipment and labour. As a modern ramp-accessed mine, the Hinge is designed to produce ore at a lower cost per tonne delivered to the mill, generally at a higher grade than ore from the Rice Lake mine.

San Gold Corporation established new records for gold production in 2009 and positioned itself for further production improvements during 2010. As we write this, in Q2 2010, we are driving across to the 007 zone, which is expected to further increase operational flexibility by improving near-surface access to ore and increasing total production capability. We are sufficiently funded to carry out our short- and medium-term plans and expect to benefit from our position as a growing junior high-grade gold producer.

To date, 2010 has continued the momentum San Gold Corporation generated in 2009. A positive gold market, exciting exploration results, multiple operating zones and rapidly growing production targets continue to define San Gold Corporation as a well-funded organization oriented toward aggressive growth through the coming year.

We thank all shareholders for your continued support and wish you a golden 2010!