San Gold receives 1.63 million shaers of SGX

2011-06-06 14:05 PT - News Release

An anonymous director reports

SAN GOLD CORPORATION FILES EARLY WARNING REPORT IN RESPECT OF SGX RESOURCES INC.

San Gold Corp. has been issued a total of 1,636,256 common shares of SGX Resources Inc. in satisfaction of $483,350 owing by SGX to the company pursuant to mineral option agreements acquired by SGX from the company pursuant to a purchase agreement dated Dec. 4, 2009. These common shares represent approximately 2.62 per cent of the issued and outstanding common shares of SGX. The common shares were issued to the company at a deemed price of 29.54 cents per common share.

The acquisition results in the company beneficially owning and controlling a total of 26,636,256 common shares, representing approximately 42.63 per cent of the issued and outstanding common shares. This represents a material change over the 25 million common shares held by the company as at the date when SGX first became a reporting issuer.

The decision to issue the common shares to the company was taken by SGX. Pursuant to the purchase agreement, SGX had the option to issue common shares or pay the amount outstanding in cash. San Gold Corp. has no current intention to increase or decrease beneficial ownership of, or control or direction over common shares through market transactions or otherwise.

An early warning report in respect of the above-noted transaction will be filed on SEDAR.

We seek Safe Harbor.