.........we know we have the capability to produce high grade for cheap, Bay ST just needs to see a higher 43-101 and some cash flow.........

July 14, 2009

Dale Ginn, CEO of San Gold Corporation (SGR: TSX-V) is pleased to present the results of the 11,762 ton Hinge

Zone bulk sampling program that was carried out during the second quarter of 2009. The high grade nature of

the hinge zones were validated as the stope mining grade reconciled to the mill at 21.7 g/tonne (0.63 oz/ton) with

the main #1 lens stope contributing 26.3 g/tonne (0.77 oz/ton). Low total operating costs (mine and mill) of Cdn

$184 ($US 158) per ounce were realized as well as high mill recoveries of 96%. Total expenditures (operating and

capital) to date in order to build and develop the Hinge Mine are approximately Cdn $6.5 million with nearly 6,000

ounces recovered to June 30

th

. A table containing the detailed breakdown of stoping, development, mill and cost

data follows the written portion of this press release.

Highlights and Observations of the Hinge Zone Bulk Sampling Program include:

5,938 ounces recovered from 11,762 tons mined and processed.

Stoping grades of 21.7 g/tonne (0.63 oz/ton) and development grades of 16.9 g/tonne (0.49 oz/ton).

Main Hinge lens #1 grades 26.3 g/tonne (0.77 oz/ton) in stoping and 21.2 g/tonne (0.62 oz/ton) in development.

Bulk sample operating costs averaged Cdn $59 per ton for mining and Cdn $19 per ton for milling, for a total direct

operating cost of Cdn $78 per ton, excluding capital expenditures and exploration drilling.

Total direct bulk sample operating cost per ounce of gold produced is Cdn $184 per ounce or approximately US

$158 as at June 30, 2009.................Long On The Greens Traps7