Winnipeg, Manitoba – San Gold Corporation (TSX: SGR) (OTCQX: SGRCF) (“San Gold” or

the “Company”) provides a year-to-date update on its near-surface exploration program, as

well as an update on its planned exploration activities for the remainder of the year.

San Gold is currently undertaking its largest-ever exploration program, which includes 300,000

metres (“m”) of drilling utilizing 13 rigs, making it one of Canada’s largest drill programs by a

gold producer in 2011. The goals of this aggressive exploration program are to upgrade existing

mineral resources and discover new mineral resources in preparation for an updated mineral

reserve and resource statement in 2012 with the expectation of increasing mineral reserves

and extending mine life.

Year-to-date, San Gold has drilled over 200,000 m in more than 500 holes at its Rice Lake

Project. Drill results reported in this press release are limited to depths of up to 500 m from

surface. The Company expects to provide an update on its deep drilling activities in the fourth

quarter of 2011.

The Company’s near-surface exploration activities in 2011 have focused on both exploration

and definition drilling along the 007 trend and within the L10, L13 and Cohiba zones. The

general location of these exploration target areas and drill results’ pierce points reported

herein are presented in figures 1 and 2 at the end of this press release, respectively.

Along the 007 trend, drilling from more than 200 holes confirms robust grades over potentially

mineable widths within the mineralized envelopes. Drilling indicates that the 007 trend

outcrops at surface and extends to more than 500 m in depth. Drilling also indicates that the

cumulative, drill-indicated strike now exceeds 500 m and that the zone averages 5 m in width,

which can swell to more than 20 m. Drilling is ongoing and continues to encounter significant

extensions to the areas of known mineralization along strike and down-dip.

Within the L10 zone, drilling from more than 75 holes indicates that the mineralized envelope

typically begins 250 m below surface and extends to a depth exceeding 500 m. The drillindicated

strike length of the L10 zone is approximately 100 m and varies in width from 2 to 5

m. The L10 zone remains open along strike and down-dip.

At Cohiba, drilling from more than 50 holes indicates that the mineralized envelope begins near

surface and extends to a depth exceeding 300 m over a strike length of approximately 150 m.

The Cohiba zone remains open along strike and down-dip and is interpreted to contain at least

two lenses that vary in width from 1 to 10 m.

Within the L13 zone, exploration results have been very encouraging. Assay results from more

than 50 holes and have demonstrated that the mineralized envelope has a strike of

approximately 150 m and extends to at least 400 m from surface. The L13 zone remains open

along strike and down-dip, and is interpreted to contain at least two lenses that vary in from 1

to 10 m in width.

007 Trend

The 007 trend, which includes the 007 Main, 007 East, and 007 Far East zones, begins

approximately two kilometres (“km”) northeast of San Gold’s Rice Lake Project and is accessed

from the Hinge Mine’s decline. Nearly 400 m of the 007 and 007 East zones’ strike length has

been developed in preparation for mechanized mining.

Drill results from the 007 trend continue to demonstrate strong grades over potentially

mineable widths within the mineralized envelopes. Mineralized zones along the 007 trend

typically occur as tabular quartz veining along, or in close proximity to, the north hanging wall

contact of the Shoreline Basalt Unit, strike east – west, and dip steeply to the north. The 007

trend has a drill-indicated, cumulative strike length of more than 500 m and has been drilltested

by more than 200 holes between surface and a depth exceeding 500 m. Deeper drilling

designed to test for mineralized extensions along the 007 trend between 500 m and 1,500 m

below surface is currently underway. Exploration results from the deep drilling program are

expected to be reported during the fourth quarter of 2011.

A small selection of recent and notable assay results from the 007 trend include:

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Additional details regarding the assay results highlighted above are presented in Table 1 at the

end of this press release.

L10 Zone

The L10 zone is located approximately 1.5 km northeast of the Company’s Rice Lake Project

and is accessed from the Hinge Mine’s decline. The L10 zone is approximately 500 m west of

the 007 trend and is similar to the 007 Main zone with respect to geometry and location along

the Shoreline Basalt Unit. The L10 zone was initially interpreted to be an extension of the

Hinge deposit, but subsequent drilling has demonstrated that the L10 is a standalone deposit.

Mine development originating from the Hinge Mine has accessed the L10 deposit and initial level

development is underway. The L10 is the Company’s second significant deposit to be developed

along the Shoreline Basalt Unit.

Drilling from more than 75 holes within the L10 Zone indicates that mineralization typically

begins 250 m below surface and extends to a depth exceeding 500 m. The drill-indicated strike

length of the L10 zone is approximately 100 m and varies in width from 2 to 5 m. The L10 zone

remains open along strike and down-dip.

Notable recent assay results from the L10 zone include:

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The Cohiba zone occurs as tabular quartz veining within a northeast striking shear zone in

intermediate volcanic rocks located to the north of the Shoreline Basalt Unit. The Cohiba zone

has been drill-tested by more than 50 holes from surface to depths exceeding 300 m, has a

strike length of approximately 150 m, and is interpreted to contain at least two lenses that vary

from 1 to 10 m in width.

Recent and notable assay results from the Cohiba zone include:

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Additional details regarding these highlighted holes are presented in Table 4 at the end of this

press release.

For the remainder of the year, the drilling program at the Company’s Rice Lake Project will

continue to focus on in-fill and step-out drilling at areas of known mineralization, plus drilltesting

grassroots exploration targets.

The goals of the 2011 drill program are to upgrade a significant portion of the Company’s

inferred mineral resources to the measured and indicated categories; identify new inferred

mineral resources; and to confirm that the near surface zones extend to a depth exceeding

1,000 m that could be potentially accessed from existing underground mining infrastructure.

The Company is planning to provide an updated mineral reserve and resource statement in

2012.

In addition to its Rice Lake Project exploration programs, the Company also plans to conduct a

series of high-resolution airborne geophysical surveys on its 100%-owned projects and the

projects that it has under option. The Company expects to follow up on prospective

geophysical anomalies with drill-testing.

Surface drill programs are carried out under the supervision of W.W. Ferreira, B.Sc. Geology,

Registered Professional Geologist. Underground drill programs are carried under the

supervision of D. Ginn, B.Sc. Geology and Registered Professional Geologist. Mr. Ferreira and

Mr. Ginn are Qualified Persons as defined by National Instrument 43-101 of the Canadian

Securities Administrators.

Strict sampling and QA/QC protocol are followed, including the insertion of standards, blanks,

and duplicates on a regular basis, plus the retention of pulps and rejects. Surface drilling core

samples are sent to TSL Laboratories in Saskatoon, Saskatchewan (“TSL”) for sample

preparation and analysis. Analytical method is fire assay with atomic adsorption finish and

gravimetric finish. Whole metallic assays are performed on samples containing visible gold.

Additional QA/QC testing is provided by Accurassay Laboratories of Thunder Bay, Ontario

(“Accurassay”) on a routine basis.

Underground drill core samples are prepared and assayed on site in the Company’s assay lab

using the fire assay method with an atomic adsorption finish and gravimetric finish. Strict

sampling and QA/QC protocol are followed, including the insertion of standards, blanks, and

duplicates on a regular basis, plus the retention of pulps and rejects, and spot checks utilizing

independent labs including TSL and Accurassay.

The core lengths reported in this press release are actual lengths as drilled and have not been

adjusted for the true width of the mineralized zones.

San Gold is an established Canadian gold producer, explorer, and developer that owns and

operates the Hinge, 007, and Rice Lake mines near Bissett, Manitoba. The Company employs

more than 400 people and is committed to the highest standards of safety and environmental

stewardship. The Company has over $40 million in cash and equivalents and is unhedged to the

price of gold. As of August 1, 2011, San Gold had 310,966,175 common shares outstanding

(327,360,186 shares fully diluted), which are traded on the Toronto Stock Exchange under the

symbol “SGR” and on the OTCQX under the symbol “SGRCF”.