That is verbatum the reply I got. What a crock of shit.

Dear Mr.,

Thank you for your email regarding the trading in San Gold Corporation (“SGR”), on June 14th prior to news and on Friday June 15th within the TSX Market on Close (“MOC”) facility. The MOC facility is a service intended to provide equal access and opportunity in setting the closing price, increased price discovery efficiency, and reduced volatility of the closing price for symbols eligible for the MOC facility.

The Closing Price Acceptance (“CPA”) parameter is used to determine whether or not the CCP at the end of the price movement extension is acceptable. For a TSX MOC eligible security the CPA will allow a 10% range off of the Volume Weighted Average Price (“VWAP”) of the last 20 minutes of regular market trading and the last board-lot sale price from the continuous market. A number of factors contribute to MOC volume and volatility. Attached is a PDF of frequently asked questions regarding the MOC.

SGR’s last trade was at $1.07 so the trading that took place during the MOC at $1.03 are within the parameters of the CPA.

In reference to your concerns with regards to the trading on June 14th in SGR, Investment Industry Regulatory Organization of Canada ("IIROC"), routinely monitor trading and review all instances of unusual trading. As such, this information has been forwarded for further review. IIROC has confidential investigation procedures and as such staff cannot comment on a potential investigation unless it becomes a matter of public record. By keeping information confidential, we protect the integrity of our investigation, ensure the complaint process is not used to affect the market and maintain fairness to those who may be the subject of a complaint that does not result in an investigation or sanction. However, please be assured that appropriate action will be taken.

One of the primary roles of IIROC in reviewing any complaint is to determine whether there is sufficient evidence that supports a potential breach of UMIR to warrant further investigation and potential regulatory action. If there are no indications of violations of UMIR, IIROC will close the file with no action taken. If there are indications of potential violations of UMIR, IIROC will take appropriate action against the dealer member or its registered employees. Appropriate action may involve formal disciplinary proceedings or other measures such as a cautionary letter or a warning letter. Formal disciplinary proceedings become matters of public record, however other measures taken by IIROC are not.

IIROC exists to develop, administer, surveil and enforce the trading rules known as the Universal Market Integrity Rules, in the Canadian securities market. You may find out more about UMIR byvisiting our website atwww.iiroc.ca. The link to UMIR is in the right navigation pane.

If you have any further concerns, please do not hesitate to contact us at any time.

Regards,

Charmaine Wall

Inquiries Officer

Investment Industry Regulatory Organization of Canada

121 King Street West

Suite 2000

Toronto, Ontario

M5H 3T9

T: 416.646-7299

inquiries@iiroc.ca