San Gold Corp. (SGR:CA)

BISSETT, MB--(Marketwire - July 30, 2009) - Dale Ginn, CEO of San Gold Corporation (TSX-V: SGR), is pleased to report that ongoing definition and exploration drilling continues to confirm and extend the high grade Hinge deposits including the newly discovered #5 and #6 lenses. Underground drilling within the Hinge Mine above and below the three recently developed levels on the #1 and #2 lenses is confirming the high grade nature and consistency of these zones as demonstrated by hole # H96-09-35 which encountered 60 g/tonne (1.8 oz/ton) over 2.0 meters (6.6 ft). The new zones located to the footwall of the main #1 and #2 lenses were also targeted by both surface and underground drilling with numerous intersections reported in the #5 and #6 lenses. High grade intersections continue to be encountered in the #6 lens located near the east end of the #1 lens as highlighted by hole #H96-09-63 which cut 40 g/tonne (1.2 oz/ton) over 1.7 meters (5.6 ft) in vein material with similar characteristics to the main Hinge lenses. The #5 lens has now been encountered in drill holes between surface and depths below 400 meters (1,300 ft) and exhibits characteristics similar to the "38" or breccia style of mineralization found in the Rice Lake Gold Mine located 1.5 kms to the west. Surface drill hole # GS-09-022 encountered a broad 7.6 meter (25.0 ft) breccia style vein grading 8.6 g/tonne (0.25 oz/ton) at over 400 meters (1300 ft) depth near the known western extents of the #2 and #3 Hinge lenses.

Nineteen intersections are reported within sixteen drill holes sorted by zone as tabulated below:

Hole # From To Length Gold g/tonne (oz/ton) Zone/Lens
--------- ------- ------- ------------- -------------------- ---------
H96-09-03 119.9 m 121.2 m 1.3 m (4.3 ft) 28.9 (0.84) 1

H96-09-05 83.7 m 85.2 m 1.5 m (4.9 ft) 27.7 (0.81) 1

H96-09-07 81.1 m 84.4 m 3.3 m (10.8 ft) 31.2 (0.91) 1

H96-09-13 93.9 m 94.5 m 0.6 m (2.0 ft) 111.0 (3.24) 1

H96-09-30 90.6 m 92.1 m 1.5 m (4.9 ft) 33.9 (0.99) 1

H96-09-31 94.2 m 95.6 m 1.4 m (4.7 ft) 26.0 (0.76) 1

H96-09-35 112.1 m 114.1 m 2.0 m (6.6 ft) 60.3 (1.76) 1

H96-09-36 83.5 m 84.7 m 1.2 m (4.0 ft) 33.6 (0.98) 1

H96-09-37 85.5 m 87.7 m 2.2 m (7.2 ft) 41.1 (1.20) 1

H96-09-63 102.0 m 103.3 m 1.3 m (4.3 ft) 58.2 (1.70) 1

H96-09-17 158.1 m 159.6 m 1.5 m (4.9 ft) 15.1 (0.44) 2

H96-09-24 107.0 m 108.6 m 1.6 m (5.3 ft) 11.3 (0.33) 2

H96-09-21 139.9 m 142.2 m 2.3 m (7.6 ft) 6.9 (0.20) 5

GS-09-022 489.7 m 497.3 m 7.6 m (25.0 ft) 8.6 (0.25) 5

including 489.7 m 491.7 m 2.0 m (6.6 ft) 12.7 (0.37) 5

including 493.2 m 497.3 m 4.1 m (13.5 ft) 9.9 (0.29) 5

H96-09-07 91.3 m 92.4 m 1.1 m (3.7 ft) 15.8 (0.46) 6

H96-09-13 130.9 m 131.9 m 1.0 m (3.3 ft) 14.7 (0.43) 6

H96-09-63 120.1 m 121.8 m 1.7 m (5.6 ft) 40.4 (1.18) 6

The Hinge zones have now been drill tested between section 0 east and 800 east (feet), (250 m) and to depths of over 1,300 feet (400 m) demonstrating excellent continuity in both structure and grade in up to 6 distinct lenses or mineralized zones. Underground development and stoping is currently progressing on three levels within the Hinge Mine following the recently completed and successful bulk sampling program (see press release dated July 14, 2009). Two underground drill rigs continue to define and extend to depth the known Hinge zones, while surface drills are expanding the new Cohiba zone located 500 meters to the east (see press release dated June 11, 2009), as well as probing targets located to the north and to the west of the Hinge deposit. The currently known Hinge deposits are located approximately 1.5 kms to the north-east of San Gold's operating Rice Lake and mine and mill, and are fully accessible by San Gold's private road, and all lie within San Gold's fully permitted mine lease.

This program was carried out under the supervision of W.S. Ferreira, P.Geo., and D. Ginn, P.Geo., the Qualified Persons for this project under National Instrument 43-101. Exploration drill core is split, with half sent to TSL Laboratories in Saskatoon, SK and fire assayed with an AA and gravimetric finish. Whole metallic assays were performed on samples containing visible gold. Definition drill core samples are assayed on site in the company's assay lab using the fire assay method with an AA and gravimetric finish.

San Gold's quality control and assurance program includes the insertion of standards, the retention of pulps and rejects, and spot checks utilizing independent labs including TSL Laboratories in Saskatoon, SK and Accurassay Laboratories of Thunder Bay, ON. The core lengths are actual lengths as drilled and have not been adjusted for the true width of the mineralized zones.

For further information contact Dale Ginn, CEO of San Gold Corporation, at (204) 794-5818 or investor information at 1-800-321-8564 or visit www.sangoldcorp.com.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.