SAN GOLD (SGR.TSX)

SAN GOLD HIGHLIGHTS

One of Canada’s Newest High-Grade Gold Districts – San Gold has full title to 40 mineral leases and 3,629 hectares contiguous to Mine Lease 63, the lease which contains the Rice Lake Mine. These mineral leases stretch for 12 kilometers along the mine horizon. Ore is currently being mined from the Rice Lake Mine and the newly developed Hinge mine, located 1 km east of the Rice Lake Mine.

Multiple High-Grade Gold Zones Near Existing Rice Lake Mill – The company has substantially increased the audited Measured and Indicated resource ounces and Inferred resource ounces since its predecessor companies acquired the Rice Lake Mine in 2004. Furthermore, five new gold discoveries have resulted over the past two years – The Hinge, 008, Cohiba, L-13, and Emperor.

Gold Production Set to Rise Nearly 100% in 2011 at Rice Lake Mine – The Canadian-based gold miner is forecasting gold production to nearly double as it continues to advance its flagship project.

Politically-Safe, Mining-Friendly Political Jurisdiction in Canada – The San Gold mine site is located 230 kilometers northeast of Winnipeg, Manitoba adjacent to the town of Bissett, Manitoba. Fraser Institute’s annual Survey of Mining Companies ranked Manitoba ninth globally out of 72 jurisdictions reviewed in 2009, and first out of 65 in 2007.

SAN GOLD RECENT DEVELOPMENTS

52% Production Increase October 7, 2011 San Gold announced preliminary operating results for the third quarter of 2011 and provided drilling results from its SG1 Mine Area and from a portion of the Shoreline Basalt in Canada. The Company’s Rice Lake, Hinge, and 007 mines (the Rice Lake Complex) produced 19,119 ounces of gold at a total cash operating cost that is expected to be in-line with San Gold’s full-year guidance of $825 per ounce.

Q2 Results August 15, 2011 San Gold announced financial and operating results for the second quarter of 2011. The Canadian-based gold miner reported record gold production of 20,111 ounces at record low total cash costs of $820 per ounce of gold sold.

Expands Footprint in Manitoba August 10, 2011 San Gold announced that it has signed an option agreement to earn an 80% interest in Wildcat Exploration’s Mike Power, Jeep, and Poundmaker gold exploration projects in the Rice Lake area of Manitoba, Canada. Under the terms of the option agreement, San Gold may earn an 80% interest in the Wildcat Projects by spending $5.1 million on exploration activities over a four-year period.

SAN GOLD SHARE PERFORMANCE

SGR.TSX HAS OUTPERFORMED

S&P 500Over the past two years, San Gold has significantly outperformed the broader market.

GoldSan Gold has displayed its gold price leverage by outpacing the yellow metal by a factor of nearly three.

GDX The Canadian-based gold miner has performed considerably better than the world’s most widely-held basket of gold stocks, the Market Vectors Gold Miners ETF.

XAUSan Gold has posted gains far surpassing that of the broader precious metals sector.

SGR.TSX VS BENCHMARKS PAST TWO YEARS

Premier continues to outperform benchmarks

SAN GOLD IN THE NEWS

LOCATED IN TOP MINING JURISDICTION MANITOBA, CANADA

KEY UPCOMING CATALYSTS

2011
Aggressive Exploration at Multiple Targets
San Gold’s current strategy is to continue building on its exploration successes while increasing production output. To date, San Gold has accomplished this by quickly putting new discoveries into production in order to bolster cash flows.

2011
More Drill Results from High-Grade Hinge, 007 and New Target, Emperor
San Gold intends to continue developing the high-grade, near-surface deposits being discovered as part of its exploration program, capitalizing on the bull market in precious metals.

2011-2012
Growing Production and Declining Cash Costs
After only a few years of operations, costs per ounce of gold produced are already on the verge of moving toward the level seen other Canadian underground gold mines. As these near surface deposits continue to come online, the average cost per ounce of gold produced is expected to drop further.