Bissett, MB October 29, 2009 San Gold Launches Timmins Exploration Subsidiary SGR: TSX-V www.sangoldcorp.com Mr. Dale Ginn, President of San Gold Corporation (the Corporation ), a company listed on the TSX Venture Exchange under the symbol SGR, today announced its intention to transfer to its wholly-owned subsidiary, SGX Resources Inc. ( SGX ), its interest, subject to receipt of certain consents, in five option agreements (the Timmins Option Agreements ) relating to mineral properties located in and around Timmins, Ontario (the Properties ) listed below. The Corporation has determined to spin off the Properties to SGX in order to form a new company that will explore and develop high grade gold deposits in Canadian mining camps. San Gold will continue to focus its activities on developing its high grade gold mines, deposits and exploration properties in the Rice Lake belt of Manitoba and on developing advanced stage deposits in other areas as they may be acquired according to a strict internal acquisition protocol. The recently announced Davidson-Tisdale property interest acquisition near Timmins will remain in San Gold since it is an advanced stage development and exploration property. San Gold shareholders will continue to benefit from any SGX exploration successes indirectly through San Gold s continuing equity investment in SGX. San Gold will not be obligated to enter into any future investments and shall not be responsible for any costs associated with SGX s ongoing exploration activities. However, San Gold has agreed to issue certain shares of San Gold pursuant to the Timmins Option Agreements and San Gold has agreed to remain bound to issues those shares, subject to receipt of compensation from SGX for the issuance of such shares and subject to receipt of applicable regulatory and stock exchange approvals. San Gold will receive aggregate consideration of $2,500,000 in exchange for transferring the Properties to SGX, an amount approximately equal to the funds so far expended on the Properties. Payment to San Gold will be in the form of 19,000,000 common shares of SGX (the SGX Common Shares ), at a deemed price of $0.1316 per share ($2,500,000) in compensation for cash expended and initial opportunity risk undertaken by San Gold. San Gold currently holds 6,000,000 SGX Common Shares. San Gold shall retain a first right of refusal to purchase any SGX property for a period of five years following the date of the sale and transfer of the Properties. SGX, currently a private Manitoba incorporated company, shall undertake a private placement offering (the Offering ) of up to 2,400,000 units ( Units ) at a price of $2.75 per Unit for gross proceeds of $6,600,000. Each Unit will be comprised of ten SGX Common Shares issued as flow-through shares within the meaning of the Income Tax Act (Canada) and one regular SGX Common Share, for an effective cost of $0.25 per share. Each Unit shall carry eleven SGX Common Share purchase warrants ( Warrants ). Each Warrant will entitle the holder thereof to
purchase one SGX Common Share at a price of $0.30 per share for a period of 12 months from the date of issuance. San Gold shall not participate in the Offering. Certain insiders of San Gold may participate in the Offering. Upon completion of the Offering, SGX will no longer be a wholly-owned subsidiary of the Corporation. Assuming full subscription to the Offering, San Gold shall then own 48.6% of SGX on an undiluted basis, and 32.1% on a fully diluted basis in the event that all the Warrants are exercised. Hugh Wynne, Executive Chairman of San Gold, and Dale Ginn, CEO of San Gold, are the initial directors of SGX. Following the completion of the Offering, Mr. Ginn will resign as a director of SGX in order to completely devote his services to the benefit of San Gold. Mr. Wynne will remain as a Director of SGX in order to maintain continuity with San Gold as SGX s largest initial shareholder. SGX s exploration management team is already in place in Timmins and is currently operating the Properties for San Gold on a consulting basis. W.S. Ferreira, P.Geo., and D. Ginn, P.Geo., are the Qualified Persons for San Gold under National Instrument 43-101. For further information contact Dale Ginn, Chief Executive Officer of San Gold Corporation, at (204) 794-5818 or 1-800-321-8564. About SGX Resources Inc. Following completion of the Offering, SGX will have sufficient funds to explore the Properties during 2010. The Properties comprise: (1) Big Marsh The Big Marsh property consists of ten claims (76 units or 1,216 hc.) in the eastern part of Carscallen Twp. extending from Big Marsh Lake to the Bristol Twp. boundary. This property has had full coverage of VLF and magnetic surveys (approximately 120 km), and about 60% coverage of I.P. survey. In addition, ten BQ diamond drill holes have been put down on chargeability anomalies for a total of 1,792 meters or 5,879 feet. This summer, a soil sampling (MMI) program, comprising of in excess of 1000 samples, has been conducted on the main part of the claim block in order to prioritize anomalies. At present, infill samples are being taken to better define the results. Further diamond drilling is being planned to test coincident MMI and I.P. anomalies. (2) Carscallen West This property consists of a single claim containing fifteen units or 240 hectares to the west of Big Marsh Lake and detached from the Big Marsh block. It has had full coverage of geophysics including VLF, magnetics, and I.P for a total of 23 km. Several anomalous areas were detected by the surveys, but none of these have been drill tested. A soil sampling program is planned in order to prioritized the anomalous areas. (3) Bristol West The Bristol West property contains four claims or 25 units (400 hectares) along the western edge of Bristol Twp. It is contiguous with the Big Marsh property to the west and the property of West Timmins to the east. It has had partial I.P, VLF and magnetic coverage. But these surveys are presently in progress and about 18 km of geophysics will be completed. Two lines
of soil survey have been done (64 samples) indicating anomalous coincidence between elevated MMI returns and a chargeability high. The completion of the geophysical survey on the northern part of the block is planned in order to define the chargeability anomaly. Diamond drilling is definitely warranted. (4) Bristol North Recently acquired, this property consists of two claims containing a total of eight units or 128 hectares along the northern boundary of Bristol Twp. It lies in contact with the property of West Timmins to the south. No work has been done on this property up to the present but a geophysical survey is planned for this fall. (5) West Ogden The West Ogden property consists of two claims containing 24 units or 384 hectares in the northwest corner of Ogden Twp. It lies in contact with a large Goldcorp property to the south. The eastern half of the claim block has had complete coverage of I.P.,VLF and magnetic surveying for a total of 22.5 km. Four BQ diamond drill holes have been completed with the total distance being 606 meters or 2000 feet. Some attention will be paid to the western half of the property particularly in the south. (6) Delnor The Delnor property contains two claims or 14 units (224 hectares) in north central Deloro Township to the south of the Delnite and Aunor properties of Goldcorp and to the west of the Ankerite property of V.G. Gold. It has been largely covered by VLF and magnetic surveys (approximately 14 km) and about 70% covered by I.P. A surface stripping program has exposed about 1000 square meters of subcrop from which some 100 character samples have been taken and analysed. The returns have indicated two areas of elevated gold values coinciding with anomalous chargeability. Drill testing of these areas is planned. (7) Lynx The Lynx property is a single claim containing 10 units or 160 hectares in the west central part of Deloro Twp to the south of the Delnor. It had had complete coverage of both VLF and magnetics for a total of about 16 Km. A former MMI program has indicated elevated trace element values in one area. A short I.P. program is planned on selected areas. (8) Hunter This property consists of four patented claims with a total area of 64 hectares lying to the immediate east of the Lynx property. An in close geophysical survey (10 km) on 50 m lines consisting of VLF, magnetics, and I.P. has been completed. A surface stripping program designed to extend gold mineralization from a previously mined area has exposed some 800 square meters of supcrop. Only one of about 100 character samples returned elevated gold values. However one anomalous area could not be stripped and will have to be drill tested. (9) Big Dyke
The Big Dyke property consisted originally of one claim containing five units or 80 hectares. But it has recently been expanded to five claims containing 13 units or 208 hectares by acquisitions. It is located in the eastern part of Deloro Twp. adjoining the property of Goldcorp to the north. The original claim has been covered by close in VLF, magnetic, and I.P. geophysics totaling 18 km, and one other claim has had some MMI and I.P. work (1.2 km). A surface stripping program has exposed in excess of 1,500 square meters of subcrop mainly in the northern sector. Several hundred surface character samples have yielded elevated values in gold in five localities. These are presently being drill tested. Six holes have been completed totaling about 600 meters or 1,980 feet. (10) Bow Tie This small two claim four unit property contains some fifty hectares of area. It lies to the immediate north of the Big Dyke property and adjoins the Goldcorp property. The claims have complete coverage of magnetic and I.P. geophysics (five km). Further work would depend upon the results of the program on the Big Dyke property. (11)Odessey This property is in Shaw Twp. along the eastern boundary of Deloro Twp. adjoining the Goldcorp property to the northwest. It consists of a single claim of six units or 96 hc. It has had complete coverage of I.P. and magnetic surveys totaling 12 km. A surface stripping program has exposed about 500 square meters or subcrop in an effort to expose anomalous areas. Some character samples have been taken. Assay results are pending. (12) Slade The Slade property consists of a single claim containing 7 units or 112 hectares in the southeast quarter of Deloro Twp. It has recently received an MMI survey (132 samples) (13) Matheson-German This property lies across the border between the two Townships along their southern boundaries between the properties of Moneta and St. Andrews. It consists of two claims or eight units (128 hc.) No work has been done on the property as it has recently been acquired. However, a geophysical survey is planned in the near future. Totals to date since inception of Timmins activities Claims : 35 Units : 206 Hectares : 3,282 Drill holes : 20 Meters : 2,998 Feet : 9859 Geophysics I.P. : 191 km VLF-magnetics : 259 km Stripping : 3,800 square meters (256 hours). Soil Sampling : 1428 samples (MMI) Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.