Bissett, MB
December 7, 2009
SGR: TSX-V www.sangoldcorp.com
Mr. Dale Ginn, President of San Gold Corporation (“San Gold”), a company listed on the TSX
Venture Exchange under the symbol “SGR”, announced that it has completed its previously
announced transfer to SGX Resources Inc. (“SGX”), formerly a wholly-owned subsidiary of San
Gold, of its interest in five option agreements (the “Timmins Option Agreements”) relating to
mineral properties located in and around Timmins, Ontario (the “Properties”). As previously
announced, San Gold determined to spin off its interest in 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 transfer of San Gold’s interests in the Properties to SGX will have little or no effect
on San Gold’s overall operations.
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, as previously announced, 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 received 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 was 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 a total of 25,000,000 SGX Common Shares. San Gold also received a first right
of refusal to purchase any mineral property or interest of SGX for a period of five years from the
date hereof.
San Gold also wishes to announce the completion by SGX of the first closing of its previoiusly
announced 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 is comprised of ten SGX
Common Shares issued as “flow-through shares” within the meaning of the