San Gold also reports that development has commenced toward the “007” zone from the Hinge decline. Mobilization

of the mining contractor Cementation took place during the first week in January and advance of approximately

20 feet per day is now underway with contract crews. This initial access drift is approximately 550

meters (1800 ft) long and is expected to reach the “007” zone late in the second quarter........eventually San will have a maze of drifts with scope trams delivering buckets of gold back to the crusher. I see time lines in the future being met and our Mill upgrades allowing for this expected high tonnage. Traps7