Bissett, MB

October 29, 2009

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

Following completion of the Offering, SGX will have sufficient funds to explore the Properties

during 2010. The Properties comprise:

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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)

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.

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 met