WINNIPEG, MANITOBA--(Marketwire - April 2, 2012) - San Gold Corporation (TSX:SGR)(OTCQX:SGRCF) (the "Company") today announces that it has purchased a total of 2,000,000 units ("Units") of SGX Resources Inc. ("SGX") at a price of $0.50 per Unit pursuant to a subscription agreement dated as of the date hereof. Each Unit is comprised of one common share of SGX (a "Common Share") and one half of one common share purchase warrant (a "Warrant"). Each whole Warrant entitles the holder thereof to purchase one Common Share at a price of $0.60 per share for a period of two years from the date of issuance. The Units were acquired by the Company pursuant to the "accredited investor" exemption contained in National Instrument 45-106 Prospectus and Registration Exemptions.

The Common Shares forming part of the Units represent approximately 1.94% of the issued and outstanding Common Shares of SGX. The acquisition results in the Company beneficially owning and controlling an aggregate of 28,636,256 Common Shares, representing approximately 27.82% of the issued and outstanding Common Shares. This represents a material change over the 26,636,256 Common Shares held by the Company prior to this transaction. In addition, the Company holds the 1,000,000 Warrants issued to it pursuant to this transaction.

The Company acquired the Units of SGX because management of the Company believes that the Units represent a good investment for the Company. The Company previously announced that SGX had agreed to purchase certain mineral claims from the Company known as the Davidson-Tisdale Property and the North Tisdale Property in consideration of the issuance of 8,060,000 Common Shares by SGX to the Company. It is anticipated that this transaction will close in the next few weeks. The Company has no further intention of acquiring securities of SGX following the completion of this transaction.

An early warning report in respect of the above-noted transaction will be filed on SEDAR and will be available at www.sedar.com.

About San Gold

San Gold is an established Canadian gold producer, explorer, and developer that owns and operates the Hinge, 007, and Rice Lake mines near Bissett, Manitoba. The Company employs more than 400 people and is committed to the highest standards of safety and environmental stewardship. San Gold is on the Toronto Stock Exchange under the symbol "SGR" and on the OTCQX under the symbol "SGRCF".

For further information on San Gold, please visit www.sangold.ca.

Cautionary Note

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This news release includes certain "forward-looking statements". All statements, other than statements of historical fact included in this release, including, without limitation, statements regarding forecast gold production, gold grades, recoveries, cash operating costs, potential mineralization, mineral resources, mineral reserves, exploration results, and future plans and objectives of the Company, are forward-looking statements that involve various risks and uncertainties. These forward-looking statements include, but are not limited to, statements with respect to mining and processing of mined ore, achieving projected recovery rates, anticipated production rates and mine life, operating efficiencies, costs and expenditures, changes in mineral resources and conversion of mineral resources to proven and probable mineral reserves, and other information that is based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management.

FOR FURTHER INFORMATION PLEASE CONTACT:

George Pirie
San Gold Corporation
President and CEO
1 (416) 214-0024

OR

Tim Friesen
San Gold Corporation
Communications Director
1 (855) 585-4653
www.sangold.ca