SGRCF San Gold Corporation (CE)

San Gold Announces a 60% Increase in Mineral Reserves

WINNIPEG, MANITOBA--(Marketwired - Feb 20, 2014) - San Gold Corporation (TSX:SGR)(OTCQX:SGRCF) today announced an updated mineral reserve and resource estimate for its Rice Lake Mining Complex.

During 2013, extensive definition drilling and detailed mine planning to integrate the Hinge, 007 and Rice Lakes mines resulted in an increase in proven and probable mineral reserves to 2.7 million tons grading 5.24 grams per tonne containing 405,400 ounces of gold as of December 31, 2013. This is a 60% increase from the proven and probable mineral reserves as of December 31, 2012.

"I am very pleased with the progress made by our technical team over the past year. The increase in reserves has allowed us to complete five years of detailed mine planning, thereby providing improved operational flexibility. Our drilling in 2014 will be primarily from underground locations in closer proximity to known ore bodies. We expect to achieve a further increase in the mineral reserve as the year progresses through the conversion of our large inferred mineral resource," said Ian Berzins, San Gold's President, CEO and Chief Operating Officer.

Rice Lake Mining Complex Mineral Reserves and Resources, as of December 31, 2013
Mineral Reserves									Mineral Resources
	Tons		Grade				Gold			Tons		Grade				Gold
			g/tonne		oz/ton		oz					g/tonne		oz/ton		oz
Rice Lake Mine									Rice Lake Mine
Proven Reserves	345,600		6.05		0.18		61,000		Measured Resource	281,400		8.32		0.24		68,300
Probable Reserves	1,114,300		5.85		0.17		190,000		Indicated Resource	927,400		7.87		0.23		212,800
Proven and Probable	1,459,900		5.89		0.17		251,000		Measured and Indicated	1,208,800		7.97		0.23		281,100
									Inferred Resource	6,553,300		7.11		0.21		1,358,100
Hinge District									Hinge District
Proven Reserves	146,000		4.79		0.14		20,400		Measured Resource	123,900		6.33		0.18		22,900
Probable Reserves	320,500		4.16		0.12		38,900		Indicated Resource	270,600		5.51		0.16		43,500
Proven and Probable	466,500		4.36		0.13		59,300		Measured and Indicated	394,500		5.77		0.17		66,400
									Inferred Resource	1,313,000		4.51		0.13		172,800
007 Deposit									007 Deposit
Proven Reserves	133,300		4.76		0.14		18,500		Measured Resource	109,900		6.47		0.19		20,700
Probable Reserves	333,900		4.46		0.13		43,400		Indicated Resource	275,400		6.05		0.18		48,600
Proven and Probable	467,200		4.54		0.13		61,900		Measured and Indicated	385,300		6.17		0.18		69,300
									Inferred Resource	3,634,400		5.25		0.15		556,100
Other Deposits									Other Deposits
Proven Reserves	52,200		5.06		0.15		7,700		Measured Resource	42,000		7.55		0.22		9,200
Probable Reserves	208,100		4.21		0.12		25,500		Indicated Resource	759,400		5.85		0.17		129,600
Proven and Probable	260,300		4.38		0.13		33,200		Measured and Indicated	801,400		5.94		0.17		138,800
									Inferred Resource	4,438,600		6.27		0.18		812,200
Total Project									Total Project
Proven and Probable	2,653,900		5.24		0.15		405,400		Measured and Indicated	2,790,000		6.83		0.20		555,600
									Inferred	15,939,300		6.24		0.18		2,899,200

Notes to Mineral Reserve and Resource Estimate Table

• Mineral reserve and resource estimates are calculated in accordance with the CIM Definition Standards on Mineral Resources and Mineral Reserves adopted by CIM Council, 2010.
• Tonnage and ounce estimates have been rounded to the nearest hundred.
• Proven and probable mineral reserves are included in the measured and indicated mineral resources.
• The mineral reserve estimate is based on a gold price of US$1,250 per ounce.
• A cut-off grade of 3.65 g/tonne gold was used for estimating mineral reserves. A cut-off grade of between 2.74 and 3.43 g/tonne gold was used for estimating mineral resources.
• Inferred mineral resources are not in the current mine plan and therefore do not have demonstrated economic viability.

The estimate of mineral resources was carried out under the supervision of Michael Michaud, Vice-President of Exploration. The estimate of mineral reserves was carried out under the supervision of Rolando Jeria, Chief Engineer. Mr. Michaud and Mr. Jeria are Qualified Persons as defined by NI 43-101, and have reviewed and approved this news release.

About San Gold

San Gold is an established Canadian gold producer, explorer, and developer that owns and operates the Rice Lake Mining Complex near Bissett, Manitoba. The Company employs more than 420 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".

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.

Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be "forward-looking statements." Forward-looking statements are subject to a variety of risks and uncertainties that could cause actual events or results to differ from those reflected in the forward-looking statements.

There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include, among others, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of precious metals, as well as those factors discussed in the section entitled "Other MD&A Requirements and Additional Disclosure and Risk Factors" in the Company's most recent quarterly Management's Analysis and Discussion ("MD&A"). Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

Exploration results that include geophysics, sampling, and drill results on wide spacings may not be indicative of the occurrence of a mineral deposit. Such results do not provide assurance that further work will establish sufficient grade, continuity, metallurgical characteristics, and economic potential to be classed as a category of mineral resource. A mineral resource that is classified as "inferred" or "indicated" has a great amount of uncertainty as to its existence and economic and legal feasibility. It cannot be assumed that any or part of an "indicated mineral resource" or "inferred mineral resource" will ever be upgraded to a higher category of resource. Investors are cautioned not to assume that all or any part of mineral deposits in these categories will ever be converted into proven and probable reserves.

San Gold CorporationIan BerzinsPresident, CEO, and Chief Operating OfficerToll Free: 1 (855) 585-4653San Gold CorporationTim FriesenInvestor RelationsToll Free: 1 (855) 585-4653sgr@sangold.cawww.sangold.ca