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San Gold Corporation Names Ian Berzins as CEO, Reports Q4

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San Gold Corporation (SGR.TO) appointed Chief Operating Officer Ian Berzins as President and Chief Executive Officer. Also, San Gold for the fourth quarter declared operating income of $3.5 million, compared to an operating loss of $7.5 million in Q4 2011 and net loss of $3.9 million, compared to a net income of $3.2 million in Q4 2011. It had production of 19,019 ounces of gold, a 7% decrease compared to 20,359 ounces in Q4 2011; revenue of $34.0 million on gold sales of 20,251 ounces at a realized price of $1,683 per ounce, a 3% increase from revenue of $33.0 million on gold sales of 19,482 ounces in Q4 2011; and average mill throughput of 1,827 tons per day.

Outlook: "The company is pleased to report strong operating and financial results emphasizing its transition from explorer to positive cash flow gold producer while executing its plan to aggressively explore and develop the Rice Lake greenstone belt. Going forward, the company anticipates improved operating cash flows while reinvesting in its mineral properties.

"2013 will mark another significant step forward in the evolution of the Rice Lake Mining Complex by extending operational access beneath the current mining areas at the 007 and Hinge mines. This development will provide the drill platforms required to increase mineral reserves for long-term mine planning and will also provide access for continued exploration of targets located along strike from known deposits at depth. The company continues to be excited about the resource potential at depth as recentdrill results below 26 Level confirms continuity of the geological structures.

"Throughout 2013, the company will be focusing production on the Hinge and 007 areas while developing the Shoreline Basalt deposits and increasing the capacity of the Rice Lake shaft at depth. During the fourth quarter the company suspended regular mining operations in the Rice Lake Mine in order to concentrate on capital development projects on 16 and 26 levels and on increasing the capacity of the 1,200 metre main shaft. The goal is to accelerate access to the down dip extensions of the existing ore zones in L10 and 007 by drifting into the Shoreline Basalt on 16 and 26 levels. This will result in an increased number of stopes and an improvement in the material handling capabilities in the mine complex. Current engineering studies indicate that A-Shaft may not be shut down as previously announced; its capacity can be improved by a combination of lighter skips and ropes together with increased hoisting and loading pocket capacity. This would allow the company to meet its ounce guidance and waste development timetable on 16 and 26 Level. This improved infrastructure would enable the company to access the higher grade Rice Lake Mine earlier than anticipated and defer capital development on the Cohiba deposit. This strategy will continue to be reviewed throughout 2013.

"In 2013, the company will continue its aggressive exploration program within the Rice Lake greenstone belt. The company has budgeted to drill in excess of 270,000 metres of exploration diamond drilling. Exploration activities for 2013 will continue to focus on definition and extension drilling for both production planning and exploration purposes at the San Antonio Mining Unit, the Shoreline Basalt Unit, the Normandy Creek Shear Zone, and within the intermediate volcanic rock unit north of the Shoreline Basalt Unit. The objectives of the company's exploration program is to develop a larger mine complex that can be exploited through existing infrastructure. In 2013, the company will also have exploration activities associated with optioned properties in and around the Rice Lake area."

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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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