San Gold Corporation Announces Closing of $26 Million "Bought Deal" Private
Placement at $4.05 per Share

BISSETT, MB, March 26 /CNW/ - San Gold Corporation (TSX-V: SGR) (the "Company") is pleased to announce that it has closed its private placement offering (the "Offering") of 6,551,000 common shares of the Company issued as "flow-through shares" within the meaning of the Income Tax Act (Canada) (the "Flow-Through Shares") at a price of $4.05 per Flow-Through Share for total gross proceeds to the Company of $26,531,550. The Company initially announced that it would issue only 6,180,000 Flow-Through Shares pursuant to the Offering, but the size of the Offering was increased in order to meet demand from investors.

Dundee Securities Corporation, Cormark Securities Inc., Raymond James Ltd. and CI Capital Markets Inc. (the "Underwriters") acted as underwriters for the Offering. The Flow-Through Common Shares are subject to a hold period of four months and a day from the date of issuance in accordance with applicable securities laws and the policies of the TSX Venture Exchange.

In connection with the Offering, the Underwriters received a cash commission equal to 5% of the gross proceeds raised under the Offering.

The gross proceeds of the Offering will be used for exploration and development on the Company's mineral properties.

These securities being offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold in the United States or to, or for the benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act) absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information: Dale Ginn, Chief Executive Officer of San Gold Corporation, at [phone] or investor information at 1-800-321-8564 or visit www.sangoldcorp.com