San Gold Files Third Quarter Results

SGR: TSX || SGRCF: OTCQX
www.sangold.ca

BISSETT, MB, Nov. 12 /CNW/ - (TSX:SGR - OTCQX:SGRCF) San Gold Corporation announces the release of its third quarter financial statements and related management discussion and analysis.

The Company recognized revenue of $13.881 million for the quarter and $40.476 MM for the year to date. The result is a net profit from operations of $4.1 MM for the quarter and a loss of $0.3 MM for the year to date. The comparative quarter in the same period last year showed an operating loss of $6.9 MM and $10.9 MM for the prior YTD. The comprehensive loss from operations for the quarter was $4.6 MM for the quarter and $12.9 MM for the YTD in comparison to a loss of $5.0 MM in the same quarter of the prior year and $24.3 MM for the prior YTD.

"This operating profit of $4.1 MM marks an important milestone for San Gold which, along with the significant financing in August and the TSX listing in October, have served to place San Gold in a strong financial position. We look forward to continuing our aggressive exploration and development programs and production ramp-up," says San Gold CEO Dale Ginn.

San Gold achieved a quarterly record of 71,463 tons mined during the quarter or 776 tons per day and milled a record 75,263 tons of ore or the equivalent of 818 tons. The Company also completed 1,600 feet of ramp development.

The Company closed a short form prospectus financing that saw the issuance of 21,133,100 common shares. This resulted in net proceeds of $79.9 million. The company ended the quarter with $100.7 million in Current Assets.

In September, San Gold released an updated technical report that consolidated its Rice Lake Resources in a single document.

Also in the subsequent period, San Gold received final approval for the listing of the Corporation's shares on the Toronto Stock Exchange (TSX). Shares commenced trading on the TSX on Oct. 20.

SAN GOLD CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS AND DEFICIT
(UNAUDITED)

		Three month period ended							Nine month period ended
		September 30, 2010			September 30, 2009			September 30, 2010			September 30, 2009
REVENUE		$	13,881,005		$	8,844,634		$	40,475,961		$	16,088,544
OPERATIONS
	Operations		7,240,558			6,525,833			32,403,298			22,578,703
	Asset retirement accretion		41,780			37,910			125,341			113,728
	Amortization of property, plant and equipment		724,605			487,732			1,838,976			1,394,932
	Depletion of mineral properties		1,754,270			1,544,290			6,400,513			2,648,131
INCOME (LOSS) FROM OPERATIONS			4,119,792			248,869			(292,167)			(10,646,950)
	Exploration		4,717,997			2,646,155			9,392,300			5,375,503
	General and administrative		2,311,821			1,172,674			5,669,486			4,697,718
	Accretion of convertible debentures		-			39,806			-			119,419
	Amortization of financing fees		-			50,029			-			150,087
	Royalty expense		1,967,708			2,446,795			5,903,123			6,382,211
	Interest expense		69,618			284,014			137,399			874,119
	Share-based compensation		1,791,238			1,111,060			5,328,063			3,204,793
LOSS BEFORE OTHER REVENUE			6,738,590			7,501,664			26,722,538			31,450,800
OTHER REVENUE AND EXPENSES
	Indemnification fee		63,788			63,788			191,364			191,364
	Interest income		2,047,251			2,454,310			6,207,026			7,006,373
	Equity loss of SGX Resources Inc. (Note 7)		-			-			(503,164)			-
	Loss on disposal of property, plant and equipment		(7,714)			-			(7,714)			-
LOSS BEFORE INCOME TAX			4,635,265			4,983,566			20,835,026			24,253,063
	Future income tax recovery		-			-			7,959,465			-
LOSS AND COMPREHENSIVE LOSS FOR THE PERIOD			4,635,265			4,983,566			12,875,561			24,253,063
DEFICIT, BEGINNING OF THE PERIOD			169,994,420			141,442,383			152,254,876			121,011,395
Share issue costs			4,635,084			-			6,174,867			1,236,701
Expired Warrants			-			-			-			(75,210)
Expired Options			(8,382)			-			(8,382)			-
Future income tax on flow-through shares			-			-			7,959,465			-
DEFICIT, END OF THE PERIOD		$	179,256,387		$	146,425,949		$	179,256,387		$	146,425,949
LOSS PER COMMON SHARE: Basic & diluted (Note 17)		$	0.02		$	0.02		$	0.05		$	0.10

The information in this release may contain forward-looking information under applicable securities laws. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied in the forward-looking information.

The TSX Exchange does not accept responsibility for the adequacy or accuracy of this release.

For further information:

Dale Ginn  Chief Executive Officer  San Gold Corporation [phone]

Investor Relations 1-800-321-8564