San Gold Corporation Comments on Recent High Trading Volume

San Gold Corporation (TSX-V: SGR), (the "Corporation") wishes to publicly respond to inquiries it has received from several market participants and shareholders regarding the unusually large volume of trading on December 20th in the common shares ("Shares") of San Gold Corporation. On December 20, 2005, 6,318,533 shares were traded, whereas between December 1, 2005 and December 19, 2005, the volume of shares traded on a daily basis has been in the range of 151,450 to 844,986, with an average daily trading volume of approximately 335,000 shares for that period.

The Corporation wishes to confirm that it is not aware of any undisclosed material information regarding the Corporation that would justify the unusually high volume of trading in the shares.

The Corporation has confirmed that the unusual volume of shares traded on December 20, 2005 was related to the sale of a large block of shares by one shareholder to multiple buyers, including one large Canadian and one American mutual fund. In addition, the Corporation confirms that no insiders participated in trading on that date.

For further information contact Dale Ginn, President of San Gold Corporation, at (204) 794-5818.

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