San Gold Corporation

WINNIPEG, MANITOBA--(Marketwired - Dec. 31, 2014) -

NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

San Gold Corporation (TSX:SGR)(OTCQX:SGRCF) ("San Gold" or the "Company") announced today that it has obtained a secured loan in the amount of US$900,000 from a fund managed by B Asset Manager LP (the "Lender"). This loan represents the second tranche of a two-part financing previously announced on December 17, 2014.

The loan is evidenced by a secured demand promissory note (the "Note") issued to the Lender by San Gold. The Note is secured by a debenture granted to the Lender over all of the assets of San Gold. The Note bears interest in the amount of 14% per annum and interest is payable monthly, in advance. The Note is repayable on demand or in certain other circumstances at the option of the Lender. The Note is not convertible into other securities of San Gold.

The net proceeds from the sale of the Note will be used by San Gold to fund its operations.

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. San Gold is listed on the Toronto Stock Exchange under the symbol "SGR" and on the OTCQX under the symbol "SGRCF".

For further information on San Gold, please visit www.sangold.ca.

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 are forward-looking statements that involve various risks and uncertainties.

San Gold Corporation
Greg Gibson
Chief Executive Officer
Toll Free: 1 (855) 585-4653
sgr@sangold.ca

San Gold Corporation
Mandeep Rai
Chief Financial Officer
Toll Free: 1 (855) 585-4653
sgr@sangold.ca