Review of 2013 Third Quarter Results

The Company produced 20,220 ounces of gold during the quarter compared with 27,084 ounces in the third quarter of 2012. Lower gold production was the result of both lower tons milled and lower mill head grade. The lower mill throughput is due to a much smaller stockpile at the start of the quarter compared to the large stockpile at the start of the third quarter of 2012. In June 2012, milling operations were temporarily suspended due to a ball mill breakdown resulting in the buildup of the mill stockpile. The decrease in mill head grade in the third quarter of 2013 compared to third quarter of 2012 is a result of lower than planned grade from the Hinge, L10 and 007 mines and a smaller contribution of Rice Lake ore compared to the previous period. Mill recovery was consistent with the third quarter of 2012 despite the lower head grade.

The Company milled 175,311 tons of ore at an average grade of 4.24 grams of gold per tonne of ore. The Company achieved a quarterly mill throughput rate of 1,906 tons per day in the third quarter of 2013, an 8% decrease compared to throughput of 2,077 tons per day in the third quarter of 2012.

While total cash operating costs in the third quarter of 2013 were 1.5% lower than the previous period, the Company reports a quarterly loss from operations of $0.6 million and a total and comprehensive loss of $6.4 million, compared to income from operations of $5.4 million and a total and comprehensive loss of $0.8 million in the third quarter of 2012. The decrease in income from operations is due to the reduced gold sales in the third quarter of 2013 as well as a substantial reduction in the realized price of gold. This was partially offset by a $6.6 million reduction in non-cash depletion charges, a $1.1 million decrease in share-based compensation expense and a $0.6 million decrease of the income tax recovery related to the reduction of the deferred liability associated with the Company fulfilling its obligations regarding its 2012 flow-through share commitments.

The Company earned quarterly revenue of $28.7 million, compared with revenue of $41.0 million in the third quarter of 2012. The decrease in gold sales revenue in the third quarter of 2013 is a result of a 15% decrease in the number of ounces sold compared to the third quarter of 2012 and an 18% decrease in the average realized gold price. The Company realized $1,373 per ounce of gold sold in the third quarter of 2013, compared to $1,675 per ounce in the third quarter of 2012 and the Company sold 20,873 ounces of gold in the third quarter of 2013, compared with sales of 24,469 ounces in the third quarter of 2012.

The Company generated $2.2 million of cash flow from operating activities before changes in non-cash working capital in the third quarter of 2013, compared with $15.8 million generated in the third quarter of 2012. After changes in non-cash working capital, operating activities used $1.4 million in the third quarter of 2013, compared to $14.8 million generated in the third quarter of 2012.

Financing of new capital for the Company in the third quarter of 2013 of $6.2 MM consisted of a small equity offering as well as some new lease financing.

The Company is transitioning to a more sustaining level of mobile equipment and mineral property investment as most key items have been procured and are in place for use. Capital spending in the third quarter of 2013 was focused on mine development, increasing mining capability, improving key infrastructure, and sustaining capital. The Company invested $7.7 million in mine development activities and recognized related depletion of $7.4 million compared with an investment of $18.3 million and related depletion of $14.0 million in the third quarter of 2012. The Company also capitalized $0.7 million of property, plant, and equipment and recognized related amortization of $2.3 million during the third quarter of 2013 compared to an investment of $2.1 million and related amortization of $1.7 million in the third quarter of 2012.

At this writing, the Company has fulfilled its flow through spending commitment for 2013. The Company completed 22,000 metres of surface diamond drilling to test a number of targets identified by the recent comprehensive structural analysis and geologic modelling exercise. This program has returned a number of encouraging results, intersecting alteration of host rock and associated quartz veining and validating the updated geologic model.

Outlook

The Company continues to carry out a comprehensive review of its operating, capital, corporate overhead, and exploration costs as well as evaluating investments that do not directly contribute to the Company's core operations. The focus continues to be on optimizing margins per ounce and to find the most direct path to achieving free cash flows.

For the balance of 2013, the Company will continue to concentrate mining operations on the 007 complex, with less dependence on Hinge and with a supplemental feed provided by the Rice Lake mine. Mining operations will continue in the Rice Lake mine alongside ongoing capital development projects to provide operational access beneath the current mining areas within the 007 and Hinge mines and extend the 16 and 26 levels in order to accelerate access to the down dip extensions of these deposits. The Company remains on track to achieve its production guidance, with annual gold production of 75,000 and 85,000 ounces in 2013. The Company is revising its full year operating cash cost guidance to between $900 and $950 per ounce of gold sold.

Exploration activities for the remainder of the year will continue to focus on definition and extension drilling within the Company's mineral lease 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.

Underground drill bays constructed during the first quarter continue providing better access for definition drilling of the 007 structures at depth. The Company has improved confidence about the resource potential at depth as recent drill results below 26 Level confirm continuity of the geological structures hosting the 007 and Hinge deposits.

2013 Q3 Financial Results Conference Call

The Company's senior management plans to host a conference call on November 13, 2013 at 11:00 am Eastern Time to discuss the 2013 third quarter financial results and to provide an update of the Company's operating, exploration, and development activities.

Participants may join the conference call by dialing 1 (866) 225-0198 or 1 (416) 340-8061 for participants outside of Canada and the United States. The conference call will also be available by webcast on the Company's website at www.sangold.ca.

A recorded playback of the conference call can be accessed after the event until November 29, 2013 by dialing 1 (800) 408-3053 or 1 (905) 694-9451 for calls outside Canada and the United States. The pass code for the conference call playback is 8568217. The archived audio webcast will also be available on the Company's website at www.sangold.ca.

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. The Company employs more than 420 people and is committed to the highest standards of safety and environmental stewardship. San Gold is on the Toronto Stock Exchange under the symbol "SGR" and on the OTCQX under the symbol "SGRCF".

This press release should be read in conjunction with the Company's consolidated financial statements for the quarter ended September 30, 2013 and associated Management's Discussion and Analysis ("MD&A"), which are available from the Company's website (www.sangold.ca), in the "News & Reports" section under "Financial Statements", and on SEDAR (www.sedar.com).

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

Cautionary Non-IFRS Statements

The Company believes that investors use certain indicators to assess gold mining companies. They are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared with International Financial Reporting Standards ("IFRS"). "Total cash operating costs" as used in this analysis is a non-IFRS term typically used by gold mining companies to assess the level of gross margin available to the Company per ounce of gold by subtracting these costs from the unit price realized during the period. This non-IFRS term is also used to assess the ability of a mining company to generate cash flow from operations. There may be some variation in the method of computation of "total cash operating costs" as determined by the Company compared with other mining companies. In this context, "total cash operating costs" reflects the per ounce cash costs allocated from in-process and dore inventory associated with ounces of gold sold in the period and net royalties. "Total cash operating costs" may vary from one period to another due to operating efficiencies, quantity of ore processed, grade of ore processed, and gold recovery rates.

Cautionary Note Regarding Forward Looking Statements

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, including, without limitation, statements regarding forecast gold production, gold grades, recoveries, cash operating costs, potential mineralization, mineral resources, mineral reserves, exploration results, and future plans and objectives of the Company, are forward-looking statements that involve various risks and uncertainties. These forward-looking statements include, but are not limited to, statements with respect to mining and processing of mined ore, achieving projected recovery rates, anticipated production rates and mine life, operating efficiencies, costs and expenditures, changes in mineral resources and conversion of mineral resources to proven and probable mineral reserves, and other information that is based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management.

Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be "forward-looking statements." Forward-looking statements are subject to a variety of risks and uncertainties that could cause actual events or results to differ from those reflected in the forward-looking statements.

There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include, among others, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of precious metals, as well as those factors discussed in the section entitled "Other MD&A Requirements and Additional Disclosure and Risk Factors" in the Company's most recent quarterly Management's Analysis and Discussion ("MD&A"). Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

Exploration results that include geophysics, sampling, and drill results on wide spacings may not be indicative of the occurrence of a mineral deposit. Such results do not provide assurance that further work will establish sufficient grade, continuity, metallurgical characteristics, and economic potential to be classed as a category of mineral resource. A mineral resource that is classified as "inferred" or "indicated" has a great amount of uncertainty as to its existence and economic and legal feasibility. It cannot be assumed that any or part of an "indicated mineral resource" or "inferred mineral resource" will ever be upgraded to a higher category of resource. Investors are cautioned not to assume that all or any part of mineral deposits in these categories will ever be converted into proven and probable reserves.

Cautionary Note to United States and Other Investors Concerning Estimates of Measured, Indicated and Inferred Mineral Resources:

This press release uses the terms "Measured", "Indicated", and "Inferred" resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of a Mineral Resource is economically or legally mineable.

Table 2: Financial Highlights

Table 3: Production Summary and Statistics

Table 4: Quarterly Production Summary and Statistics

NOTE: Final refinery settlements, or the effects of rounding, may have resulted in increases or decreases to reported gold production.