TSX: SGR || OTCQX: SGRCF www.sangold.caBISSETT, MB, April 5 /PRNewswire/ - George Pirie, President and CEO of San Gold Corporation, (TSX: SGR) (OTCQX: SGRCF) is pleased to announce preliminary first quarter production and development results from the Rice Lake Project in Manitoba, Canada. "Ore production from the company's two mines exceeded current mill capacity through the last half of the quarter, finishing the period with more than two weeks of ore stockpiled," said Mr. Pirie. "This is an important milestone for achieving steady-state production at the Rice Lake Project." For the quarter ended March 31, 2011, San Gold milled and processed a record 82,792 tons, including both production and development ore, at a head grade of 7.1 g/tonne to produce 14,690 oz gold. San Gold mines produced 102,000 tons, an average of 1,133 tons per day, to end the quarter with nearly 20,000 tons of ore stockpiled ahead of the mill on surface (representing an additional estimated 3,500 oz gold). Mill operations averaged 920 tons per day and achieved a recovery rate of 93.9%. Over 3,840 meters (12,600 ft) of primary development was completed during the quarter at the Rice Lake Mine, Hinge Mine, 007 Project, and the new L10 access. Thirteen diamond drills were in operation during the quarter from both underground and surface stations. Additional drills are to be deployed during the second quarter. Modernization of the 26 Level (4,000 ft) of the Rice Lake Mine continued in order to provide fully mechanized access for mining and haulage as well as to provide drill platforms for the exploration of the potential down-dip extensions of the Hinge, L10, L13 and 007 zones at depth. Drill stations are being prepared on the 16 Level (2,400 ft) in order begin drilling downward extensions of these zones as well.