Slate Grocery REIT T.SGR

RE: NEWS OUT

[simonquinn]

San Gold Provides Update on Rice Lake Activities: Resource Estimation, Mine Development and Production, Guidance and Exploration

WINNIPEG, MANITOBA--(Marketwire - Feb. 8, 2013) - San Gold Corporation (the "Company") (TSX:SGR)(OTCQX:SGRCF) announces an updated mineral resource and mineral reserve estimate, 2012 production results with guidance for 2013 & 2014 and an exploration update for the Company's 100% owned Rice Lake Mining Complex (the "Property") located in Bissett, approximately 235 kilometres northeast of Winnipeg, Manitoba, Canada. The Property has a permitted, modern gold mill currently processing ore at a capacity of 2,500 tons per day, as well as modern surface infrastructure, including a licensed tailings management facility and is connected to the Manitoba power grid system.

Highlights

• Proven and Probable mineral reserves of 253,000 ounces, an increase of 21% from March 31, 2012 (an increase of 75% after accounting for mined ounces).
• Measured and Indicated mineral resources of 655,000 ounces, an increase of 17% from March 31, 2012 (an increase of 32% after accounting for mined ounces).
• Highest ever production in 2012 of 86,506 ounces of gold, an increase of 17% over 2011.
• Milling capacity was significantly increased during the year to 2,500 tons per day from 2,000 tons.
• Continued exploration success along the depth extension of the 007 zone that returned 12.6 g/t gold over 6.0 metres and 15.5 g/t gold over 11.1 metres.
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g/t gold over 11.1 metres.

Development Outlook for 2013

The objective of the development program, from 2013 onwards, is to increase mine production to match the current mill capacity. Development will take place within the Property in four main areas, on 26 Level, 16 Level, A-Shaft of the Rice Lake mine and within other active mining areas of the 007, Hinge, Cohiba and L13 deposits. (refer to Figures 1&2 on projected timelines)

• On 26 Level of the Rice Lake mine, the Company is driving a 150 metre drift, to begin definition drilling of the 007 deposit, and a 300 metre access drift to allow mining of the 710 deposit. Mining in this region is targeted to begin in early 2014.
   
• On 16 Level of the Rice lake mine, the Company is constructing a new A-Shaft ore handling system and 1,200 metres of tracked haulage drifts to access the Hinge district from 720 metres below surface. Development work will continue in 2014 to access the 007 deposit. Mining is targeted to begin in early 2014 in the Hinge district, with operations commencing in the 007 deposit later in the year.
   
• A-Shaft is being reconfigured with new ropes, guides, drum, and skips in anticipation of increased production from the 16 and 26 levels. Once complete, A-Shaft is expected to have up to 2,500 tpd capacity from 26 Level and 3,000 tpd capacity from 16 Level.
   
• Within the active mining regions, the Company is planning 6,800 metres of development to provide access for mining operations, drill stations, services, and ventilation.
   

Once the development is complete, the operations team will have access to multiple faces, which will lead to significantly higher production rates and lower cash costs per ounce.