San Gold Brings Motion to Extend Time to File Proposal

WINNIPEG, Jan. 20, 2015 /CNW/ - San Gold Corp. (TSX: SGR) ("San Gold" or the "Company") announced today that it had brought a motion seeking an extension to the time within which its proposal trustee, MNP Ltd., may file a proposal to its creditors under the Bankruptcy and Insolvency Act (Canada) and for certain other relief. An adjournment of the motion to January 22, 2015 was requested by a creditor of San Gold and agreed to by San Gold. To accommodate such adjournment, the Court of Queen's Bench (Manitoba) granted an extension to the time to file its proposal to Tuesday, January 27, 2015.

It is the intention of San Gold to seek at the January 22, 2015 hearing a further extension to the time within which its proposal trustee may file a proposal to its creditors and to obtain certain other relief to enable San Gold to continue its existing operations.

The motion materials and other materials relating to the proceeding may be found at the website of MNP Ltd. at http://mnpdebt.ca/en/corporate-insolvency/corporate-engagements/pages/details.aspx?title=san-gold-corporation.


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".


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.

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 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.

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

SOURCE San Gold Corp.



Contact

on San Gold, please visit www.sangold.ca or contact: Greg Gibson, President and CEO, Mandeep Rai, Chief Financial Officer, Toll Free: 1 (855) 585-4653, sgr@sangold.ca