Interview with: Dale Ginn, B.Sc., P.Geol, President and Director - featuring: their fully functional goldmine located in Manitoba Canada.

San Gold Corporation (SGR-TSXV)

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San Gold has emerged from an exploration company to a producer with two gold mines in the past two years

Metals/Mining
Gold
(SGR-TSXV)


San Gold Corporation

P.O. Box 1000
Bissett MB Canada R0E 0J0
Phone: 204-794-5818

Dale Ginn, B.Sc., P.Geol,
President and Director

Interview conducted by:
Lynn Fosse, Senior Editor
CEOCFOinterviews.com
Published December 21, 2006

BIO:
Dale Ginn, B.Sc., P.Geol., President and Director

Geologist with 18 years of geology and management in gold and base metal mines in North America including Westmin, HBM&S, GoldCorp and Granges. More recently he was the General Manager of Harmony Gold (Canada) Inc.

CEOCFO
: Mr. Ginn, how has San Gold changed under your leadership?
Mr. Ginn: “San Gold has emerged from an exploration company to a producer with two gold mines in the past two years.”

CEOCFO: Will you tell us the specifics of what is happening?
Mr. Ginn: “What is happening is that in early 2004, San Gold purchased a fully functional goldmine from Harmony Gold Mining Company Limited (NYSE: HMY) of South Africa and it was located in Manitoba Canada. At that time, prices were on the low side and so the purchase was made relatively cheaply. Since that time San Gold has added a new mine to that fold, immediately adjacent to the existing mine and has discovered an additional two gold deposits. In addition, the market capitalization of the company has gone from about $10 million Canadian to over $200 million Canadian.”

CEOCFO: Will you tell us about the Manitoba area and why it is a good place to be?
Mr. Ginn: “It is located in eastern Manitoba in the Canadian Shield, which is host to targets like Goldcorp’s Red Lake Gold Mines (Goldcorp Inc. – GG: NYSE; G: TSX) and many famous gold mines in Ontario and Quebec. It is very perspective in that we control a whole Gold Belt, which has a length of about 30 miles. We are the only operation within that Gold Belt on the Manitoba site, which means that anyone else who finds anything in that vicinity will probably come to us in order to develop and exploit it.”

CEOCFO: Will you tell us what is happening in terms of production; where you are in the mine running and what is ahead for the next couple of years.
Mr. Ginn: “Basically, we have just begun production. We have been building the mines for the last year. We are just beginning production and we are about half way to an ultimate rate of about 1,000 tons per day or about 250 ounces of gold per day. Therefore, we are just under half way towards that goal. We will have our grand opening/first official gold tour ceremony in about mid August of this year (2006). We are basically on the verge of becoming Canada’s and probably North America’s newest gold producer.”

CEOCFO: What does San Gold know about newer techniques in mining and what gives you an edge in what you are doing?
Mr. Ginn: “Our edge is that we are a small company that is very experienced in this kind of mining. We are not driven by large volumes, we are a classic Canadian themed miners. We go after low volumes of rock with high contents of gold. We probably have the most stable politics in the world, including land tenure. We have all of our permits in place and our energy costs, which trouble a lot of companies, are stable. We also have the lowest energy costs in North America, as Manitoba is an energy exporter; so that’s all locked in for us. We have toll road access all infrastructure and a mining town right around our line. Therefore, we basically have it all as far as assets, infrastructure, stability, costs and experience.”

CEOCFO: Are there any challenges to be up and running the way you would like to?
Mr. Ginn: “Right now the biggest challenge in the mining a mills sector is finding and retaining quality people and that would include tradesmen, mechanics, electricians, welders, archeologists, geologists, engineers. All the skilled trades and professional people in the mining sector are in very high demand right now.”

CEOCFO: How to you attract those people to San Gold?
Mr. Ginn: “Our location is relatively civilized as far as mining projects go.  We are a two drive out of Manitoba capital city of Winnipeg, so we are relatively close to a major city and major airport. We have toll road access so there is no schedules in which people have to live away from home for long periods of time. We are a very small company and flat structured and it is very rewarding to work for a company like that. I know from experience.”

CEOCFO: You are a geologist a well right?
Mr. Ginn: “Yes, I am a geologist as well.”

CEOCFO: Please tell us about some of your new discoveries.
Mr. Ginn: “We have two more gold deposits that we have discovered in the last year. One is called the San Gold # 3 deposit that is located about 4 miles to the east of our existing main mine and mill. The newest is what we call the Cartwright Mill and that is right in the town of Bissett, where our mine is located, less than one mile to the west of our mine and it is accessible from the mine. We think we have a repeat of the mine that we are working with now and this mine has already produced over 1 million ounces since 1932. Therefore, we are very excited about this new Cartwright Mill, because it could be fast tracked in the production and would take us to basically full capacity in our mill.”

CEOCFO: How do you divide your time and resources?
Mr. Ginn: “We are both a mining and exploration company and our budget this year (2006) was over $8 million Canadian. We plan on doing something similar to that next year, given our land package, which is huge. We have a lot of work to do with our exploration, given that we will be profitable as well as the current blank market for gold, we don’t see any ending site as far as our exploration goes.”

CEOCFO: How concerned are you about the fluctuations in the gold price?
Mr. Ginn: “Being Canadian, we tend to see gold more opposite to the US dollar so when the US dollars drops, usually gold rises. Therefore, we are somewhat evened out by that currency difference. Once gold got into the $5 hundred range, the volatility doesn’t affect us in our planning that much. Our costs are below $3 hundred US per ounce, to produce an once of gold. Hence, anything in the range that we are at now, we are very happy with; we see that gold will probably pass the old 1980’s high of over 800 U.S., just given the current political climate in the world and the U.S. economy. Basically, all that adds up to higher gold prices going forward.”

CEOCFO: Is the investment community paying attention?
Mr. Ginn: “I think they paying attention quietly in our case and we are not covered by a lot analysts, but then all of our financing have been through private placement and not through large brokerage houses. Therefore, we tend not to the coverage when we do that, but the fact is that we are one of a handful of new producers and eventually there will be no choice but to have coverage come our way.”

CEOCFO: What should potential investors now realize? Why should they be interested and what should they realize about San Gold that might not jump off the page?
Mr. Ginn: “I think that the biggest thing is that San Gold is one of very few new producers. There are a ton of companies out there that talk about production in three to ten years from now. However, there are many hurdles to cross before they get there and we are there. We are in production in a climate of rising gold prices, we have no debt and we matched cultures and finance, everything at this point that lower gold prices. We are now in a position to benefit form a higher price, being small, under the radar and not well known, makes us cheap.”

CEOCFO: Do you have any final thoughts?
Mr. Ginn: “I think that investors should go out there for themselves and look at how many gold companies are actually going into production and they will realize that mines are getting harder to build, more expensive, they are having to deal with unstable governments. To have a new gold mine producing in Canada is a very stable and valuable thing.”


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“Our edge is that we are a small company that is very experienced in this kind of mining. We are not driven by large volumes, we are a classic Canadian themed miners. We go after low volumes of rock with high contents of gold. We probably have the most stable politics in the world, including land tenure. We have all of our permits in place and our energy costs, which trouble a lot of companies, are stable. We also have the lowest energy costs in North America, as Manitoba is an energy exporter; so that’s all locked in for us. We have toll road access all infrastructure and a mining town right around our line. Therefore, we basically have it all as far as assets, infrastructure, stability, costs and experience.” - Dale Ginn, B.Sc., P.Geol

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