San Gold Corporation announced that it has obtained a secured loan in the amount of USD 900,000 from a fund managed by B Asset Manager LP. This loan represents the second tranche of a two-part financing previously announced on December 17, 2014. The loan is evidenced by a secured demand promissory note issued to the Lender by San Gold.

The Note is secured by a debenture granted to the Lender over all of the assets of San Gold. The Note bears interest in the amount of 14% per annum and interest is payable monthly, in advance. The Note is repayable on demand or in certain other circumstances at the option of the Lender.

The Note is not convertible into other securities of San Gold. The net proceeds from the sale of the Note will be used by San Gold to fund its operations.