San Gold Corporation announced that it has obtained an order approving, among other things, additional debtor-in-possession financing from B Asset Holdings LLC in an amount up to USD 3.5 million pursuant to a term sheet between the Company and the Lender dated February 18, 2015. San Gold also announces that is has obtained a secured loan in the amount of USD 1,956,691 from the Lender pursuant to the financing in accordance with the above noted order. The loan is evidenced by a secured demand promissory note issued to the Lender by San Gold.

The Note is secured by a debtor-in-possession charge 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 subject to a 3% commitment fee payable to the Lender.

The Note is repayable on demand or in certain other circumstances at the option of the Lender. In the event of non-repayment of the Note and certain other promissory notes of San Gold by April 30, 2015, the Lender shall be granted a 1% royalty fee on the Manitoba mineral properties of San Gold until such time as the Note and certain other promissory notes of San Gold have been repaid. The Note is not convertible into other securities of San Gold.