San Gold Corporation announced that it has obtained a secured loan in the amount of $1,573,271 from a fund managed by B Asset Manager LP (the Lender). The loan is evidenced by a secured demand promissory note (the 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. San Gold paid a commitment fee of $250,000 to the Lender as partial consideration for the provision of the loan. 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. This Note is in addition to two notes issued previously by San Gold to a fund managed by B Asset Manager LP. The Lender has also reached an agreement with San Gold to provide two additional loans in the amount of $939,854 on or about January 23, 2015 and $423,902 on or about February 6, 2015 on the same terms, subject to the Lender's approval at that time.