San Gold Corporation announced that it has obtained a secured loan in the amount of USD 1,669,250 from a fund managed by B Asset Manager LP (Lender). 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. San Gold paid a commitment fee of USD 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. The lender has also reached an agreement with San Gold to provide an additional loan in the amount of USD 900,000 on or about December 29, 2014 on the same terms, subject to the lender's approval at that time. The net proceeds from the sale of the note will be used by San Gold to fund its operations.