San Gold Corporation announced that it has obtained a secured loan in the amount of USD 842,697 from an investor managed by B Asset Manager LP. 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 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.