San Gold Corporation reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2014. For the quarter, the company reported net loss and comprehensive loss of $76.6 million or $0.21 per diluted share compare to net loss and comprehensive loss of $6.4 million or $0.02 per diluted share reported in the same period last year. Loss before other income and expenses was $76.2 million against $6.9 million reported last year. Loss before income tax was $76.6 million against $8.4 million reported last year. Loss from operations in the third quarter of 2014 was $74.5 million compared to loss from operations of $0.6 million in the same period of last year. The company earned quarterly revenue of $12.8 million, compared with revenue of $28.7 million in the third quarter of 2013. The company generated $3.8 million of cash flow from operating activities compared with $1.4 million in the third quarter of 2013.

For the nine months, the company reported net loss and comprehensive loss of $92.8 million or $0.25 per basic and diluted share on revenues of $47.7 million compare to net loss and comprehensive loss of $19.6 million or $0.06 per basic and diluted share on revenues of $83.3 million reported in the same period last year. Loss from operations was $81.5 million against income from operations of $2.7 million reported last year. Income before interest and income taxes was $88 million against $20.8 million reported last year. loss before income tax was $92.8 million against $25.0 million reported last year. Cash provided by operating activities was $2.2 million against $1,000 reported last year.

Gold production was 10,025 ounces in the third quarter of 2014 compared with gold production of 20,220 ounces in the third quarter of 2013. The reduction in ounces of gold produced is the result of the mine transitioning to a more selective, less dilutive long-hole mining method. Contained gold production was 10,488 ounces against 21,672 ounces produced last year. Ore milled was 76,649 tons against 175,311 tons milled last year.

Gold production of 33,483 ounces in the first nine months of 2014 was lower than production of 60,100 ounces in the same period of 2013.

During the quarter, the Company recognized a non-cash impairment charge of $71.8 million, upon completion of its periodic assessment of the value-in-use of its mineral properties.

The company is in the process of shifting its mining operations to the newly discovered, high - grade 710-711 zones of the Rice Lake mine, with less dependence on the Hinge and 007 mines than in recent years. Mining operations in the Rice Lake mine will continue alongside ongoing capital development projects to accelerate operational access to the down dip extensions of the 007 and Hinge mines. The company expects recent changes to result in improved grade for the balance of the year and a further decrease in capital development and property, plant and equipment spending requirements.