Sage Gold Inc.
TSX VENTURE : SGX

Sage Gold Inc.

September 27, 2007 08:45 ET

Wahgoshig First Nation Signs Memorandum of Understanding With Sheltered Oak Resources and Sage Gold

WAHGOSHIG, ONTARIO--(Marketwire - Sept. 27, 2007) - Chief Dave Babin of the Wahgoshig First Nation ("WFN") and Robert K. Hanson CEO and a Director of Sheltered Oak Resources Inc. ("Oak") and Nigel Lees, President and CEO of Sage Gold Inc. (TSX VENTURE:SGX) ("Sage"), (together ("the Companies") are pleased to announce that they have today signed a Memorandum of Understanding ("MOU") committing to an ongoing relationship between the WFN and the Companies' with respect to the Sage and Oak joint venture in the Kerrs gold property.

The Kerrs Gold Property is located near Matheson, Ontario on lands to which WFN asserts treaty and Aboriginal rights. The property was optioned by Oak (a private Ontario corporation) from Sage in February 2008, through a three year option agreement. A drilling program is planned to test the up dip section of the Kerrs Gold system in order to trace the high grade vein structures encountered in recent drilling of the property.

The MOU establishes the foundation for a positive and mutually beneficial relationship between WFN, Oak and Sage by setting out the terms applicable to the parties upon signing of the MOU. The terms of the MOU include consulting and advisory services by the WFN, training, ongoing communication, financial contribution to the WFN community, an allocation of OAK shares and subject to Regulatory approval a grant of stock options in Sage to WFN. In addition, WFN and the Companies have agreed to negotiate an Impact Benefits Agreement ("IBA"), should the project proceed to the operational stage.

An important initiative, funded by Oak and Sage was the completion of archeological and anthropological studies in the area of planned exploration activities. The studies did identify sites of cultural importance which now will be respected and protected during the exploration activities.

"This agreement demonstrates that First Nations and companies can work together in a positive and creative way while accommodating their respective objectives. The Companies' agreement and cooperation in ensuring that our Native values and cultural sites would be protected, was paramount for us in this particular case." said Chief Babin, "The agreement also provides some immediate benefits which are beneficial to us, and as importantly, it includes a commitment to negotiate a comprehensive agreement should the project move to the operations phase."The CEO and a Director of Oak, Robert K. Hanson agreed. "We believe that our future together will be bright and we look forward to working together with you and your community. We see this MOU as the beginning of a positive and continuing relationship with the Wahgoshig community". Maurice J. Kistabish, who acted as a head negotiator on this MOU commented, "The commitment from Oak and Sage to listen to our concerns with respect to the land and our cultural values, and then to accommodate our interests in the planned exploration program, was fundamental to achieving agreement. We appreciate the approach that the Companies have taken and their commitment to work cooperatively with us as the project proceeds."

Negotiations toward an IBA will commence upon a decision from the Oak and Sage Boards to move from exploration to production. The MOU outlines the agenda and the process for conducting the IBA negotiations. Topics will include employment, training, business opportunities and financial compensation among others.

SAGE is a mineral exploration and development company which has interests in exploration properties in Ontario, Quebec, Nevada and Arizona. Its main properties are the Kerrs, Onaman, and Jacobus properties in Ontario, the Dixie Fork, Triple Junction, Pony Spur and Dike properties situated in Nevada, and the Big Bend gold property, located in Arizona. Technical reports relating to the properties can be obtained from the System for Electronic Document Analysis and Retrieval (SEDAR) website at www.sedar.com

For all Sage Gold Inc. investor relations needs, investors are asked to visit the Sage Gold Inc. IR Hub at http://www.agoracom.com/IR/sagegold where they can post questions and receive answers within the same day, or simply review questions and answers posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to sgx@agoracom.com where they can also request addition to the investor e-mail list to receive all future press releases and updates in real time.

This news release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended and "Forward Looking Information" within the meaning of applicable Canadian securities legislation. Some forward looking statements and forward looking information contained in this release are forward-looking and, therefore, involve uncertainties or risks that could cause actual results to differ materially. Such forward-looking statements include comments regarding mining and milling operations, mineral resource statements and exploration program performance. Factors that could cause actual results to differ materially include metal price volatility, economic and political events affecting metal supply and demand, fluctuations in mineralization grade, geological, technical, mining or processing problems, exploration programs and future results of exploration programs, future profitability and production. The Company disclaims any obligation to update forward-looking statements.

This release was prepared by management of the Company who takes full responsibility for its contents. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Wahgoshig First Nation
    Maurice J. Kistabish
    Lands and Resources
    (705) 273-2055
    or
    Sheltered Oak Resources Inc.
    Robert K. Hanson
    CEO and Director
    (905) 827-5414
    or
    Sage Gold Inc.
    Nigel Lees
    President and C.E.O.
    (416) 204-3170
    (416) 260-2243 (FAX)
    or
    Sage Gold Inc.
    Mike O'Brien
    Manager/Investor Relations
    (416) 204-3170
    (416) 260-2243 (FAX)
    Website: www.sagegoldinc.com