SOURCE: Sage Gold Inc.

July 17, 2007 15:10 ET

Sage Completes 3800M Second Phase of Drilling at Jacobus Nickel/Copper

TORONTO--(Marketwire - July 17, 2007) - Sage Gold Inc. (TSX-V: SGX) has successfully completed thirteen drill holes totalling 3800 metres in the Jacobus mineralized zone and is awaiting all assay results. Complete results of this program are expected to be reported in early August. The objective of the drill program is to extend the known nickel/copper mineralized zone further down plunge as well as confirm the historical evaluation.

Last month SAGE announced one drill hole intersecting 11.45 metres of 0.95% Ni and 1.16% Cu 580 metres down plunge from the surface trenches per the press release of June 14, 2007.

Nigel Lees stated, "We are very pleased with the drilling so far. Now that the second phase of drilling has been completed, down hole IP will be conducted on some of the down plunge holes to guide the third phase drill program expected to take place in the fall. In addition, we have commenced metallurgical testing of the Jacobus mineralization to determine its potential recoveries and other metallurgical characteristics."

The Jacobus property is located in the northwest corner of Elmhirst Township near Beardmore, Ontario and consists of 24 claims. An historical resource of 958,804 tons grading 0.43 % Cu and 0.40% Ni (Chesterville Mines - Canadian Mines Handbook, 2003-2004 p.340) was identified from surface down plunge to 150 metres. Sage has now extended this zone a further 430 metres from the margins of the historical resource. Sage believes it should be able to expand the historical resource with a third phase of drilling.

The Jacobus Cu-Ni exploration project is being supervised by Exploration Geoscience Associates of Orillia, under the direction of Ulrich Kretschmar, Ph.D, P.Geo (APGO #1160). Dr. Kretschmar has extensive experience exploring for Ni-Cu, gold and base metal deposits in Archean terrain, and is a qualified person as defined by NI 43-101. He is responsible for the technical content of this news release.

Sage Gold Inc. has received final regulatory approval and closed a previously announced (see PR June 29, 2007) non-brokered private placement financing of 8,729,997 flow-through common share units (each unit consisting of one flow-through common share and one half of one share purchase warrant) at $0.12 per unit, for total gross proceeds of $1,047,600. Each whole warrant is exercisable for one common share at an exercise price of $0.18 per share, and will remain exercisable until 24 months from its date of issue. A total of 4,364,998 whole warrants were issued. In total, Sage will pay $40,912 in cash and issue broker warrants exercisable for 155,800 common shares as finders fees in connection with this private placement. Each broker warrant will be exercisable into one common share at $0.12 per share, and will remain exercisable for 12 months from the date of issue. No other fee or commission will be paid by Sage in connection with the financing. All securities issued will have a hold period expiring on November 12, 2007. This press release updates and amends certain information contained in Sage's press release of June 29, 2007 related to this private placement.

Historical Disclosure: The historical grade and tonnage estimates presented above predate and are noncompliant with NI 43-101. Sage is unable to verify the reliability of the historical data and thus the historical resource is not relevant until such time as Sage is able to compare current drill results to historical results from individual holes. The historic holes will need to be located in the field and surveyed before a comparison can be made between historic and current drill holes. It is not possible at this stage to determine if the historic resource is inferred, indicated or measured. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources. Sage is re-evaluating all analytical and drill data to make the historical estimates conform to CIM Standards for Mineral Resource and Mineral Reserve estimates.

For further information, contact:

Nigel Lees, President and C.E.O.


Mike O'Brien, Manager/Investor Relations
Phone: (416) 204-3170
Fax: (416) 260-2243

For all Sage Gold Inc. investor relations needs, investors are asked to visit the Sage Gold Inc. IR Hub at 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 where they can also request addition to the investor e-mail list to receive all future press releases and updates in real time.

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.

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.

Contact Information

  • For further information, contact:

    Nigel Lees
    President and C.E.O.


    Mike O'Brien
    Manager/Investor Relations
    Phone: (416) 204-3170
    Fax: (416) 260-2243

    365 Bay Street
    Suite 500
    Toronto, Ontario
    M5H 2V1
    Tel: (416) 204-3170
    Fax: (416) 260-2243