Agoracom

TORONTO, ONTARIO--(Marketwire - Oct. 15, 2007) - Sage Gold Inc. (TSX VENTURE:SGX) ('Sage' or the 'Company') is pleased to announce that it has completed a non-brokered private placement financing for Cdn. $760,000 of units at $0.14 per unit subject to final regulatory approval. Each unit consists of one common share and one warrant exercisable at $0.19 in year 1 and $0.25 in year 2.

If the closing price of the Company's common shares on the TSX Venture Exchange, or such other stock exchange where the majority of the trading volume occurs, is $0.28 or higher for a period of a minimum of 21 days, the Company may notify the warrant holders that all unexercised warrants will expire on the 30th day after the date of such notice being given by the Company.

The Company will pay finders' fees of 6% in cash together with options, on the same terms as the subscribers' units, equal to 8% of the units sold pursuant to the offering.

All securities are subject to a four month hold period which expires on February 16, 2007. The net proceeds will be used for the Company's US drilling programs and for working capital purposes.

Sage also announces the grant of 3,055,000 stock options at an exercise price of $0.24 per share issued to management, directors, employees, consultants and an investor relations consultant. The options will vest over twelve months and are exercisable for a period of five (5) years.

SAGE is a mineral exploration and development company which has interests in exploration properties in Ontario and Quebec, Nevada and Arizona. Its main properties are the Jacobus, Onaman and Kerrs properties in Ontario, the Dixie Fork, Triple Junction, Pony Spur and Dike properties situated in Nevada, and the Gold Hill and Big Bend gold properties 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 release was prepared by management of the Company who takes full responsibility for its contents.

Some statements 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.

FOR FURTHER INFORMATION PLEASE CONTACT:

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

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.