Repost as Press Release. Previously released Feb. 18, 2009.

Sheltered Oak drills 4.5 metres of 6.43 g/t at Kerrs

2009-02-18 10:18 EST - News Release

Also News Release (C-SGX) Sage Gold Inc

Mr. Robert Hanson reports

SHELTERED OAK RESOURCES CORP. ("OAK") FINAL PHASE 3 DRILLING RESULTS AND AIRBORNE MAGNETIC SURVEY COMPLETED

Sheltered Oak Resources Corp. and Sage Gold Inc. have an option agreement whereby Sheltered Oak, through its 100-per-cent-owned subsidiary Sheltered Oak Resources can acquire a 55-per-cent joint venture interest in the Kerrs gold property from Sage under an option agreement entered into on Feb. 7, 2007, as amended, the details of which, can be found in Sheltered Oak's filing statement dated Aug. 18, 2008, and filed on SEDAR.

Sheltered Oak announces final results from its phase 3 drill program at the Kerrs gold property located on the western shore of Lake Abitibi, northeast of Matheson, Ont. To date, five drill holes (K-08-17 to K-09-21) have been completed totalling 2,508 metres.

The phase 3 program was designed to test the updip strike extent below Bell Lake and downdip extensions of quartz-pyrite replacement veining and quartz green carbonate (PyQGC) vein breccia zones varying in thickness from 10 metres to 60 metres. Gold mineralization occurs as pyritized quartz vein breccias enveloped by quartz fuchsite carbonate vein breccias with three brecciation sequences identified in several drill holes. Fine gold is primarily associated with fine pyrite grains (1-per-cent-to-5-per-cent) disseminated within quartz veins and altered mafic pillow flow volcanic overlying a magnetite/olivine-rich ultramafic assemblage. Coarse gold also occurs in sulphide-poor fuchsite carbonate quartz veins as observed in K-06-13 returning 27.8 grams per tonne (g/t) over 0.5 metre and K-05-01 returning 32.8 g/t over 0.44 metre in the upper zone.

Drill holes K-08-17, K-08-18 and K-08-19 confirm the presence of three discrete vein systems which exhibit good continuity over an updip length of 250 metres correlating with the three zones reported in hole K-05-7. Drill hole K-09-19 establishes the extension of the Kerrs PyQGC zones to a distance of 150 metres projecting southwesterly under Bell Lake on line 1000N. The "middle" vein replacement breccias zone shows gold enrichment in all three holes with weighted average grades varying between 3.48 g/t and 6.43 g/t over true widths ranging from 2.7 metres to 4.5 metres. Drill holes K-09-20 and K-09-21 confirmed that the Kerrs PyQGC zones are not present on the east side of Bell Lake on line 750N at shallow depths.

                                                           Weighted avg.
                                                           Au grade g/t
                                                           /metre -- true
Hole No.     Grid location     Interval (metres)           thickness(m)
    
K-05-01      L1150 N/6+55W     284.3m -- 286.16m (upper)   9.18 g/t/1.86 m
             Dip: 60 degrees   375.48m -- 83.51m (middle)  7.43 g/t/3.2 m
             Az 130 degrees
K-08-18      L1150N/280W       276.4m -- 278.4m (upper)    0.62 g/t/2.2 m
             Dip: -60 degrees  280.4m -- 284m (middle)     4.14 g/t/3.6 m
             Az 310 degrees
K-08-17      L1150N/180W       340.8m -- 345m (upper)      0.82 g/t/4.2 m
             Dip: -60 degrees  355.5m -- 360m (middle)     6.43 g/t/4.5 m
             Az 310 degrees    397.0m -- 402m (lower)      0.96 g/t/5 m
K-08-19      L1050N/180W       443.0m -- 446m (middle)     3.48 g/t/2.7 m
             Dip: -60 degrees  453.6m -- 455.4m (lower)    1.53 g/t/1.7 m
             Az 220 degrees
K-05-7       L1150N/70W        411m -- 413m (upper)        1.06 g/t/2 m
             Dip: -60 degrees  427.5m -- 431.3m (middle)   5.72 g/t/3.8 m
             Az 310 degrees    441m -- 446.1m (lower)      2.15 g/t/5.1 m
K-06-08      L1150N/70W        430.6m -- 434.0 (middle)    0.57 g/t/3.2 m
             Dip: -90 degrees  434.0m -- 435.6 (middle)    0.84 g/t/1.5 m
             Az 310 degrees
K-06-12      L1350N/BL0+00     429.7m -- 436m (middle)     3.06 g/t/5.9 m
             Dip: -60 degrees  440.0m -- 443m (lower)      1.07 g/t/2.8 m
             Az 310 degrees
K-06-13      L815N/BL 0+40W    428.1m -- 430.6m (upper)    6.99 g/t/2.5 m
             Dip: -60 degrees  444.4m -- 447.1m (lower)    27.8 g/t/0.5 m
             Az 310 degrees

In summary, the Kerrs PyQGC vein system has been defined by 21 drill holes arrayed in a 200-metre-by-200-metre pattern with infilling at 100-metre spacing on Section 1150 piercing a shallow-dipping synclinal fold structure. The results of drill holes K-06-08, 10, 11, 12, 13, 14 and 16 indicate that the PyQGC vein breccia zones can be traced for over 1,200 metres along the axis of the fold structure. The downdip dimension of the fold structure on Section 1150N has been delineated by holes K-05-1, K-05-7, K-06-8, K-08-17, K-08-18 and K-09-19 to a depth along a curvilinear inclined plane from 150 metres to 750 metres measured from the surface. Drill holes K-09-20 and K-09-21 close off the updip extension of the system on line 750N; however, 250 metres of strike length remain to be tested under Bell Lake. The system is open to depth from the east side of Bell Lake confirmed by K-09-19 at line 1000N to hole K-06-12 located on line 1350N and may possibly extend 600 metres along strike to the southeast of hole K-06-12, indicated by a recent airborne magnetic survey.

In January, 2009, Sheltered Oak completed a helicopter-supported airborne magnetic survey covering the entire property at a 100-metre line spacing. Currently, Sheltered Oak is evaluating the results of this survey and awaiting results from an orientation MMI geochem survey completed last fall. Further information will be made available when received by Sheltered Oak.

Sheltered Oak is currently planning a comprehensive phase 4 drilling program designed to systematically delineate and evaluate the Kerrs PyQGC vein systems in order to build a compliant resource according to National Instrument 43-101 mineral resource guidelines.

Robert Hanson, chief executive officer, commented: "We are very pleased and encouraged by the diamond drill results thus far and look forward to further development of our knowledge concerning this gold-bearing area. It is very encouraging to be able to report such positive delimitation results from the Kerrs gold system."

The surface diamond drilling program involving geological core logging, sampling and assaying tasks was supervised by Petre Hubacheck, PGeo, No. 1059 (APGO) on behalf of Hubacheck Consulting Geologists (HCG), affiliated with W.A. Hubacheck Consultants Ltd. Mr. Hubacheck is a qualified person as defined by National Instrument 43-101 and has reviewed and authorized the geotechnical material in this press release.

We seek Safe Harbor.