Sage Gold Inc. ("SAGE") is pleased to announce that it has mobilized a second drilling rig to the Kerrs Gold Property near Lake Abitibi, Ontario. The planned 5,000 metre drilling program commenced last week.

The new program is a follow-up on the 3,000 metre fall 2005 program and is designed to expand and delineate the newly discovered gold mineralization of the Jam-Bell Lake Zone. Previous drilling primarily by Noranda in the 1970's and 1980's totalled 15,000 metres and identified a green carbonate quartz vein zone. Recent drilling by Sage has significantly extended this zone along strike and downdip to depth.

The Kerrs Gold System is focussed in a stratabound shear deformation zone having a strike length of 700 metres, a down dip length of 500 metres varying in thickness from 30 metres to 50 metres and is open to depth and along strike and bears a strong resemblance to the "green carbonate quartz vein and mafic flow ore" type which occurred at the Kerr Addison Gold Mine.

The current program is expected to be completed by the second half of March 2006.

Peter Hubacheck is a qualified person as defined by NI-43-101 and has reviewed and authorised the geoscience findings material to this press release.

The Company recently completed its obligations under the optioned Campbell 15-claim block in the Jam-Bell Lake area claim block around the Jam-Bell Lake and now owns a 100% interest in this claim block. Total leased and/or staked claims in the region surrounding the Kerrs Gold Property amount to approximately 13,380 acres.

There are currently 47,372,961 common shares of SAGE issued and outstanding.