Dear fellow shareholders,

Like a friend of mine in the industry said, people simply have to wake up to the fact that the global economy right now is in a transition and all mining companies are getting no value for their fundamentals. News can't be fabricated to appease the uneducated who choose to bash or complain on the blogs. How many juniors in the metals sector have gone up and/or stayed at their respective highs during this so-called [IMO rigged] cycle. If there are any juniors that have had a nice increase in their SP on solid news AND the price remained at the high to date, then please name them. If such an 'animal' exists, what percentage of the 2740 juniors do you think that company falls into.

The sentiment in Europe and here is once the mid-tier and major mining companies start moving up then the juniors will follow. Also, out of those 2740 junior exploration companies worldwide some NY analysts have predicted there will be a 60% drop off. 60% of the juniors folks. If you question that then you are going to have to look up which analyst said that. I am satisfied that they are in the ball park anyway. No doubt many of those juniors never had anything but a glimmering hope going for them anyway BUT...

I do not believe that SAGE GOLD will be amongst their ranks since we have a bonafide discovery and I believe we will be 43-101 in the near term. [no date given] This of course will mean that we now have a value and an asset. True, our discoveries do not presently enjoy the category of 'proven' or 'indicated' results but it is going to come to that and wait we must. We are NOT a seasoned junior yet but IMO we are moving in that direction albeit hampered by the signs of the times. Do not forget that ANY junior that can get financing in this shaky global economy has overcome a major obstacle and it speaks volumes for that company's potential. Sage Gold Incorporated is such a company. I believe that we will be drilling in the first quarter of 2009 and possibly by the end of January on Jacobus golden extention.

We are not going through just an ugly phase but rather a complete re-tooling and new era of business practices. Companies are going to have to be innovative and the CEO's are going to have to put their thinking caps on or their company will wind up in oblivion. I am not just speaking about the 60% of the juniors that very well might disappear. Nobody is bullet proof. When the once untouchables like GM, Ford, Chrysler, Lehman, Enron's of the world, etc. [that's just in the USA] are in trouble or dissapeared then you know the system is severely broken and need of a complete overhaul.

All the best,

Jerry