Sage Gold Inc (C-SGX) - News Release

Sheltered Oak, Sage Gold mining claim lapses

2009-07-10 18:07 ET - News Release
Shares issued 176,935,121
SGX Close 2009-07-09 C$ 0.06

From News Release (C-OAK) Sheltered Oak Resources Corp

Mr. Robert Hanson of Sheltered Oak reports

UNPATENTED MINING CLAIM LAPSE ON KERRS GOLD PROPERTY

The unpatented mining claim L1140877 covering approximately 240 hectares of the Kerrs gold property, one of the 43 unpatented mining claims for which Sheltered Oak Resources Corp. has an option to acquire a 55-per-cent interest from Sage Gold Inc., automatically forfeited on June 26, 2009. The area covered by the claim is where most of the recent exploratory drilling has been done on the Kerrs gold property. The down-dip extension from the reported drilling results on this claim extends to Sage's adjacent claim to the south which is also under option to Oak. Oak expects to continue with its summer drill program of approximately 4,000 metres on targeting the down-dip extension of the Kerrs gold system and drill testing coincident soil geochemistry and structural targets on Kerrs gold property claims adjoining to the southeast.

The claim automatically forfeited due to an administrative error which resulted from a failure to apply assessment work credits for work which had already been completed on the claim. An application for relief from forfeiture was made to the Ministry of Northern Development and Mines (MNDM) on July 1, 2009. On July 2, 2009, the MNDM issued an order withdrawing the area covered by the claim from staking while it considered the application. There is a mandatory 31-day review period before any requested relief can be granted by the MNDM.

Prior to the issuance of the withdrawal order, two arm's-length individuals staked the area covered by the claim. One of them filed an application to have his claim recorded with the MNDM in its Kirkland Lake office following the withdrawal order but it has not been recorded. Sage and Oak are currently assessing the accuracy of the claims staked. At the same time and out of an abundance of caution, Sage and Oak have had discussions with these individuals with a view to settling this matter in the event that relief from forfeiture is not granted by the MNDM and the staked claims are recorded.

Sage and Oak are actively pursuing a positive resolution to this situation and are making every effort to return the claim to Sage's ownership. The press release has been reviewed by Peter Hubacheck, a qualified person for the purposes of National Instrument 43-101.