Sage Closes Flow-Through Private Placement

TORONTO, ONTARIO, Oct 18, 2010 (MARKETWIRE via COMTEX News Network) --

Sage Gold (TSX VENTURE: SGX) is pleased to announce that it has closed a non-brokered private placement of approximately 3,690,908 flow-through units at Cdn $0.22 per unit, each unit consisting of one (1) common share plus one-half (1/2) non flow-through common share purchase warrant for gross proceeds of Cdn $812,000.

Each whole common share purchase warrant shall entitle the holder to purchase one (1) additional common share at the exercise price of $0.33 for a period of two (2) years from the closing date of the offering. If the Company's shares trade at or above $0.44 per share for 21 consecutive trading days, the Company may, at any time after the expiry of the statutory hold period, accelerate the expiration of the Warrants upon not less than 30 days written notice by the Company, and thereafter repurchase any unexercised Warrants at $0.001 per underlying common share.

MineralFields Group has subscribed to $400,000 of the flow-through private placement financing.

The Company may pay finder's fees of up to 8% cash plus options up to 8% of the number of units sold by the finders. The warrants shall expire 24 months after the closing of the offering.

All securities are subject to a four month hold period and are subject to final approval of the TSX Venture Exchange.

Although the TSX Venture Exchange has conditionally approved this private placement, all closings of this private placement are subject to final acceptance from the Exchange.

The gross proceeds of the offering will be used to fund the exploration and development of the Clavos mine near Timmins, Ontario and the exploration of the Company's properties in the Beardmore-Geraldton area of NW Ontario.

About MineralFields, Pathway and First Canadian Securities(R)

MineralFields Group (a division of Pathway Asset Management) based in Toronto, Vancouver, Montreal and Calgary, is a mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and

Mutual funds (including the Pathway Multi Series Funds Inc. corporate-class mutual fund series). Information about MineralFields Group is available at www.mineralfields.com. First Canadian Securities(R),(a division of Limited Market Dealer Inc.), is active in leading resource financings (both flow-through and hard dollar PIPE financings) on competitive, effective and service-friendly terms, and offers investment banking, mergers and acquisitions and mining industry consulting services to resource companies. MineralFields and Pathway have financed several hundred mining and oil and gas exploration companies to date through First Canadian Securities(R).

"We are very pleased to be continuing our relationship with MineralFields Group as we further explore our properties in Ontario," said Nigel Lees, President and CEO.

SAGE is a mineral exploration and development company which has primary interests in exploration and development properties in Ontario. Its main properties are the Clavos Gold mine in Timmins and its exploration properties in the Beardmore-Geraldton Gold Camp. Technical reports and information relating to the properties can be obtained from the System for Electronic Document Analysis and Retrieval (SEDAR) website at www.sedar.com and www.sagegoldinc.com