Sage Gold Inc. announces that it is continuing to work towards the completion of a previously announced private placement of flow-through units (the FT Units) at $0.15 per unit, and common share units (the CS Units) at $0.135 per unit.

Each FT Unit is comprised of one common share of the Company (a Common Share) issued as a flow-through share under the Income Tax Act (Canada) and one-half of one warrant (an FT Warrant). Each whole FT Warrant is exercisable to purchase one non-flow through Common Share at a price of $0.20 per share for 24 months from the closing date.

Each CS Unit is comprised of one Common Share and one-half of one warrant (a CS Warrant). Each whole CS Warrant is exercisable to purchase one non-flow through Common Share at a price of $0.185 per share for 24 months from the closing date.

The first tranche of the private placement closed on September 27, 2011 and the details of which can be found in the Company's press release of September 28, 2011.

The private placement is subject to the final acceptance of the TSX Venture Exchange (the Exchange). The Company has received conditional approval of the private placement from the Exchange.

The net proceeds of the private placement will be used primarily to fund the Company's exploration and development expenses of the Clavos Mine and for general working capital.

SAGE is a mineral exploration and development company which has primary interests in near -term production and exploration properties in Ontario. Its main properties are the Clavos Gold mine in Timmins and the Lynx deposit and other 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

This release was prepared by management of the Company who takes full responsibility for its contents. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains certain Forward-Looking Statements within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended and Forward Looking Information within the meaning of applicable Canadian securities legislation.Some forward looking statements and forward looking information contained in this release are forward-looking and, therefore, involve uncertainties or risks that could cause actual results to differ materially. Such forward-looking statements include comments regarding mining and milling operations, mineral resource statements and exploration program performance. Factors that could cause actual results to differ materially include metal price volatility, economic and political events affecting metal supply and demand, fluctuations in mineralization grade, geological, technical, mining or processing problems, exploration programs and future results of exploration programs, future profitability and production. The Company disclaims any obligation to update forward-looking statements.

FOR FURTHER INFORMATION PLEASE CONTACT:
Sage Gold Inc.
Nigel Lees, President and C.E.O.
416-204-3170
Fax: 416-260-2243(FAX)

Sage Gold Inc.
Mike O'Brien, Manager, Communications/IR
416-204-3170
Fax: 416-260-2243(FAX)
www.sagegoldinc.com

Source: Sage Gold Inc.