Sage closes 2nd tranche of financing

Trading Symbol - CNQ: SAGE 

TORONTO, July 22 /CNW/ - Sage Gold Inc. (CNQ listed: symbol SAGE) is
pleased to announce that it has closed the second tranche of its previously
announced financing. Sage has issued 4,983,000 units for gross proceeds of
$373,725. Each unit consists of one common share of the Company and one-half
of one common share purchase warrant. Each whole warrant entitles the holder
to purchase an additional common share at a price of $0.10 per common share at
any time until July 22, 2007. The Company also issued 2,000,000 flow-through
common shares for gross proceeds of $150,000. Following the closing of this
tranche, the Company has 28,122,182 issued and outstanding common shares.

This release was prepared by management of the Company who takes full
responsibility for its contents. The Canadian Trading and Quotation System
Inc. has not reviewed and does not accept responsibility for the adequacy or
accuracy of this news release.

Some statements 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.