Sage closes private placement tranche

Trading Symbol - CNQ:  SAGE

TORONTO, Sept. 26 /CNW/ - Sage Gold Inc. (CNQ listed: symbol SAGE) is
pleased to announce that it has completed an additional tranche of financing
through the issuance of 2,203,000 units ("Units") at $0.075 per unit for  
gross proceeds of $165,225. To date, a total of 9,995,506 Units at a price of
$0.075 per Unit have been issued for gross proceeds of $749,663. 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
September 22, 2007.
The Company remains active in exploration in Ontario. A 2,000 metre
diamond drill program is proceeding well in the Jam Lake zone of the Kerrs
Property, near Lake Abitibi. This zone was discovered through historic
drilling by Noranda which yielded encouraging gold values (2.5 grams Au/tonne
over 10.2 metres and 11.69 grams Au/tonne over 0.76 metres) hosted in
brecciated volcanic rocks with pyrite, quartz, carbonate, and green carbonate
alteration. The current drilling program is expected to be completed in
October. Sage recently increased its total claim area by 11,040 acres for a
total of 13,259 acres.
In addition, the Company is conducting an extensive soil sampling program
on the Dike Property, Nevada, consisting of 2,700 samples on a 30 X 30 metre
grid pattern. The program is expected to be completed in October.
Sage's main focus is to build a mining corporation through exploration
and acquisition of advanced development and production targets, primarily in
gold and silver.
There are 35,771,849 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.