Sage Gold Inc. announces non-brokered private placement

Trading Symbol - CNQ: SAGE

TORONTO, May 17 /CNW/ - Sage Gold Inc. (CNQ listed: symbol SAGE) wishes
to announce a non-brokered private placement for up to 8,800,000 units
consisting of one common share and one-half common share purchase warrant at
7.5 cents per unit. Each full share purchase warrant will entitle the holder
to purchase an additional common share of the Corporation at a price of
10 cents per share at any time until twenty-four months following the closing
of the placement. The corporation in the event of an oversubscription may at
its discretion issue up to 25% additional units (2,200,000). In addition the
company intends to issue up to 4,000,000 flow-through shares at Cdn 7.5 cents
per share. The Corporation may elect to pay up to a 10% finder's fee and issue
finder's options for up to 8% of the number of units sold pursuant to the
offering. Each option entitles the holder to purchase one unit of the
Corporation at the issue price at any time prior to the date twenty-four
months from the date of closing.
Subject to the completion of the financing and permitting approvals, the
Corporation plans to complete pre-drill exploration programs on the Kerr's
property in Ontario, Pony Spur and Dike properties in the Southern Carlin
Trend in Nevada and drill all three properties during this field season.
For Nevada property descriptions and other information, please see the
corporation's website at www.sagegoldinc.com.

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.

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.