Sage options additional Kerrs claims and closes private placement

Trading Symbol - CNQ: SAGE

TORONTO, Sept. 6 /CNW/ - Sage Gold Inc. (CNQ listed: symbol SAGE) is
pleased to announce that it has signed an option agreement with certain
individuals ("the Vendors") to acquire a 100% interest in a mining claim ("the
Property") contiguous to the Company's Kerrs Property, in Kerrs Township,
Larder Lake Mining Division, Ontario, on the following terms:
On signing, the Company shall issue 67,000 Common Shares, and pay $5,000
in cash to the vendors. During the first year, the Company shall expend
$15,000 on the property. On the first anniversary, the Company shall issue the
equivalent of $5,000 in Sage Common Shares, and pay $10,000 in cash to the
vendors. During the second year, the Company will expend $35,000 on the
property. On the second anniversary, the Company shall issue the equivalent of
$10,000 in Sage Common Shares, and pay $15,000 in cash to the vendors. During
the third year, the Company will expend $70,000 on the property.
The Vendors will retain a net smelter return royalty of 1.5% on gold and
a 1.5% gross overriding royalty on diamonds. Both royalties can be purchased
by the Company for $300,000 each in cash.
During the past month, Sage has staked and optioned 276 additional claim
units contiguous to the Kerrs property, increasing the total claim area by
11,040 acres, for a total of 13,259 acres.
The Company is currently conducting a 2,000 metre diamond drill program
on the Kerrs property. The Kerrs gold property host two zones of anomalous
gold mineralization; the Jam Lake zone in the northeast section of the
property and the Anticlinal Axis zone in the southwest section of the
property.
The Company also announces that it has closed the final tranche of its
previously announced flow-through financing, pursuant to which the Company
sold an aggregate of 8,666,667 flow-through shares at a price of $0.075 per
share for gross proceeds of $650,000. The Company also sold an additional
335,000 flow-through shares on the same terms for aggregate gross proceeds of
$25,125.
In addition, the Company has issued 580,000 units ("Units") at $0.075 per
unit for gross proceeds of $43,500. To date, a total of 7,792,506 Units at a
price of $0.075 per Unit have been issued for gross proceeds of $584,438. 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 6, 2007.
The Company now has 33,568,849 issued and outstanding shares.
The Company also announces that it will participate at the Las Vegas Gold
Show on September 7 and 8, 2005, and invites shareholders and interested
parties to visit the Company's display.

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.