Sage starts drilling at Kerrs

Trading Symbol - CNQ: SAGE

TORONTO, Aug. 16 /CNW/ - Sage Gold Inc. (CNQ listed: symbol SAGE) is
pleased to announce that it has commenced drilling on the Kerrs Gold Property
near Lake Abitibi, Ontario. The Company recently announced a 2,000 metre
diamond drill program focussing on the Jam Lake zone on the Kerrs Property.
Gold mineralization was discovered on the property in the 1980s by
Noranda. Sage has recently completed an MMI (Mobile Metal Ion) survey, a
magnetic survey and a lithostructural study (using satellite imagery) in order
to properly delineate drill targets for the current program of diamond
drilling.
The Company has staked an additional 271 claim units to the north of the
current property, comprising 10,840 acres, and this, together with the
existing 44 optioned and staked claim units, plus 12 leased claims, comprises
a total of 13,059 acres on the Kerrs Property.
The Company also announces that it has issued 1,815,000 options to
directors, officers, employees and consultants at 7.5 cents per share.
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 32,122,182 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.