Trading Symbol - TSXV: SGX TORONTO, May 19 /CNW/ - Sage Gold has completed an option agreement with N.W.T. Copper Mines Limited to earn a 100% interest in the Lincoln gold property located near Beardmore, Ontario. The option agreement includes total cash payments of $75,000 and work commitments of $325,000 over a three year term to earn into a 100% interest in the property. The vendors retain a 3% net smelter return royalty on precious metals and a 2% on base metals. Sage can repurchase 1% of the royalty for $1 million. The Lincoln Gold Property comprises 10 claims (63 units) and is located in Gzowski Township east of Beardmore. There are two small shafts (north and south) of 50 feet and 22 feet respectively in vertical depth. In 1974-75 Westburne - G.P. Drilling Limited completed geological mapping, a ground magnetometer survey and a limited program of shallow drilling, with the results as follows: Hole 75-1: 0.145 oz Au/t over 15 ft.; Hole 75-2: 0.145 oz Au /t over 3 ft and Hole 75-4: 0.10 oz Au/t over 1.5 ft. In 1999 and 2000 the owners completed a program of chip and grab sampling. Eight grab samples ranged from 0.235oz/t to 4.03oz/t. A channel sample yielded 0.61oz Au/ton across 13.12 feet (including 0.974oz Au/ton gold across 8.86 feet). During 2003 an evaluation program consisting of prospecting, geological mapping, a geochemical soil survey, mechanical trenching, channel sampling and 11 short drill holes totaling 1000 m was completed by Kodiak Exploration Ltd. and International Taurus Resources. Results include 0.89 g/T Au over 12.6 m below the south shaft from Hole LP03-11, and 1.39 g/T Au over 20 m from Hole LP03- 04. Gold mineralization occurs both in vein and adjacent wall rock as a carbonate chlorite horizon at the contact between pillowed volcanics and chlorite tuffs. The gold mineralization is associated with a zone of iron carbonate - chlorite - silica alteration and enrichment, with disseminated pyrite with chalcopyrite and is adjacent to tuff/chert units that plunge NNW. Sage intends to complete digital compilation of historical data prior to a summer field program of mapping and channel sampling across the breadth of the alteration zones. A fall drill program will concentrate on following the mineralization along strike and down dip, with drilling carried out perpendicular to the NNW plunging chert/tuff beds. Property acquisition and exploration work is being carried out by Exploration Geoscience Associates of Orillia, under the supervision of Ulrich Kretschmar, Ph.D, P.Geo. Dr Kretschmar has extensive exploration experience in Archean terrains, is a qualified person as defined by NI 43-101 and is responsible for the technical content of this news release. Sage Gold Inc is a mineral exploration and development company which has interests in exploration properties in Ontario and Quebec, Nevada and Arizona. Its main properties are the Kerrs property (the "Kerrs Property") which is located in the northern part of the Larder Lake Mining Division in north eastern Ontario, the Onaman and Jacobus properties located in the Beardmore area of north central Ontario and the Dixie Fork, Triple Junction, Pony Spur, Dike, Corridors and Sugarloaf properties (collectively, the "Nevada Properties") which are situated in north eastern Nevada, within Elko County. The Big Bend Gold property is located in Yavapai County, Arizona. Technical reports relating to the Kerrs Property and the Nevada Properties can be obtained from the System for Electronic Document Analysis and Retrieval (SEDAR) website at www.sedar.com. There are 69,709,871 issued and outstanding common shares. This release was prepared by management of the Company who takes full responsibility for its contents. The TSX Venture Exchange 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.