Sage Gold Inc.: Gold Hill Channel Samples-31.7 g/T Gold, Grab 54.8g/T Gold

TORONTO, ONTARIO, Jan 15 (MARKET WIRE) --
Sage Gold Inc. (TSX VENTURE: SGX) has completed underground and surface
channel sampling of one of the quartz vein structures present at the Gold
Hill property located in Maricopa County, Arizona. Forty-five channel
samples have been cut based on 5 metre (16.4 feet) and 2.5 metre (8.2
feet) spacing along the East vein both underground and at surface. The
samples were cut from the back of the main haulage. Additional channel
sampling is underway on the West vein structure and on the four levels
above the main haulage.

The highest grade in the channel samples assays is 31.7 grams of gold per
tonne (0.925 ounces per ton) over a width of 1.2 metres and the highest
grade grab sample is 54.8 grams of gold per tonne (1.598 ounces per ton).
The following samples represent channel sample assays of greater than 10
grams of gold per tonne over the specified widths. All assays are
reported on the Sage web site - www.sagegoldinc.com.

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True Width -
Sample Number Au g/T Au oz/t Ag g/T Ag oz/t Metres (Feet)
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67562 28.6 0.834 36.7 1.07 0.91 (2.99)
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67566 11.8 0.34 28.5 0.831 0.99 (3.25)
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67568 19.15 0.559 38.4 1.12 0.55 (1.80)
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67569 25.4 0.741 32.6 0.95 1.30 (4.26)
-------------------------------------------------------------------------
67571 17.55 0.512 38.8 1.132 1.52 (4.99)
-------------------------------------------------------------------------
67575 25 0.729 33.6 0.98 2.13 (6.97)
-------------------------------------------------------------------------
67607 12.2 0.356 21.9 0.639 Dump grab
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67608 54.8 1.598 47 1.37 Dump grab
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67610 31 0.904 28.5 0.83 1.35 (4.5)
-------------------------------------------------------------------------
67611 11.8 0.344 18.1 0.528 grab
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67612 31.7 0.925 84.4 2.462 1.2 (4.0)
-------------------------------------------------------------------------

Sage also completed a thirty three element ICP (induced couple plasma)
analysis of the sample material for base metals and trace elements. The
geochemical analyses indicate that there is relatively low amount of base
metal sulphides and that an average ratio of silver to gold is 3.74.

Nigel Lees stated; "We now have confirmation that the Gold Hill property
contains high grade gold veins containing economically interesting
grades. Sage intends to complete the underground and surface sampling
programs in order to assess the resource potential of the accessible
underground levels. In addition, Sage is planning a surface drill program
in February to test the down dip extensions of the gold veins. The Gold
Hill project is located on private patented land."

A series of parallel veins trend northwest - southeast and occur within a
Proterozoic age porphyritic granite that intrudes a sequence of schists
and argillites. Veins are exposed on the surface over a distance in
excess of 1.5 kilometres (4,920 feet). The veins are delineated by
exploratory pits, tunnels, shafts and adits. Historical workings from the
period 1884-1898 resulted in a 90 metres (300 foot) haulageway with three
production raises. Several exploratory winzes and underhand stopes were
also developed along with four shafts which have since caved in. In the
main haulage tunnel, driven within the East vein structure, oriented
almost north-south, veins are exposed over a length of 100 metres (328
feet) with the greatest density of quartz veins occurring over a width of
about 55 metres (180 feet).

Sage has an option to acquire a 50% interest in the property by expending
U.S. $250,000 and issuing $US50,000 worth of common shares by March 2008.
Sage issued 500,000 common shares to the vendor at the closing of the
transaction (see Press Release March 13, 2007) and the vendor invested
$USD250,000 in a private placement of Sage Gold.

There is an historical resource of 380,000 tons grading 0.27ounces/ton Au
based on vein sampling from the existing workings. The existing workings
were resampled in 1981 (Promet Services - December 1981, Duane Brown PhD)
yielding the resource estimate defined below:

Proven Reserve - 30,000 tons at 0.27 oz Au/ton
Probable Reserve - 150,000 tons at 0.27 oz Au/ton
Possible Reserve - 200,000 tons at 0.27 oz Au/ton

The Company has not yet conducted sufficient exploration to define the
indicated and inferred mineral resources. As such, the potential quantity
and grade disclosed above is conceptual in nature based on sampling of
underground workings at the Gold Hill property. The sample results are
relevant in that they represent the most recent work conducted on the
property. The reserve/resource categories predate NI 43-101 and given
that there has been no feasibility study completed on the property these
reserve categories should be defined as inferred, indicated and measured
mineral resources.

Further exploration may not result in the discovery of additional mineral
resources. All resource estimates quoted herein are based on prior data
and reports obtained and prepared by previous operators.

The Company has not completed the work necessary to verify the
classification of the mineral resource estimates. The Company is not
treating the mineral resource estimates as NI 43-101 defined resources
verified by a qualified person. The historical estimates should not be
relied upon. The Company has not completed a feasibility study and there
is no certainty that the Company's planned operations will be
economically viable. Sage intends to verify the historical results
through an underground sampling program followed by underground drilling
to test the lateral and vertical extent of the vein structures.

Dr. Ulrich Kretschmar, Ph.D, P.Geo (APGO #1160) a qualified person as
defined by NI 43 -101 has read and approved the technical content of this
news release.

The channel samples were crushed and pulped by Jacobs Laboratories in
Tuscon, Arizona. The total pulps were shipped to ALS Chemex in Vancouver.
The samples were then dry-screened to 100 micron (150 mesh) to produce
plus and minus fractions for screen fire assay. The samples were
dissolved using acid digestion. A 33 element ICP analysis was completed
to test for base metals and trace elements. The gold results were
reported as the weighted average grade of gold based on the coarse and
fine fractions.

SAGE 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 Jacobus, Onaman and Kerrs properties in Ontario,
the Sugarloaf, Dixie Fork, Triple Junction, Pony Spur and Dike properties
situated in Nevada, and the Gold Hill and Big Bend gold properties in
Arizona. Technical reports relating to the properties can be obtained
from the System for Electronic Document Analysis and Retrieval (SEDAR)
website at www.sedar.com.

For all Sage Gold Inc. investor relations needs, investors are asked to
visit the Sage Gold Inc. IR Hub at http://www.agoracom.com/IR/sagegold
where they can post questions and receive answers within the same day, or
simply review questions and answers posted by other investors.
Alternatively, investors are able to e-mail all questions and
correspondence to sgx@agoracom.com where they can also request addition
to the investor e-mail list to receive all future press releases and
updates in real time.

This release was prepared by management of the Company who takes full
responsibility for its contents.

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.

TSX Venture Exchange has not
reviewed and does not accept responsibility for the adequacy or accuracy
of this news release.

Contacts:
Sage Gold Inc.
Nigel Lees
President and C.E.O.
(416) 204-3170
(416) 260-2243 (FAX)

Sage Gold Inc.
Mike O'Brien
Manager/Investor Relations
(416) 204-3170
(416) 260-2243 (FAX)
Website: www.sagegoldinc.com

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