Exploration Update

SAGE Gold Inc. (CNQ listed: symbol SAGE) is pleased to provide an update on its exploration activities on the Company’s principal properties in Canada and the United States.

During the winter, exploration work was carried out on the Kerrs Property in Ontario. The remainder of a pre-drill exploration program is currently being completed, including a compilation of historical work, a mobile metal ion (MMI) soils survey and ground magnetic survey. Subject to permitting and financing, the Company plans to drill this property in the late spring.

SAGE has interests in properties in the Provinces of Ontario and Quebec totalling 9,487 acres. In addition to the Kerrs Property, SAGE has 8 prospective properties in Quebec; 3 in the Fort Chimo area, 1 in Malartic, 1 in Dasserat township, and 3 in Chibougamau. Information is currently being compiled on these properties with the view to their joint venture or sale.

In the fall of 2004, SAGE optioned six properties in Nevada; two in the Midas area, and four in the Southern Carlin Trend covering over 4,600 acres. These properties in northern Nevada are at elevations of between 5,000 – 9,000 feet. The Company managed to complete a limited geochemical and geophysical exploration program on some of the properties prior to the onset of an unusually harsh and snowy winter.

The Company plans to continue the exploration programs in the spring. The initial focus will be to conduct mapping, soil gas and soil sampling on Pony Spur, and gravity mapping, sampling and soil gas on Dike, both in the Southern Carlin Trend. Subject to permitting and financing, SAGE plans to drill both properties this summer.

Nigel Lees, President and C.E.O., said: “We are looking forward to an intense period of exploration on our properties over the next several months.”

A more detailed description of the exploration activities on each of the principal properties is provided below.

NEVADA

Southern Carlin – Rain Trend

The Pony Spur Property comprises 215 acres. The Company completed a limited grab sampling program which successfully confirmed earlier sampling results on the property. Five of the samples contained strongly anomalous gold ranging from 51 to 284 ppb Au, while five samples had highly elevated arsenic up to the equivalent of 0.2% As and barium up to the equivalent of 0.44% Ba, and pathfinder trace metals were also elevated: 340 to 4383 ppb Hg; up to 54.7 ppm Tl; and up to 1.4 ppm Se. The samples were assayed by SGS Canada Inc., Toronto. The geochemically anomalous alteration zone and decalcified limestone at Pony Spur suggest the possibility of finding Rain/Meikle type gold mineralization at depth at the highly favourable contact between the Webb Formation and Devil’s Gate Formation. The Company anticipates drilling the favourable target this summer.

The Dike Property comprises 1240 acres. The Company completed an oxygen and carbon dioxide soil gas survey (Geochemical Applications Intl., Centennial, Colorado) and also a gravity survey (Magee/Wright) over the northern portion of the property. The results from the gravity survey reflect the presence of a major north-northwest fault system on the eastern edge of the northern block. In addition, the gravity survey suggests that Devonian rocks (important in localizing the optimal Devonian-Mississippian contact for Rain style gold mineralization) underlie the property at depth. The soil gas (consumption of O2, production of CO2) survey identified three anomalies that are spatially related to gravity interpreted faults. The Company will complete the soil gas and geophysical work on the balance of the property prior to selecting drill targets. The Dike Property is situated far enough west that the Devonian carbonate rocks at depth may in fact be of the gold deposit favourable, slope facies Popovich Formation present at the Goldstrike mine complex, rather than the shelf facies Devil’s Gate Limestone present farther to the east.

The Triple Junction Property comprises 708 acres. SAGE has completed a preliminary compilation of the existing data relating to this property. The previous operators, Westmont and Cameco, concentrated on discovering a near-surface oxide deposit and thus their drill holes were relatively shallow with a maximum vertical depth of 129 m. They encountered anomalous gold values but did not intersect the Devonian – Mississippian contact, likely 450-600 metres from surface. Westmont encountered anomalous gold mineralization in surface sampling (5,710 ppb Au, up to 960 ppm Sb and 3-16 ppm Hg). SAGE is completing a full compilation of all of the existing data.

The Dixie Fork Property comprises 634 acres. SAGE has examined the property data including prior geological mapping and rock sampling. There is evidence of anomalous arsenic values on surface particularly where associated with a silicified black shale, a natural reducing environment, which may reflect gold-arsenic mineralization at depth. The property exhibits two cross cutting structural trends, W-NW and E-NE, which appear on the regional magnetics. The Company believes that the Devonian – Mississippian contact is fault bounded, on the W-NW structure, by the sulphide bearing Woodruff Formation – thus creating an excellent gold trap for Rain style mineralization. The target horizon could be as much as 600 metres below surface, but the Chainman Formation present at the exploration target is uplifted, meaning that the target Devonian-Mississippian contact may be present at a much shallower depth than previously thought.

Northern Nevada – Midas Trend

The Sugarloaf Property comprises 640 acres. Gravity and ground magnetic surveys were completed in late 2004 over the property by Chris Magee and Wright Geophysics Inc. of Spring Creek, Nevada, along with limited surface sampling.

The gravity survey suggests that the Property is located over a sub circular, 1 km diameter gravity high reflecting either upfaulted basement, or an intrusion or caldera. Subtle magnetic lows may reflect areas of alteration, and gravity-interpreted faults near them suggest hydrothermal fluids may have moved along major structures. The Sugarloaf claims are in an environment favourable for a high-level Midas-type low sulphidation epithermal gold system, with indications of favourable alteration and structures interpreted from regional-scale geologic mapping, and gravity and magnetic data.

The property exhibits exposed vein systems in argillically-altered rocks, with locally high contents of pathfinder elements, including arsenic, thallium, mercury, bismuth and tellurium, as identified in the surface sampling, indicating a possible imprint for a Midas-type gold-mineralized system at relatively shallow depths of 250 metres. Possible porphyry molybdenite mineralization was explored by Anaconda just east of Sugarloaf, and the geophysical signature at Sugarloaf is permissive of a porphyry system being possibly present at depth.

The Corridors Property comprises 1240 acres, located north of the Ivanhoe-Hollister Midas-type deposit, which is currently being explored by Hecla Mining. SAGE completed ground magnetic and gravity surveys (Magee/Wright) on the Corridors Property in late 2004. The results of the geophysical surveys suggest the Tertiary-basement contact, an important environment for Midas style gold mineralization, is comparatively shallow and that a magnetic high trending west-northwest is interrupted in the area of the vein systems observed on the property – suggesting widespread alteration. The limited number of samples taken on the property show locally anomalous gold, arsenic, selenium, and locally high values of sulphur and tellurium. The Company believes that the top of Midas-type mineralized gold-silver systems may be present at 200-300 metres below surface in the property area.

ONTARIO

The Kerrs Property consists of twelve mining leasehold patents and six mining claims covering a total surface area of approximately 2,220 acres situated in Kerrs township. SAGE has completed a two-phase geochemistry program on the Kerrs Property located in Northeastern Ontario. The first phase involved a limited reconnaissance scale geochemistry survey employing hydrogeochemical, soil gas hydrocarbon and mobile metal ion (MMI) methods. The purpose of this program was to determine the optimal geochemical method for detecting buried mineralization beneath the 30-50 metres of glacial cover that is present on the Kerrs Property. The results of this reconnaissance survey suggests that all three methods were effective in identifying buried gold mineralization as the geochemical anomalies mirror the orientation of the original gold zone which is 15 - 25 metres wide and 100 metres in strike length. Previous drilling resulted in several mineralized intersections with gold grades up to 11.69 g/t over narrow widths. The survey results also lead to a strong correlation between the existing magnetic anomaly in the Jam Lake zone (reflecting the ultramafic-basalt contact) and the observed alteration in the drill core indicating the potential extension of the gold bearing quartz carbonate zone to the northeast for a further 700 metres.

As a second phase program, SAGE completed a follow-up MMI soil geochemical survey on the Kerrs Property. The Company extracted 1073 samples for MMI analysis. The results of the survey are currently being compiled. The Company intends to use the results of the MMI survey and the planned magnetic survey to define drill targets.

Rick Redfern, C.P.G., has reviewed and authorized the Nevada section, and Eric Owens, P.Geo., has reviewed and authorized the Ontario section of this news release, both being qualified persons as defined by NI 43-101.

For further information, visit our new website www.sagegoldinc.com or contact:

Nigel Lees, President and C.E.O., or Allan Ibbitson, C.F.O.
Phone: 416-204-3170 Fax: 416-260-2243

Alec Alipan, Investor Relations
Phone: 416-907-0979 Fax: 416-907-9983

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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.