Dear shareholder,

Thank you for your inquiry. The following response was provided by Sage Gold management:

Sage did state that it intended to drill the Copper Nickel zone at Jacobus. The following items have influenced our decision to delay the resumption of drilling on the Copper Nickel zone at Jacobus:

- Dr Kretschmar (Geologist in charge of the Jacobus program) has recommended and we have proceeded with assaying the flotation concentrates that we produced from the metallurgical study. Dr Kretschmar is currently analyzing certain metal ratios (particularly PGE elements) that provide a pathway to determining if the disseminated mineralization at Jacobus is related to a deeper more massive Ni-Cu sulphide zone. This research will serve to vector our future drill program.

-We have conducted internal economic analysis of the Jacobus deposit with a view to analyzing various development options.

-We wanted to drill the Lynx property as Lynx represents another source (along with Jacobus) of open pittable massive sulphides. Refer to today’s press release.

Regards,

AGORACOM Investor Relations