TORONTO, ONTARIO--(Marketwire - Sept. 2, 2008) - Sage Gold Inc. (TSX VENTURE:SGX) has completed 13 channel cuts and 26 channel samples on the Jacobus East - Golden Extension vein structure - in the Beardmore/Geraldton Gold Camp (BGGC).

Highlights:

- 136.5 g Au/T (3.98 oz/t) over a channel width of 0.50 metres

- Visible gold associated with sulphides - Along strike directly north west of the Golden Mile discovery

- Channel samples over 12 metres of strike length

- Gold mineralization throughout vein

Golden Extension - Jacobus East - BGGC

This project area on the eastern side of the Jacobus property lies along strike and five kilometres directly to the north-west from the Kodiak Exploration Ltd. "Hercules" gold veins, which includes the high grade "Golden Mile" vein system. In a 31 July 2008 News Release, Sage Gold reported on the results of winter work and results of two grab samples from quartz veins from the Golden Extension which yielded 30.1 and 47.9 g Au/T (within a range of 0.008 g Au/T to 47.93 g Au/T) respectively from an area near the eastern property boundary. A second vein located near Hindson Lake approximately two kilometres west of the eastern vein system, returned a grab sample of 14.8 g Au/T.

Current and ongoing work to expose veins on the Golden Extension showing is revealing an extensive network of gold-bearing quartz-carbonate-feldspar-pyrite-cha... veins. The main vein trends approximately 110o and is hosted within a feldspar phyric mafic volcaniclastic. Its width varies between 10cm to 1m and has been exposed via hand trenching for over 12m. Free gold in the grab and channel samples occurs as fine-grained specks intimately associated with sulphides. Free gold is also apparent in the soil above the vein. Results from ongoing trenching and channel sampling are shown in the accompanying table. Further samples of quartz veins in the immediate area have been submitted for assay.

A plan map of the distribution of the channels at the Golden Extension showing is available at www.sagegoldinc.com .

Assays reported in this news release were completed by ALS Chemex in Thunder Bay. Sample preparation was completed in the Thunder Bay facility of ALS Chemex and prepared samples were shipped to the ALS facility in Vancouver. The gold, silver, copper, lead and zinc assays were obtained through atomic absorption testing with fire assay finish for the high grade gold values.

The Jacobus project is supervised by Exploration Geoscience Associates of Orillia, under the direction of Ulrich Kretschmar, Ph.D, P.Geo (APGO #1160). Dr. Kretschmar has extensive mineral exploration experience in Archean terrain, is a qualified person as defined by NI 43-101 and is responsible for the technical content of this news release.

SAGE is a mineral exploration and development company which has interests in exploration properties in Ontario , Nevada and Arizona. Its main properties are the Jacobus, Onaman and Kerrs properties in Ontario, the Pony Spur and Sugarloaf properties situated in Nevada, and the Gold Hill property 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.

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.

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.

CONTACT INFORMATION: Sage Gold Inc. Nigel Lees

President and C.E.O.

(416) 204-3170 Fax: (416) 260-2243

or

Sage Gold Inc.

Mike O'Brien Manager/Investor Relations

(416) 204-3170 Fax: (416) 260-2243

Website: www.sagegoldinc.com