Sage to Drill Clavos Mine, Timmins

TORONTO, ONTARIO -- (Marketwire) -- 08/13/10 -- Sage Gold (TSX VENTURE: SGX) plans a drill program of approximately 5,000 metres on the Clavos mine in Timmins, Ontario during the Fall of 2010. The drill program is designed to upgrade Inferred resources into the Measured and Indicated category and add new ounces to the resource. Drill targets were identified by St Andrew Goldfields Ltd. (SAS) and Scott Wilson RPA and were disclosed in the 43-101 resource study of October, 2006. Refer to www.sedar.com.

Sage Gold has also identified previously unreleased drill results from the Clavos property in Timmins, Ontario. The underground drill programs were conducted by St Andrew Goldfields Ltd. during the period August 31, 2006, to April 1, 2007. The unreleased drill holes were designed to both delineate stopes for production and to develop additional resource areas with longer drill holes. Sage intends to review the most recent drill data with the aim of providing disclosure on these results and analysing the potential impact of the drill programs on the contained resource. The drill results post date the current mineral resource estimate completed by Scott Wilson RPA and will form part of a new resource study to be commissioned by Sage.

Highlights of Clavos property:

--  Located in the prolific Timmins mining camp and very close
    geographically (20kms) to Goldcorp's (TSX: G) Hoyle Pond mine which has
    produced more than 2.4 Mozs since 1985 and is still in operation;

--  Existing mining permit in good standing until 2019;

--  Existing infrastructure in place including underground ramp access to
    the 300 metre level, underground levels developed every 25 metres, power
    to site, surface ventilation system, water management facility;

--  $72 million has been invested on the Clavos Property to date, including
    $46 million on underground development;

--  Strategically positioned 10 kilometres from Brigus Gold's (formerly
    Apollo Gold) 2,000 tonne per day mill located in Stock Township;

--  Sage has the option to earn a 60% undivided interest in the Clavos
    property from St Andrew Goldfields Ltd.;

The Company announces having received final acceptance for filing documentation with respect to a Non-Brokered Private Placement first announced June 1, 2010 from the TSX Venture Exchange. The expiry dates of the hold periods are October 12, 2010, November 11, 2010 and November 22, 2010.

SAGE is a mineral exploration and development company which has interests in exploration properties in Ontario and Nevada. Its main properties are the recently optioned Borealis Gold Property in Nevada; the Clavos Gold property in Timmins; and its ongoing exploration in the Beardmore - Geraldton Gold Camp. Technical reports relating to the properties can be obtained from the System for Electronic Document Analysis and Retrieval (SEDAR) website at www.sedar.com.

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

This news release contains certain 'Forward-Looking Statements' within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended and 'Forward Looking Information' within the meaning of applicable Canadian securities legislation.Some forward looking statements and forward looking information 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.

'Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this 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)