Sage Gold Inc.: Clist Lake, Beardmore-Geraldton Gold Camp-Channel Results 5.51g/t over 3.23 metres

TORONTO, ONTARIO -- (Marketwire) -- 12/21/10 -- Sage Gold (TSX VENTURE: SGX) announces channel sampling results from its optioned Clist Lake property in the Beardmore-Geraldton gold camp, located approximately 200 km northeast of Thunder Bay, Ontario, south of Jellicoe and south of Clist Lake. Grab sample results were previously reported (Sage Press Release of 11/30/09).

At the McKenzie Showing, a broad area of low grade gold mineralization has been identified, within which there are higher grade veins. The gold system is a minimum of 10 m wide and remains open. Channel sample results (not true widths, due to surface undulations) are as follows:

Clist Lake Property channel sample highlights, McKenzie Showing. Italics
indicate visible gold present.
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Sample                                  Channel  Channel      Au
Number               Easting  Northing   Number    Width   (g/t)    Comments
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10LHCL0195            454915   5498242      129     3.20    3.41
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10LHCL0205            454912   5498243      132     3.23    5.51
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10LHCL0228            454931   5498234      136     8.75    1.01
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10LHCL0257            454916   5498239      140     4.32    2.45
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10LHCL0265(i)         454910   5498246      142     2.02    5.22
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10LHCL0278(i)         454908   5498244      145     4.56    1.34
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10LHCL0387            454883   5498231      170     7.65    1.36
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10LHCL0561            454886   5498231      201     6.78    2.81       Incl.
                                                                    33.80g/t
                                                                  over 0.52m
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10LHCL0648            454871   5498228      221     8.94    0.63
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10LHCL0687            454866   5498226      225    11.25    0.98
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Clist Lake Property grab sample highlights, McKenzie Showing

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Sample                                       Au
Number               Easting  Northing    (g/t)
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10LHCL0147            454912   5498243    16.80
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10LHCL0148            454912   5498243    15.00
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10LHCL0149            454912   5498243    30.10
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10LHCL0150            454912   5498243    27.10
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10LHCL0832            454968   5498247     5.66
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The channel samples reported above were part of a larger 109 channel sample set covering approximately 250 metres of strike length. Channel samples were taken from various locations within the stratigraphy to characterize the nature and distribution of the gold mineralization. Gold values ranged from nil to 5.51g/t over 3.23 metres.

Maps of the property geology and channel sample locations are posted at www.sagegoldinc.com.

The Clist Lake Property straddles the boundary between the southern margin of the Wabigoon Sub province and the northern edge of the Quetico Sub province.

The McKenzie Showing is located in the central part of the Property, approximately 250 m south of the sub province boundary and 600 m south of Clist Lake.

Overburden stripping in 2009 opened up an area of approximately 250 m x 10 m which was the focus for the 2010 September channel sampling program.

Channel samples reveal wide low-grade gold zones interspersed with thinner high-grade lenses, including an approximately 3 m wide zone containing visible gold that can be traced along strike for at least 10 m. Gold occurs within a series of semi-parallel and anastomosing zones.

The gold-bearing quartz veins are typically 10-50 cm thick and contain 2-5% sulfides consisting of pyrite, pyrrhotite, chalcopyrite, galena, tourmaline and arsenopyrite. The veins strike approximately east-west and dip to the north. The primary host to the gold mineralization is a biotitic meta-sandstone intruded by pegmatite. The immediate host is a sericite-chlorite-silica-sulphide altered metasediment that can reach widths 10 metres or more.

A second similar zone, nearly 100 m south of the McKenzie, was discovered in October 2010. Grab samples have yielded up to 3.14 g Au/T from a sulphidized porphyry. Continuing work on the property will consist of stripping, trenching and channel sampling.

The Clist Lake project is supervised by Ulrich Kretschmar, Ph.D, P.Geo (APGO #1160). Dr. Kretschmar has extensive mineral exploration experience in Archean gold terrains, is a qualified person as defined by NI 43-101 and is responsible for the technical content of this news release.

CLAVOS, TIMMINS

Sage is currently drilling at the Clavos gold mine in Timmins, Ontario as part of the 2010-11 program. Assays will be released in Q1 of 2011.

The Clavos mine has existing infrastructure in place including underground ramp access from 100 metres to the 300 metre level, underground levels developed every 25 metres, power to site, mine ventilation system and a water management facility. The existing mining permit is in good standing until 2019.

SAGE is a mineral exploration and development company which has primary interests in exploration properties in Ontario. Its main properties are the Clavos mine in Timmins and their exploration properties in the Beardmore -Geraldton Gold Camp. Technical reports and information relating to the properties can be obtained from the System for Electronic Document Analysis and Retrieval (SEDAR) website at www.sedar.com and www.sagegoldinc.com.

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

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)
www.sagegoldinc.com