Toronto, Ontario CANADA, March 02, 2007 /FSC/ - Sage Gold Inc. (SGX - TSX Venture), has completed geophysical surveys and further drilling on its Onaman property located northeast of Beardmore, Ontario. The company plans to commence drilling on the Lynx 1-3, Cane Copper and Cane Gold zones in the spring of 2007. The purpose of this drill program is to further extend the existing zones both down dip and along strike with the aim of establishing the potential extent of an open pit resource at Lynx 1,2 and 3.

Sage completed a magnetometer and a horizontal loop electromagnetic survey (HLEM) over the Lynx 1-3 zones. The results of the magnetometer survey are presented in the map (see Lynx Geophysical Map). There is a good correlation between the disseminated pyrrhotite - chalcopyrite and the magnetic highs over Lynx #3 and Lynx #2. Lynx #1, Lynx#2 and Lynx #3 exhibit well defined electromagnetic responses reflecting the massive sulphide mineralization evident in the three zones. The HLEM response suggests that the Lynx #1 and Lynx #3 are connected over a survey strike length of 200 metres and remain untested to the northwest and southeast. There is an evident conductor south of Lynx #1 which strikes at north - south unlike the Lynx zones which strike at north west - south east. All of the conductors will be tested in the Spring 2007 drill program.

Sage has completed eight shallow drill holes (from 25 to 40 metres deep) to test the down-dip extent of mineralization (see plan map) from the Cane Gold occurrence. Holes CA06-01 and CA06-02 were drilled from the same setup at ?45 degrees and ?60 degrees respectively on the east side of the showing. Holes CA06-03 to CA06-08 were drilled from the same set-up on the west, hanging-wall side of the stratigraphy in a fan shaped pattern with drill hole azimuth orientation of 050 degrees, 080 degrees and 105 degrees and dips respectively of ?45 degrees and ?060 degrees. The results from this drilling are presented in the table below. The 2006 drilling and surface sampling has confirmed the existence of mineralization of potentially economic grade to a depth of greater than 30 metres, over a strike length of greater than 50 metres.

Sage also completed channel sampling of the "Lower Bench" area of the Cane Gold occurrence The average grade for a 35 square metre area was reported (July 19,2006) as 4.1 Au g/T , 263 Ag g/T, 2.76% Pb and 2.84% Zn. Metallurgical and beneficiation tests carried out on concentrate from a composite sample at the Research and Productivity Council (Fredericton, New Brunswick) from the lower bench produced the following average grade: 5.8% Pb and 4.5% Zn, 3.9 Au g/T and 426 Ag g/T from a 60 kg composite sample, with good flotation characteristics (see News Releases dated 19 July and 29 August).

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                           Hole   Mineralized
Hole                       Depth     Width
Number    from     to     (metres)  (metres)   Cu%    Pb%   Zn%  Au g/T   Ag g/T
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CA06-01   21.95    22.70     44       0.75     0.26                         14.3
          23.45    24.20              0.75                        0.14      31.1
          26.50    27.42              0.92                                  77.8
          29.65    31.15              1.50     0.55         1.55  0.18     147.4
          37.30    40.30              3.00     0.76   0.81  1.77  0.25       5.7
CA06-02                      35                       in footwall basalt
CA06-03   16.70    18.60     29       1.95     0.16   1.58  3.94  0.26     123.6
CA06-04   14.10    17.40     40       2.15     0.12   1.54  2.44  3.32     113.9
CA06-05   18.48    19.12     25       0.64                                  13.9
CA06-06   15.75    18.25     29       2.50     0.36   1.32  3.34  1.20     118.6
CA06-07   16.25    17.25     35       1.00            2.64  3.85  0.89     243.5
CA06-08   17.00    18.50     30       1.50     0.07   0.48  1.89  0.29      45.3
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Assays and Drill Hole Intercepts Cane Gold

The Onaman Lake exploration project is being supervised by Exploration Geoscience Associates of Orillia, under the direction of Ulrich Kretschmar, Ph.D, P.Geo (APGO #1160). Dr. Kretschmar has extensive experience exploring for Ni-Cu, gold and base metal deposits in Archean terrain, and is a qualified person as defined by NI 43-101. He is responsible for the technical content of this news release.

Sage also announces the grant of 1,090,000 options at an exercise price of $0.12 per share issued to management, employees and a consultant. The options will be exercisable for a period of five years from date of grant.

SAGE is a mineral exploration and development company which has interests in exploration properties in Ontario and Quebec, Nevada and Arizona. Its main properties are the Kerrs, Onaman, and Jacobus properties in Ontario, the Dixie Fork, Triple Junction, Pony Spur and Dike properties situated in Nevada, and the Big Bend gold property, located 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.

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. 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 statement.

On behalf of the board of Directors
SAGE GOLD INC.

For further information contact:

Nigel Lees
President and CEO

or

Mike O'Brien
Manager/Investor Relations
(416) 204-3170
or by email at info@sagegoldinc.com