Toronto, Ontario CANADA, April 03, 2007 /FSC/ - Sage Gold Inc. (SGX - TSX Venture), has entered into an option agreement with respect to the Gold Hill Property, Arizona, as disclosed in the Company's press release dated March 13, 2007. Under the terms of the option agreement, Sage is required to spend US$250,000 on the property within 12 months to earn a 50% undivided interest in the property. Additionally, as required by the option agreement, Sage has issued 500,000 common shares to the vendor and has, on a private placement basis, issued to the vendor 2,500,000 common shares for a consideration of U.S. $250,000.

The common shares issued to the vendor have a hold period that will expire on August 3, 2007.

The funds raised from the private placement will be used to finance exploration expenses on the Gold Hill property which has an historical resource as disclosed in the Press Release of March 13, 2007. Nigel Lees, President, stated that "The Gold Hill property is an important part of advancing the corporate objective to develop or acquire properties with a reasonable probability of production in the medium term. We intend to conduct underground sampling of the existing vein structures in order to verify the historical grades and begin to assess the potential economic merits of the property."

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

The securities being offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States in the absence of registration or an applicable exemption from the registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to purchase securities in the United States.

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.

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.

For further information, contact:

Nigel Lees
President and C.E.O.
or

Mike O'Brien
Manager/Investor Relations
Phone: 416-204-3170
Fax: 416-260-2243

SAGE GOLD INC.
365 Bay Street
Suite 500
Toronto, Ontario
M5H 2V1
Tel: (416) 204-3170
Fax: (416) 260-2243
www.sagegoldinc.com