TORONTO, ONTARIO--(Marketwire - Oct. 4, 2007) - Sage Gold (TSX VENTURE:SGX) has commenced the third phase 6000 metre drill program at the Jacobus Ni/Cu and Au property in Beardmore, Ontario. Two drills have been deployed to test the lateral and down dip Ni/Cu mineralization confirm the historical resources and test the gold zone that was encountered in the previous drill program. The Jacobus property is contiguous to the east with Kodiak's (TSX VENTURE:KXL) Hercules project. Kodiak Exploration Ltd. recently reported drilling results confirming significant gold mineralization, including 38.47 grams per tonne (g/t) gold across 1.6 m in drill core and 32.96 g/t gold across 11.6 m in surface channel samples (see Kodiak Exploration news release dated October 1, 2007).

In 2006 and 2007 Sage drilled 16 holes totalling 4,440 m at the Jacobus Ni-Cu occurrence to augment the historical results from 80 previous drill holes. The data shows that the Jacobus occurrence consists of a series of higher grade lenses that are aligned and form a mineralized zone within the Pinel Lake intrusion, a layered sill-like body composed predominantly of gabbro and quartz-rich leucocratic gabbro with minor pyroxenite and anorthositic gabbro. The zone varies in thickness from 6 to 25 metres and has been tested down dip from surface to about 580 metres. Currently, mineralization extends for 115 metres in a lateral plane near surface and high grade mineralization over significant widths was encountered. Hole SJ07-11 (the best hole to date) intersected 2.12% Ni and 1.02% Cu over 6.6 metres and Hole SJ07-06 yielded 0.95% Ni and 1.16% Cu over 11.45 metres (see June 14/07 and July 24/07 Press Releases ).

Sage intersected 15.15 grams of gold (Au) per tonne over 0.73 metres in Hole #7 (see July 24/07 Press Release). The gold occurs in a pyritized carbonate rich section of chloritic tuff within the andesitic volcanics that overlie the gabbro. Sage has re-examined core sections from previous drilling and has interpreted that the gold bearing zone is also present in hole 9. The current drill program will test for possible strike and dip extensions of the gold zone.

Sage is a mineral exploration and development company with interests in exploration properties in Ontario, Quebec, Nevada and Arizona. Its main properties are the Jacobus, Onaman and Kerrs in Ontario, Pony Spur, Dixie Fork, Triple Junction and Dike in Nevada and the Gold Hill and Big Bend in Arizona. Technical reports on these properties can be found on the System for Document Analysis and Retrieval (SEDAR) at website www.sedar.com.

Dr Ulrich Kretschmar, Ph.D, P.Geo (APGO #1160) is a Qualified Person as defined by NI 43-101. He is responsible for the technical content of this news release.

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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 PLEASE CONTACT:

Sage Gold Inc.
Nigel Lees
President and C.E.O.
(416) 204-3170

or 

Sage Gold Inc.
Mike O'Brien
Manager/Investor Relations
(416) 204-3170
(416) 260-2243 (FAX)

Website: www.sagegoldinc.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.