Good morning shareholders. Notwithstanding the fact that in the mining world anything can and probably already has happened, please allow me to give you some specific information [not my opinion] that should be considered by each of us everytime we see [and we WILL again see] a dramatic increase in the SP that is based on results and or other great news. When this happens, it is almost impossible not to at least think of the words, halt and buyout. I am NOT making reference here to a J/V or another hybrid type deal but only to a buyout senerio. A J/V could also do wonders for us but a SGX buyout is NOT likely in the near term and should be AVOIDED by the company.

For now anyway, Sage Gold is in the drivers seat and does not need to enter into any sort of arrangement. Cash is king indeed. The further SGX can go along on its present course on its own, the better it will be for the shareholders in terms of an eventual buy out. Majors do not like to speculate. they will only buy out a junior if there is a certainty that there is a mine there and that it can be put into production. They have a fiduciary responsibility to their shareholders. They may put monies into exploration and speculation but for the most part those risk dollars go into something they own and will directly benefit from. They would rather pay a premium for SGX down the road than to speculate at this point in Sage's development. In many cases a major will not consider a deal [complete buyout] until the junior has actually run a pilot plant. If the project is viable and if all works out, it usually takes 7-10 years to go from beginning to end.

HOWEVER felow investors, that does not mean that we will not have any chance to make money along the way. There is nothing wrong with taking money off the table when we see that see-saw operation in the share price. There is nothing wrong with taking the profits and reinvesting them into SGX during the low end of the cycle. Just so each of us has a game plan and to the best of our ability, we follow it. The longer Sage Gold goes on its own the sweeter the profit margin will be down the road a ways.

I believe that this post offers a balanced position regarding the term "buyout" and the normal outcome of most junior mining companies that have merit BUT once again we should always be alert to words like 'surprise' and 'suddenly' because, after all, isn't that what speculative investors are all about. LOL.

All the best,

Jerry Francis