TORONTO, ONTARIO--(Aug. 25, 2008) - Sage Gold Inc. (TSX VENTURE:SGX) has completed 26 channel samples on the optioned Paint Lake property in the Beardmore-Geraldton Gold Camp, Beardmore, Ontario.

Highlights

- Paint Lake - best channel results 23.09 g Au/T over 0.4 metres.

- Stripped mineralized zone 140 metres in strike length and up to 3 metres in width.

- 1.2 kilometres east of the Ontex/Brookbank property

Initial grab sample results grading between 4.1 and 10.1 g Au/T were reported from the Paint Lake property in Irwin and Walters Twp. in a News Release dated 31 July 2008. More recent grab samples include 15.66 g Au/T. Channel sample results reported in above and attached table were taken from an area of recently re-exposed historical trenching.

The gold mineralization as seen in recently stripped outcrops, occurs in east-west-trending sulphide-rich zones within tuffs and mafic pillow basalts, which are overlain by a Timiskaming-type polymictic conglomerate. Quartz-carbonate-pyrite-chalcopyrite veins occur within and sub- parallel to the Paint Lake "Shear" Zone. The zone has been traced for 1,500 feet (457 m) and historically yielded channel samples of up to 0.54 oz/T (18.51 g Au/T) over 5 feet (1.5 m) (Ontario Assessment Report #42E12NE0134, 1974).

According to (Lafrance et al., 2004), the Paint Lake shear zone is a NNE-trending 500 m wide corridor of high deformation located toward the boundary of the Beardmore Greenstone Belt. The shear zone extends for over 40 km from the shore of Lake Nipigon to the Jellicoe Fault in the east. It occurs at the contact between a package of conglomerates belonging to the northern sedimentary belt and volcanic rocks of the northern volcanic belt and Onaman-Tashota belt.

The Sage Gold Paint Lake property is on strike and is contiguous to the Ontex Resources Brookbank gold deposit, which has NI-43-101 compliant inferred and indicated mineral resources. In a 23 July 2008 news release, Ontex cited some of the best drill results ever recorded on their property, which included 17.4 g Au/T (0.51 oz/T) over 21.0 metres (68.9 feet). Their news release also stated that there is potential to increase the resource to both east and west and at depth. The Paint Lake property boundary is 750 m east and along strike of the Foxear zone - the most easterly of the Brookbank gold zones and deposit.

A plan map of the distribution of the channels at Paint Lake is available at www.sagegoldinc.com.

Assays reported in this news release were completed by ALS Chemex in Thunder Bay. Sample preparation was completed in the Thunder Bay facility of ALS Chemex and prepared samples were shipped to the ALS facility in Vancouver. The copper-silver-gold samples were assayed using induced couple plasma (ICP) testing with a fire assay finish for high grade precious metal samples and atomic absorption finish for high grade Cu, Zn and Pb samples.

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

SAGE is a mineral exploration and development company which has interests in exploration properties in Ontario, Nevada and Arizona. Its main properties are the Jacobus, Onaman and Kerrs properties in Ontario, the Pony Spur and Sugarloaf properties situated in Nevada, and the Gold Hill property 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.

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

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 statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.