TORONTO, ONTARIO--(Dec. 18, 2009) - Sage Gold (TSX VENTURE:SGX) (the "Company") is pleased to announce that it has closed a non-brokered private placement of Cdn $804,000 through the sale of 13,400,000 flow-through units ('FT units') at $0.06 per unit.

MineralFields Group has subscribed to $600,000 of the flow-through private placement financing. Trinity Wood Mining 2009- I Flow-Through Limited Partnership purchased the remaining $204,000. Each unit consists of one flow- through common share plus one purchase warrant, each warrant exercisable for one common share at $0.10 per share during the first 12 months from the Closing Date of the offering and exercisable at $0.12 for 12 months from the first anniversary of the Closing Date.

The total finder's fees paid were comprised of $52,320 in cash, plus 1,072,000 options, equal to 8% of the FT Units sold. The options are exercisable to purchase common share units at a price of $0.06 per unit. Each common share unit consists of one common share in the capital of the Company and one warrant to purchase common shares on the same terms as the Warrants.

If the Company's common shares achieve a closing price of $0.18 or higher for a period of 21 consecutive trading days, the Company may, at any time after the expiry of the hold period, notify the warrant holders that all unexercised warrants will expire in 30 days following the date that the notice is issued.

All securities are subject to a four month hold period which expires on April 19, 2010. This financing is subject to final approval of the TSX Venture Exchange.

The net proceeds of the private placement will be used to fund the Company's exploration programs in Canada.

"We are very pleased to be continuing our relationship with MineralFields Group as we further explore our properties in Ontario," said Nigel Lees, President and CEO.

About MineralFields, Pathway and First Canadian Securities (R)

MineralFields Group (a division of Pathway Asset Management) based in Toronto, Vancouver, Montreal and Calgary, is a mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds (including the Pathway Multi Series Funds Inc. corporate-class mutual fund series). Information about MineralFields Group is available at www.mineralfields.com. First Canadian Securities(R),(a division of Limited Market Dealer Inc.), is active in leading resource financings (both flow-through and hard dollar PIPE financings) on competitive, effective and service-friendly terms, and offers investment banking, mergers and acquisitions and mining industry consulting services to resource companies. MineralFields and Pathway have financed several hundred mining and oil and gas exploration companies to date through First Canadian Securities(R).

SAGE is a mineral exploration and development company which has primary interests in exploration properties in Ontario. Its main properties are the Cox Cu-Ni deposit and the Golden Extension on the Jacobus property, the Lynx deposit on the Onaman property, the Paint Lake and Pillars properties in the Beardmore -Geraldton Gold camp. Technical reports relating to the properties can be obtained from the System for Electronic Document Analysis and Retrieval (SEDAR) website at www.sedar.com.

For all Sage Gold Inc. investor relations needs, investors are asked to visit the Sage Gold Inc. IR Hub at http://www.agoracom.com/IR/sagegold where they can post questions and receive answers within the same day, or simply review questions and answers posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to sgx@agoracom.com where they can also request addition to the investor e-mail list to receive all future press releases and updates in real time.

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

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
416-260-2243 (FAX)

or

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

www.sagegoldinc.com

"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."