Sage Closes Private Placement With MineralFields

Sage Gold announce that it has closed a non-brokered private placement of Cdn $1,250,000 through the sale of 10,000,000 flow-through units at $0.125 per unit to MineralFields Group.

This placement is in addition to the previously announced placement of $1,950,000 under the same terms and conditions, for an aggregate flow-through financing of $3,200,000 of a proposed $3,750,000 financing. Each unit consists of one flow-through common share plus one-half of one share purchase warrant. Each whole warrant is exercisable at $0.20 for 24 months from the Closing Date of the offering.

First Canadian Securities®, a division of Limited Market Dealer Inc. was paid a cash finder’s fee of $72,000 and was issued 768,000 broker warrants equal to 8% of the units sold pursuant to the offering.

If the Company’s common shares achieve a closing price of $0.30 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 30 days following the date that the notice is issued.

All securities are subject to a four month hold period which expires on February 18, 2009. 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 Ontario.

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