TORONTO, ONTARIO--(Marketwired - June 10, 2013) - Sage Gold Inc. (News - Market indicators) ("the Company") is presently in production financing negotiations with various interested parties for the Clavos Gold deposit located in Timmins, Ontario.

The Company is completing a detailed review of all historical production data made available on the Clavos JV mine. It is expected that this review will further enhance the proposed extraction of mineralized material from the existing published resource plus potentially result in reductions in the stated CAPEX and Sustaining Capital budgets accordingly.

Sage President and CEO Nigel Lees commented, "We remain focused on moving the Clavos gold project towards production despite the challenging financial market for resource companies. As such, we are confident we can make adjustments to our plans to positively impact the potential economics of the project".

Sage announced the PEA results for Clavos on March 01, 2013 and it can be found on the corporate website at www.sagegoldinc.com,

Highlights of the Study include:

• Net Present Value ("NPV") of $23.2MM (pre-tax) and $12.6MM (after- tax) at an 8% discount
• Internal Rate of Return of 71% (pre-tax) and 47% (after-tax) based on USD$1500/oz of gold
• Estimated annual production of approximately 20,000 oz. of gold per year 
• Initial Capex of $14.1 million 
• 2.0 year payback from start of production with 7 year mine life
• Average head grade for gold ranging from 6.45 g/t in Year 1 to 4.37g/t in Year 7
• Project is fully permitted to initiate mining

Sage has a NI 43-101 resource for Clavos which includes indicated mineral resources of 1,258,400 tonnes at 4.81 g/t Au totaling 194,600 ounces of gold and Inferred mineral resources of 796,000 tonnes at 4.7 g/t Au representing 120,000 ounces. These resources are reported at a base case cut-off grade of 2.75 g/t Au and individual assays have been capped at 60 g/t.

R. Ritchie P.Eng, an Independent Qualified Person, visited the Clavos JV deposit property on several occasions between August to October, 2012 providing overall responsibility for the technical content of this Press Release which includes the mining study CAPEX and OPEX cost estimates and conceptual economics. Mr. Ritchie has read and accepts the technical content of this press release.

LYNX DEPOSIT

The Company is reviewing the 100 % owned Lynx poly-metallic project in Beardmore, Ontario and assessing the potential open-pit production once further metallurgical work is completed.

The NI43-101 Inferred Resource comprises 1,936,000 tonnes at an average grade of 1.44% Cu, 39.6 g Ag/T and 0.58 g Au/T and contains 61.3 million pounds of copper, 2.24 million troy oz. of silver and 33,000 troy oz. of gold. These resources are reported at a cut-off grade of 0.5% copper.

Lersch-Grossman Pit Optimization techniques were utilized to evaluate the near surface potential of the resource that could be amenable to mining by open pit methods. The results indicate the potential for one pit located in the Lynx North
area. Using cut-off grade sensitivity scenarios of 1% Cu and 0.5% Cu inferred resources ranging from 485,000 tonnes at 2.1% Cu, 45.3 g Ag/T and 0.70 g Au/T to 845,000 tonnes at 1.55% Cu, 34.6 g Ag/T and 0.51 g Au/T could potentially be mined from two tonnage blocks determined by the cut-off grades. 

FINANCING EXTENSION

Sage has received TSX Venture Exchange approval to extend the previously announced private placement to July 10, 2013. The first tranche closed May 21, 2013 (see press release on May 22, 2013).

Sage is a mineral exploration and development company which has primary interests in near-term production and exploration properties in Ontario. Its main properties are the Clavos Gold deposit in Timmins and the Lynx deposit and other exploration properties in the Beardmore-Geraldton Gold Camp. Technical reports and information relating to the properties can be obtained from the System for Electronic Document Analysis and Retrieval (SEDAR) website at www.sedar.com and www.sagegoldinc.com.

A sensitivity analysis of the Clavos JV project economics was completed to assess the effect of the overall project economics due to changes in the gold price on the IRR and NPV values. To account for gold price fluctuation, an analysis was made plus or minus $100.00 per ounce. Displayed below are the sensitivity trends. A PEA is deemed to be reliable +/- 50 % level. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

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.