TORONTO, ONTARIO--(Marketwire - Oct. 23, 2012) - Sage Gold (News - Market indicators) ("the Company") is pleased to announce that Roscoe Postle Associates ("RPA") has completed a National Instrument 43-101 mineral resource estimate for the Company's Clavos Gold deposit located in the Timmins Gold Camp.

Highlights:

• The total resource includes Indicated mineral resources of 1,258,400 tonnes at 4.81 g/t Au totalling 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.
  
  
• The gold mineralisation is contained within the Hangingwall, Footwall and Sediment deposits in the 960 Zone and within the Hangingwall, Footwall, Contact and Sediment deposits in the Main Zone. Gold mineralisation is closely associated with mafic-felsic intrusions in the Hangingwall and Footwall deposits and with banded sections of argillite and greywacke in the Sediment and Contact zones. 
  
  
• This 2012 resource estimate represents a 113% increase in total ounces relative to the last published resource of October 2006 and is based on a long term gold price assumption of USD$1600/Oz and a cut-off grade of 2.75 g/t Au. The 2006 mineral resource was calculated at a gold price assumption of USD$500/Oz and a cut-off grade of 4 g/t Au.
  
  
• All deposits remain open down dip and along strike providing a continuing opportunity to potentially increase the mineral resource with additional drilling.
  
  

Nigel Lees (President and CEO) stated, "We are very pleased with this new resource study. The growth in gold ounces relative to the previous published mineral resources reflects the inclusion of additional underground and surface drilling into the drill database and the addition of the 960 zone and Sediment deposits. A Preliminary Economic Assessment (PEA) is being prepared which will analyse the economic potential of the mineral resources within the footprint of the existing infrastructure. This PEA is anticipated to be completed in six weeks. A closure plan has been filed and a project description of the proposed advanced exploration program is being prepared. Public and First Nation consultation is currently underway. Assuming a positive PEA and completion of financing, Sage anticipates that it will commence dewatering the existing Clavos workings in the first quarter of 2013."

The Clavos Gold property comprises 2,540 hectares and is located in the prolific Timmins Gold Camp where over 110 million ounces of gold have been produced historically. To date, $46 million has been spent on the infrastructure at Clavos. The formation of the Clavos Joint Venture (Sage - 60%, St Andrew Goldfields Ltd (TSX:SAS) - 40%) was announced in a Press Release on August 13, 2012.

Qualified Persons / Quality Control

The mineral resource estimate was prepared by Roscoe Postle Associates Inc. of Toronto, Ontario under the supervision of Chester Moore, P. Eng., Principal Geologist. Mr. Moore is an independent qualified person as defined by National Instrument 43-101.

The quality assurances and controls relating to verification and validation of the geotechnical information generated by the 2011/2012 exploration drilling program were supervised by Peter Hubacheck P. Geo. Mr. Hubacheck is a qualified person as defined by National Instrument 43-101.

The Company is currently in discussions with various groups regarding the financing of the pre-production costs plus sustaining and working capital.

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.

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.