TORONTO, ONTARIO--(Marketwired - May 26, 2016) - Sage Gold Inc. (the "Company") (TSX
VENTURE:SGX) is pleased to announce that, further to its press release dated May 11, 2016, it plans to close the second
and final tranche of its non-brokered private placement (the "Offering"). The Company will be issuing up to
5,000,000 Units at a price of $0.05 per Unit for gross proceeds of up to $250,000. Each unit will consist of one common share of
the Corporation (a "Common Share") plus one half (1/2) Common Share purchase warrant (a "Warrant"). Each full Warrant entitles
its holder to purchase one Common Share (a "Warrant Share") at an exercise price of $0.10 for a period of 24 months following the
Closing Date, whereupon the Warrants will expire. The Offering remains subject to final TSX Venture Exchange approval.
The securities issued pursuant to the Offering will be subject to a four (4) month and one (1) day statutory hold period. In
connection with the Offering, a finder's fee of up to 8% will be paid in cash to certain eligible finders. The Corporation
intends to use the net proceeds from the Offering for general working capital purposes.
If the Corporation's shares trade at or above $0.20 per share for 20 consecutive trading days, the Corporation may, at any
time after the expiry of the statutory hold period, accelerate the expiration of the Warrants upon not less than 30 days written
notice by the Corporation, and thereafter repurchase any unexercised Warrants at $0.001 per underlying common share.
About Sage Gold
The Company 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 property in Timmins and the 100% polymetallic owned
Lynx property 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.
CAUTIONARY STATEMENT: Neither the 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. This news release may
contain forward looking information and the Company cautions readers that forward looking information is based on certain
assumptions and risk factors that could cause actual results to differ materially from the expectations of the Company included
in this news release. This news release includes certain "forward-looking statements", which often, but not always, can be
identified by the use of words such as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or
"plan". These statements are based on information currently available to the Company and the Company provides no assurance that
actual results will meet management's expectations. Forward-looking statements include estimates and statements with respect to
the Company's future plans, objectives or goals, to the effect that the Company or management expects a stated condition or
result to occur. Since forward-looking statements are based on assumptions and address future events and conditions, by their
very nature they involve inherent risks and uncertainties.
Actual results relating to, among other things, results of exploration, metallurgical processing, project development,
reclamation and capital costs of the Company's mineral properties, and the Company's financial condition and prospects, could
differ materially from those currently anticipated in such statements for many reasons such as, but are not limited to: failure
to identify mineral resources; failure to convert estimated mineral resources to reserves; the preliminary nature of
metallurgical test results; delays in obtaining or failures to obtain required governmental, environmental or other project
approvals; political risks; uncertainties relating to the availability and costs of financing needed in the future; changes in
equity markets, inflation, changes in exchange rates; fluctuations in commodity prices; delays in the development of projects;
capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and
development industry; and those risks set out in the Company's public documents filed on SEDAR. This list is not exhaustive of
the factors that may affect any of the Company's forward-looking statements. These and other factors should be considered
carefully and readers should not place undue reliance on the Company's forward-looking statements. Although the Company believes
that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue
reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can
be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to
update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than
as required by law.