sage corporate presentation march 2016

TSX: SGX

March 2016Path to Production … & Beyond

Path to Production … & Beyond

Forward Looking StatementsStatements made in this presentation, other than those concerning historical information, should be considered forward-looking statements which are subject to various risks and uncertainties. Such forward-looking statements are made based on management’s belief as well as assumptions made by, and information currently available to, management.

The Company’s actual results may differ materially from the results anticipated in such forward-looking statements as a result of a variety of factors. Additional information concerning factors that could cause actual results to materially differ from those in such forward-looking statements is contained in the Company’s filings with the securities and regulatory authorities.

Note: All currencies are in Canadian dollars unless otherwise notedNote: grade and tonnage historical estimates for Headway presented herein are historical in nature and were not prepared in accordance with 43-101 and has not been verified by a qualified person. and should not be relied on except to represent an order-of-magnitude estimate of mineral resources notwithstanding that Sage believes the estimates are based on reliable information prepared by reputable individuals using accurate analytical techniques. Goldbrook provided the source of the Headway historical estimate.


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Patrick J. MarsChairman and Director

Mr. Mars is an independent consultant specializing in mine financing and analysis with over 30 years of experience in the investment industry. Mr. Mars has acted as Chairman, CEO, or Director for several public-traded mining companies and is currently Director of Yamana Gold and Aura Minerals.

Peter BojtosDirector

Mr. Bojtos is a professional engineer with extensive experience in mineral development and production. Since 1996 following a successful career as CEO of several companies, Mr. Bojtos serves on mining company boards as an independent Director.

Gary RobertsonDirector

Mr. Robertson is a Certified Financial Planner. He has worked in the financial industry for the past twenty years, and presently serves on the board of several private companies as well as on the board of six Canadian junior gold mining companies.

Mr. Freeman has extensive experience in public markets, finance and compliance, this includes six years as Director of Markets and Compliance at the OFEX Market (now ISDX). Mr. Freeman is Compliance Officer of Loeb Aron & Company a London corporate finance firm, a Lay member of the Upper Tribunal (Tax & Chancery) and of the Probate Committee of the ICAEW. Mr. Freeman is also a director of TSX-V quoted Cabo Drilling Inc., of AIM quoted Capital Lease Aviation PLC and of Jenolan Ltd.

Sandy ChimDirector

Mr. Chim is Chairman, President and Chief Executive Officer of Century Iron Mines Corporation and is a Director of Augyva Mining Resources Inc. Mr. Chim currently holds the CPA, and CA professional designations in Canada and is a Fellow Member of the Hong Kong Institute of Certified Public Accountants.

C. Nigel LeesPresident, CEO & Director

.

Mr. Lees is a founder and past director of TVX Gold Inc., a significant gold producer in North and South America,which merged into Kinross Gold, listed on the TSX and the New York Stock Exchange. Mr. Lees has over 30 yearsexperience in the Canadian investment industry and is currently a Director of Yamana Gold.

BOARD OF DIRECTORS

Peter Freeman Director


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MANAGEMENT and CONSULTANTSManagement

William D. LoveVP and Business Development

David McDonaldChief Financial Officer

Consultants

Bob RitchieP.Eng

Mr. Hubacheck is a consulting geologist and President of W. A. Hubacheck Consultants Ltd. He has over 35 years of experience as a project geologist, exploration manager and Qualified Person for the purposes of NI 43-101, with experience in the exploration for gold, silver, base metals, uranium and diamonds in Canada and the USA. He holds a Mining Technologist (1974) diploma from the Haileybury School of Mines and Technology, Haileybury, Ontario and a B.A.Sc. (Geol. Eng. 1977) degree from the South Dakota School of Mines and Technology, Rapid City, South Dakota.

Mr. Ritchie is a Professional Engineer with over 40 years of experience in mine management and development, feasibility studies and mine construction. He has worked with several mining companies including Goldcorp, Noranda Mines and St. Andrew Goldfields. He was responsible for the construction of the Stock (now Brigus Gold) Mill. Mr. Ritchie is a graduate of the Michigan Technological University with a Bachelor of Science in Geology Engineering. He is also a Qualified Person (QP) as defined by NI43-101.

Peter HubacheckP.Geo, QP

C. Nigel LeesPresident, CEO and Director

Mr. Lees is a founder and past director of TVX Gold Inc., a significant gold producer in North and South America,which merged into Kinross Gold, listed on the TSX and the New York Stock Exchange. Mr. Lees has over 30 yearsexperience in the Canadian investment industry and is currently a Director of Yamana Gold.

Mr. Love is a geologist who has been involved in mineral exploration in Canada and was part of the world class Hemlo discovery team. He was also an institutional equity salesperson in London, England, for a Canadian brokerage firm. Mr. Love has spent the last fifteen years as a venture capitalist and a corporate finance specialist in a variety of resource and technology companies.

Mr. McDonald brings over 25 years of experience in CFO roles in private and public companies, focusing on the mining industry since 2006. Mr. McDonald is a CPA, CA and holds an Honors Bachelor of Commerce from Laurentian University in Sudbury.

Mr. Howard obtained a Bachelor of Science degree in Geology from the University of Toronto, and a Master of Science degree in Economic Geology from the University of Colorado (Boulder). Subsequently, he obtained certification as a Gemologist from the Gemmological Association of Great Britain. His professional experience spans a wide variety of mineral commodities, geological settings, countries and continents.

Avrom E. HowardMSc, P.Geo


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CORPORATE STRUCTURE

Exchange Symbol: TSX.V – SGX

• Shares O/S: 25.9 million

• Shares F/D: 29.4 million

• Current price: $0.05

• 52 week high/low: 10.5¢/2.5¢

• Market Cap: C$ 1.3 million


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CLAVOS PROJECT- HIGHLIGHTS

*Permits in place to mine the Clavos gold deposit Located in prolific Timmins Mining camp (>100 million ozs gold)

Existing infrastructure - underground ramp and levels every 25m to the 300m level

NI43-101 Resource Study and PEA completed

Low initial Capex required for potential production … $8.0 million

Joint venture; Sage 60%, St Andrew Goldfields 40%

Clavos is located in close proximity to several operating mills

Natural Gas pipeline on Clavos Property – Potential Fuel and Power savings Exploration Potential – deep (400-600m);

• 2 deep holes: 65.3g/t over 4.2m & 17.4g/t over 1.5m


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TIMMINS GOLD CAMPS CLAVOS PROJECT Timmins, Ontario

Primero Mill


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CLAVOS NI43-101 MINERAL RESOURCE Oct ‘12

Hangingwall ZonesContact ZonesFootwall ZonesSediment Hosted ZonesOther Zones

0 100 200m

MAIN ZONE

960 ZONE

Indicated Resources Inferred Resources

Tonnes Gr (g/t Au) Oz Au Tonnes Gr (g/t

Au) Oz Au

Hangingwall 595,900 4.92 94,300 119,000 5.60 21,000

Footwall 267,000 5.11 43,900 162,000 4.20 22,000

Contact 237,800 4.45 34,000 - - -

Sediment 66,400 5.07 10,800 243,000 4.20 33,000

Other - - - 112,000 6.00 22,000

Subtotal 1,167,100 4.88 183,000 636,000 4.80 98,000

960Zone

MAINZONE

Indicated Resources Inferred Resources

TonnesGr (g/t Au)

Oz Au Tonnes Gr (g/t Au) Oz Au

Hangingwall 69,900 4.04 9,100 77,000 5.0 12,000

Footwall 10,200 3.91 1,300 51,000 3.5 6,000

Sediment 11,200 3.51 1,300 32,000 4.7 5,000

Subtotal 91,300 3.99 11,700 160,000 4.5 23,000Note: The 2012 resources are estimated at a cut-off grade of 2.75 g/t Au, high gold assays are cut to 60 g/t Au and an average long-term gold price of US$1600 per ounce was used.

N


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Porphyry

Altered Ultramafic Sediment

Ultramafic & Volcanics

17.4 gpt/1.5m

N

KC99-1540 50 100m

SedimentHosted ZonesHangingwall

Zones

ContactZone

S

5.9 gpt/0.9m

Hangingwall ZonesContact ZonesFootwall ZonesSediment Hosted ZonesOther Zones

Looking East

KC99-154KC99-155

Clavos DepositDown dip and down plunge, high

grade, exploration potential10.9 gpt/0.5m

Looking EastN S

65.3 gpt/4.2mIncl. 374.1 g/t over 0.7m

9.4 gpt/1.0m

KC99-155


10Plunging high Grade Zones?

?? ?

① Plunging high Grade Zones?

② Connection between the Main Zone and the 960 Zone

③ Parallel adjacent zones

④ Extension along strike (east and west directions)

CLAVOS PROPERTY: Exploration Potential

0 250 400

Meters

1.0 to 2.52.5 to 5.05.0 to 10.010.0 to 50.050.0+

Drillhole Au Legend (gpt)

9.4gpt/1.0m

65.3 gpt/4.2m

7.0 gpt/1.5m

8.4 gpt/0.9m

10.5 gpt/3.4m

①

②③

④④


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GOLD PRICE US$ / Oz (Au) $1400/Oz $1500/OzBase Case $1600/Oz

Gold Production Oz/Au 145,448 145,448 145,448Revenue Cdn$ million 203.6 218.2 232.7

Initial Capital Expenditures (100%) Cdn$ million 8.0 8.0 8.0

Sustaining Capital Cdn$ million 21.1 21.1 21.1

Total Capital Cdn$ million 35.1 35.1 35.1

Operating Expense Cdn$ t/Ore 142.5 142.5 142.5

Net Smelter Return Cdn$ t/Ore 6.1 6.5 7.0

Cash flow (undiscounted) Cdn$ million 19.9 34.0 48.1

Pre Tax

Net Present Value (NPV) 8% Cdn$ million 13.5 23.2 33.0Internal Rate Of Return (IRR) % 48% 71% 94%

After Tax

Net Present Value (NPV) 8% Cdn$ million 5.6 12.6 19.5Internal Rate Of Return (IRR) % 27% 47% 67%

Life of Mine Year 7 7 7Payback Period Year 2.25 2.00 1.75

Clavos PEA (2013)Economic Model

Note - assumes an exchange rate of 1:1 of CDN to US Dollar;

• tax rates are based on a blended rate between Sage and SAS

• excludes any financing costs• contingency on capital expenditures of 30%• CAPEX figures represents 100% of

financing The PEA does not indicate the economic viability of the mineral resource and is preliminary in nature, includes inferred resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves and that there is no certainty that the PEA will be realized. Mineral resources that are not mined reserves do not have demonstrated economic viability.

Current 1.38 CDN to 1 USDCurrent CDN gold price - $1650


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LYNX DEPOSIT1,936,000 tonnes @

1.4% Cu, 39.6g/t Ag, 0.6g/t AuOpen Pit resources ranging

from 485,000 tonnes at 2.1% Cu, 45.3g/t Ag, and 0.7g/t Au

to 845,000 tonnes at 1.6% Cu, 35.0g/t Ag, and 0.5g/t

HEADWAY MAIN DEPOSIT739,400 tons @

3.2% Zn and 31.0g/t AgHistoric Resource

Cane Occurrence263g/t Ag, 4.1g/t Au,

2.8% Zn, 2.8% Pb

Cane Copper 2006 Drilling1.9% Cu, 95g/t Ag over 5.0m

Cane Gold Metallurgical Work(2006) Concentrate:

66% Pb, 4,402g/t Ag, 23.8g/t Au

Big Mac Zone - Ag, ZnD9 Occurrence - Cu, Au, Ag

Abitibi Occurrence - Zn, Pb, AgAmeric #4 Occurrence - Cu, Au, Ag

Granite

Volcaniclastics & Sediments

Felsic Metavolcanics

Mafic Metavolcanics

Mineral Deposit

Mineral Occurrence

ONAMAN PROPERTY

• 100% owned

• Polymetallic Property

• VMS system-high grade NI43-101 resource

• Blue Sky Exploration Potential (Lynx open at depth and along strike)

• Potential transaction to acquire a mine and mill in the area

• Open pit & underground resources


Py/Po/Cpy

Deposits & Showings

Cu-Zn-Pb

Au-Ag

Lithology

Moderate to Strong

Weak to Moderate

EM Conductors

ONAMAN PROPERTY Deposit

After Franklin, 1996

N

Big Mac (Ag, Zn)

Camp Road

Unmapped Area

Headway Swamp Zone

(Pb, Zn, Ag)

LYNXDEPOSIT(Cu, Ag , Au)

HEADWAY MAIN DEPOSIT(Pb, Zn, Ag)

Property boundary

0 250 500

MetersBeardmore55km

Untested Corridor; Mattabi-type Zn-Cu?

Kyanite (Kaolinite)

Sericite

Sericite Chlorite

Chloritoid

Alteration

Chlorite Carbonate

Andesite

Rhyolite breccia

Rhyolite (massive/porphyritic)

Massive sulphide

Vein and disseminated sulphide

Lateral alteration zone (SIL-EP)

Syn-volcanic fault

Target: VMS Mattabi-type Zn-Cu Mineralization

overlying intensely altered syn-volcanic fault.

Detailed Compilation with Alteration & EM


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WHY INVEST IN SAGE GOLD Two potential low capex deposits in Ontario; Lynx and Clavos

Lynx – Compliant Resource / Large Deposit Potential/ Open Pit tonnage

Lynx - Potential to Increase Tonnage through further in-fill and exploration drilling

Clavos – Fully permitted for production in prolific gold mining district

Clavos – NI43-101 resource and PEA

Clavos – Potential to increase resources

Very Low Market Capitalization

SMALL AND PROFITABLE IS BEAUTIFUL


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CONTACT INFORMATION Sage Gold Inc. 200 University Ave, Suite 1301 Toronto, ON M5H 3C6Tel.: 416-204-3170Fax: 416-260-2243

[email protected] Levy

mailto:[email protected]

sage corporate presentation march 2016

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