sage presentation august 2015

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Aug-Sept 2012 Path to Production August 2015 TSX-V : SGX Path to Production … & Beyond

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Page 1: Sage Presentation August 2015

Aug-Sept 2012

Path to

Production

August 2015TSX-V : SGX

Path to Production … & Beyond

Page 2: Sage Presentation August 2015

Path to Production … & Beyond

Forward Looking Statements

1

Statements 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 noted

Page 3: Sage Presentation August 2015

Path to Production … & Beyond

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CORPORATE STRUCTURE

Exchange Symbol: TSX.V – SGX

• Shares O/S: 13.5 million

• Shares F/D: 14.2 million

• Current price: $0.05

• 52 week high/low: $0.23/$0.04

• Market Cap: C$ 0.68 million

• Average Strike Price of Warrants/Options: $1.23

Page 4: Sage Presentation August 2015

Path to Production … & Beyond

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SAGE GOLD ADVANTAGE

NEAR TERM PRODUCTION POTENTIAL

LYNX AND CLAVOS DEPOSITS

Lynx Polymetallic Deposit (Cu-Ag-Au)

• Located within the Onaman property in the Municipality of Greenstone in Northern Ontario

• VMS system-high grade NI43-101 resource

• Open pit and underground resources

• Low capex to commence production

• Potential to generate strong cash flow

• Blue Sky Potential Lynx is open at depth and along strike

100%-owned Onaman property hosts several additional volcanic-hosted polymetallic base-precious

metal zones Headway, Cane Gold and Copper

• Additional Greenstone gold projects – Paint Lake, Clist Lake, Pillars (optioned to Silver

Stream)

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

Page 5: Sage Presentation August 2015

Path to Production … & Beyond

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ONAMAN PROPERTY - LYNX PROJECT - ONTARIO

NE Mine Mill*

Leitch*

Nortoba*

* Properties of Interest Jacobus Cu Ni

Clist Lake Au

Paint Lake Au

Lynx Cu Ag Au

Page 6: Sage Presentation August 2015

Path to Production … & Beyond

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Page 7: Sage Presentation August 2015

Path to Production … & Beyond

LYNX

DEPOSIT

HEADWAY

DEPOSIT

Cane Gold - Metallurgical Work – 2006Concentrate 66% Pb, 4,402g/t Ag, 23.8g/t Au

Cane Copper 2006 Drilling – 1.91% Cu, 95g/t Ag. .05g/t Au Over 5 metres

Historic Resource

Headway Main Zone -

739,400 tons of 3.15%

Zn and 31 g/t Ag –

Goldbrook 1993

Lynx Resource –

1,936,000 tonnes – 1.44%

Cu, .39.6 g/t Ag, 0.58 g/t

Au includes open pit

485,000 tonnes 2.1 % Cu,

45.3 g Ag/T, 0.70 g Au/T

6

Page 8: Sage Presentation August 2015

Path to Production … & Beyond

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VMS model

Page 9: Sage Presentation August 2015

Path to Production … & Beyond

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Page 10: Sage Presentation August 2015

Path to Production … & Beyond

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Page 11: Sage Presentation August 2015

Path to Production … & Beyond

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ONAMAN

Yellow = .5% Cu x 3 metres – Cut Off Red = 1% Cu x 3 metres

Lynx NI43-101 Resource

1.936 million tonnes, 1.44% Cu

39.6 g Ag/T, 0.58 g Au/T

Lynx NI43-101 Open Pit Resource 485,000

tonnes 2.1 % Cu, 45.3 g Ag/T, 0.70 g Au/T

at 1% Cu cut off

LYNX PROJECT

Beardmore, Ontario

Page 12: Sage Presentation August 2015

Path to Production … & Beyond

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TIMMINS GOLD CAMPS CLAVOS

PROJECT

Timmins, Ontario

Primero

Mill

Page 13: Sage Presentation August 2015

Path to Production … & Beyond

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CLAVOS PROJECT- HIGHLIGHTS

*Permits in place to mine the Clavos gold deposit

Located in prolific Timmins Mining camp which produced in excess of 100 million ozs gold

Existing infrastructure - underground ramp and levels every 25 metres 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 (400-600 metres); 2 deep holes – 73g/t – 4.2 m and 11g/t – 7.0 m

Page 14: Sage Presentation August 2015

Path to Production … & Beyond

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Total Indicated 1,258,400 4.81 g/t 194,600

__________________________________________________________________________

Total Inferred 795,600 4.70 g/t 120,000

__________________________________________________________________________

Note: 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.

CLAVOS NI43-101 MINERAL RESOURCE Oct ‘12

Tonnes Grade Total OuncesCategory

Page 15: Sage Presentation August 2015

Path to Production … & Beyond

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

Base Case

Gold Production Oz/Au 145,448 145,448 145,448

Revenue 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 33.0

Internal Rate Of Return (IRR) % 48% 71% 94%

After Tax

Net Present Value (NPV) 8% Cdn$ million 5.6 12.6 19.5

Internal Rate Of Return (IRR) % 27% 47% 67%

Life of Mine Year 7 7 7

Payback Period Year 2.25 2.00 1.75 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.

Clavos

PEA

Economic

Model

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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 Aura Minerals, Carpathian Gold, Selwyn Resources and

Yamana Gold.

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 an international business executive. He is the President and CEO of Century Iron Mines Corporation (TSX-

FER), a director of Augyva Mining Resources Inc. (TSX.V-AUV) and non executive director of Prosperity Minerals Holdings

Limited. Mr.Chim resides in Kowloon, SAR, Hong Kong, PRC.

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 years

experience in the Canadian investment industry and is currently a Director of several publicly traded mining companies

including Yamana Gold.

BOARD OF DIRECTORS

Peter FreemanDirector

Page 17: Sage Presentation August 2015

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MANAGEMENT and CONSULTANTSManagement

William D. LoveVP and Business Development

Robert RyanChief 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 years

experience in the Canadian investment industry and is currently a Director of several publicly traded mining companies

including 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. Ryan brings over 25 years of experience in CFO and COO roles in private and public companies with an extensive

background in financing and M&A transactions. Mr. Ryan is a CPA, CA and holds an MBA from the University of

Toronto.

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 Assocation of Great Britain. His professional

experience spans a wide variety of mineral commodities, geological settings, countries and continents.

Avrom E. HowardMSc, FGA, P.Geo

Page 18: Sage Presentation August 2015

Path to Production … & Beyond

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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

Page 19: Sage Presentation August 2015

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CONTACT INFORMATION

Sage Gold Inc. 200 University Ave, Suite 1301

Toronto, ON M5H 3C6

Tel.: 416-204-3170

Fax: 416-260-2243

[email protected]

Karen Levy