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Sage Gold Inc. Corporate Presentation

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www.sagegoldinc.com

Sage Gold plans to generate cash from production of the existing resources on Clavos and Lynx through project financing, joint venture or sale.


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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Sage Gold Inc. Corporate Presentation

  1. 1. b Near Term Production with Exploration Upside Investor Presentation | June 2017
  2. 2. Forward Looking Statements 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: 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. Sage currently plans on completing a reserve estimate and a prefeasibility study for the Clavos project. In the event that a production decision is made that is not based on a feasibility study of mineral reserves demonstrating economic and technical viability prepared in accordance with National Instrument 43-101, readers are cautioned that there is increased uncertainty and higher risk of economic and technical failure associated with such production decisions. 2
  3. 3. Canadian near term producer/explorer with two principal assets in Ontario’s most significant and historic mining camps – Timmins and Beardmore. 3
  4. 4. Highlights CLAVOS • Timmins, Ontario • 316,000 ounce Indicated and Inferred gold project located amongst major industry players in a world class gold mining camp • One of the lowest CAPEX in the industry, $70+ million historically invested by St. Andrew Goldfields and Sage • Toll milling agreement – Primero – Stock Mill • Permits – fully permitted for Production ONAMAN • The 100% owned Onaman Property north of Beardmore, offers exploration upside - VMS core with compliant polymetallic resources on the Lynx stringer deposit • Acquired highly prospective VMS land package contiguous to Onaman • Active exploration program Aggressive goal for both properties in production 2017 and 2020 4
  5. 5. Board of Directors Management has a long history of moving grassroots exploration projects into production Patrick J. Mars Chairman 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 a Director of Yamana Gold and Aura Minerals. Peter Bojtos Director 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. C. Nigel Lees President, 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 years experience in the Canadian investment industry and is currently a Director of Yamana Gold. Gary Robertson Director 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. .Peter Freeman Director Mr. Freeman has over 30 year’s experience working in Financial Services in the City of London, including regulatory and compliance roles within authorised firms and exchanges, as well as board roles in publicly quoted companies. He is a Senior Regulatory Officer at a UK Recognised Investment Exchange; a Lay member of the Upper Tribunal (Tax & Chancery) and the Probate Committee of the ICAEW. He is also a director of TSX-V quoted Cabo Drilling Inc., of Capital Lease Aviation PLC and of Jenolan Ltd. 5 Thomas Puppendahl Director Mr. Puppendahl is a Managing Partner of Cartesian Royalty Holding PTE Ltd., a gold streaming and royalty company. He is an investment professional with 25 years of experience in global assets as a portfolio manager, strategist, investment banker and analyst in London, India and Singapore.
  6. 6. Management and Consultants William D. Love VP, Business Development 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. C. Nigel Lees President, 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 years experience in the Canadian investment industry and is currently a Director of Yamana Gold. David McDonald Chief Financial Officer 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. Avrom E. Howard MSc, P.Geo Senior Geologist 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. Peter Hubacheck P.Geo, QP Senior Geologist Mr. Hubacheck is a consulting geologist with over 40 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 base metals, gold, silver and diamonds in Canada and the USA. He has participated on exploration discovery and development teams for several companies including Texasgulf, Pan Ocean Oil, Agnico-Eagle and Sage Gold. He holds a Mining Technologist diploma from the Haileybury School of Mines and Technology and a B.A.Sc. (Geol. Eng.) degree from the South Dakota School of Mines and Technology. Bob Ritchie P.Eng, QP Project Manager 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. 6
  7. 7. Capital Structure Symbol TSX.V:SGX Shares Outstanding 76.6 million Shares Fully Diluted 107.6* million Current Price $0.22 52 week high/low $0.27/$0.05 Market Cap CAD $17 million * Excludes 7.8 million restricted Special Warrants exercisable into Units of one common share and one Warrant. If exercised the shares outstanding will be 76.3 million and fully diluted, 123.1 million. 7
  8. 8. Timmins Gold Camp Clavos Project 8
  9. 9. Permitted up to 700 tonnes/day Recent Highlights - CLAVOS Life of mine toll milling contract with Primero Mining Financing in place: $11.5 million Dewatering and rehabilitation underway Underground definition and exploration commencing 9
  10. 10. Ideal Location 10
  11. 11. Mineral Resources 10/2012 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 Indicated Resources Inferred Resources Tonnes Gr (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 23,000 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. Hangingwall Zones Contact Zones Footwall Zones Sediment Hosted Zones Other Zones 0 100 200m 960 ZONEMAIN ZONE MAIN ZONE 960 ZONE 11
  12. 12. 1000 drill intercepts above cut-off grade to be added to the resource blocks. Potential increase in tonnage. 12
  13. 13. High grade exploration potential 17.4 gpt/1.5m N KC99-154 S 5.9 gpt/0.9m Looking East 10.9 gpt/0.5m 65.3 gpt/4.2m Incl. 374.1 g/t over 0.7m 9.4 gpt/1.0m KC99-155 Contact Zone Sediment Hosted Zones KC99-154 KC99-155 Hangingwall Zones Contact Zones Footwall Zones Sediment Hosted Zones Other Zones Porphyry Sediment Altered Ultramafic Ultramafic and Volcanics At depth very good intersections, and potentially another high grade mine zone. Hangingwall Zone 13
  14. 14. Exploration Potential Plunging high Grade Zones? ? ? ? 1.0 to 2.5 2.5 to 5.0 5.0 to 10.0 10.0 to 50.0 50.0+ Drillhole Au Legend (gpt) ① 3 3 65.3 gpt/4.2m 7.0 gpt/1.5m 8.4 gpt/0.9m 10.5 gpt/3.4m 9.4 gpt/1.0m 960 ZONEMAIN ZONE Plunging high Grade Zones Potential connection between Main Zone and 960 Zone Extension along strike (east and west directions) 1 2 3 1 2 3 0 200 400m 14
  15. 15. Grade Thickness Map – High Grade Holes 15 KC 99- 137 61.59g/t – 3 m KC 99-131 94.6g/t – 9.6 m KC 99-155W 85.15g/t – 3.2 m
  16. 16. Recent gold price CDN$1700 Already beyond $1500 base case, which will will have a materially positive impact on revenue and profitability. 16
  17. 17. Clavos PEA 2013 Economic Model GOLD PRICE USD / Oz (Au) $1500/Oz Base Case Gold Production Oz/Au 145,448 Revenue $CAD million 218.2 Initial Capital Expenditures (100%) - See Note 1 $CAD million 8.0 Sustaining Capital $CAD million 21.1 Total Capital $CAD million 35.1 Operating Expense CAD t/Ore 142.5 Net Smelter Return CAD t/Ore 6.5 Cash flow (undiscounted) – See Note 2 $CAD million 34.0 Pre Tax – See Note 3 Net Present Value (NPV) 8% $CAD million 23.2 Internal Rate Of Return (IRR) % 71% After Tax Net Present Value (NPV) 8% $CAD million 12.6 Internal Rate Of Return (IRR) % 47% Life of Mine Year 7 Payback Period Year 2.00 Note - assumes an exchange rate of 1:1 of CDN to US Dollar; 1. contingency on capital expenditures of 30% and represents 100% ownership • Initial CAPEX $8 million • Life of mine $14.1 million 2. tax rates are based on a blended rate between Sage and SAS 3. excludes any financing costs 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. 17
  18. 18. Onaman Property Lynx Deposit 18
  19. 19. Situated in NW Ontario Path to Production … & Beyond 1 Lac Des Iles (palladium‐platinum) 0                   35                  70km Onaman Property Ontario Northern Empire  Mine (gold) Leitch Mine  (gold) Brookbank Deposit (gold)  Hemlo (gold) 11 N 11 North American Palladium Ltd. Premier Gold Mines Ltd. & Centerra Gold Inc.  Premier Gold Mines Ltd. Barrick Gold Corp. Sage Gold Inc. Clavos Property Hardrock/Trans Canada  Deposit (gold) Mattabi Mine (zinc‐copper‐silver) Laurion Minerals Exploration Inc.  Marshall Lake Property (copper‐zinc‐silver‐gold) Copper Lake Resources Ltd. Other Company  Wawa  Subprovince Younger Rocks Wabigoon Subprovince Archean Metasediments Ishkoday Property (copper‐gold) Lake Superior ONAMAN PROPERTY (copper‐gold‐zinc‐silver) Gold‐dominant southern sedimentary belt Polymetallic northern volcanic belt TRANS CANADA HIGHWAY TRANS CANADA HIGHWAY Northwestern Ontario Onaman Property Thunder Bay Marathon Beardmore Geraldton Lake  Nipigon 19
  20. 20. Exploring for High Value VMS Deposits Volcanic-hosted polymetallic sulfide (VMS) deposits are extremely attractive exploration targets: • Mix of copper-lead-zinc-gold-silver • Hedge against fluctuating metal prices • Deposits can range from under 1 to over 100 million tonnes • Large, discrete lenses of high value ore enables cost-effective mining • Smaller surface and environmental footprint • VHMS deposits tend to occur in clusters • Additional discoveries often following one upon the other 20
  21. 21. Onaman Property: On the verge of discovery Historical exploration (1940s) led to discovery of the Headway deposit, hosting 739,400 tons averaging 3.15% zinc and 31 g/t silver (Non- Compliant Historical Resource) Recent exploration (2000s) led to the discovery of the Lynx deposit with a Compliant Inferred Resource of 1.936 million tonnes averaging 1.44% copper, 39.6 g/t silver and 0.58 g/t gold Both deposits fit perfectly within the context of a classic VMS setting, with the main deposit remaining to be found Historical and current geological mapping has documented numerous features associated with the VMS setting 21
  22. 22. Milestones CLAVOS Q3 2012 Fully Permitted Q1 2013 PEA Completed Q3 2016 Finalized all regulatory and logistical production requirements Q4 2016 Signed Life of Mine milling contract Production permit 700 tonnes/day Q1 2017 Dewatering and rehabilitation underway Q1 2017 Surface Exploration Drill program completed Underground definition and exploration drilling commences Q3/4 2017 Production begins ONAMAN Q3 2016 Complete surface mapping of the IBZ zone Mapping to identify new zone and link to previous Sage geophysics Analyzing previously discovered massive sulphide float bolder Q4 2016 Interpretation of data with the aim of selecting drill targets in IBZ Q1 2017 Acquired Strategic Property Q1 2017 Surface Drill program completed Q3 2017 Summer Exploration program begins 22
  23. 23. Two properties, situated in established mining camps near industry players, offer production potential with low CAPEX, exploration upside and commodity diversification. Why invest? Clavos – Dewatering, Drilling Q1/2 2017, Production Q3 2017, new Gold structures to be drilled Onaman - VMS targets selected, Acquired Strategic Property, Drilling Q1 2017 Rerating event – Project Financing – non-dilutive, Clavos Production, Onaman New Discoveries, Timmins camp consolidating Strong financial backing, and broad shareholder base. 23
  24. 24. With production, development and exploration stage assets consisting of both base and precious metals, an experienced and dedicated management team, commodity diversification and a renewed metals bull market underway, Sage is poised for significant appreciation. 24
  25. 25. CONTACT Sage Gold Inc. 67 Yonge St., Suite 808 Toronto, ON M5E 1J8 Tel.: 416-204-3170 Fax: 416-860-9349 Karen Levy info@sagegoldinc.com 25

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