Near Term Produc-on Sage Gold Inc. with Explora-on Upside - - PowerPoint PPT Presentation

CONTACT Sage Gold Inc. 200 University Ave, Suite 1301 Toronto, ON M5H 3C6 Tel.: 416-204-3170 Fax: 416-260-2243 Karen Levy info@sagegoldinc.com

Near ¡Term ¡Produc-on ¡ with ¡Explora-on ¡Upside ¡

Investor ¡Presenta-on ¡| ¡February ¡2017 ¡

Gold down $150 after the Trump victory

Still in a bull market

Interest rate rise

Strong US dollar

Reasons to Own

source: ¡ ¡www.lemetropolecafe.com ¡

China still a large buyer

New Sharia standards for gold based products will result in increased buying of gold.

Trump big infrastructure spending and tax cuts

Inflation ahead?

Gold is not

• ur only asset

source: ¡ ¡www.lemetropolecafe.com ¡

Zinc

b

Near Term Production with Exploration Upside

Investor Presentation | February 2017

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.

Canadian near term producer/ explorer with two principal assets in Ontario’s most significant and historic mining camps – Timmins and Beardmore.

Highlights

CLAVOS

• 316,000 ounce Indicated and Inferred gold

project located amongst major industry players and adjacent to Primero

• 100% owned by Sage
• 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

Aggressive goal for both properties in production 2017 and 2020

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.

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 and President of W. A. Hubacheck Consultants Ltd. With 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 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.

Capital Structure

Symbol TSX.V:SGX Shares Outstanding 67.5 million Shares Fully Diluted 94.5* million Current Price $0.13 52 week high/low $0.16/$0.025 Market Cap CAD $8.8 million

As at January 18, 2017

* Excludes 7.8 million restricted Special Warrants exercisable into Units of one common share and one Warrant. If exercised the shares outstanding will be 75.3 million and fully diluted, 102.3 million.

Timmins Gold Camp

Clavos Project

Purchased 40% minority interest in Clavos

BREAKING NEWS

Changed Project Status from Inactive to Active. Permitted up to 700 tonnes/day. Signed life of mine toll milling contract with Primero Mining. Raised $1.85 million in equity financing. Raised $9.65 million to place Clavos into production.

Ideal Location

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 ZONE MAIN ZONE

MAIN ZONE 960 ZONE

Over 2000 intersections that are

• utside the resource blocks.

Potential increase in tonnage.

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

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 ZONE MAIN 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 ¡

Recent gold price CDN$1600 Already beyond $1500 base case, which will will have a materially positive impact on revenue and profitability.

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

• Initial CAPEX $8 million
• Life of mine $14.1 million

Onaman Property

Lynx Deposit

Situated in NW Ontario

1

Lac Des Iles (palladium‐platinum)

0 35 70km

Onaman Property

Ontario

Northern Empire Mine (gold)

Leitch Mine (gold)

Brookbank Deposit (gold) Hemlo (gold)

N

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

Thunder Bay Marathon Beardmore Geraldton

Lake Nipigon

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

Onaman Property: On the verge of discovery

Historical ¡explora-on ¡(1940s) ¡led ¡to ¡discovery ¡

• f ¡the ¡Headway ¡deposit, ¡hos-ng ¡739,400 ¡tons ¡

averaging ¡3.15% ¡zinc ¡and ¡31 ¡g/t ¡silver ¡(Non-­‑ Compliant ¡Historical ¡Resource) ¡ Recent ¡explora-on ¡(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 ¡

• f ¡a ¡classic ¡VMS ¡seGng, ¡with ¡the ¡main ¡

deposit ¡remaining ¡to ¡be ¡found ¡ Historical ¡and ¡current ¡geological ¡mapping ¡has ¡ documented ¡numerous ¡features ¡associated ¡ with ¡the ¡VMS ¡seWng ¡ ¡

Milestones

CLAVOS

Q3 2012 Fully Permitted Q1 2013 PEA Completed Q3 2016 Enhanced resource modelling Finalizing all regulatory and logistical production requirements Q4 2016 Purchased 40% minority interest Signed LOM milling contract Production approval Q1 2017 Dewatering begins Q1 2017 Surface Drill program Q3 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

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 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.

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.

CONTACT Sage Gold Inc. 200 University Ave, Suite 1301 Toronto, ON M5H 3C6 Tel.: 416-204-3170 Fax: 416-260-2243 Karen Levy info@sagegoldinc.com