SRK Retained For Borealis Mine Bankable Study 
 

VANCOUVER, BC - Sage Gold Inc. and Gryphon Gold Corporation reported that SRK Consulting has completed Sage's due diligence review of the Borealis prefeasibility study filed by Gryphon in September 2009 and are also announced that SRK has been engaged to prepare a bankable study for use in project financing.

SRK has provided a comprehensive list of recommendations which when implemented will assist in the preparation of a bankable study to support project financing. Key recommendations include:  Metallurgy  additional metallurgical work is recommended in the form of column tests for the in-situ oxide and mixed material;  Mine planning and Operating Costs update the contractor costs for mining, crushing, agglomerating and stacking of ore. Further clarification is required for distribution of power and associated costs;  Process Engineering additional confirmation of the process design incorporating the results of the new column leach tests; Resource  a new resource estimate will be prepared which incorporates the results of the metallurgical work, tighter grade constraints and the results of additional drilling. The new resource would form the basis for updated reserves. Gryphon will, in the near future, undertake a drilling program designed to confirm and potentially expand resources at Borealis. Sage and Gryphon jointly will fund an additional core drilling program to provide sample material for the proposed metallurgical testing. Borealis was successfully mined by previous operators during the 1980's when gold prices were lower. There are substantial oxidized portions of the deposit amenable to open pit mining which is the subject of the upcoming bankable study. Exploration has identified primary sulphide mineralization below the oxide deposit. Cash flow from the oxide operation would be intended to fund the further drilling and potential development of the sulphide resource if feasible. The upcoming Gryphon drill program will have as its objective upgrading inferred oxide resources reported in the 2008 NI 43-101 technical report to the Measured and Indicated category and potentially adding new oxide resources. The drill program will test multiple targets within the permitted area with the designed intent of adding additional gold ounces to the short term mine plan. Targets include extension of known ore zones, infill drilling and identification of additional mineralization. SRK will be retained to develop an updated NI 43-101 compliant Resource estimate in conjunction with the completion of the bankable study. Sage and Gryphon are pleased to announce that a Joint Project Team as defined by the Option Agreement will be established incorporating representatives of both companies including experts in mine construction and finance. The company's address is 365 Bay Street, Suite 500, Toronto, ON M5H 2V1, 416-204-3170, fax: 416-260-2243, email: [email protected].