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EAU.V ·

Initial 2020 Exploration Results from Wann River

Exploration Programs

ENGINEER GOLD MINES LTD.

Suite 804 - 750 West Pender Street

Vancouver, B.C. V6C 2T7

Telephone: 604.682.2928

Fax: 604.685.6905

www.engineergoldmines.com

Initial 2020 Exploration Results from Wann River

August 18, 2020

Vancouver, BC – Engineer Gold Mines Ltd. (the “Company”) (TSXV: EAU) announces results

from its initial exploration program of evaluating the Wann River vein systems, 4 to 5 km south

of the main workings of the historical Engineer Gold mine, which is located 32 km southwest of

Atlin, BC. A map is available on the Company’s website at www.engineergoldmines.com/news

A 2020 chip sample from the Dutch vein returned 17.4 g/t Au and 72.1 g/t Ag over 0.45m from

the only location where it was exposed on surface. Due to fault ing it is uncertain if the 2011

drilling by a previous operator intersected the down dip extent of the vein. In the proposed 2020

drill program it is planned to target the Dutch vein in an area not disrupted by faults.

Company President, Andrew H. Rees commented “Management is very encouraged with its

results from the evaluation of the Wann River vein systems, which exceeded expectations.

Highlights include 17.4 g/t Au and 72.1 g/t Ag across a 0.45m chip sample from the Dutch Vein

and 3.9 g/t Au and 579 g/t Ag over 0.8m from the Trail vein, amongst other significant gold and

silver results from additional veins. A new inventory of drill locations has been produced from

this phase of work, which the company will continue t o build on as more data is processed from

exploration work throughout the Engineer Gold and Silver Project. A comprehensive multi-phase

drill program is being designed while management continues to prepare for a bulk sample from

the Engineer Mine.”

Significant results were obtained from the Newfie sheeted vein and stockwork zone, which is the

only system found, to date, to be hosted by the Wann River stock on surface. Results from 2020

include 4.71 g/t Au, 95.6 g/t Ag over 0.6m; and 2.81 g/t Au, 54.9 g/t Ag over 1.0m. Potential

exists here for an intrusion related gold system (IRGS). Similar style veining, but lacking

anomalous results, was encountered in the previous operator’s 2011 drill program about 100m

further to the southeast within the margins of the Wann River s tock. Additional gold-silver

bearing intrusion hosted veins were encountered in the 2011 drill ing but due to faults and

obliquely directed drill holes, the intercepts can not be definitively traced to the known surface

exposures. The proposed 2020 drill program will target the easterly trending Newfie vein system

down dip of, and perpendicular to the strike extent of, the surface exposure.

The composite, banded, tetrahedri te bearing Trail vein, which has been traced over an

approximate 150m strike exte nt, yielded 3.9 g/t Au and 579 g/t Ag over 0.8m and 5.70 g/t Au,

64.2 g/t Ag from a grab sample in 2020. Drilling is planned to target the vein down dip of this

surface exposure, with possible step outs further down dip and along strike to the south . The

possible southeasternmost exposure of the Trail vein at the Spanish showing returned 0.56 g/t

Au and 16.4 g/t Ag over 0.45m.

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The newly discovered Morel showing, consisting of sheeted quartz veins and quartz stockwork,

with minor pyrite and tetrahedrite , returned anomalous values of 1.48 g/t Au with 14.2 g/t Ag

from a grab sample. The showing is similar to the Lum showing, located 250m to the northeast,

from which grab samples were reported to carry 263 g/t Au and 1350 g/t Ag in 2010. The Morel

and Lum zones may represent high level mineralization associated with an intrusion related gold

system (IRGS) related to the Wann River stock, or to a structurally controlled lode gold sy stem

associated with the Llewellyn fault zone . The down dip extents of both the M orel and Lum

showings are being targeted in the proposed 2020 drill program.

Additional exploration just completed in the Wann River area uncovered an old adit exposing 3

to 4 cm wide quartz veins within a northwesterly trending shear zone , approximately 3 km north

of the Trail vein, and the investigation of a 1370 ppm arsenic soil anomaly exposed an easterly

trending carbonate-sericite altered fault zone about 1 km north of the Trail vein. Sample results

will be released when received. Follow up of gold-silver MMI soil anomalies at the north end of

the Wann River area revealed extensive overburden cover, such that the source of the

anomalies could not be ascertained.

All samples were sent to Activation Laboratories Ltd (“Actlabs”), Kamloops for sample

preparation and analysis. Gold assays were completed by metallic screen fire assay analysis by

method code 1A4 -500, where the entire sample is crushed to 80% -2mm and a 500g sample

split is pulverised and sieved to 149μm (100 mesh) with gold analyzed by fi re assay on the

entire +149μm fraction and two splits of the -149μm fraction. A final gold assay is calculated

based on the gold content and weight of each fraction. All samples were also analyzed for 38

additional elements by method code 1E3 involving aqu a regia digestion of a 0.5g sub -sample

followed by Inductively Coupled Plasma - Optical Emission Spectroscopy (ICP -OES) analysis.

Additional quality control samples are regularly analysed by the laboratory and include blanks,

certified reference materials, and duplicates of crushed and pulverized material. Actlabs is

ISO/IEC 17025:2017 accredited for the procedures performed.

The technical information in this news releas e has been reviewed by Jean Pautler, P.Geo., a

qualified person with respect to NI 43-101.

About Engineer Gold Mines Ltd.

Engineer Gold is focused on the exploration and development of the 100% -owned, Engineer

Gold Mine Property, centered on the Historic high -grade Enginee r Gold Mine situated 32 km

southwest of Atlin, B.C. Pre vious work ha s identifie d numerous high -grade vein and shear -

hosted bulk-tonnage gold exploration targets including Wann River to the southwest , TAG and

Happy Sullivan to the northeast of the Engineer Gold Mine.

For additional information please visit the company website at www.engineergoldmines.com

On Behalf of the Board of Directors

Contact Information

Engineer Gold Mines Ltd. Corporate Inquiries:

"Andrew H. Rees" Andrew H. Rees: 604-505-3739

Mr. Andrew H. Rees Email: [email protected]

President

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Cautionary Note Regarding Forward-Looking Statements

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the

policies of the TSX Venture Exchange) accepts resp onsibility fo r the adeq uacy or accuracy of t his

release.

This news rel ease contains certain forward looking statements which involve known and unknown risks,

delays, and uncertainties not under the c ontrol of Engineer Gold Mines Ltd. which may cause actu al

results, p erformance or achievements of E ngineer Gold Mines Ltd. to b e materially different from the

results, performance or expectation implied by these forward looking statements. By their nature, forward

looking statements involve risk and uncertaint ies because t hey relate to events and depend on f actors

that will or may occur in the future. Actual results may vary depending upon exploration activities, industry

production, commodity demand and pr icing, currency exchange rates, and, but not limited to , general

economic factors. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is

defined in the policies of the TSX Venture Exchange) accepts responsibility for the ad equacy or accuracy

of this release.

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