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EnGold Intersects 15.46 gpt Au, 13.45 gpt Ag, 3.67 % Cu over 1.95 m Extends Aurizon Zone 100 Metres South Cuts Broad Mineralized Zone at Depth

Drill Results

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EnGold Intersects 15.46 gpt Au, 13.45 gpt Ag, 3.67 % Cu over 1.95 m

Extends Aurizon Zone 100 Metres South

Cuts Broad Mineralized Zone at Depth

For Immediate Release. January 18, 2017. Vancouver, BC. David H. Brett, President & CEO,

EnGold Mines Ltd., (TSX-V: EGM, “EnGold” and the “Company”) reports that the final three

holes of the 12-hole Fall 2016 drill program have extended the gold-rich Aurizon South Zone

approximately 100 metres to the south and returned high grade intercepts, including 15.46 gpt

Au, 13.45 gpt Ag, 3.67 % Cu over 1.95 m in hole AZS16-60 and 15.7 gpt Au, 10.4 gpt Ag and

3.1 % Cu over 1.8 m in hole AZS16-62, and a deeper section (660m vertical depth) of AZS16-

62 returned a broader zone grading 0.95 gpt Au, 5.4 gpt Ag, 0.9 % Cu over 20.55m. Surface

assays of a previously discovered narrow quartz vein (10cm) traced over 110m, continued to

return very high assay results, with values ranging from 15 to 178 gpt Au, 9 to 81 gpt Ag and 3.8

to 7.5 % Cu. Aurizon South, which remains open on strike and down dip, is located within

EnGold’s 100% owned Lac La Hache Property, in BC’s Cariboo region. Drilling is scheduled to

resume in late February, 2017.

“EnGold’s most recent Aurizon drilling has once again extended the zone and encountered high

grades,” said EnGold CEO David Brett. “2016 was great year for EnGold and we look forward to

continued success in 2017.”

Intervals reported below in this news release are core lengths and not true width, as true widths

in this section have not yet been determined. “The Aurizon Structure continues to produce

multigram gold grades as we in-fill and extend the zone,” said EnGold’s Vice President,

Exploration Rob Shives, P.Geo. “Results from previously completed soil geochemical and IP

surveys support further extension to south and to depth. More detailed geochemical sampling is

planned for summer 2017, designed to locate possible additional, un-exposed quartz-veins

along the Aurizon trend.”

Diamond Drill Holes (“DDH”) AZS16-60 and 16-61 cut the Zone at 146 and 251 metres

downhole, respectively, with grades of 4.8 gpt Au, 5.5 gpt Ag, 1.3 % Cu over 6.85 m, including

15.46 gpt Au, 13.45 gpt Ag, 3.67 % Cu over 1.95 m and 18.1 gpt Au, 15.7 gpt Ag, 4.47 % Cu

over 0.95 m. Mineralisation occurs as abundant chalcopyrite, pyrite and locally chalcocite within

fractured, hydrothermally brecciated and locally silicified monzodiorite.

DDH16-62 was drilled to 841 m by re-entering DDH08-02, which was completed to 380 meters,

prior to discovery of the Aurizon South structure. DDH16-62 cut quartz veining at 650 m

downhole, containing visible gold specs, chalcopyrite and pyrite. Assays include 15.7 gpt Au,

10.4 gpt Ag and 3.1 % Cu over 1.8 m, including a half-meter interval grading 26.1 gpt Au, 12.6

gpt Ag and 1.9 % Cu. Results indicate that gold-copper-silver bearing quartz veins containing

visible gold extend from the surface to at least 550 m vertically (and remain open at depth).

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DDH 16-62 continued deeper, to cut the main structure at approximately 775 m downhole (more

than 660 m vertically), where a 20 metre wide, broadly mineralized, intensely fractured,

brecciated, potassically altered and silicified zone assayed 0.95 gpt Au, 5.4 gpt Ag, 0.9 % Cu

over 20.55 m, including 3.43 gpt Au, 27 gpt Ag, 1.2 % Cu over 0.78 m and 2.6 gpt Au, 10.8 gpt

Ag, 5 % Cu over 1.7 m. These results represent the deepest intersection of the Aurizon South

Structure to date.

Table 1: Drill core assays, EnGold Mines Ltd Aurizon South Gold Zone, Fall 2016

DDH From (m) To (m) Interval (m) Au (g/t) Ag (g/t) Cu (%)

AZS16-60 94.00 95.00 1.00 1.93 16.50 0.08

and 141.30 142.90 1.60 1.38 1.20 0.04

and 146.00 148.70 2.70 2.62 20.23 0.08

AZS16-61 126.80 129.00 2.20 1.17 19.95 0.02

and 251.35 258.20 6.85 4.80 5.46 1.25

including 251.35 253.30 1.95 15.46 13.45 3.67

including 251.35 252.30 0.95 18.10 15.70 4.47

AZS16-62 489.00 490.00 1.00 0.68 5.20 1.00

and 649.20 651.00 1.80 15.66 10.40 3.12

including 649.20 649.70 0.50 26.10 12.60 1.86

and 753.10 755.30 2.20 0.98 6.20 1.63

and 769.45 790.00 20.55 0.95 5.36 0.91

including 773.40 774.18 0.78 3.43 27.00 1.18

including 780.30 782.00 1.7 2.55 10.80 4.98

As reported previously the Fall 2016 drilling program intersected visible gold in a 10 cm thick,

vertical, sulphide-rich quartz vein at shallow depth in two holes and on surface. Results from

four samples collected from the northwest end of the vein were previously reported (see Nov.

23, 2016 News). Three additional samples collected from the southeast end of the vein,

approximately 112m from the previous sampling, are reported in Table 2 below. Results are

similar to previous assays, with values ranging from 15 to 178 gpt Au, 9 to 81 gpt Ag and 3.8 to

7.5 % Cu. Semi-massive pyrite, chalcocite and visible gold specks occur within the quartz vein.

Table 2: Surface Quartz Vein and Altered Wall Rock Grab Samples: SE End

Sample Type Au (g/t) Ag (g/t) Cu (%)

5

quartz vein, visible gold,pyrite, chalcocite

14.90 9.30 3.76

6

quartz vein, visible gold,pyrite, chalcocite

95.7 49.1 5.67

7

quartz vein, visible gold,pyrite, chalcocite

177.5 80.9 7.46

About EnGold

EnGold is focused on finding and developing mining operations at its 100% owned mineral property

located near the town of Lac La Hache in BC’s prolific Cariboo mining region. EnGold’s corporate

philosophy rests on three interdependent pillars: Environment, Engagement and Gold. Through

sound environmental stewardship, commitment to transparent engagement with local communities,

the Company is dedicated to driving exceptional shareholder and stakeholder value by discovering

and developing mineral resources.

About the Lac La Hache Property

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The advanced stage property lies within BC’s Quesnel Trough mineral belt, which hosts several past

and currently producing copper/gold/silver mines, including nearby Imperial Metals’ Mount Polley

copper-gold mine and New Gold Inc.’s New Afton copper-gold mine. The Company has drilled

numerous prospects on the property, including Spout copper-magnetite-gold-silver deposit (for which

a resource calculation has been reported and supported by an NI43-101 Technical Report), the gold-

rich Aurizon gold-copper-silver prospect and recent new discoveries with porphyry and skarn

copper/gold potential.

EnGold is currently focused on evaluation of its Aurizon Gold (gold-copper-sliver) prospect, where

drilling continues to extend the host structure and gold-rich grades. Supported by significant local

infrastructure including powerlines, all season road access, rail and other amenities, the Lac La

Hache project demonstrates excellent logistics for resource extraction.

Quality Control/Quality Assurance Program

EnGold Mines Ltd follows procedures which ensure sample security, chain of custody and Quality

Assurance/Quality Control for all drilling and geochemical sampling, conforming to industry practices

defined by Canadian Institute for Mining, Metallurgy (CIMM) standards, and required for TSX-listed

companies by National Instrument 43-101.

All core was logged and photographed. Sampled intervals were sawed in half, bagged, sealed and

transported securely to ALS Canada Ltd for analyses. Half-gram samples were digested with aqua

regia acid then analyzed by inductively coupled plasma-atomic emission spectrometry (ICP-AES) for

35 elements (ME-ICP41). A 30 gram split is analyzed for gold (Au-AA23) by fire assay with an AA

finish. As part of our comprehensive QA/QC program, a blank sample, one standard, and one in-line

replicate were inserted into the sample stream in each group of approximately 20 samples.

Rob Shives P.Geo., VP Exploration and a Qualified Person as defined under National Instrument 43-

101, has reviewed and approved the technical content of this release.

Engold Mines Ltd.

Per/

David Brett, MBA

President & CEO

For further info contact David Brett, 604-682-2421 or [email protected]

This news release may contain "forward‐looking statements". Readers are cautioned that any such statements are

not guarantees of future performance and that actual development or results may vary materially from those in these

"forward looking statements.”

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 adequacy or accuracy of this release.