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EnGold Intersects 63 Metre Mineralized Zone South of G1 Copper Zone at Lac La Hache

Drill Results

EnGold Intersects 63 Metre Mineralized Zone South

of G1 Copper Zone at Lac La Hache

For Immediate Release. August 23, 2018. Vancouver, BC. David H. Brett, President &

CEO, EnGold Mines Ltd., (TSX-V: EGM, “EnGold” or the “Company”) reports that the

second drill hole (GP18-42) of the Company’s current campaign testing new

geophysical targets within the “Gap Area” encountered a 63 m mineralized intersection.

GP18-42 core lengths are not true widths as the geometry of the new zone has not yet

been determined.

The current Gap Area drilling is targeting combined results from ground gravity, deep IP

and magnetic surveys. Positive deep IP responses have been observed over

mineralization at both Spout Deposit and G1 zone. and now, have been confirmed more

than 200 metres southeast of the G1 discovery hole G16-01 (previously announced,

26.6 m grading 1.76 % Cu, 0.27 gpt Au, 10.29 gpt Ag, 35.8 % Fe, including 14.0 m

grading 2.09 % Cu, 0.27 gpt Au, 12.34 gpt Ag and 36.4 % Fe).

The mineralized interval in GP18-42 (486-549 m), displays replacement style

chalcopyrite-pyrite-magnetite which validates the modeled geophysical patterns.

“We are now confident that the IP is responding reliably to the carbonate-

replacement/skarn style mineralization in three slightly different host-rock scenarios, at

Spout South, G1 and GP18-42,” said EnGold VP of Exploration Rob Shives, P.Geo.

“Planned new IP surveying will ensure that anomalies lying off the existing test line are

defined, including the extents of the strong G1 chargeability anomaly, now intersected

216 m away from the G1 discovery.”

Core processing continues for both completed holes. A third hole has been collared to

test high gravity and magnetic patterns approximately 370 m northwest of DDH G17-16.

“Identifying new mineralization over significant widths south of G1 Copper is very

encouraging,” said EnGold President & CEO David Brett. “The drill core as observed

confirms that the Spout-G1 corridor has excellent potential for discovery and expansion

of known copper-rich zones.”

Image illustrating selected “gap area” targets are located here:

https://engold.ca/projects/maps-images/ Hole GP18-42 corresponds to location “J” on

the Gap Area drill-plan map.

About EnGold

EnGold is a Vancouver-based copper/gold exploration company focused solely on its

100% owned Lac La Hache property in the Cariboo region of BC. EnGold’s vision is to

identify and delineate mineral resources at Lac La Hache that could potentially support

an economically feasible and environmentally sustainable underground mining

operation. The Spout Deposit, the Aurizon Gold Zone and the 2017 G1 Discovery,

located within a 7-kilometer area on the property, are all considered by EnGold to be

potentially underground minable targets. EnGold’s significant new copper discovery in

2017 adds to the already extensively drilled Spout Copper Deposit and Aurizon Gold

zones. Discovery potential for new high-grade zones remains strong, and existing areas

are open for expansion. With world class infrastructure at its doorstep, Lac La Hache is

a great location to be exploring. 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 fulfilling its vision to profitably supply valuable and much needed

metals to the global marketplace.

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.

David Brett, 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.