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EnGold to Recommence Drilling at Lac La Hache June 11th Adds 2,566 Hectares New Staking to Property

Mergers & Acquisitions Property Options & Staking

EnGold to Recommence Drilling at Lac La Hache June 11th

Adds 2,566 Hectares New Staking to Property

VANCOUVER, June 4, 2018 /CNW/ - David H. Brett, President & CEO, EnGold Mines Ltd., (TSX-V:

EGM, "EnGold" or the "Company") reports that EnGold will re-commence drilling at its 100% owned Lac

La Hache Property on Monday, June 11th, 2018. Initial drilling will target down dip and on strike

extensions of the high-grade copper Spout North Zone within the Spout Copper Deposit. Drilling in the G1

Copper and Gap zones is expected to get underway in July, 2018. The Company has also added 2566

hectares of new mineral claims on the northern part of the Lac La Hache Property to cover ground

believed to have exploration potential.

"EnGold believes the Spout Copper Deposit, previously modeled as a low-grade open-pit

copper/magnetite resource, has strong potential to develop into a high-grade underground deposit," said

EnGold CEO David Brett. "Our plan with Spout Copper is to publish a recalculation of the resource based

on a high-grade, underground mining model later this year, using the new 2018 drilling results and the

200+ Spout drill holes we already have."

"We expect the new drilling at Spout, focusing on depths below 100 metres, to add considerably to the

modelled tonnes at Spout," said EnGold VP of Exploration Rob Shives, P.Geo. "This is an important step

in our objective to define sufficient tonnes from multiple deposits to support an economically and

environmentally responsible underground mine at Lac La Hache."

The Spout Copper Deposit is defined by two known zones, termed the North and South Zones. Both

zones outcrop at surface and occur within carbonate-rich Nicola volcaniclastic sediments. The South

Zone is horizontal, with true thicknesses varying from a few metres (m) to more than 40 m. The North

Zone is also stratabound but is vertical, with a strike of 500 m and true thicknesses ranging up to 20 m

locally.

In 2012, SRK Consulting completed a maiden resource estimate based on the assumption of an open-pit

mining method typically applied to low-grade copper deposits (details available on the EnGold website

here). While this approach allowed inclusion of low grade material (down to 0.25 % copper and less), it

also limited the depth of material included in the open pit calculation to only 60m below surface. This was

suitable for most of the horizontal, near-surface, South zone, but it excluded a large, unknown volume of

higher-grade material (1 to 2% copper) occurring below 60 m within the vertical North Zone. Drilling

completed in 2011 has demonstrated that higher grade material occurs within the North Zone below 350

m vertical depth and remains open. Much of the North Zone strike length remains completely untested

below 100 m.

Based on previous exploration on the property, including over 200 drill holes, EnGold believes that the

Spout Copper Deposit has the potential to host 3.5 to 4.5 million tonnes grading 1.5 to 1.7 % copper. The

exploration target potential was derived by modeling the identified mineralized structure, as evidenced by

drill intercepts through both zones and, by arbitrarily limiting the interpreted depth extension of the vertical

North Zone down to 500 m below surface. The volume of the geologically modeled areas determines the

potential tonnage in the exploration target. The grade range given in the exploration target is determined

with consideration to the drill results within the modeled exploration target area and of the geological

setting, where grades appear consistent within the host strata. The potential tonnages and grades are

conceptual in nature and are based on previous drill results that defined the approximate strike length,

thickness, depth and grade of the portion of the existing 2012 SRK resource estimate. There has been

insufficient exploration to define a current, underground modeled (2018) mineral resource and the

Company cautions that there is a risk further exploration will not result in the delineation of additional

resources.

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. Per/

David Brett, MBA

President & CEO

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.

SOURCE Engold Mines Ltd.

View original content with multimedia:

http://www.newswire.ca/en/releases/archive/June2018/04/c8284.html

%SEDAR: 00007665E

For further information: David Brett, 604-682-2421 or [email protected]

CO: Engold Mines Ltd.

CNW 09:15e 04-JUN-18