Energold Drilling Corp. Completes $13.5 Million Private Placement of Secured Convertible Debentures

VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 21, 2014) -

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Energold Drilling Corp. (the "Company", or "Energold") (TSX VENTURE:EGD) is pleased to announce that it has closed a private placement with a group of investors subscribing for $13.5 million principal amount of secured convertible debentures ("CDs") for a term of three years. The CDs bear interest at a rate of 12.85% calculated and compounded annually and payable quarterly. The CDs are convertible into common shares of the Company at a conversion price of $3.00 per share. Insiders of the Company purchased CDs having a principal face value of $3.0 million, representing 22.0% of the offering.

Due to the interest expressed in the CDs, the size of the offering was increased from $12.5 million to $13.5 million. All other terms of the CDS are as disclosed in Energold's press release of July 9, 2014.

The net proceeds of the CDs are expected to be used for the repayment of the outstanding amount under the Company's $10 million secured convertible debentures maturing on July 21, 2014 and for working capital purposes including, but not limited to, the funding of bolt-on acquisitions.

The CDs and any securities issued on conversion of the CDs are subject to a hold period expiring on November 22, 2014.

The securities have not been and will not be registered under the U.S. Securities Act of 1933 (the "1933 Act"), as amended, or under any state securities laws, and may not be offered or sold, directly or indirectly, or delivered within the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the 1933 Act), absent registration or an applicable exemption from registration requirements. This news release does not constitute an offer to sell or a solicitation to buy such securities in the United States.

About Energold Drilling Corp.

Energold Drilling Corp. is a leading global specialty drilling company that services the mining, energy, infrastructure, water and manufacturing sectors in 27 countries. Specializing in a socially and environmentally sensitive approach to drilling, Energold provides a comprehensive range of drilling services from early stage exploration to onsite operations for both metals and energy, in addition to its established drill rig manufacturer, Dando. Energold also holds 6.98 million shares of IMPACT Silver Corp., a silver producer in Mexico.

On behalf of the directors of Energold Drilling Corp.

"Frederick W. Davidson"

President and CEO

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Some statements in this news release contain forward-looking information. These statements include, but are not limited to, statements with respect to the proposed use of net proceeds. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, the effects of general economic conditions, timely receipt of regulatory approvals, a reduction in the demand for the Company's drilling services, the price of commodities, changing foreign exchange rates, actions by government authorities, the failure to find economically viable acquisition targets, title matters, environmental matters, reliance on key personnel, the ability for operational and other reasons to complete proposed activities and work programs, the need for additional financing and the timing and amount of expenditures. Energold does not assume the obligation to update any forward-looking statement unless required by law.