Energold Drilling Corp. Announces Debt Facility Drawdown, Bonus Warrants

Trading Symbol: "EGD: TSX.V"

VANCOUVER, July 3, 2018 /CNW/ - Energold Drilling Corp. (EGD: TSX.V) ("Energold" or "the Company" or "Energold Group"), a leading worldwide drilling operator and manufacturer, announces that on May 18, 2018 it completed a second tranche drawdown on its previously-announced unsecured debt facility (the "Loan") entered into among the Company and Extract Capital Master Fund Ltd. ("Extract") and Sprott Hedge LP 1 and Sprott Hedge LP 2 (together, "Sprott" and, collectively with Extract, the "Lenders").

The second tranche drawdown was in the principal amount of $762,660, split evenly between Extract and Sprott. The Loan bears interest at 14% per annum, payable monthly in arrears, and will mature in six months. Prepayments of the Loan are permitted without notice, bonus or penalty.

As partial consideration for the Loan, Energold has issued to the Lenders an aggregate of 762,660 common share purchase warrants (collectively, the "Warrants"), with each Warrant exercisable to acquire one common share of Energold (collectively, the "Warrant Shares") at an exercise price (subject to customary adjustment provisions) of $0.415 per Warrant Share. Energold may require the exercise of the Warrants if volume weighted average price of the common shares of Energold is equal to or above C$1.10 for a period of 20 consecutive trading days.

The second tranche drawdown, the issuance of the Warrants and the Warrant Shares are subject to all necessary regulatory approvals, including approval of the TSX Venture Exchange.

Energold Drilling Corp. is a leading global specialty drilling company that services the mining, energy, infrastructure, geothermal, water and manufacturing sectors in 25 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 as well as manufacturing.

On behalf of the Directors of Energold Drilling Corp.,

"Frederick W. Davidson"
President, CEO

Neither 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.

Forward-Looking Statements: Some statements in this news release contain forward-looking information. These statements include, but are not limited to, statements with respect to proposed activities, work programs and future expenditures. 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, 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 Drilling Corp. does not assume the obligation to update any forward-looking statement.

SOURCE Energold Drilling Group