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).

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

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 david@engold.ca

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.”

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