E2Gold Discovers New Gold Targets at Hawkins

TORONTO, October 4, 2023 - Assays revealed several new gold targets on the underexplored eastern half of the district-scale Hawkins Gold Project, including eight large gold soil anomalies greater than 500 m wide. Such gold anomalies are the first step towards developing exploration drilling for deposits elsewhere on the project.

These results continue the success of the summer program which increased the footprint of the McKinnon Zone, an at-surface 328,800 ounce gold Inferred Resource.¹ The Company has planned and permitted 10,000 m of drilling stepping out from the McKinnon Zone along 7 km of additional strike length east and west, with the intent to expand the current resource.

Dr. Eric Owens, CEO, stated, "In spite of the very challenging markets for exploration companies, we are making significant progress on the Hawkins Project, having recently developed drill-ready targets to enlarge the McKinnon Zone, and simultaneously discovering new gold zones elsewhere on the project."

Fig. 1. Location of Soil lines and larger anomalies on the eastern part of the Hawkins Project

As a first pass test, geologists completed 5 soil lines spaced roughly 10 km apart, totalling 20 line-kilometers. The lines were designed to capture major east-west trending mineralization on eastern Hawkins, especially focused on delineating the relationship of gold with the Puskuta Lake Shear Zone running through the property.

Dr. David Good, Chairman of the Board, who led the soil sampling program, says, "These lines effectively create five cross sections across the greenstone belt, with special consideration of the regional Puskuta Lake Shear Zone and other parallel shear zones."

The Hawkins project encompasses a greenstone belt with the same characteristics as other mine-hosting greenstone belts in the region. However, Hawkins is underexplored because of the broad, but generally thin, surface cover. Developing a fast and inexpensive exploration method allows E2Gold to quickly develop strong targets outside of the McKinnon Zone.

In other news, E2Gold proposes to complete a private placement (the "Offering") pursuant to which it will issue up to 30,000,000 "flow-through" units ("FT Units") at a price of $0.02 per FT Unit, to raise aggregate gross proceeds of up to $600,000.

Each FT Unit will be comprised of one "flow-through" common share of the Company (a "FT Share") and one common share purchase warrant (a "Warrant"); with each whole Warrant exercisable to acquire one additional common share at a price of $0.05 for a period of 24 months from the date of issuance thereof. Up to 50% of the Offering may be purchased by insiders.

The Offering remains subject to various closing conditions, including the approval of the TSX Venture Exchange. An amount equal to the gross proceeds allocated to the sale of the FT Units will be used for expenditures which qualify as Canadian exploration expenses ("CEE") that once renounced will qualify as "critical mineral mining expenditures" (within the meaning of the Income Tax Act (Canada)). The Company will renounce such CEE with an effective date of no later than December 31, 2023. The Company intends to apply the gross proceeds from the Offering towards its proposed fall exploration program.

Qualified Person: Eric Owens, Ph.D., P.Geo. acts as a Qualified Person for E2Gold, and has reviewed the content of this press release.

ABOUT E2GOLD INC.

E2Gold Inc. is a Canadian gold exploration company with a large flagship property, the 80 km long Hawkins Gold Project in north-central Ontario, about 140 km east of the Hemlo Gold Mine, and 75 km north of the Magino and Island Gold Mines. The property is anchored by the McKinnon Zone Inferred Resource of 6.2 Mt grading 1.65 Au g/t, for 328,800 ounces of gold. E2Gold aims to increase shareholder value through discoveries at Hawkins.

Note 1: NI 43-101 Technical Report and Updated Mineral Resource Estimate on Hawkins Gold Project, Ontario, by P&E Mining Consultants, effective date September 10, 2020.

For further information please contact:

Jeff Pritchard
Investor Relations
info@e2gold.ca
+1 647 699 3340

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.

Forward Looking Statements - Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond the control of E2Gold, including with respect to the receipt of all regulatory approvals. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

SOURCE: E2Gold Inc.