News Column

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

July 23, 2014

ENP Newswire - 23 July 2014

Release date- 22072014 - Energold Drilling Corp. 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 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.

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.


Steven Gold

Chief Financial Officer

Energold Drilling Corp.

Tel: (416) 275-4070


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.

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Source: ENP Newswire

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