Evergold Corp. announced that it has entered into an option agreement (the Option Agreement) with non-arms-length vendors Charles Greig and Alex Walcott (the Optionors), for the exclusive right and option to acquire a 100% interest in the drill-ready, highly prospective DEM gold-silver property (the "DEM Property), located in central British Columbia. A NI 43-101 compliant technical report is being prepared for the DEM Property and is expected to be delivered by an independent Qualified Person in mid-August and prior to the closing of the Option Agreement.

The DEM Property hosts the newly developed, never drilled DEM prospect, a roughly 4km2 target area exhibiting strong multi-element geochemical anomalism in soils, including highs to 2.1 ppm Au, 160 ppm Ag, 0.5% Pb, 0.41% Zn, 0.76% As, and 651 ppm Cu, directly associated with an underlying large scale donut-shaped magnetic anomaly and exceptionally strong, deep-running IP chargeability, suggesting high discovery potential. The exceptional merits of the DEM prospect may be viewed in a presentation available from the Company's website at ww.evergoldcorp.ca. The Company has the right to earn a 100% ownership interest in the DEM Property in exchange for staged cash payments to the Optionors over four years cumulatively totaling $980,000, in addition to escalating work commitments totaling $5,000,000 over the same time frame, as set out below.

The Option Agreement does not require the issuance of any shares of the Company. In addition, the Optionors retain a 2% Net Smelter Returns royalty (the "Royalty"), subject to the right of the Company to buy back 1.5% of the Royalty for $4.5 million, inflation adjusted to 2023. The Option Agreement requires the completion by the Company of a minimum $750,000 financing (the "Financing"), on terms to be announced in the near future, and requires also the participation of the Optionors therein.

No funds from the net proceeds of the Financing will be directed towards the DEM Property until the final approval of the TSX Venture Exchange has been obtained. The Option Agreement to acquire the DEM Property remains subject to receipt of all necessary regulatory and other approvals, including the final approval of the TSXV and the approval of disinterested shareholders of the Company. The Option Agreement constitutes a related party transaction within the meaning of TSXV Policy 5.9 (which incorporates Multilateral Instrument 61-101 ­ Protection of Minority Security Holders in Special Transactions ("MI 61-101")), as the Optionors are a "related party" of the Company by virtue of each Optionor being a director of the Company.

The Company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1) (a) of MI 61-101 for the Option Agreement as its fair market value does not exceed 25% of the market capitalization of the Company, as determined in accordance with MI 61-101. The Company did not file a material change report in respect of the related party transaction at least 21 days before the transaction, which the Company deems reasonable in the circumstances so as to be able to option the DEM Property as soon as practicable and move forward on the process of obtaining all necessary approvals on an expedited basis.