May 29 2009 - Energold Drilling Corp. (“Energold” TSX.V-EGD) is pleased to announce in spite of

difficult economic conditions net income for the first quarter was $402,500. Energold ended the

quarter with an industry leading balance sheet including a working capital position of $50.3 million,

cash and cash equivalents of $22.9 million and no debt.

Revenues decreased to $3.85 million in the first quarter, down 55% from $8.62 million in the first

quarter of 2008. Average revenue per meter increased to $188 in the first quarter as compared to $152

in the first quarter of 2008. With the majority of contracts denominated in U.S. dollars, the increase is

a result of the weaker Canadian dollar in the first quarter of 2009 as compared to the first quarter of

2008. In U.S. dollar terms average revenue per meter was unchanged.

Summary of Quarterly Results

Three months ended March 31

% Change

2009 2008

Revenue ($000’s) 3,851 8,625 -55 %

Gross margin ($000’s) 858 3,465 -75%

Gross margin percentage 22.3% 40.2% -18%

Net income ($000’s)

403 1,769 -77%

Earnings per share – basic ($) 0.01 0.06

Earnings per share – diluted ($) 0.01 0.05

Meters Drilled 20,490 56,862 -64%

Drill Rig Fleet 78 49 +59%

Cash and Cash Equivalents ($000’s) $22,867 $20,673 +11%

Working Capital ($000’s) $50,332 $36,166 +39%

As expected, the first quarter proved difficult as the current economic environment impacted drilling

worldwide, particularly on base metal projects. Many of Energold’s largest customers cut their

exploration programs significantly to conserve cash. While the challenges posed by the current

economic environment serve to limit visibility in the short-term, it is clear that as and when drilling

activities rebound, Energold will be poised for growth once again. Revenue in the second quarter has

already shown considerable improvement over that from the first quarter; however it will be below

revenue recorded in the second quarter of 2008. Lower levels of demand have increased competitive

pressures and thus pricing and margins will be lower than in 2008. Energold employs a variable cost

structure and thus when revenues decrease so do the majority of the costs. A strategic decision was

made not to reduce certain semi variable operating costs that would affect quality of service.

Despite the difficult environment, Energold expects to continue generating positive cash flow and

improve its working capital in 2009. Energold’s strategic goal is to continue to enhance cash reserves

to fuel further growth when market conditions improve. While it remains open to exploring suitable

acquisitions, Energold’s primary focus continues to be on organic growth through new rig development

and expansion into new markets.

With a modern fleet of drilling rigs and the continued opening up of new operating regions, the seeds

have been planted for future growth in five continents. The expansion of value-added services

continued during the quarter and included developing additional technical ability in underground

drilling. This was undertaken in response to customer demand for full service drilling solutions.

Energold took delivery of two new underground drill rigs in the first quarter bringing the total number

of rigs to 78. One additional underground rig has been ordered with expected delivery in the second

quarter. The two underground rigs are similar to the existing surface rigs employing approximately

90% of the same equipment and supplies as the surface rigs. This substantially reduces crew training

times and inventory requirements.

Energold will be discussing its 2009 First Quarter Earnings and hosting a question-and-answer period

via a conference call on June 3

, at 1:00pm (PT), 4:00pm (ET). The dial-in numbers are 416 340 8018

and 866 223 7781. The webcast (audio only) can be accessed at: