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Prosperity Goldfields Announces Completion of Initial Public Offering


VANCOUVER, March 3 /PRNewswire-FirstCall/ - Evolving Gold Corp. (TSX: EVG) (FSE: EV7) ("Evolving Gold") announced
today that it had completed its previously announced special
dividend-in-kind of Prosperity Goldfields Corp. ("Prosperity"). Prosperity holds an option to acquire the mineral
claims forming the Kiyuk Lake gold property in southern Nunavut. Upon
receipt of shares of Prosperity ("Prosperity Shares") for the
reimbursement of transaction costs, Evolving Gold expects to hold
approximately 48.5% of the outstanding Prosperity Shares.


Under the dividend-in-kind, subject to applicable securities laws, each holder of Evolving Gold shares on the record date of February 16,
2011 received one Prosperity Share for every ten Evolving Gold shares
held. The number of Prosperity Shares issued was rounded down to the
nearest whole number of Prosperity Shares. The TSX Venture Exchange
("TSXV") has approved the listing of the Prosperity Shares on the TSXV
under the symbol "PPG".


Evolving Gold believes that the fair market value of the Prosperity
Shares distributed to be $0.15 per Prosperity Share. Prosperity's
prospectus dated February 2, 2011 (which is available on SEDAR under Prosperity's profile) contains important information relating to
the transaction described in this news release. Evolving Gold's and
Prosperity's shareholders are urged to read the prospectus. As
described in further detail in the prospectus, no Prosperity Shares
were issued to shareholders who are (or are deemed to be) non-residents
of Canada. Rather, such Prosperity Shares have been or will be
delivered to a trustee for sale in the open market, and the net
proceeds will be delivered to non-resident shareholders, net of any
withholding taxes.


This news release does not constitute an offer to sell or the
solicitation of an offer to buy securities in any jurisdiction. The
Prosperity Shares distributed have not been approved or disapproved by
any Canadian or U.S. regulatory authority nor has any such authority
passed upon the accuracy or adequacy of the preliminary prospectus. The
Prosperity Shares will not be distributed in any state or jurisdiction,
including the United States, if an offer, a solicitation of an offer to
buy, or a sale of the Prosperity Shares would be unlawful absent
registration or qualification under the securities laws of any such
state or jurisdiction. Any public offering of securities to be made in
the United States can only be made pursuant to an effective
registration statement. The Prosperity Shares have not been registered
under the United States Securities Act of 1933, as amended (the "U.S.
Securities Act"), or any state securities laws, and Evolving Gold has
no intention of filing such a registration statement in connection with
the dividend-in-kind of the Prosperity Shares. Accordingly,
shareholders of Evolving Gold who are resident in the United States or
who are U.S. persons (as defined in Rule 902 of Regulation S under the
U.S. Securities Act) will not be entitled to participate in the
dividend-in-kind of the Prosperity Shares, except as set out above and
in the prospectus of Prosperity.


Eligible Dividend Designation


For purposes of the enhanced dividend tax credit rules contained in the Income Tax Act (Canada) and any corresponding provincial and territorial tax
legislation, all dividends and deemed dividends paid by Evolving Gold
on its shares after March 1, 2011 are designated as "eligible
dividends" unless indicated otherwise. For greater certainty,
dividends so designated include the dividend-in-kind of Prosperity
Shares as described in this news release.




About Evolving Gold Corp.




Evolving Gold is focused on exploring its gold discovery at Rattlesnake
Hills, Wyoming, an alkalic gold system, similar to the Cripple Creek
gold district in Colorado, and on four gold properties in and adjacent
to the productive Carlin district of northern Nevada, two of which are
100% controlled by Evolving Gold.




For more information about Evolving Gold please visit: >http://evolvinggold.com/sign-up.php.




On Behalf of the Board of Directors
EVOLVING GOLD CORP.




"Robert Barker"




Robert Barker
CEO and Director




About Prosperity Goldfields Corp.


Prosperity's principal business is the acquisition, exploration and
development of resource properties for the mining of precious metals.
Prosperity acquired the option to acquire the mineral claims comprising
the "Kiyuk Property" near Nueltin Lake in Nunavut. Prosperity's
principal objective is to explore the Kiyuk Property.




Officers and Directors of Prosperity: R. Bruce Duncan, CEO and Director; R. Stuart (Tookie) Angus, Director;
Robert Barker, Director; and Olga Nikitovic, CFO and Corporate
Secretary.




For more information about Prosperity please visit: http://www.prosperitygoldfields.com/">www.prosperitygoldfields.com.




On Behalf of the Board of Directors
PROSPERITY GOLDFIELDS CORP.




"R. Bruce Duncan"




R. Bruce Duncan
CEO and Director