Evolving Gold Corp. Letter to Shareholders


Dear Evolving Gold Shareholders,

This last year has been filled with successful corporate initiatives, carefully planned and executed exploration programs and the stream-lining of all of our North American operations. Despite difficult market conditions, Evolving Gold Corp., as it stands today is operating more efficiently than ever, with all of its projects at their most advanced stages to date following several recent high grade gold discoveries in both Nevada and Wyoming. The Company has divested all of its non-primary or inactive assets, and has received a substantial premium and strategic cash infusion from the sale of the Kiyuk assets in Nunavut, Canada.

Under new leadership, the Company has consolidated its corporate offices, streamlined its financial reporting and communications and reduced many of its prior operating redundancies. This process has reduced Evolving Gold’s burn rate to the lowest levels in recent years. At this time, the Company is more active than ever, advancing all of our highly prospective gold exploration projects. Drills are currently turning on the Carlin project, following a recent announcement of high grade gold intersections in July 2012. The Company has recently regained 100% ownership of the Rattlesnake Hills project following a successful 2012 drill program funded by our previous joint venture partner, Agnico-Eagle Mines Limited. The Company, gained over $3million in exploration work under that joint venture, resulting in several new discoveries and a much improved understanding of the project area. 2011 drilling on the Jake Creek project in Nevada identified multiple new drill targets as well as outlining a gold system over 550 meters in diameter that remains open to the north, south and east. All these projects are located in some of the best and lowest-risk gold mining jurisdictions in the world.

The Company has successfully put together one of the largest land positions in the prolific Carlin Trend in Nevada. The Carlin Trend is one of the most renowned gold districts in the world, with production of more than 75 million ounces of gold. Recent drilling on our Carlin-Humboldt “Arch Gold Zone” intersected six high grade gold zones, a cumulative total of 31.6 meters averaging 15.85 grams per tonne gold, within a down hole interval of 87 meters. One specific interval of 19.5 meters averages 11.76 grams per tonne gold and includes 9.1 meters at 22.0 grams per tonne. This gold mineralization is part of a large gold system, as evidenced by thick intersections of anomalous gold, strong alteration and the presence of highly anomalous trace elements.

Over the next year, management will be focused on maximizing shareholder value through executing carefully planned exploration programs on our Nevada and Wyoming projects with an aim to making new gold discoveries while aggressively advancing exploration on our large land holdings, all within proven gold districts.

As CEO of Evolving Gold Corp., I personally want to thank you for your continued support of the Company and its gold discovery program. As a Company, we are dedicated to building value through discovery in proven gold districts within low risk geo-political environments.

Sincerely,
R. Bruce Duncan
President, CEO and Director

Suite 605 – 1166 Alberni Street, Vancouver, BC, Canada, V6E 3Z3
Tel: 604.685-6375 Fax. 604 909-1163
Email: [email protected]
Web: http://www.evolvinggold.com

TSX: EVG; OTC: EVOGF; FSE: EV7

http://www.evolvinggold.com/i/pdf/2012-LTS.pdf

Dan