E2Gold Inc. Completes Oversubscribed Initial Public Offering, with a Lead Order from Palisades Goldcorp

E2Gold Inc. has completed an oversubscribed initial public offering, pursuant to which it has issued: (i) an aggregate of 10,961,500 units at a price of 20 cents per unit; and (ii) an aggregate of 5,421,100 flow-through units at a price of 22 cents per flow-through unit to raise aggregate gross proceeds of $3,384,942, with a lead order from Palisades Goldcorp Ltd., all pursuant to a final prospectus of the company dated Dec. 21, 2020.

Trading of the common shares of the company on the TSX Venture Exchange (the “TSXV”) is anticipated to commence at the opening of business on Monday, January 4, 2021. The common shares of the Company will trade under the symbol “ETU”.

Beacon Securities Limited (the “Lead Agent”), INFOR Financial Inc., M Partners Inc., and Red Cloud Securities Inc. (collectively with the Lead Agent, the “Agents”) acted as agents in the Offering, in connection with which they received an aggregate of 1,146,782 compensation options, each such compensation option entitling the holder to acquire one common share of the Company at an exercise price of $0.20 per share until December 30, 2022.

Each Unit consists of one common share of the Company and one share purchase warrant (a “Unit Warrant”), with each Unit Warrant entitling the holder thereof to acquire one additional common share of the Company at an exercise price of $0.24 until December 30, 2023. Each FT Unit consists of one common share of the Company which qualifies as a “flow-through share” as defined in subsection 66(15) of the Income Tax Act (Canada) and one-half of one share purchase warrant (each whole such share purchase warrant, a “FT Warrant”) on a non-flow-through basis, with each FT Warrant entitling the holder thereof to acquire one additional common share of the Company at an exercise price of $0.28 until December 30, 2022.

Use of proceeds from the Offering, including corporate and acquisition costs, will be focused on exploration activities on the Company’s 60 km long Hawkins Gold Project, located in the Sault Ste Marie and Porcupine Mining Divisions, north-central Ontario. The Hawkins Gold Project hosts an Inferred Mineral Resource, the McKinnon Zone, compliant with National Instrument 43-101: 6.2 million tonnes grading 1.65 g/t gold for 328,800 ounces of gold.

The Hawkins Gold Project consists of 400 single cell mining claims and 19 boundary cell claims optioned from Pavey Ark Minerals Inc. (“Pavey Ark”), plus 518 contiguous single cell mining claims on which the Company holds a 100% beneficial interest, totaling approximately 19,478 hectares. Pavey Ark, a private Ontario company, is a mineral exploration project generator in eastern and central Canada with several advanced base and precious metal exploration properties. Information on Pavey Ark is available at www.paveyarkminerals.com.

For further information regarding the Offering and the Hawkins Gold Project, please refer to (i) the Technical Report in respect of the Hawkins Gold Project dated effective September 10, 2020 titled “Technical Report and Updated Mineral Resource Estimate on the Hawkins Gold Project, Derry, Ermine Hawkins, Walls, Minnipuka, Legge and Puskuta Townships, Sault Ste. Marie & Porcupine Mining Divisions, Ontario for E2Gold Inc.” prepared by P&E Mining Consultants Inc. (the “Technical Report”); and (ii) the Final Prospectus, each available on SEDAR at www.sedar.com. All scientific and technical information in this press release has been prepared under the supervision of Dr. Eric Owens, the President and Chief Executive Officer of the Company and a “Qualified Person” within the meaning of National Instrument 43-101.

ABOUT E2GOLD INC.

E2Gold Inc. is a Canadian gold exploration company with a large gold property covering 6 townships in north-central Ontario. The underexplored Hawkins Gold Project hosts an Inferred Mineral Resource based upon 1980’s vintage Falconbridge drilling, subsequently staked in the 1990’s by Don McKinnon Sr. The Company completed first-pass surface geological, geophysical, prospecting and trenching work in 2020. Drill permits are in place as the Company prepares to begin a diligent work program early in the first quarter 2021.

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