E2Gold Announces Closing Of $2.5M Private Placement With Lead Order From Kinross Gold

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TORONTO, July 8, 2022 - E2Gold Inc. (TSXV:ETU, OTCQB:ETUGF) (the "Company" or "E2") is pleased to announce that it has closed its previously announced private placement (the "Offering") pursuant to which it has issued an aggregate of 14,383,331 units ("Units") at a price of $0.06 per Unit, 6,629,285 "flow-through" units ("FT Units") at a price of $0.07 per FT Unit and 14,166,667 special "flow-through" units ("Special FT Units") at a price of $0.085 per Special Ft Unit, to raise aggregate gross proceeds of $2,531,216.

E2Gold's President, Ellie Owens, stated, "The commitment of Kinross Gold through this investment is an important validation of our activities and projects, as is the continued support of significant shareholders such as Crescat Capital and others." Ms. Owens further stated, "With drill planning at Band Ore and drill target development at Hawkins both underway, this financing puts E2 in an excellent position to capitalize on a rising market."

Each Unit is comprised of one common share of the Company (a "Common Share") and one-half of one Common Share purchase warrant (each whole such Common Share purchase warrant, a "Warrant"); each FT Unit is comprised of one Common Share that qualifies as a "flow-through share" as defined in subsection 66(15) of the Income Tax Act (Canada) (each, a "FT Share") and one-half of one Warrant; and each Special FT Unit is comprised of one FT Share and one-half of one Warrant. Each whole Warrant is exercisable to acquire one additional Common Share (which shall not be a "flow-through" share) at a price of $0.15 for a period of 24 months from the date of issuance thereof.

An amount equal to the gross proceeds allocated to the sale of the FT Shares comprising each of the FT Units and Special FT Units will be used for expenditures which qualify as Canadian exploration expenses ("CEE") and "flow-through mining expenditures" (within the meaning of the Income Tax Act (Canada)). The Company will renounce such CEE with an effective date of no later than December 31, 2022.

In connection with the Offering, the Company paid aggregate cash commissions of $43,750 and issued an aggregate of 668,000 broker warrants to eligible registrants, each such broker warrant entitling the holder thereof to acquire one Common Share at an exercise price of $0.15 for a period of two years.

Insiders of E2 purchased an aggregate of 3,816,665 Units in connection with the Offering.

In addition, the Company is pleased to announce that it has completed the third year anniversary share issuance pursuant to the option agreement between the Company and Pavey Ark Minerals Inc. dated January 28, 2020 (the "Option Agreement") for its Hawkins Gold property. The Company issued 3,333,333 common shares (the "Option Shares") at a deemed price of $0.06 per share, in satisfaction of the share payment valued at $200,000 due pursuant to the Option Agreement.

All securities issued and issuable in connection with the Offering as well as the Option Shares are subject to a statutory hold period expiring on November 8, 2022. The Offering remains subject to the final approval of the TSX Venture Exchange.

ABOUT E2GOLD INC.

E2Gold Inc. is a Canadian gold exploration company with a focus on Its large, 80 km long flagship property, the Hawkins Gold Project, which covers seven townships in north-central Ontario, about 140 km east of the Hemlo Gold Mine. The Company is currently conducting a robust surface exploration program to develop drill targets at the Hawkins Gold Project and planning an immenent 1,000 m drill program at the Band Ore Project. E2Gold is commited to increasing shareholder value through mineral discovery on its Ontario property portfolio.

For further information please contact:

Eric Owens
Chief Executive Officer
Tel. (416) 509-5385
Email: eric.owens@e2gold.ca

Ellie Owens
President
Tel. 647-575-2888
Email: ellie.owens@e2gold.ca

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward Looking Statements - Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties, including with respect to the receipt of approval of the issuance of the Option Shares by the TSX Venture Exchange. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of E2, including the timing and nature of all regulatory approvals. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

SOURCE: E2Gold Inc.