VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 27, 2013) - The Energold Group® ("Energold" or "the Company") (News - Market indicators) is pleased to announce record high first quarter revenues of $53.9 million for the period ended March 31, 2013 compared to first quarter 2012 revenues of $53.3 million, with significant contributions from all segments. Gross margin on a group-wide basis in the period was a strong 30.4% compared to 32.9% in the same period in 2012. Group-wide net income after adjusting for the earn-out payment related to the Energy division acquisition of Bertram Drilling Corp. ("Bertram") was $0.13 per share in the period. A conference call is planned for today, May 27, 2013 at 4:30pm Eastern time. Dial-in numbers are 647-426-1845 and 1-866-782-8903.

Notwithstanding the downturn in mineral exploration drilling in mid-2012, the Company's mineral division drilled 106,400 metres in the period resulting in $18.3 million in revenue for that division, compared to $25.9 million in the same period of 2012. Gross margin in the mineral division of 35.1% in the recent quarter was higher than the 32.1% reported in the same period last year. Energold's energy business reported revenues of $31.4 million in the quarter compared to $25.5 million earned in the same period last year. The manufacturing division more than doubled its revenues to $4.1 million in the period from $1.9 million in the first quarter of 2012.

The Company ended the quarter with a strong balance sheet including cash and cash equivalents of $22.6 million.

Quarterly Results Comparison ($CAD ,000s except per-share amounts and metres drilled)

MINERAL DRILLING DIVISION

Since the downturn began in mid-2012, the Company began to see a modest increase in drilling activity in the fourth quarter which has followed through to the first quarter of 2013.

Revenues for the first quarter of 2013 were $18.3 million compared to $15.0 million of revenues generated in the fourth quarter in 2012. Revenues decreased by 29.4% or $7.6 million from March 2012 and the average revenue per meter for the first quarter decreased to $172 in the first quarter of 2013 from $193 in the first quarter of 2012 due in part to the depressed market and a changing drilling mix. Revenue in the first quarter of 2013 compared to the first quarter of 2012 was negatively impacted due to reduced exploration spending from the junior mining segment, as challenging capital market conditions continued to weigh on their ability to raise money for exploration. Management believes the majority of the reduction in junior mineral exploration occurred in the second and third quarters of 2012 and there appears to be no significant indications that the junior market will return to previous levels of activity for some time. Meanwhile, the Company enjoys a customer book of well-funded intermediate and senior miners whose programs are ongoing.

The Company maintains a strong infrastructure network in all regions where it operates which allows for a relatively lean operation. The Company continues to draw down on its inventory and its working capital remains strong. As the majority of the Company's costs are variable, it can adapt quickly and respond accordingly to changing market conditions.

Q1 - 2013 and 2012 Quarterly Metres Drilling Results

At March 31, 2013, the Company had 133 rigs in its mineral drilling fleet, with three track mounted rigs on order from the Company's wholly owned U.K. subsidiary, Dando. On an organic basis, the Company intends to add new equipment on an as-needed basis and can do so on a cost advantaged basis also by doing so through Dando. The Company will continue to work with certain clients who require specific equipment to meet challenging conditions at various projects.

ENERGY DRILLING DIVISION - BERTRAM DRILLING CORP.

The Energy division drilled 210,600 metres in the first quarter of 2013. The majority of revenues and activity are typically generated in the first quarter. The Company's subsidiary, Bertram was very active during the first quarter of 2013, working primarily on oil sands projects in Northern Alberta. Revenues for the first quarter of 2013 was $31.4 million compared to $25.5 million in the first quarter of 2012, with approximately 98% of revenue earned in Canada and the balance generated in the U.S.

The gross margin for first quarter of 2013 was 30.3% compared to 35.2% in the first quarter of 2012. The drop in gross margin is mostly due to a different mix of jobs rather than overall demand. In the first quarter of 2013, Bertram drilled approximately 201,400 metres in Canada and approximately 9,200 metres in the U.S.

Bertram drilled metres in the following areas:

Oil sands operations accounted for over $29.0 million of first quarter revenues in 2013 compared to $16.2 million in the first quarter of 2012. Revenue was generated from programs conducted on behalf of major operators. Geothermal and geotechnical drilling activity accounted for $1.0 million revenue during the first quarter of 2013 compared to $4.2 million in the first quarter of 2012. Track seismic represents the remainder of the revenues.

MANUFACTURING DIVISION - DANDO DRILLING INTERNATIONAL LTD.

Revenues for the first quarter of 2013 were $4.1 million with an operating margin of 10.7% compared to revenues of $1.9 million with an operating margin of 14.3% in the first quarter of 2012. Dando delivered four Watertec 40 heavy water well drills, two Multitec 9000 track mounted drills, four 2000 geotechnical rigs, two 3000 geotechnical rigs and six Terrier mini rigs.

Demand for rigs and equipment remains high. Dando has a current order book of GB£3.1 million and continues to have strong enquiries for its products. As part of its plans to service future growth, Dando is continuing to build additional small rigs for stock and a new prototype, a remote controlled self-loading tracked vehicle capable of carrying in excess of five tonnes.

INDUSTRY OUTLOOK

The Company believes that the majority of the downturn in the mineral industry has already occurred and that the market has mostly stabilized at lower utilization levels. While the Company remains active with well-funded intermediate and senior miners, there is no visibility as to when junior miners will start returning to the market.

The Company's Energy drilling division remains strong and the outlook for the remainder of the year will be dictated mostly by the weather heading into late-2013. The majority of the Company's oil sands equipment is spoken for and management is seeking to expand current contracts and enter into new ones in conjunction with acquiring or building new rigs. The division's seismic, geothermal and geotechnical fleet, while underutilized at present, is standing by as a number of tenders remain outstanding in North America and overseas.

Energold remains committed to maintaining a strong balance sheet. In doing so, the Company can maintain flexibility across its three main business lines by allocating capital on a case-by-case basis. As well, Company management will continue to consider various acquisitions at this time as the competitive environment for existing platforms has lessened as a result of market conditions.

Energold Drilling Corp. is a leading global specialty drilling company that services the mining, energy, and manufacturing sectors in 24 countries. Specializing in a socially and environmentally sensitive approach to drilling, Energold provides a comprehensive range of drilling services from early stage exploration to onsite operations for both metals and energy sectors and has an established drill rig manufacturer, Dando. Energold also holds 6.98 million shares of IMPACT Silver Corp., a profitable silver producer in Mexico.

On behalf of the Directors of Energold Drilling Corp.,

Frederick W. Davidson, President, CEO

Cautionary Note Regarding Forward-Looking Statements:

Some statements in this news release contain forward-looking information. These statements include, but are not limited to, statements with respect to proposed activities, work programs and future expenditures. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, the effects of general economic conditions, a reduction in the demand for the Company's drilling services, the price of commodities, changing foreign exchange rates, actions by government authorities, the failure to find economically viable acquisition targets, title matters, environmental matters, reliance on key personnel, the ability for operational and other reasons to complete proposed activities and work programs, the need for additional financing and the timing and amount of expenditures. Energold Drilling Corp. does not assume the obligation to update any forward-looking statement.