Energold Announces Net Earnings, Significant Growth, and Record Revenue in Second Quarter 2011

Energold Drilling Corp. (EGD: TSX.V) ("Energold" or "the Company") is pleased to announce continued growth and another profitable quarter reflected by strong demand for contract drilling services resulting in record revenues of $28.4 million, up 120% from $12.9 million in the comparable period in 2010 and up 25% from the first quarter of 2011. The Company recorded $3.7 million in consolidated net earnings at $0.09 EPS (earnings-per-share), as compared to $1.0 million net earnings at $0.03 EPS in the same period of 2010. Energold earned $0.14 EPS for the six months ended June 30, 2011, as compared to $0.01 EPS net loss in the same period in 2010.

The Company drilled 155,300 meters for the quarter, outpacing the previous Company record number of meters drilled of 125,800 meters recorded in the first quarter of 2011. The Company drilled a new record of 281,100 meters in the first half of 2011, up 100% from 140,300 meters drilled in the same period of 2010 (see Energold news release dated August 3, 2011).

The Company remains in excellent financial position with a working capital position of $66.1 million and cash and cash equivalents of $16.8 million and no long-term debt. The Company's balance sheet strength also does not reflect the market value of its equity investment in IMPACT Silver Corp. (IPT: TSX-V). The Company's 10.27% interest in IMPACT Silver Corp. is accounted for on an equity basis. Based on closing market prices at August 22, 2011, the investment has a quoted market value of $15.4 million, amounting to $8.83 million more than our carrying value.

Second Quarter Results Comparison
(CAD 000s except per-share amounts and meters drilled)

The Company completed its ninth quarter of consecutive growth in meters drilled resulting in positive growth in revenues and consolidated net earnings. A substantial portion of the drilling continues to be the more competitively bid "brownfields" exploration, typically mine sites or near mine site drilling; however, as new rigs are built an increasing portion of the drilling mix over the last few quarters has been shifting towards 'frontier drilling' in areas such as West Africa and South America.

Average revenue per-meter increased to $169 in the second quarter of 2011 as compared to $149 in the second quarter of 2010 and decreased marginally from $170 in the first quarter 2011 due to the Canadian dollar strengthening against the U.S. dollar, as compared to the second quarter of 2010 which dampened the effect of higher U.S. dollar rates on revenues. Gross margins from drilling remained strong at 27.9% in the second quarter, compared to 23.8% in the comparative quarter in 2010 and 28.6% in the prior quarter. The higher revenues per meter and gross margins reflect the steady addition of more frontier drilling programs into the overall mix. This trend is expected to accelerate during the second half of 2011 and into 2012. Energold's manufacturing arm, Dando Drilling International Ltd., recorded $2.4 million in sales, but as forecasted, experienced a loss of $300,000. It is expected that once existing contracts are completed, the orders for new equipment will increase margins in subsequent quarters, reflecting a stronger contribution from this sector.

Six Months Ended June 30, 2011 Results Comparison
(CAD 000s except per-share amounts and meters drilled)

Mexico and Central America remain as the strongest market for the Company with 42 rigs located in the region and contributed approximately half of the total meters drilled with further rig expansion. Brazil, Peru and specifically Argentina showed significant growth in the South America operations. Over 30 rigs are located in the Africa operations with planned rig additions throughout 2011.

At June 30, 2011, the Company had 115 drilling rigs with an additional 3 more rigs under construction in response to continued demand for highly mobile drilling rigs and increased exploration expenditures in frontier drilling. The fleet includes 87 EGD Highly Mobile Surface Rigs, 7 Underground Rigs as well as a number of conventional rigs. Further investment into research and development has resulted in retrofitting a number of the rigs to enhance their performance and the field testing of new prototypes designed to expand the potential of its highly mobile fleet and the value of the Company's service offering to its clients.

Subsequent to the end of the quarter, the Company acquired 100% of Bertram International Corp. ("Bertram") a diversified specialty drilling company servicing the energy sector in Canada and U.S. (see Energold news release dated July 25, 2011). Bertram has a fleet of 119 rigs specially designed for oil sands coring, shot hole seismic and geothermal drilling services markets. Bertram also provides diamond and pipeline drilling services. The Bertram acquisition provides Energold a unique opportunity to acquire, on an accretive basis, a proven leader of specialty drilling services in a niche, high growth area of the energy sector. This will diversify Energold's revenue sources and dramatically scale up operations of the Energold Group in pursuit of its overall strategic goal to become a leading international specialty drilling services company delivering above average returns in comparison to its peer group.

On July 25 2011, the Company also completed a $10.0 million secured convertible debenture (CD) issue (see Energold news release dated July 21, 2011). The net proceeds of the CD will be used to provide interim funding of Energold's ongoing business operations, in particular for the funding of acquisitions and capital commitments.

The second quarter of 2011 further demonstrates the continued strong positive trend of growing drilling demand across our markets. Energold's strategic goal is to continue to utilize our cash reserves to capitalize on the favourable market conditions and build the foundation to fuel further growth. Energold's primary focus continues to be on organic growth through new rig development, expansion into new markets, and a focus on strategic acquisition targets.

The Company will be reviewing its Second Quarter 2011 results via Conference Call at 11:30 am ET, 8:30 am PT, Tuesday, August 30th. The dial-in numbers are 1-866-782-8903 or 647-426-1845. Management will be discussing the Company's financial and operational results ending with a question-and-answer period. Investors are encouraged to forward any questions they may have to info@energold.com. The recorded conference call can be accessed at our website on August 30th 2011: http://www.energold.com/s/Events.asp

Energold Drilling Corp. is an environmentally- and socially-sensitive diamond drilling company that services the international mining industry. Energold holds 6.91 million shares of IMPACT Silver Corp.

On behalf of the Directors of Energold Drilling Corp.


"Frederick W. Davidson"
President, CEO