Evergold Corp

MINERAL EXPLORATION COMPANY

EVERGOLD

Evergold Corp.

Toronto, Ontario

evergoldcorp.ca PROPERTY LOCATION & ACQUISITION DATE

Snoball is located approximately 30 km north / northwest of Bob Quinn and west of Highway 37. Acquired in 2016.Golden Lion located approximately 25 km north / northwest of Benchmark Metals' Lawyers Property and north of the Toodoggone River. Acquired in 2016.

CONTACTS

GENERAL INQUIRIES LEADERSHIP, CONTRACTING, & EMPLOYMENT

Kevin M. Keough

President and CEO 613 622 1916 kevin.keough @evergoldcorp.ca

Above: Evergold Golden Horseshoe map.

COMPANY OVERVIEW & UPDATE

Any successes or challenges you’d like to share?

The principal challenges we faced on both properties were weather and labour-related. The Pyramid Peak site at Snoball is extreme. Very high, very steep, very windy, with a large glacier immediately behind the drill zone and in consequence, also very foggy. The fog and wind can greatly limit the flying needed to service the drill.

The GL1 Main site at Golden Lion is by comparison to Snoball ideal. That said, GL1 Main sits in a bowl surrounded by ridges and in consequence tends to see a great deal of snow accumulation over winter, which takes time to melt off and delays the seasonal start. The site is also more remote than Snoball. Bears caused some damage to our camp and some safety concerns.

Lastly, COVID-19 had a significant negative impact in a way we had not anticipated. In many sectors of the economy, it has become more difficult to find labour and competition for experienced, trained personnel is high.

PROJECT ACTIVITIES IN THE 2021 SEASON

Snoball: The 2021 program focused entirely on helisupported drilling at Pyramid Peak from a camp based at the old Burrage Airstrip off Highway 37. There were no other activities performed. We drilled just shy of 400 metres in 4 holes, all drilled from the same pad.

Golden Lion: The 2021 program focused predominantly on drilling, all of it taking place at our key "GL1 Main" target. In all, 1,811 metres in 9 holes, from 3 pads (3 holes per pad). We also completed additional ground-based geophysics (IP), geological mapping, geochemical sampling of rocks using a backpack drill, and a large amount of data analysis and modelling of multiple datasets. This work was based from a helisupported 25-person camp we set up on site.

Our driller lost crews to the competition not long after the start of work for us at Golden Lion, and could only supply a single crew for one month, after which we were forced to prematurely shut down. The driller also had to withdraw from their contract with us for the Snoball program. Because it was peak drilling season, we were unable to find a suitably experienced and equipped driller to take on Snoball until early September, which was too late in the year. In consequence we accomplished little there.

Despite all those challenges, we nonetheless achieved major success in our last 3 drill holes of 2021 at Golden Lion with the discovery of our first genuinely high-grade gold-silver domain within the broad, long footprint of the GL1 Main Zone. Example intercepts included, in hole GL1-025, 2.8 metres of 10.4g/t gold, 651g/t silver, 11% zinc, and 4% lead, within 11.3 metres of 5.4g/t gold, 62g/t silver, 3% zinc, and 1% lead. Program highs for individual 0.5–0.6 metre-long core samples were 44.7 grams gold per tonne, 924 grams silver per tonne, 20.2% zinc and 10.0% lead.

Number of employees working on your project(s)?

• Snoball: 32 people employed at different times (i.e., not all in camp at the same time).

• Golden Lion: 51 people employed at different times (i.e., not all in camp at the same time).

Where does the majority of your financing come from year to year? What’s the breakdown of who owns your company and what’s your company’s market cap?

Our money comes from a broad array of retail and institutional investors located mostly in Canada, but many in the US and Europe, and some as far afield as Australia and Indonesia. 58% retail, 29% institutions, 13% insiders. Market cap approximately $9.5 million.

Tentative plans and hopes for the 2022 season?

The high-grade results from Golden Lion are a gamechanger for that program, and our intent is to go back in the 2022 field season and follow up. This will likely entail several thousand metres of core drilling, as well as additional geophysics, sampling and mapping. Given the strong results and the relative ease of operating there, it is likely that our entire focus in 2022 will be on Golden Lion, with additional work at Snoball put off until future years.

RELATIONSHIP WITH THE TCG & TAHLTAN NATION

During the 2021 season, what involvement did TCG personnel and departments have with your company? If they were not involved, why not?

We were fortunate to have the help of Ann Ball in trying to locate an alternative drilling company to provide us with services for our Snoball project. Our 2021 exploration programs were very similar in terms of the activities performed to those in 2020, and as mentioned previously, significantly smaller in scale than we had hoped, given the various challenges we faced in the field. Because of the similar nature of the activities and the smaller scale, there were no changes needed in terms of our permitting. We did have bear problems at Golden Lion and attempted to get hold of Jarett to advise us on how to deal with the matter, but Blake Day took on the task and resolved it for us.

In 2021, how many Tahltans did you employ? What positions did they hold in your company and what percentage of Tahltans did you employ compared to others?

Snoball: 11 of 32 personnel were Tahltan (34%). In terms of hours worked, 1,576 hours out of a total of 4,048 hours were worked by Tahltan (39%).

Golden Lion: 7 of 51 personnel were Tahltan (14%). In terms of hours worked, 138 hours out of a total of 8,496 hours were worked by Tahltan (16%). Golden Lion is about as remote by road as one can get from Dease Lake or Iskut. It is a long drive south, then east to Prince George, then a 10 hour drive back north again mostly on forest service roads. For this reason, it is hard to attract Tahltan employees to that project. On occasion, we put on a plane to fly from Dease to Sturdee strip south of Lawyers, but this is very expensive to do routinely.

Our Tahltan personnel were involved as cooks, COVID safety, geotechnicians, soil samplers, geophysical crew, and core cutters.

What employment opportunities, now and in the future, are available to Tahltan members?

Every position is open to qualified Tahltan members, and we are happy to provide training on-the-job. Typical positions are for drill crew, geophysical crew, soil samplers, prospectors, camp construction and maintenance, cooking staff, core loggers / geotechnicians, core cutters, and geologists.

Why should Tahltan members want to work for you?

Our operations are welcoming, friendly, positive places to work, where people are respected. The work is interesting, there are opportunities to learn, and there's real camaraderie among our staff.

Did you have any Tahltan contractors working for your company? What percentage of your contracting dollars went to Tahltan companies, including TNDC and their joint ventures?

Yes. Obsidian camps.

Do you have any outside contractors working for you? If so, who are they? Who were the primary contractors you utilized? Do they offer employment opportunities to Tahltan members?

Our primary non-Tahltan contractors in 2021 for both our Snoball and Golden Lion projects were Dorado Drilling (part of JT Thomas Drilling out of Smithers), CJ Greig & Associates out of Penticton, and Silver King Helicopters out of Smithers. All of these businesses offer employment opportunities for Tahltans.

Above: Tahltan workers, core shack geotech staff, Golden Lion – 2021.