Mr. R. Bruce Duncan reports

NEW GOLD TARGETS IDENTIFIED AT RATTLESNAKE HILLS PROJECT

Surface exploration in 2011 identified new gold targets at Evolving Gold Corp.'s Rattlesnake Hills gold discovery in Wyoming, a joint venture with Agnico-Eagle (USA) Ltd. Agnico-Eagle is the manager of the Rattlesnake Hills joint venture and is financing 100 per cent of the exploration program.

Summary of results:

• Surface exploration included 1,279 soil samples and 368 rock chip samples.
• The soil survey identified new gold target zones outside of the known gold occurrences at North Stock and Antelope basin.
  • Gold (Au) anomalies were identified with a similar magnitude to North Stock and Antelope basin at South Stock, Confluence, Pronghorn and E-W Breccia. The South Stock anomaly has a larger footprint than North Stock.
  • Arsenic (As) anomalies cover all targets, and demonstrate both north-south and east-west structural corridors. Arsenic concentrations show similar patterns to gold, which is expected given its correlation with gold in core samples.
• Rock chip sampling confirmed the gold target at South Stock, also identified in drill hole RSC180 (nine grams per tonne Au over three metres) reported on Jan. 23, 2012. Rock chip samples also identified a new gold target zone to the east.
  • A large area of gold mineralization outcrops on top of South Stock, mainly as oxidized, disseminated and vein-hosted sulphides in heterolithic breccia.
  • Rock chips up to 3.1 g/t Au identify the Growler prospect, 1,300 m east of South Stock in vein breccias and potassic alteration.
  • Multiple 0.5 to more than one g/t Au samples also outline the known Exhalite gold target.

"The surface exploration work completed this past field season confirms the presence of additional gold targets outside of the known targets at North Stock, Antelope basin and Exhalite. These results are expanding the scale of the gold mineralization at Rattlesnake Hills, demonstrating that this is a district-scale gold project," said R. Bruce Duncan, chief executive officer of the company. "These new gold targets present an exciting new set of exploration and drill targets for 2012."

Soil and rock chips were processed at American Assay Labs (AAL) in Sparks, Nev. Rock chips used fire assay for Au (FA30) and ICP-2A for 68-element suite. Soils used fire assay for Au (FA30) and ICP-2A-UT for 68-element suite.

About the Rattlesnake Hills project

Evolving Gold joint ventured its Rattlesnake Hills gold discovery with Agnico-Eagle on June 27, 2011. Approximately 80,000 m of core drilling in 180 holes have been completed on the property in four seasons of drilling. Agnico-Eagle has the right to earn up to 70-per-cent ownership in the project by spending $76-million over seven years on a combination of cash payments to Evolving Gold, purchases of Evolving Gold treasury shares and project work commitments, including the obligation to advance the project through feasibility. In addition to financing the exploration at Rattlesnake Hills, Agnico-Eagle brings considerable mining expertise to the project, allowing Evolving Gold to focus on its extensive portfolio of gold properties in Carlin, Nev.

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