Mr. Bruce Duncan reports

EVOLVING GOLD PROVIDES UPDATE ON FIRST RECONNAISSANCE SURVEY HIGHLIGHTING AN 8 KM BY 2 KM POTENTIAL LITHIUM MINERALIZATION ZONE

Evolving Gold Corp. has completed its initial field mapping and survey program on targets the company had previously identified as potential pegmatite hosts for lithium mineralization (see news release dated June 16, 2016, and July 5, 2016). A number of pegmatite bodies were identified, along with minerals associated with fertile granites, such as green muscovite and garnets that may be associated with lithium mineralized pegmatite. The geological work also identified a new type of target, which is discussed in this press release.

Geological mapping, conducted from July 9, 2016, to July 23, 2016, indicates that the area surrounding targets T5 and T8 is of particular interest for lithium prospectivity. During this initial exploration program, the field crew was able to find a series of minerals associated with fertile granite and possible mineralized pegmatite of lithium-cesium-tantalum (LCT) type, the potential host rocks for lithium mineralization. At T5, the team identified abundant green muscovite and accessory garnet, which are also observed in the Nemaska lithium deposit, approximately 20 kilometres to the southwest. Green muscovite and red garnet are typically found associated with fertile granite intrusions and within mineralized lithium host pegmatites (Bradley and McCauley, 2013).

The geological team also identified a large circular structure (approximately 1,000 metres in diameter) associated with a topographic low and a geophysical magnetic high. This type of signature is sometimes associated with kimberlite or lamprophyre pipes, either of which are potential hosts for diamonds. This circular structure could also be associated with a carbonatite intrusion, which is sometimes associated with rare earth element mineralization. Other geological structures could also create a similar type of signature and further field exploration will be necessary in order to identify the source of this anomaly. The fieldwork will include a till sampling program which, coupled with mapping of the outcrops and further geophysical interpretation, is expected to properly identify the feature.

Assay results of grab samples from pegmatite, paragneiss, granite and basalt units are currently pending. The field exploration team is compiling data in preparation for the second phase of groundwork, which will focus on the heart of the claims, located between targets T5 and T8, including further assessment of T1, which hosts the circular structure described above. This represents an area of eight kilometres by two kilometres which current observations highlight as the most prospective for the presence of lithium mineralization. The remaining unvisited targets will also be part of the next field program, which is due to start on Sept. 10, 2016. The historical geophysical data on the property are also being compiled and will be reassessed along with the company's recent observations from the field by GDD Geosciences, to enhance the efficiency of field prospecting activities in the future.

Evolving Gold's chief executive officer, R. Bruce Duncan, stated: "The reconnaissance field survey was successful in rapidly identifying a large area with a high potential for lithium-bearing pegmatite discoveries. Our team has already identified pegmatite with mineral combinations similar to those observed at the Nemaska lithium project, to the southwest of our claim blocks."

Target information from field exploration

Cooling and fractionation processes during pegmatite intrusion events may result in mineralogical and chemical zonation associated with lithium enrichment, creating potentially economic grades of spodumene mineralization in white LCT-type pegmatite (white potassic feldspar and quartz). The T5 target consists of three large outcrops covering an area of 100 metres by 200 metres. The outcrops are composed of white pegmatite with 10 per cent to 20 per cent of green muscovite and 1 per cent of red garnets, minerals that can be associated with lithium-bearing pegmatite (Bradley and McCauley, 2013).

The T8 target is granitic gneiss, with visible epidotization, sulphide minerals and chloritized basalts observed, along with pegmatite dikes ranging from 10 centimetres to one metre in thickness. A single allanite crystal (rare earth mineral) was included in one of the pegmatite grab samples. Green micas (fuschite or muscovite) were also observed in the pegmatite.

Targets T2, T7, T10 and T11 were surveyed and were found to be granitic gneiss with quartz, plagioclases and large amphibole crystals. Partial chloritization was observed in the gneiss, which was intruded by pegmatitic dikes with a northeast-southwest orientation. The T10 target exhibits a significant amount of epidote veining.

Targets T3, T4, T9 and T12 have not yet been field surveyed. No outcrop was discovered on targets T6 or T1; hence, further work will be required to characterize these areas properly. A large boulder field found on the T1 target will be reviewed as well.

Field sampling program

A total of 87 field grab samples (including field duplicates of pegmatite) were collected for assaying. The samples include granitic gneiss, pegmatite, diorite, quartz veins and altered gneiss. The technical team will use the assay results to determine the presence of any chemical zonation and/or fertile granite compositions associated with potentially lithium-bearing pegmatite bodies (Selway et al., 2005). The grab sample duplicates will serve as field duplicates in a quality assurance/quality control program established by the company.

Grab samples from bedrock outcrop were shipped to Actlabs (Val d'Or, Que.), where they will be pulped and assayed using the Ultratrace 3 package. This procedure combines INAA with near-total acid digestion and ICP-OES and ICP-MS analyses to provide the concentrations of 65 elements.

Qualified person

Jean-Philippe Paiement, PGeo, MSc, is an independent qualified person as defined by National Instrument 43-101 guidelines, and has reviewed and approved the geological information provided in this news release.

About Evolving Gold

Evolving Gold is focused on exploring the 72.5-square-kilometre (total area) Lithium Lakes property in Quebec, located about 10 kilometres north of the Route du Nord and between eight kilometres and 30 kilometres from Nemaska Lithium's Whabouchi project.

We seek Safe Harbor.