Energold Announces 2011 Year End Results and Record Revenues and Earnings

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 10, 2012) - Energold Drilling Corp. (TSX VENTURE:EGD) ("Energold" or "the Company") is pleased to announce its results for the year ended December 31, 2011.

Revenues were a Company record of $133.5 million on a record annual high of 585,900 meters of mineral drilling, up 145% from revenues of $54.6 million, 69% on 346,300 meters of drilling in 2010. Revenues totalled $35.30 million in the fourth quarter, historically the slowest quarter, up 105% from $17.3 million in the last quarter of 2010, and meters drilled in minerals increased 30% to 134,500 meters in the fourth quarter from 103,400 meters in the comparative quarter of 2010. Overall, 2011 meters drilled in minerals increased significantly by 69% over the annual 2010 figures. The energy division drilled a further 444,400 meters in 2011, while there was no comparative meters drilled for energy in 2010. Overall, demand for drilling activity increased significantly in 2011 and based on macroeconomic trends will continue beyond 2012.

Net earnings were a record $26.4 million compared to the 2010 net earnings figures of $1.6 million as a result of a very successful year of operations and the net impact of accounting for the Bertram transaction.

The July 25^th 2011, acquisition of Bertram had a significant impact upon the consolidated statements of financial position and comprehensive income for the year ended December 31^st 2011. The acquired property, plant and equipment were written up by $23.8 million to their fair market value and intangibles by $4.1 million. The difference between the assets and liabilities acquired and the acquisition price resulted in a gain of approximately $15.0 million. Based on this transaction the Company included to December 31^st amortization of intangibles, $0.4 million, additional depreciation of property, plant and equipment, $1.1 million and $3.0 million related to the earn out bonus.

The Company enters 2012 in excellent financial position with a strong balance sheet and working capital position of $69.3 million and cash equivalents of $22.8 million. Subsequent to the year end the Company completed a $20.3 million bought deal by a syndicate led by the Toronto Dominion Bank. The Company's balance sheet also does not reflect the current market value of its equity investment in IMPACT Silver Corp. (TSX VENTURE:IPT). The Company's 6.98 million shares in IMPACT Silver Corp. is accounted for on an equity basis. Based on closing market prices at April 3 2012, the investment has a quoted market value of $11.4 million, amounting to $4.74 million more than its' carrying value.

Year-End Results Comparison ($CAD 000s except per-share amounts and meters drilled)
December 31		2011	2010	% Change
Revenues		133,482	54,592	145
Gross Profit*		38,317	11,675	228
Gross Profit Percentage*		28.7%	21.4%	34
Net Earnings		26,428	1,586	1,566
Earnings Per Share
	- Basic	0.65	0.05	1,200
	- Diluted	0.64	0.05	1,180
Cash and Cash Equivalents		22,782	28,225
Working Capital		69,341	63,650
Meters Drilled - Minerals Meters drilled - Energy		585,900 444,400	346,300 0

(*) Gross Profit excludes Amortization and Depreciation

The Company's strategy for 2011 and 2012 is to capitalize on opportunities globally as demand increases for exploration for both energy and minerals. With the demand for drill rigs outpacing supply, Energold was able to improve rig utilization rates and pricing. The Company also took the opportunity to diversifying our service offerings venturing into manufacturing and sale of drill rigs, and the expansion into drilling for energy related projects. With revenue per meter increasing and additional expenses being passed onto clients, average margins increased to over 29% overall, a material increase from 2010's average of 21%.

Quarterly Results Comparison (CAD 000s except rig fleet and meters drilled)
	Dec 31, 2011	Sep 30, 2011	June 30, 2011	Mar 31, 2011
Revenues	35,302	47,033	28,417	22,731
Rig Fleet	125	122	115	110
Meters Drilled	134,500	170,300	155,300	125,800

Senior and intermediate base metal and gold mining clients were successful in raising capital and generating earnings in 2011. Juniors also had a window of opportunity to re-establish their treasuries, with the recovering market early in the year. It is expected that with greater amounts of cash and financial flexibility in project selections, our clients will continue the demand for drilling services in 2012.

Minerals Drilling

Revenues for the mineral division in the fourth quarter of 2011 were $27.1 million, up 57% from $17.3 million in the fourth quarter of 2010. For the year, the mineral division revenues totaled $105.8 million. This compares to $54.6 million for the comparative period of 2010 or a 94% increase. The combination of general price increases on drilling projects, and an increase in higher priced frontier drilling activity increased the average revenue per meter to $201 for the fourth quarter 2011 from $167 for the fourth quarter in 2010, and to $181 for the year from $158 for the year 2010. Gross margin percentage from mineral drilling was up to 31.4% for 2011, compared to 21.4% in 2010. As the percentage of the Company's rigs move to the frontier areas continues to increase, the Company expects to see further increasing average prices and improving margins.

Mexico, Caribbean, and Central America remains our strongest market with 43 rigs in the region. South America has a similar number of rigs operating in five countries. Africa, especially West Africa remains one of the fastest growing regions with over 39 rigs and at least 5 to be added in the first part of 2012. The Company is just starting to penetrate the Asian market. It currently has 2 rigs in the region and is anticipating adding at least 2 to 3 more rigs in the immediate future. Its S rigs are particularly suitable in parts of Asia where there are low labour costs and a lack of infrastructure.

Energold remains dedicated to continual research and innovation of our industry leading frontier portable and modular S-Style Series II and III rigs, with modification and upgrade programs to increase its capabilities and performance. With frontier programs transitioning to developing mine sites there is an additional requirement for more conventional equipment. The mineral fleet now includes underground rigs, larger diamond coring rigs, RC rigs and multi-purpose rigs. At year ending December 31 2011, the Company had a total of 125 mineral rigs and continues to expand its rig fleet with a target of an additional 20 to 30 rigs by year-end 2012.

Energy Drilling

The Energy division was very active during the traditionally slower summer/fall season, completing over 29,700 holes and a total of 444,400 meters from the date of acquisition to December 31, 2011, of which 10,700 holes and a total of 214,800 meters occurred in the fourth quarter, levels not experienced since 2006. Bertram had total revenues of $3.8 million and margins of 16.1% during the fourth quarter, normally the slowest quarters for actual drilling activity, even as the company incurs mobilization costs for the winter oil sands coring season for number of international oil and gas clients. Year to date revenues were $13.5 million and the gross margin was 18.4%. It is anticipated that, a significant portion of Bertram's 15 coring rigs will be employed in the first quarter of 2012. The energy division will redeploy some of the energy rigs to optimize the Bertram fleet utilization, including the possibility of mobilizing some of Bertram's seismic rigs to markets where demand is higher than its traditional markets.

Manufacturing

The manufacturing division continued to grow and thrive during the final quarter of the 2011 with revenues of $4.4 million and net income of $0.3 million. By the year end, expanded sales and new contracts resulted in total sales for the year of $14.2 million and a net profit of $0.1 million. The division is on track to achieve a substantial increase in revenue and profit going forward, with strong demand for rigs and equipment (non arms length) resulting in a confirmed order book of 5.7 million GBP and strong inquiries of 10.0 to 20.0 million GBP's heading into 2012. This new division will also provide a source of additional rigs to broaden Energold's scope of services to selected customers in appropriate geographic regions; capitalize on Energold's existing relationships to build larger rigs for clients; engineer rig improvements, and build separate water well drilling services division for Energold.

Overall 2011 was a transformative and prolific year for the Company, headlined with record revenue, profits, and expansions into new business segments. The industry has taken notice and Energold received several accolades as a result of its record breaking growth and adherence to the strict upmost respect for the social and environmental aspects in mineral exploration. Amongst the list of awards Energold has been recognized for in 2011 are Profits 200, BC Magazine's Fastest Growing Companies, Business in Vancouver's Fastest Growing Companies, TSX Venture Top 50 Companies, TSX Pick of the Street Award, and our most valuable achievement, the continual commitment from our shareholders.

Looking forward to the 2012 and beyond, with new rigs and additional contracts across the globe, the Company has strategically positioned itself for future growth globally into one of the larger drilling companies in the world.

The Company will be reviewing its 2011 Year-End results via Conference Call at 4:15 pm ET, 1:15 pm PT, Wednesday April 11^th. 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 audio file can be accessed at our website: http://www.energold.com/s/Events.asp

Energold Drilling Corp. is a global leader in an environmentally and socially-sensitive diamond drilling company that services the mining, energy, and manufacturing sector. Energold holds 6.98 million shares of IMPACT Silver Corp.

On behalf of the Directors of Energold Drilling Corp.

Frederick W. Davidson, President, CEO

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, the price of commodities, changing foreign exchange rates, actions by government authorities, 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. IMPACT does not assume the obligation to update any forward-looking statement.