E2Gold Inc. extensively expanded the McKinnon gold system. Work this summer demonstrated at-surface mineralization along an additional 3.5 km strike-length to the east and 150 m north of the McKinnon Zone Resource,1 increasing the gold system to a 7 km strike and 180 m width at surface. An eventual significant increase from the current Resource may be established if future drilling also demonstrates continuity in this system.

Importantly, mineralization, including visible gold, has been found at surface in the greenstones, a rock unit previously not known to host appreciable amounts of gold in this location. These veins are well north of the greenstone-granite contact that currently hosts the McKinnon Zone Resource. Re-evaluation of existing data combined with new structural interpretations led E2Gold geologists to locate historic workings north and east of McKinnon, including a roughly 15 foot shaft.

The Company now believes the greenstone itself could be a significant host for gold and is building its anticipated next 10,000 m drill program in this new light.