TROILUS GOLD INVESTMENT

Emgold Mining Corporation (“Emgold”) owns 3.75 million shares of Troilus Gold Corporation (TSX:TLG) (“Troilus Gold”), a Toronto Stock Exchange listed company. Troilus Gold acquired the past producing Troilus Mine in 2018 with the goal of advancing it back into production. The Troilus Mine was an open pit and underground mine operated by Inmet Mining Corporation with a reported historic production of 2.0 million ounces of gold and 70,000 tonnes of copper between 1996 and 2010. The Troilus Mine is located 160 km north of the town of Chibougamau, QC in the Frotet-Evans greenstone belt in the northwest section of the Val d”Or mining district of Quebec. For information on Troilus Gold, go to www.troilusgold.com or view their corporate filings on www.sedar.com.

In June 2018, Emgold optioned the 11,309 hectare Troilus North Property from Chimata Gold Corporation. In November, 2018, Emgold completed the acquisition of a 100% interest in Troilus North from Chimata for cash, shares, and completion of work commitments. In December 2018, Emgold subsequently sold the Troilus North Property to Troilus Gold for C$250,000 in cash and 3.75 million shares of Troilus Gold.

For a period of two years, until December 5, 2020, Troilus Gold will have a Right of First Refusal (ROFR) pursuant to which Troilus Gold shall have the opportunity to find a buyer at equal or superior terms in the event Emgold wishes to dispose of the Shares (the “ROFR Period”). During the ROFR Period, provided Emgold holds no less than 5% of Troilus’ issued and outstanding shares, Emgold shall have the right to participate in transactions involving the issuance of equity securities of Troilus Gold, in order to maintain its proportional interest in Troilus Gold, subject to certain conditions. At the time of closing of the Transaction, Emgold held approximately 7.1% of Troilus Gold’s issued and outstanding stock.

The sale of the Troilus North Property to Troilus Gold created a 16,000 hectare (40,000 acre) property representing one of Quebec’s most exciting gold development opportunities. Troilus Gold is currently conducting exploration on the the Troilus Mine Property and plans to expand their exploration activities onto the Troilus North Property. The exploration target is 5 million ounces, based on indicated and inferred ounces delineated to date, as shown below.