Evolving Gold Announces a Private Placement by Goldcorp Inc.to Purchase 19,047,721 Shares at $0.82 Per Share

July 7, 2010, Vancouver, British Columbia: Evolving Gold Corp. (TSXV: EVG) (FSE: EV7) (the "Company") is pleased to announce a private placement by Goldcorp Inc. for 19,047,721 common shares of the Company, at a price of $0.82 per share, for proceeds to the Company of $15,619,131.22. The proceeds from the private placement are to be used to explore the Company's major exploration properties, the Rattlesnake Hills project in Wyoming and Carlin and Humboldt projects in Nevada.

Robert Barker, CEO, comments, "We are extremely pleased to establish a strong relationship with Goldcorp. We view this placement as a major vote of confidence in our two key exploration properties, Rattlesnake Hills in Wyoming and Carlin and Humboldt in Nevada, and in the quality of our exploration team. This additional funding places Evolving Gold in a solid position to continue to aggressively explore these projects, which are both characterized as large scale gold systems. We focus our exploration on large systems, with potential for the discovery of large gold deposits. Success when exploring these large systems requires a high level of geological expertise, perseverance, commitment to drilling, and solid financing. This latest addition to our treasury comes at a critical point in our exploration program. We now have the financing to continue to support our exploration team as we drive toward creating new value for our shareholders with major new gold discoveries."

The private placement is being made at $0.82 per share and represents approximately 15% of the issued and outstanding common shares of the Company, for proceeds to the Company of $15,619,131.22. There are neither warrants nor other dilutive securities being issued, and no commissions nor finder's fees are being paid, in connection with the transaction. The shares are subject to a statutory four month hold period from the closing of the transaction, and the transaction remains subject to approval by the TSX Venture Exchange. Pursuant to the terms of the private placement, Goldcorp Inc. has the right, subject to certain conditions, to participate in future equity financings and certain non-cash transactions undertaken by the Company to maintain its relative interest in the Company, for a period of up to five years.

Closing of the private placement is expected to occur on or about July 9, 2010.

About Evolving Gold Corp.

Evolving Gold is focused on exploring its significant discovery at Rattlesnake Hills, Wyoming, an alkalic gold system, similar to the Cripple Creek gold district in Colorado, and on gold properties in and adjacent to the productive Carlin district of northern Nevada.

For more information about Evolving Gold please visit: www.evolvinggold.com. To receive regular updates or to receive a follow-up call from Investor Relations please sign up at: http://www.evolvinggold.com/.

In compliance with National Instrument 43-101, Quinton Hennigh, Ph.D., P.Geo., is the Qualified Person responsible for the accuracy of this news release.

On Behalf of the Board of Directors
EVOLVING GOLD CORP.

"Robert Barker"
Robert Barker
CEO and Director

FOR MORE INFORMATION, PLEASE CONTACT:
Evolving Gold Corp.
604-685-6375
 

FORWARD LOOKING STATEMENTS: This news release contains forward-looking statements, which relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company. Investors are cautioned that these forward looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. These forward-looking statements are made as of the date hereof and, except as required under applicable securities legislation, the Company does not assume any obligation to update or revise them to reflect new events or circumstances. All of the forward-looking statements made in this press release are qualified by these cautionary statements and by those made in our filings with SEDAR in Canada (available at www.sedar.com).
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