Evolving Gold Announces Closing of Private Placement

Vancouver, British Columbia, January 19, 2006: Evolving Gold Corp. (“Evolving Gold”) (CNQ:GOLD) is pleased to announce that it completed a private placement of 1,270,000 units (the “Units”) at a price of $0.30 CDN per Unit (the “Private Placement”). Each Unit is comprised of one common share and one non-transferable common share purchase warrant (a “Warrant”). Each Warrant will entitle the holder thereof to purchase one additional common share of Evolving Gold at $0.40 CDN per share for a period of two years from the date of closing of the Private Placement. Evolving Gold paid finder’s fees equal to 10% of the total number of Units purchased by Investors introduced to Evolving Gold by the finder who actually purchased Units under the Offering. These finder’s fees were payable in cash or Units at the individual finder’s election. One finder also received a finder’s warrant from Evolving Gold.
The securities offered as part of the Private Placement will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), and may not be offered or sold within the United States or to, or for the account or benefit of, “U.S. persons”, as such term in defined in Regulation S promulgated under the U.S. Securities Act, except in certain transactions exempt from the registration requirements of the U.S. Securities Act.
The proceeds of this Private Placement will be used to fund exploration activities on Evolving Gold’s properties, including the Winnemucca Mountain Property and the Labrador Property and for general working capital.

This news release shall not constitute an offer to sell or an offer to buy the securities in any jurisdiction.

ON BEHALF OF EVOLVING GOLD CORP.
Warren McIntyre
Chief Financial Officer, Corporate
Secretary and Director