BlackRock Enhanced Government Fund, Inc. Announces Estimated Sources of Distributions

  BlackRock Enhanced Government Fund, Inc. Announces Estimated Sources of
  Distributions

Business Wire

NEW YORK -- January 9, 2013

Today, BlackRock Enhanced Government Fund, Inc. (NYSE: EGF) (the “Fund”)
announced that the Fund paid the following dividend per share:

                         
Fund    Pay Date           Per Share
EGF     January 9, 2013    $0.065000
                          

The Fund has adopted a level distribution plan (the “Plan”) and employs either
a managed distribution or an option over-write policy to support a level
distribution of income, capital gains and/or return of capital. The fixed
amounts distributed per share are subject to change at the discretion of the
Fund’s Board. Under its Plan, the Fund will distribute all available
investment income to its shareholders, consistent with its primary investment
objectives and as required by the Internal Revenue Code of 1986, as amended.
If sufficient investment income is not available on a monthly basis, the Fund
will distribute long-term capital gains and/or return capital to its
shareholders in order to maintain a level distribution.

The Fund’s estimated sources of the distribution paid this month and for its
current fiscal year are as follows:

                                                                     
Estimated Allocations as of 1/9/2013                                
                                         Net              Net
                                              Realized         Realized
                             Net              Short-Term       Long-Term
                             Investment
Fund    Distribution    Income        Gains         Gains        Return of
                                                                               Capital
EGF^1   $0.065000       $0.029652     $0 (0%)       $0 (0%)      $0.035348
                             (46%)                                             (54%)
                                                                               
Estimated Allocations for the fiscal year through 1/9/2013                  
                                              Net              Net
                                              Realized         Realized
                             Net              Short-Term       Long-Term
                             Investment
Fund    Distribution    Income        Gains         Gains        Return of
                                                                               Capital
EGF^1   $0.830000       $0.640659     $0 (0%)       $0 (0%)      $0.189341
                             (77%)                                             (23%)
                                                                               

^1The Fund estimates that it has distributed more than its income and capital
gains in the current fiscal year; therefore, a portion of your distribution
may be a return of capital. A return of capital may occur, for example, when
some or all of the shareholder’s investment is paid back to the shareholder. A
return of capital distribution does not necessarily reflect a Fund's
investment performance and should not be confused with ‘yield’ or ‘income’.

The amounts and sources of distributions reported are only estimates and are
not provided for tax reporting purposes. The actual amounts and sources of the
amounts for tax reporting purposes will depend upon the Fund’s investment
experience during the remainder of its fiscal year and may be subject to
changes based on tax regulations. The Fund will send you a Form 1099-DIV for
the calendar year that will tell you how to report these distributions for
federal income tax purposes.

                                                             
Fund Performance and Distribution Rate Information:           
        Average                       
           annual
           total             Annualized         Cumulative       Cumulative
           return (in        current            total            fiscal
           relation to       distribution       return (in       year
           NAV) for          rate               relation         distributions
                                                to               as
           the 5-year        expressed as       NAV) for         a percentage
           period            a                  the fiscal       of
           ending on         percentage         year             NAV as of
                             of NAV             through
Fund    11/30/2012     as of           11/30/2012    11/30/2012
                             11/30/2012
EGF     5.24%          4.83%           4.05%         4.73%
                                                                 

Shareholders should not draw any conclusions about the Fund’s investment
performance from the amount of the Fund’s current distributions or from the
terms of the Fund’s Plan.

About BlackRock

BlackRock is a leader in investment management, risk management and advisory
services for institutional and retail clients worldwide. At September 30,
2012, BlackRock’s AUM was $3.673 trillion. BlackRock offers products that span
the risk spectrum to meet clients’ needs, including active, enhanced and index
strategies across markets and asset classes. Products are offered in a variety
of structures including separate accounts, mutual funds, iShares^®  (exchange
traded funds), and other pooled investment vehicles. BlackRock also offers
risk management, advisory and enterprise investment system services to a broad
base of institutional investors through BlackRock Solutions^®. Headquartered
in New York City, as of September 30, 2012, the firm has approximately 10,400
employees in 29 countries and a major presence in key global markets,
including North and South America, Europe, Asia, Australia and the Middle East
and Africa. For additional information, please visit BlackRock’s website at
www.blackrock.com.

Forward-Looking Statements

This press release, and other statements that BlackRock or the Fund may make,
may contain forward-looking statements within the meaning of the Private
Securities Litigation Reform Act, with respect to the Fund or BlackRock’s
future financial or business performance, strategies or expectations.
Forward-looking statements are typically identified by words or phrases such
as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,”
“expect,” “anticipate,” “current,” “intention,” “estimate,” “position,”
“assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,”
“achieve,” and similar expressions, or future or conditional verbs such as
“will,” “would,” “should,” “could,” “may” or similar expressions.

BlackRock cautions that forward-looking statements are subject to numerous
assumptions, risks and uncertainties, which change over time. Forward-looking
statements speak only as of the date they are made, and BlackRock assumes no
duty to and does not undertake to update forward-looking statements. Actual
results could differ materially from those anticipated in forward-looking
statements and future results could differ materially from historical
performance.

With respect to the Fund, the following factors, among others, could cause
actual events to differ materially from forward-looking statements or
historical performance: (1) changes and volatility in political, economic or
industry conditions, the interest rate environment, foreign exchange rates or
financial and capital markets, which could result in changes in demand for the
Fund or in the Fund’s net asset value; (2) the relative and absolute
investment performance of the Fund and its investments; (3) the impact of
increased competition; (4) the unfavorable resolution of any legal
proceedings; (5) the extent and timing of any distributions or share
repurchases; (6) the impact, extent and timing of technological changes; (7)
the impact of legislative and regulatory actions and reforms, including the
Dodd-Frank Wall Street Reform and Consumer Protection Act, and regulatory,
supervisory or enforcement actions of government agencies relating to the Fund
or BlackRock, as applicable; (8) terrorist activities, international
hostilities and natural disasters, which may adversely affect the general
economy, domestic and local financial and capital markets, specific industries
or BlackRock; (9) BlackRock’s ability to attract and retain highly talented
professionals; (10) the impact of BlackRock electing to provide support to its
products from time to time; and (11) the impact of problems at other financial
institutions or the failure or negative performance of products at other
financial institutions.

Annual and Semi-Annual Reports and other regulatory filings of the Fund with
the Securities and Exchange Commission (“SEC”) are accessible on the SEC's
website at www.sec.gov  and on BlackRock’s website at www.blackrock.com, and
may discuss these or other factors that affect the Fund. The information
contained on BlackRock’s website is not a part of this press release.

Contact:

BlackRock Enhanced Government Fund, Inc.
1-800-882-0052
 
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