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

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

Business Wire

NEW YORK -- April 30, 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     April 30, 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                               
4/30/2013
                                                           
                       Net          Net Realized   Net
Fund   Distribution  Investment  Short-Term    Realized   Return of
                       Income       Gains          Long-Term   Capital
                                                   Gains
EGF^1  $ 0.065000    $0.037475   $0 (0%)       $0 (0%)    $0.027525 (42%)
                       (58%)
                    
Estimated Allocations for the fiscal year through 4/30/2013   
                                                               
                       Net          Net Realized   Net
Fund   Distribution  Investment  Short-Term    Realized   Return of
                       Income       Gains          Long-Term   Capital
                                                   Gains
EGF^1  $ 0.195000    $0.126144   $0 (0%)       $0 (0%)    $0.068856 (35%)
                       (65%)

^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’.
When distributions exceed total return performance, the difference will reduce
the Fund’s net asset value per share.

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          Annualized                           Cumulative
         annual           current            Cumulative        fiscal
         total return     distribution       total             year
         (in              rate               return (in        distributions
Fund   relation to    expressed as a   relation to     as
         NAV) for         percentage of      NAV) for the      a percentage of
         the 5-year       NAV                fiscal            NAV
         period           as of              year through      as of
         ending on        03/31/2013         03/31/2013        03/31/2013
         03/31/2013
EGF    4.41%          4.89%            (0.09)%         0.81%

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 March 31, 2013,
BlackRock’s AUM was $3.936 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 March 31, 2013, the firm has
approximately 10,600 employees in 30 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