Edgewater Exploration Ltd.

Edgewater Exploration Ltd.

May 12, 2014 09:00 ET

Edgewater Announces Updated Inferred Resource Estimate of 20.8 Mt grading 1.15 g/t Au Containing 768,000 Ounces of Gold at the Enchi Project, Ghana

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 12, 2014) - Mr. George Salamis, President and CEO of Edgewater Exploration Ltd. (TSX VENTURE:EDW) ("Edgewater" or the "Company") is pleased to announce an updated National Instrument 43-101 Inferred Resource Estimate at the Company's Enchi Gold Project, Ghana. The Inferred Resource Estimated at a cut-off grade of 0.7 g/t Au is as follows:

Enchi Gold Project, Ghana
2014 Inferred Mineral Resource Summary
Cut-off Zone Tonnes Grade Contained Gold
Au (g/t) Au (g/t) (ounces)
0.7 Boin 9,551,000 1.20 368,500
0.7 Nyam 3,716,000 1.13 135,000
0.7 Sewum 7,549,000 1.09 264,500
TOTAL 20,816,000 1.15 768,000
1. CIM definitionstandards were followed for the resource estimate.
2. The 2014 resourcemodels used ordinary kriging (OK) grade estimation within athree-dimensional block model with mineralized zones defined by wireframedsolids.
3. A base cut-offgrade of 0.7 g/t Au was used for reporting resources with a capping ofgold grades at 18 g/t.
4. A US$1,300/ouncegold price, open pit with heap leach operation was used to determine thecut-off grade.
5. A density of 2.45 g/cm3 was applied.
6. Numbers may not addexactly due to rounding.
7. Mineral Resourcesthat are not mineral reserves do not have economic viability

President and CEO, George Salamis, states; "This updated Inferred Resource Estimate remains in line with our expectations and continues to demonstrate significant upside potential. The current resource is hosted at or near surface, generally to an average vertical depth of only 75 meters and is open both along strike and to depth. The resource, which is largely hosted within oxidized saprolitic host rock, trends toward key targets where significant surface gold anomalies and anomalous trench results highlight potential strike extensions of several kilometers in length."

The Resource Estimate was prepared by independent qualified person Todd McCracken, P. Geo. of WSP Canada Inc. ("WSP"). The mineral resources were estimated using a block model with parent blocks of 10 X 10 X 10 and using ordinary Kriging methods for grade estimation. The quantity and grade of reported inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category. The mineral resource estimate is based on the combination of geological modeling, geostatistics and conventional block modeling using the ordinary kriging method of grade interpolation. The geological model and corresponding sections and plans were generated by Edgewater personnel and then audited by WSP. The QAQC protocols and corresponding sample preparation and shipment procedures for the Enchi Project have been reviewed by WSP.

A technical report is being prepared and will be filed in the next 45 days.

The Resource Estimate also evaluated the Enchi Project at a range of cut off grades between 0.3 and 2.0 g/t Au. Results are as follows;

Cut-off Tonnes Au g/t Ounces
0.3 72,611,000 0.65 1,526,065
0.4 53,366,000 0.76 1,304,918
0.5 37,357,000 0.90 1,078,702
0.7 20,816,000 1.15 767,988
0.9 12,993,000 1.36 569,879
1.0 10,127,000 1.49 484,388
1.2 6,446,000 1.70 352,779
1.5 3,011,000 2.11 204,549
1.7 2,041,000 2.36 154,976
1.9 1,554,000 2.54 126,727
2.0 1,174,000 2.73 102,909

The 2014 Mineral Resource estimate was based on 52,385 metres of diamond and RC drilling in 646 holes as well as data from 13,799 metres in 102 surface trenches. The drilling is generally spaced at 25 to 50 metre intervals.

The Enchi Project is a 51% Edgewater and 49% Red Back Ghana Limited ("Red Back") a wholly owned subsidiary of Kinross Gold Corporation ("Kinross") Joint Venture (subject to a 10% carried interest held by the Government of Ghana).

A two phase success contingent work program has been recommended by WSP. The first phase consists of metallurgical testing, and the completion of a preliminary economic assessment. The second phase, contingent on the success of phase one, consists of additional drilling, detailed metallurgical testing, further technical studies and a pre-feasibility study.

The Enchi resource estimate data in this news release was read and approved by Todd McCracken, P.Geo. of WSP Canada Inc., who is independent of Edgewater and a Qualified Person ("QP") as defined by National Instrument 43-101.

Mr. Gregory Smith, P.Geo, the Vice-President of Exploration of the Company, is the Qualified Person as defined by NI 43-101, and is responsible for the accuracy of the technical data and information contained in this news release.

About Edgewater Exploration Ltd.

Edgewater is a mineral development and exploration company focused on the development of precious metal properties. Edgewater has an experienced mine building and operating team with a track record of success. The Company is currently developing the Corcoesto Gold Project in northwest Spain, and exploring the Enchi Gold Project in Ghana, West Africa.

On behalf of the board of EDGEWATER EXPLORATION LTD.

George Salamis, President and CEO

"Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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