Edgewater Exploration Ltd.
TSX VENTURE : EDW
OTCQX : EDWZF

Edgewater Exploration Ltd.

March 07, 2012 09:30 ET

Edgewater Engages Tetra Tech for the Corcoesto Feasibility Study

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 7, 2012) - Edgewater Exploration Ltd. (TSX VENTURE:EDW)(OTCQX:EDWZF) ("Edgewater" or the "Company") is pleased to announce that Wardrop, a Tetra Tech Company, ("Tetra Tech") has been engaged by Edgewater to complete a NI 43-101 compliant Feasibility Study ("Feasibility Study") for the Corcoesto Gold Project in Galicia, Spain ("Corcoesto").

Tetra Tech is an internationally recognized leader in the design and engineering of feasibility level gold and base metal projects, worldwide, and more specifically in Europe on several mandates. Their experience and expertise in developing feasibility level mining projects will be an important part for the development of the Corocesto Gold Project. The Corcoesto Feasibility Study will commence in the coming weeks and is expected to be completed in Q4, 2012. The Feasibility Study will also include an updated mineral resource estimate, which will incorporate the results from the current in-fill drilling program which is underway on the project with 5 active drill rigs. The updated mineral resource estimate is expected for completion in the third quarter of this year. In addition to the conversion of inferred resources to a measured and indicate category, Edgewater anticipates that this portion of the study will further demonstrate a continued expansion of estimated mineral resources in all categories, which could potentially have positive effects on production projections as well as the overall economics of the Corcoesto Gold Project as was initially outlined in a 2011 Preliminary Economic Assessment.

On Nov 17, 2011 Edgewater announced the results of a positive preliminary economic assessment for Corcoesto. The Base Case Highlights included:

Base Case Highlights (US$1300)
Average Annual Gold Production 102,000/oz
Average Annual Net Revenue (US$) 60.0 Million
Life of mine Net Present Value (NPV)(US$)(5%) 206 Million
Pre-Tax Internal Rate of Return (IRR) 24%
Pre-Tax Payback (years) 3.4
Initial Open pit and underground Capital Cost (US$) 135 Million
Average Annual Cost (US$/oz) 713
Combined open pit and underground operation 9.9 year mine life

President and CEO George Salamis stated, "2012 is set to be a milestone year for Edgewater as we advance the Corcoesto project to the feasibility stage and further de-risk the project for the benefit of our shareholders. We are very pleased to award the Feasibility Study mandate to an experienced European represented firm such as Tetra Tech. At Corcoesto a significant infill drill program is on-going which has produced positive results thus far including: 1.9g/t gold over 38m and 1.6g/t gold over 41m. In addition, we have recently submitted the environmental impact assessment to the Galician government authorities, and have initiated capital financing discussions with several banks and financial institutions, in parallel with the feasibility process. We believe by early 2013 we will have a construction ready project and aim to have the majority of our project financing in place at this time with the assistance of our Project Finance Advisor Mr. AJ Ali. Subject to the outcome of the Bankable Feasibility Study, we remain firmly committed to seeing Corcoesto come to fruition as Galicia's newest gold mine and ensure that the communities surrounding Corcoesto derive maximum benefit from a future operation."

Mr. Gregory Smith, P.Geo., 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 gold development and exploration company focused principally on the Corcoesto Gold Project, Galicia northwest Spain, with a focus to complete a definitive feasibility study, environmental permitting and capital financing, simultaneously during 2012. Edgewater is also drilling the Enchi Gold Project in West Africa, Ghana with joint venture partner Kinross Gold Corp.

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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