Edgewater Exploration Ltd.
TSX VENTURE : EDW
OTCQX : EDWZF

Edgewater Exploration Ltd.

September 19, 2011 09:30 ET

Edgewater Intersects New Bulk Gold Zone at Enchi Gold Project, Ghana

Results Include 0.35 g/t Gold Over 200 Metres

SEWUM GOLD ZONE

- SWDDH038, 0.35 g/t gold over 200.1 metres inc. 1.21 g/t gold over 7 metres

- SWDDH043, 0.39 g/t gold over 61 metres inc. 2.54 g/t gold over 4 metres

BOIN GOLD ZONE

- KBDDH016, 1.12 g/t gold over 28 metres

- KBDDH022, 1.05 g/t gold over 19 metres

NYAM GOLD ZONE

- NBDDH039, 5.43 g/t gold over 8 metres

- NBDDH041, 1.06 g/t gold over 13 metres

- NBDDH042, 0.70 g/t gold over 40 metres inc. 1.15 g/t gold over 11 metres

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 19, 2011) - Edgewater Exploration Ltd. ("Edgewater" or the "Company") (TSX VENTURE:EDW)(OTCQX:EDWZF) is pleased to announce results from the ongoing drilling programme at the Company's, Enchi Gold Project ("Enchi or the Project") in Ghana. Three diamond drilling rigs are currently on site and 17,234m (149 drill holes) of a 38,000m programme contracted for 2011 have been completed. Drilling has been focussed on three main zones of gold mineralization, Boin, Nyam and Sewum, localised along the Bibiani Fault or associated regional scale fault splays (Nyambekyere Shear and Sewum Shear). The Bibiani Fault is host to the mineralization at Kinross Gold Corporation's Chirano gold mine located 70kms northeast of Enchi. Mineralization intersected during Phase I including 0.35 g/t gold over 200m at the Sewum gold zone is evidence of a newly discovered gold system interpreted to be a much larger broad bulk tonnage system which is the source of the vast geochemical anomalies at the Sewum zone. Edgewater currently has assays pending for an additional 23 diamond drill holes from the Sewum zone. Phase I shallow drilling at Boin and Nyam continues to intersect near surface gold mineralization where Edgewater has focused on confirming continuity between previously drilled sections by Red Back Mining. A Phase II drilling programme has commenced at Boin and Nyam focusing on deeper plunging sections of these gold zones, which remains significantly open at depth and along strike, showing similar structural characteristics to the Chirano gold mine and Bibiani gold mine geology. Edgewater remains on track with a maiden NI 43-101 resource estimate during Q4, 2011.

George Salamis, President and CEO of Edgewater, stated "These encouraging drill results continue to highlight the vast gold resource potential at Enchi. For the first time at Enchi, Edgewater is intersecting broad zones of low grade gold mineralization, in some cases up to 200m in thickness at the Sewum Gold Zone. Sewum hosts over 5kms of the highest soil geochemical anomalies identified at Enchi and coupled with these recent diamond drill results we believe we are on the edges of a previously unidentified and large intrusive hosted gold system in the Sewum area. Elsewhere at Boin and Nyam, the predominance of several kilometres of strike length consisting of continuous gold mineralization in drill-core and trenches along several linear structures is a strong indication that we are in the presence of a very large gold mineralized system. With the Phase I program having successfully intersected shallow gold mineralization at Boin and Nyam, Phase II drilling has commenced and will be testing deeper regions of known mineralization in these areas, below depths of 200 meters from surface. At Kinross' Chirano gold deposit to the north of Enchi, deeper drilling along shoots of near surface mineralization led to the discovery of high grade gold resources at depth. As Enchi has the same geological and structural setting as the Chirano mine we view the potential for gold zone discovery and continuity at depths of below 200 metres as being excellent."

BOIN GOLD ZONE RESULTS

The Boin Gold Zone has anomalous gold intercepts over a known strike length in excess of 10 km identified by previous RC and RAB drilling. Gold mineralization at Boin is hosted in highly weathered volcanic and sedimentary rocks cut by quartz veins and localised in the hanging wall of the Bibiani Fault.

Edgewater's first phase of diamond drilling at Boin was recently completed. Thirty three holes totalling 2919m were drilled aimed at confirming results of previous RC drilling and proving continuity of the mineralised zone by twinning selected holes and infill drilling between the wider spaced lines of RC holes. The drilling confirmed a near surface, moderately dipping (~40º) zone of continuous gold mineralization >1000 m long up to 35m thick that is open along strike and down dip (See Table I). The average depth of this drilling was shallow, ranging between 50 to 75m from surface.

In early September a second phase of drilling aimed at extending the zone of continuous gold mineralization at Boin was commenced. In this second phase, Edgewater will be targeting "down-plunge" mineralization where zones of concentration are projected from near surface drilling, at depths averaging below 200m from surface. Based on the results of these drill programs an inaugural NI 43-101 resource statement for Boin is expected to be prepared by late 2011.

TABLE I
BOIN GOLD ZONE PREVIOUSLY UNREPORTED SIGNIFICANT DRILL INTERCEPTS FROM FIRST PHASE DIAMOND DRILL PROGRAMME
HOLE NO TYPE SECTION FROM TO INTERVAL ASSAY
KBDDH016 Diamond Drillhole 3850N 29 37 8 1.11
KBDDH016 Diamond Drillhole 3850N 47 48 1 2.92
KBDDH016 Diamond Drillhole 3850N 47 75 28 1.12
KBDDH016 Diamond Drillhole inc 52 61 9 1.80
KBDDH016 Diamond Drillhole 3850N 88 94 6 1.72
KBDDH017 Diamond Drillhole 3850N 0 4 4 2.26
KBDDH021 Diamond Drillhole 3750N 6 7 1 1.32
KBDDH021 Diamond Drillhole 3750N 17 18 1 1.21
KBDDH021 Diamond Drillhole 3750N 28 34 6 0.79
KBDDH022 Diamond Drillhole 3350N 69 75 6 0.89
KBDDH022 Diamond Drillhole 3350N 84 103 19 1.05
KBDDH023 Diamond Drillhole 3350N 77 79 2 0.73
KBDDH028 Diamond Drillhole 3450N 28 32 4 1.47
KBDDH028 Diamond Drillhole 3450N 36 45 9 1.07
KBDDH029 Diamond Drillhole 3800N 32 33 1 3.09
KBDDH029 Diamond Drillhole 3800N 41 46 5 1.44
KBDDH029 Diamond Drillhole 3800N 49 53 4 1.00
KBDDH030 Diamond Drillhole 4200N 31 42 11 0.90
KBDDH030 Diamond Drillhole inc 31 34 3 1.91
KBDDH030 Diamond Drillhole 4200N 39 42 3 1.13
KBDDH031 Diamond Drillhole 5150N 3 4 1 0.49
KBDDH032 Diamond Drillhole 5150N 145 147 2 1.33
Notes: 1) All reported intercepts are core lengths and true widths are estimated at 80 per cent of core lengths
2) Weighted averages calculated using uncut assays.

NYAM GOLD ZONE RESULTS

As reported in May an initial programme of 42 diamond drill holes totalling 3969m and 12 trenches totalling 394m had been completed at the Nyam Zone. All assay results for this first phase of diamond drilling have now been received (for Previously Unreported Results See Table II). Gold mineralization is hosted in altered and brecciated carbonaceous sediment and localised along a steep east dipping structure. Mineralisation has now been intersected in drilling continuously over 1600m and is still open in all directions.

A second phase of drilling aimed at expanding the known resources by testing the mineralised structure along strike and at depth has been planned for the Nyam Zone. Construction of new roads to allow rig access has been completed. It is anticipated that the results of these drill programmes will allow the preparation of an NI 43-101 resource statement for Nyam in late 2011.

The Nyam Zone lies along a regional scale structure (Nyambekyere Shear Zone) that can be traced for >15kms to the south of Nyam. Numerous gold prospects lie along this structure including the Kwakyekrom Prospect where RC drilling and trenching conducted by Leo Shields in 1996 outlined a continuous zone of gold mineralisation >1500m long and included drill hole intersections up to 1.51 g/t gold over 22m. Diamond drilling has been planned for Kwakyekrom when the second phase of drilling has been completed at Boin and Nyam.

TABLE II
NYAM PROSPECT PREVIOUSLY UNREPORTED SIGNIFICANT RESULTS FROM FIRST PHASE DIAMOND DRILL PROGRAMME
HOLE NO TYPE SECTION FROM TO INTERVAL ASSAY
NBDDH036 Diamond Drillhole 14740N 24 26 2 1.41
NBDDH036 Diamond Drillhole 14740N 33 61 28 0.43
NBDDH036 Diamond Drillhole inc. 58 61 3 1.47
NBDDH036 Diamond Drillhole 14740N 72 81 9 0.88
NBDDH037 Diamond Drillhole 14740N 1 3 2 1.61
NBDDH037 Diamond Drillhole 14740N 21 22 1 2.10
NBDDH037 Diamond Drillhole 14740N 42 45 3 0.87
NBDDH038 Diamond Drillhole 14820N 4 7 3 2.73
NBDDH038 Diamond Drillhole 14820N 19 20 1 0.56
NBDDH038 Diamond Drillhole 14820N 41 45 4 0.85
NBDDH039 Diamond Drillhole 14820N 3 11 8 5.43
NBDDH039 Diamond Drillhole 14820N 37 38 1 7.05
NBDDH040 Diamond Drillhole 14900N 73 81 8 0.81
NBDDH041 Diamond Drillhole 14900N 37 73 36 0.60
NBDDH041 Diamond Drillhole inc 5 12 7 0.49
NBDDH041 Diamond Drillhole inc 37 50 13 1.06
NBDDH042 Diamond Drillhole 14900N 8 48 40 0.70
NBDDH042 Diamond Drillhole inc 27 38 11 1.15
Notes: 1) All reported intercepts are core lengths and true widths are estimated at 80 per cent of core lengths
2) Weighted averages calculated using uncut assays.

SEWUM GOLD ZONE

The first phase of diamond drilling has been completed at the Sewum prospect. Seventy holes totalling 9878m were drilled. The drilling was designed to test a 7km long gold geochemical anomaly that straddles the Sewum Shear Zone. The Sewum Shear Zone consists of a series of stacked thrusts up to 3km wide and hosts numerous gold prospects along its length. The drilling showed that gold mineralization has been localised along steep to moderately dipping shears hosted in carbonaceous sediment and intrusive and also in a silicified, brecciated and stockworked contact zone of a dolerite intrusive (See Table III). Results are still pending from 23 drill holes.

Drilling confirmed the continuity of anomalous gold mineralization over more than 3000m and discontinuous mineralization over more than 5000m along the Sewum Shear Zone. Follow-up drilling is planned at Sewum to continue testing the zones of mineralization identified in the first phase of diamond drilling once all the assay results have been received.

TABLE III
SEWUM PROSPECT SIGNIFICANT RESULTS FROM FIRST PHASE OF
DIAMOND DRILLING (RESULTS FROM 23 DRILL HOLES STILL PENDING)
HOLE NO TYPE SECTION FROM TO INTERVAL ASSAY
SWDDH005 Diamond Drill Hole 17700N 98 99 1 1.38
SWDDH013 Diamond Drill Hole 17100N 88 89 1 1.96
SWDDH018 Diamond Drill Hole 18100N 88 89 1 5.44
SWDDH019A Diamond Drill Hole 17350N 0 2 2 3.01
SWDDH034 Diamond Drill Hole 18500N 119 120 1 1.4
SWDDH038 Diamond Drill Hole 19600N 1 200.1 200.1 0.35
SWDDH038 Diamond Drill Hole inc 11 18 7 1.21
SWDDH038 Diamond Drill Hole inc 116 124 8 1.07
SWDDH039 Diamond Drill Hole 19600N 17 18 1 1.74
SWDDH040 Diamond Drill Hole 19650N 84 125 41 0.44
SWDDH040 Diamond Drill Hole inc 85 93 8 0.97
SWDDH041 Diamond Drill Hole 19650N 23 97 74 0.30
SWDDH041 Diamond Drill Hole inc 24 46 22 0.57
SWDDH041 Diamond Drill Hole inc 30 36 6 1.02
SWDDH041 Diamond Drill Hole 19650N 90 97 7 0.86
SWDDH043 Diamond Drill Hole 19700N 96 97 1 1.12
SWDDH043 Diamond Drill Hole 19700N 121 182 61 0.39
SWDDH043 Diamond Drill Hole inc 125 129 4 1.02
SWDDH043 Diamond Drill Hole inc 166 182 16 0.95
SWDDH043 Diamond Drill Hole inc 166 170 4 2.54
SWDDH056 Diamond Drill Hole 21250N 36 42 6 1.19
SWDDH056 Diamond Drill Hole 21250N 76 91 15 0.55
SWDDH057 Diamond Drill Hole 21200N 54 81 27 0.43
Notes: 1) All reported intercepts are core lengths and true widths are estimated at 80 per cent of core lengths
2) Weighted averages calculated using uncut assays.

Drilling has commenced at the Eradi Prospect. The Eradi Prospect is located at the convergence of two of the main regional scale structures, the Bibiani and Nyambekyere shear zones, located at the northern end of the Enchi licenses. A gold-in-soil anomaly in excess of 5kms in length at Eradi has been previously tested by two trenches that returned gold intervals of 1.47 g/t over 36.9m and 0.63 g/t over 5m.

Sample analyses have been conducted at independent commercial facilities SGS Labs in Tarkwa Ghana. All sample analyses was completed using industry standard geochemical and fire assay practices and included a rigorous Quality Assurance / Quality Control (QA/QC) program consisting of the insertion of standards, blanks and duplicate samples randomly into the sample stream. A review of the QA/QC results shows no significant bias and all results are considered highly reliable.

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 exploration company focused principally on acquisitions, advancement and development of precious metal properties. Edgewater is currently developing the Enchi Gold Project in Ghana, West Africa and the Corcoesto Gold Project in northwest Spain.

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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