EDW

Mr. George Salamis, President and CEO of Edgewater Exploration Ltd. (TSX
VENTURE:EDW)(OTCQX:EDWZF) ("Edgewater" or the "Company") is pleased to provide
an update on several positive initiatives recently undertaken aimed at
benefitting all stakeholders and communities surrounding the Corcoesto Gold
Project ("Corcoesto" or the "Project") in Galicia, Spain. In addition, the
Company is pleased to provide an update on the on-going Bankable Feasibility
Study which is on track for Q3/13 completion. 


Mr. Salamis, President and CEO states: "The positive initiatives announced today
reflect the Company's core values which emphasize clarity, accountability,
honesty, transparency and a commitment to developing Corcoesto gold resources in
the most environmentally friendly manner possible using best practice
technology. The Corcoesto Bankable Feasibility Study being completed by Micon
International Limited is on schedule for completion in Q3/13 with feasibility
level operating and capital cost estimates to date being in-line with previous
estimates tabled in the 2011 Preliminary Economic Assessment." 


The Company has recently entered into an agreement with the Association of
Excavators of Galicia ("AEXGA") giving top preference on future mine development
and operational contracts to Galician earth-moving companies for the Corcoesto
Gold Project. The focus of this agreement is to prioritize and guarantee the
creation of quality employment opportunities for the local communities
surrounding the Project and the whole Galician region. This underscores
Edgewater's commitment to maximizing local employment through several different
initiatives. The Company continues to take steps to ensure the surrounding
communities and region derives the maximum socio-economic benefits from the
Project. 


Additionally over the past several months, the Galician firm, Northwest
Consultants, in parallel with the University Santiago de Compostela, have been
working closely with the local communities and governments to complete an
extensive socio-economic report and plan for the Corcoesto Gold Project. This
independent socio-economic report (see http://www.edgewaterx.com for the full
report) has been tabled to the Government of Galicia and demonstrates several
benefits including;




--  Multi-level extensive community engagement during all phases of mine
    development and operation 
--  Numerous medium to long term social programs and training initiatives
    proposed, all designed to benefit local communities and stimulate growth
--  +1,600 direct and indirect jobs in Galicia generated during the first
    year of development 
--  Halt and possibly reverse the decreasing population in the region
    through economic diversification and stimulus 
--  Sustainable development initiatives designed to benefit local
    communities and industries.



Mr. Salamis reports: "The successful development of Corcoesto, with the support
of the surrounding communities and government, will provide the necessary
skilled jobs to assist in supporting long term sustainable development in the
region for generations to come, in addition to the added financial benefits that
come from a project of this scope." 


Resource Estimate Update

Edgewater recently engaged Micon International Limited ("Micon") to complete an
updated Resource Estimate and a final Bankable Feasibility Study for the
Corcoesto Gold Project. Edgewater is scheduled to announce an updated Resource
Estimate during Q2/2013 which will include data from +50,000m of infill drilling
completed during the 2011 and 2012 drilling seasons. Edgewater's previous
Resource Estimate used as the basis for the 2011 Preliminary Economic Assessment
("PEA") included 325,000 ounces of gold in Measured and Indicated categories and
1,149 million ounces of gold Inferred. The focus of the infill drilling program
and the new updated Resource Estimate was to upgrade Inferred resources to a
Measured and Indicated categories so as to provide as basis for the Bankable
Feasibility Study. 




           Corcoesto Gold Deposit May 2011 Resource Estimate          
                                                                      
----------------------------------------------------------------------
----------------------------------------------------------------------
                                                             Contained
                            Cutoff      Tonnes                    Gold
Resource Class            (g/t Au)     (x1000)      g/t Au  (x1000 oz)
----------------------------------------------------------------------
Measured                      0.65       3,899        1.77         222
----------------------------------------------------------------------
Indicated                     0.65       1,823        1.69         103
----------------------------------------------------------------------
Measured + Indicated          0.65       5,783        1.74         325
----------------------------------------------------------------------
Inferred                  0.65/2.0      20,265        1.76       1,149
----------------------------------------------------------------------
----------------------------------------------------------------------

1.  CIM definition standards were followed for the resource estimate 
2.  The 2010 and 2011 resource models used an inverse-distance-power (IDP)
    grade estimation within a three-dimensional block model with mineralized
    zones defined by wireframed solids. 
3.  A total of 19,075.7 m of surface trenching in 225 trenches, 443.1 m of
    adit sampling in 4 adits and 42,111.18 metres of diamond and RC drilling
    in 342 drill holes were used in the resource with sample spacing's that
    were less than 30 m for Measured resources, less than 40 metres for
    Indicated resources and less than 195 m for Inferred resources except
    for Inferred resources below 200 m from surface and for the northern two
    vein systems that used drill spacing's of 196 m 
4.  A base cutoff grade of 0.65 g/t Au was used for reporting resources
    above a depth of 200 m from surface and a cutoff grade of 2.0 g/t Au was
    used for reporting resources below 200 m from surface 
5.  Dilution is included for a minimum mining width of 2.0 m on a 4.0 m high
    mining bench 
6.  Mineral Resources that are not mineral reserves do not have economic
    viability 
7.  The Resource Estimate was completed by A. Noble of Ore Reserves
    Engineering and detailed in the Technical Report titled Technical Report
    for the Corcoesto Gold Deposit, Galicia Spain with an effective date of
    May 27, 2011.



Final Feasibility Study Update

Work on the Feasibility Study by Micon has been advancing well and is nearing
completion. The resource estimate remains on track for Q2/13 with the final mine
plan expected to be completed by the beginning of July, as part of the
Feasibility Study. A cost-benefit analysis of owner operated fleet vs. contract
mining has been carried out and at this time, management's recommendation will
be to use a mining contractor, eliminating the need to purchase mining
equipment. The plant design being prepared by SGS Metcon/KD Engineering Co. is
well advanced with the flow sheet, design criteria, equipment list and plant
layout all complete. Equipment quotations are awaited to complete the final
capital cost estimate and this is expected to be complete before the end of
June. Plant operating costs are nearing completion and remain in-line with
previously stated estimates. Mining costs have been well defined and are in-line
with previously reported mining cost estimates. The tailings dam design is being
carried out by Golder Associates Ltd. (Spain) and is expected to be complete by
mid-June. All other infrastructure costs are nearing completion and remain
in-line with previously stated estimates announced in the Preliminary Economic
Assessment (see press release November 17, 2011). The project already has an
approved Environmental Impact Assessment and a more detailed analysis of the
waste water management and quality, required as a condition in the approval, is
near completion. This work is being carried out by Micon with a specialist from
SRK Consulting Inc.(Cardiff, UK). The final Feasibility Study is expected during
Q3/2013.


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 mineral development and exploration company focused on
advancement and 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.


In Spain, Edgewater has completed a Preliminary Economic Assessment (PEA) based
on a Measured and Indicated Resource of 325,000 ounces of gold (5,783 million
tonnes at an average grade of 1.74 g/t gold) and an Inferred Resource of 1,149
million ounces of gold (20,265 million tonnes at a grade of 1.76 g/t gold). A
base cut-off grade of 0.65 g/t gold was used in the estimation of these
resources, above an average depth of 200 m and a cut-off of 2.0 g/t below 200 m
depth. The PEA was published December 30, 2011 which demonstrated robust
economics including a pre-tax Net Present Value (NPV) at 5% discount of $206
Million an Internal Rate of Return (IRR) of 24% and a Payback of 3.4 years using
a gold price of $US1, 300 per ounce in the financial models. Over the last 16
months Edgewater has completed +50,000 metres of infill drilling, an ongoing
final Bankable Feasibility Study with Micon International Limited signed a debt
mandate agreement with Credit Suisse AG and Barclays Bank PLC for up to $120
Million for project financing and received the full Environmental Impact
Statement for the Corcoesto Gold Project. (Please visit www.edgewaterx.com for
further details). The Corcoesto Gold Project PEA Technical Report was prepared
by Alan Noble, P.E., of Ore Reserves Engineering Inc., a professional
independent mining engineer registered in the State of Colorado, USA and a
Qualified Person ("QP") as defined by National Instrument 43-101. The PEA is
preliminary in nature and includes inferred mineral resources that are
considered too speculative geologically to have the economic considerations
applied to them that would enable them to be categorized as mineral reserves.
There is no certainty that the assessment contained in the PEA will be realized.
Readers should consult the full PEA to review all the qualifications and
assumptions made by the authors in preparing the PEA.


In Ghana, the Company's Enchi Gold Project (51/49 JV with Kinross) is host to an
Inferred Resource of 749,000 ounces of gold (20,627 million tonnes at an average
grade of 1.13 g/t gold), using a cut-off of 0.7 g/t gold. The Enchi Resource
Estimate dated July 12, 2012 was prepared by Todd McCracken, P.Geo. of Tetra
Tech., who is independent of Edgewater and a Qualified Person ("QP") as defined
by National Instrument 43-101. CIM definition standards were followed for the
resource estimate. The 2012 resource models used ordinary kriging (OK) grade
estimation within a three-dimensional block model with mineralized zones defined
by wireframed solids. A capping of gold grades at 18 g/t and a density of 2.45
g/cm3 was applied. Mineral Resources that are not mineral reserves do not have
economic viability


On behalf of the board of EDGEWATER EXPLORATION LTD.

George Salamis, President and CEO

FOR FURTHER INFORMATION PLEASE CONTACT: 
Edgewater Exploration Ltd.
Ryan King
Vice President
(604) 628-1012
rking@edgewaterx.com
www.edgewaterx.com

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