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Edgewater Exploration potentially "sitting on almost 2 million ounces of gold"

|Includes: Edgewater Exploration Ltd. (EDWZF)

Egewater Exploration (CVE:EDW) has been dubbed one of the cheapest junior mining companies around, with an advanced gold project in Spain, and a highly anticipated joint venture with Kinross Gold in Ghana, Africa, according to research firm Caesars Report.

The Canadian mineral exploration company wholly owns the Corcoesto gold project in northwest Spain, as well as an additional 7 gold-copper projects totalling more than 50,000 hectares in the southwestern part of the country.

Open in many directions, the under-explored asset has the potential to expand beyond the current resource estimate. The project currently has almost 1.5 million ounces in the measured, indicated and inferred categories, with two drill rigs still working to expand and upgrade the resource base.

At a cut-off grade of 0.5 and 1 gram per tonne (g/t), the average grade of the Corcoesto
project is approximately 1.7 g/t, which should result in a positive preliminary economic assessment (PEA) study, to be expected later this year, Caesars noted.

"Based on the good infrastructure in Spain and the good grades of the project, we think the PEA will outline a 75k-100k oz per annum operation, with capital expenditures in the range of $125-150M, and operating expenses approximately in the $650/oz range, in line with similar projects in the region."

Permits are currently in place for smaller scale mining at the project, and amended permits for a larger operation are anticipated to be easily retained. The local mayor in the region has also pledged his support for the project, which is expected to create a number of new jobs.

In addition to Corcoesto, Edgewater is earning 51% of the Enchi gold project in Ghana, West Africa from Red Back Mining, now a part of Kinross Gold. The property, which covers a 40 kilometre strike length of the Bibiani Shear Zone, is located 70 kilometres southwest of Kinross' 5 million ounce Chirano gold mine.

Edgewater is now completing a 35,000 metre diamond drilling program at Enchi. After the earn-in period, Enchi is expected to be 51% owned by Edgewater, with the remainder held by Kinross in a joint venture.

The current drill results at Enchi are highly encouraging, Caesars said, and the maiden NI 43-101 compliant resource estimate due out in the fourth quarter is eagerly anticipated, with over 15,000 to 20,000 metres of drilling to be included.

Edgewater, with an enterprise value of roughly $32 million according to Caesars, has $18 million in its treasury - one of the few junior mining companies with a decent war chest. With the maiden resource for Enchi due by year end, the explorer could be sitting on almost 2 million ounces of gold.

"The millions in the treasury assure the company to be able to continue drilling and advancing their projects, without having the pressure to continuously tap the markets. We expect the company to be fully funded throughout 2011 and 2012," concluded Caesars.