edgewater exploration ltd. - drilling for gold in ghana ... · cova crea gold zone peton de lobo...

Edgewater Exploration Ltd.Drilling for Gold in Ghana and Spain

July 22 ! 2011www.caesarsreport.com

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Edgewater Exploration Ltd.

www.edge-water.com

CAESARS REPORT — www.caesarsreport.com

CAESARS REPORT

Introduction

Egewater Exploration is a Canadian-based mineral exploration and mine development company with gold assets in proli!c gold regions Ghana West Africa and La Coruña, Spain.

Together with FeatherStone Capital Advisors, Edgewater successfully secured two mid-stage gold projects from Red Back Mining and Lundin Mining. Red Back Mining, now Kinross Gold Corp., optioned to Edgewater the Enchi Gold Project in West Africa, Ghana,

located 70 km southwest of Kinross’ 5 million oz Chirano Gold Mine. The Enchi Gold Project covers a 40 km strike length of the Bibiani Shear Zone that hosts a number of major gold mines and deposits including the Chirano Gold Mine and the 5 million oz Bibiani gold deposit. Ghana is the second largest gold producer in Africa with 2009 production totalling 2.9 million ounces.In Addition, the Company owns a 100% interest in the Corcoesto Gold

Deposit (”Corcoesto”) in northwest Spain as well as an additional 7 gold and gold-copper projects totalling 50,013 ha in southwest Spain. Open in many directions, Edgewater believes the under-explored asset has the potential to expand beyond the current Resource Estimate. Edgewater has begun a scoping study on the Corcoesto Gold Project and has a 35,000m diamond drilling program underway in Ghana.

CORCOESTO GOLD PROJECTENCHI GOLD PROJECT

July 22nd, 2011 — Edgewater Exploration Ltd.

FeasibilityAdvancedExploration

EarlyExploration Financing Development Production

SPAIN (Corcoesto)

GHANA (Enchi)

Price

Ticker

O/SMarket CapAverage VolumeCommodity Countries Active

Cash

C$ 0.820TSX-V: EDWPINK: EDWZFFRA: 9EW

66.68M " 92,20M(FD)C$ 54.7M " 76.5M(FD)63,802 (TSX-V)GoldGhana, Spain

C$18.5M 40M(FD)

52 Week High: C$ 1.400 (2010/10/21)52 Week Low: C$ 0.680 (2011/04/18)

0.650.650.650.65/2.0

Cutoff GradeAu g/t

Resource Class

Aug/t

Contained Gold oz x1000

Tonnesx1000

Corcoesto 2010 and 2011 Mineral Resource Summary

MeasuredIndicatedM+IInferredTotal

3,8991,8235,783

20,26526,048

222103325

1,1491,474

1.771.691.741.76

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CAESARS REPORT

Corcoesto Gold Project

The Corcoesto Project is located in Western Spain, not too far away from La Coruna and Santiago de Compostela, one of Europe’s major pilgrimage destinations. The project currently has almost 1.5M oz in the Measured, Indicated and Inferred categories, with two drill rigs currently still drilling to expand the resource base, and to move the current ounces into higher categories.

At a cut-off grade of 0.5 and 1g/t, the average grade of the Corcoesto Project is approximately 1.7g/t, which should result in a positive Preliminary Economic Assessment (PEA), to be completed later this year.Based on the good infrastructure in Spain and the good grades of the project, we think the PEA will outline a 75k-100k oz p/a operation, with

Corcoesto Aerial View

Corcoesto

Malpica

Pozo Del Ingles Gold Zone

Cova Crea Gold Zone

Peton De LoboGold Zone

Corcoesto Development Timeline

2011Q1 2011Q2 2011Q3 2011Q4 2012Q1

GEOLOGICAL MAPPING, TRENCHING, & SOIL SAMPLING

NI 43-101 RESOURCE ESTIMATE

C$2.5M DRILLING

ENGINEERING SCOPING STUDY


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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. Extremely positive here is the fact that the mayor of the city, Jose Muño of the conservative Partido Popular, has repeatedly pledged his support to the development of the Corcoesto Project, as it will create the necessary jobs in

the Galician region where the unemployment rate recently broke through the 20%-mark. An operating Corcoesto could create approximately 200-300 direct new jobs, with indirect employment opportunities far in excess of this number.Another positive note here is the fact that the project is currently permitted for smaller scale mining, but due to the increase in the resource size, the

company has applied for new permits, covering the complete resource base. As there currently are permits for the project, re-permitting the project at a larger scale should not be a problem. The project is in the autonomous region Galicia, therefore the company doesn’t have to get federal approval for mine development permit approvals, so they only need the go-ahead from the Galician government.

Ore Zone CC20. Cut-Off 0.5 g/t Au

Topographic surface

Ore Zone PI-27. Cut-Off 1.0 g/t AuLongitudinal section - Cova Crea Longitudinal section - Pozo del Ingles

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10E07

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0 25 50 75 100 meters

Graphic scale

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10E12

11E13

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OPEN AT DEPTH

0 25 50 75 100 meters

> 10> 20> 30> 40> 50> 100

Old DDH Intersection

Legend

Grade x thickness

Scale

EDGEWATER DDH Intersection

Corcoesto 2010 - 2011 Drill Results

Peton de Lobo Cova Crea Cova Crea Cova Crea Cova Crea Pozo De Ingles Pozo De Ingles Pozo De Ingles

Mineralized Zone

Drill Hole Aug/t

Intercept Length(m)From To

Hole 10E01 Hole 10E02 Hole 10E03 Hole 10E05 Hole 10E07 Hole 10E09 Hole 10E10 Hole 11E13

25.1 159.0 155.0 174.7 261.2

0.0 164.0 320.8

30.05 165.0 167.5 182.8 304.6

8.6 181.0 334.1

4.956.00

12.508.10

43.408.60

17.0013.30

1.604.270.751.711.511.29

10.722.66

1.51 g/t Gold over 43.40m

2.66 g/t Gold over 13.3m

10.72 g/t Gold over 17m

View looking southeast from the village of Corcoes-to toward the Corcoesto Project (hill in background)

View along the strike of the Pozo del Ingles deposit towards the east and the Peton de Lobos deposit

View looking east-northeast from the top of the Peton de Lobos deposit


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Enchi Project Timeline

2011Q1 2011Q2 2011Q3 2011Q4 2012Q1

12,000M DIAMOND DRILL PROGRAM

INITIAL NI 43-101 RESOURCE ESTIMATE

35,000M DIAMOND DRILL PROGRAM

PRIORITIZING DRILL TARGETS

Enchi Gold Project

Edgewater’s second horse in the stable is the earn-in into the Red Back (now Kinross) Enchi Gold Project in Ghana. Edgewater is currently earning a net 51% of Kinross’ share by spending 5M in exploration. After ful!lling this obligation, Edgewater owns 45.9% of the project, as the Ghanaian government always maintains a 10% interest in mining projects. Edgewater will continue to be the operator of the project, after the earn-in the project will be 51% Edgewater and 49% Kinross and a joint venture is anticipated to be structured between the two companies. Edgewater anticipates having earned into the project during Q1, 2012.The Enchi Gold Project is located on the Bibiani shear, just like the Bibiani Project from our Mining Top 25-recommendation Noble Mineral Resources (ASX:NMG), and Kinross’ Chirano Mine, so the Enchi project is

located in a highly prospective region. Edgewater has the largest contiguous land package covering the prospective Bibiani shear structure and its subsiding splay structures.

The current drill results are highly encouraging, and we are looking forward to the company’s maiden NI43-101 compliant resource estimate by Q4, 2011 with over 15-20,000 meters of drilling included .

DepositsShear ZoneKinross’ PropertyEdgewater’s Property

Edgewater’s Targeted Zones

BIBIAN

I SHEAR


National Forest

ERADI

NYAM

BOIN

SEWUM

Kinross’ TSX:KChirano Mine

Both 5MozGold Producers

Bibiani Mine

0 km 25 km

Echi Diamond Drill Results Bain Gold Zone Echi Diamond Drill Results Nyam Gold Zone

324441154510

6931434755

From (m)

From (m)

To (m)

To (m)

Intercept(m)

Intercept(m)

Au g/t

Au g/t

Hole Hole

KBDDH002 KBDDH003 KBDDH009 KBDDH010 KBDDH011 KBDDH013

NBDDH021 NBDDH018 NBDDH013 NBDDH001 NBDDH002

416865277934

8065646162

92424123424

11342114

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2.741.721.582.911.411.42

4.751.131.041.131.68

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CAESARS REPORT

Enchi, June 30 2011 George Salamis reviewing drill cores Drilling at Boin

Core lodging Drilling hole 10E02

George Salamis President & CEO, Director

Edward Farrauto CFO

Mr. Salamis has previously held senior management positions with well-established mining & mining exploration companies, most notably Placer Dome Inc. and Cameco Corporation, in addition to his successful formation and management of several junior mining companies listed in Europe and North America. Mr. Salamis has over 20 years experience directing the exploration, development and mining operations of a number of gold, base metal and coal projects in many different regions of the world. In recent years, he has also played an integral role, both executive and non-executive, in several large M&A transactions valued at over $US 1 billion and significant financing initiatives, raising over $US 800 million in equity financing for various

resource companies. Mr. Salamis holds a degree in Geology from the Universite de Montreal - Ecole Polytechnique.

Mr. Farrauto formed Edgewater Exploration in June 2007; he has 15 years experience working as Chief Financial Officer and Director of public companies. Mr. Farrauto was involved in the reverse takeover of Atlas Cromwell to form Terrane Metals (former recommendation) in early 2006. Mr. Farrauto is the President of Sail View Capital, a financial services firm that has completed additional reverse takeovers such as Lions Gate Entertainment, Radiant Communications and numerous

Enchi Gold Project June 2011

Corporate Management


Douglas Forster Director

executive and/or director of numerous publicly traded companies listed on North American Stock Exchanges and is currently a director of Calibre Mining Corp. and Pinecrest Resources Ltd. For three decades, Mr. Forster has been involved in creating wealth for North American and International investors through natural resource discovery, exploration and development. He has been involved in a number of large-scale gold and copper projects, two of which became major new mines for Canada. Mr. Forster has provided strategic advice and assisted in key project acquisitions for numerous companies including Terrane Metals Corp., Avanti Mining Inc. (both former Caesars Report recommendations), MBAC Fertilizer Corp. and Edgewater Exploration Ltd. He is a registered member of the Association of Professional Engineers and Geoscientists of British Columbia.

other resource companies including Calibre Mining Corp. and MBAC Fertilizer Corp. He has extensive experience overseeing private placement financings, prospectus filings and merger and acquisition transactions. He has directly been involved in over C$300 million of equity and debt financings undertaken by companies he has been associated with.

Mr. Forster has been associated with the mining industry for the past 30 years and he holds a B.Sc. (1981) and a M.Sc. (1984) in Economic Geology from the University of British Columbia, Canada. Mr. Forster has extensive experience and a proven track record in resource project development, mergers and acquisition, equity finance and public companymanagement. He has been a founder, senior

Conclusion

The company currently has an enterprise value of approximately 32M. With 18M in the treasury, this is one of the few junior mining companies with a decent war chest.The current resource estimate yields them a net amount of ounces of almost 1.5M, but should Enchi deliver a resource estimate of 1M oz by year’s end , Edgewater is sitting on almost 2 million ounces of gold, for an enterprise value of 32M. Based on an EV/oz

comparison, Edgewater is currently one of the cheapest juniors around, with an advanced 100% owned project in Spain, and an anticipated Joint Venture with Kinross Gold in Ghana. 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.

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Harry Mustard (Exploration Manager) looking at drill core

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