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Edgewater Increases Inferred Resources by 30% at t

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Edgewater Exploration Ltd.

TSX VENTURE : EDW
OTCQX : EDWZF

May 31, 2011 09:02 ET

Edgewater Increases Inferred Resources by 30% at the Corcoesto Gold Project, Spain

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 31, 2011) - Mr. George Salamis, President and CEO of Edgewater Exploration Ltd.(TSX VENTURE:EDW)(OTCQX:EDWZF) ("Edgewater" or the "Company")is pleased to announce an increase in the Resource at the Company'sCorcoesto Gold Project, Galicia, Spain. The inclusion of recent drillingcompleted by Edgewater in an updated geological model has increased thecontained gold ounces in the Corcoesto resource by 3% to 325,000 ouncesfor measured and indicated gold resources and by 30% to 1,149,000ounces of inferred gold resources.

President and CEO, GeorgeSalamis, adds; "In 2010 Edgewater acquired the Corcoesto Gold Projectwhich, at that time, contained 324,000 oz of gold measured and indicatedand 38,400 ounces in the inferred category. Since then we havesuccessfully increased the gold resource by 400%. With the 2011increased resource we now feel that Corcoesto has the potential todemonstrate economic viability and therefore this resource will form thebasis of a scoping study to be completed in 2011. Based on thisincreased resource I am confident the scoping study will demonstratepositive economics and therefore will result in an increased value forour shareholders. In addition, the local support demonstrated for theproject at all levels of government supports our view that Corcoestowill one day become a viable gold producer."

Significant features of the Increased (2011) Resources include;

1. initial deeper resource at Cova Creo of 45,000 oz grading 4.09 g/t Au which is currently the highest grade for any individual resource area
2. increase in grade for near surface resource at Cova Crea from 1.50 g/t Au to 1.67 g/t Au and the zones remains open
3. resources for both the near surface and deeper portions of the main Pozo de Ingles Zone increased in size and grade; the inferred resources above 200m below surface have increased from 208,000 oz at 1.40 g/t Au (0.65 g/t Au cut off) to 246,000 oz at 1.41 g/t Au. At depth (> 200m below surface, 2.0 g/t Au cut off) it increased from 93,000 oz grading 3.14 g/t Au to 176,000 oz at 3.42 g/t Au
4. the near surface portion of the Peton de Lobo Zone was extended approximately 150 metres to the east by recent drilling and remains open (additional drilling is planned). The deeper portion of the Peton de Lobo resource decreased in grade due to lower than expected grades in drill hole 10W01.

Details of the Updated Resource (2011) compared to the previous (2010) resource are as follows;

Table 1
Corcoesto Gold Deposit
2010 and 2011 Mineral Resource Summary
Resource Year		Resource Class	Cutoff (g/t Au	)	Tonnes (x1000	)	g/t Au	Contained Gold (x1000 oz	)
Previous Estimate (2010)		Measured	0.65		3,834		1.76	217
		Indicated	0.65		1,823		1.67	98
		Measured + Indicated	0.65		5,657		1.73	315
		Inferred	0.65/2.0		16,542		1.66	885
Current Estimate (2011)		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
Change (2011 vs 2010)		Measured + Indicated	0.65		+2%		+0.5%	+3%
		Inferred	0.65/2.0		+22.5%		+6%	+30%

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

TheUpdated (2011) Resource Estimate also evaluated the Corcoesto depositat lower cut off grades of 0.5 g/t Au (above -200m) and 1.0 g/t Au(below -200m). Results are as follows;

Table 2
Corcoesto Gold Deposit
Resource Year		Resource Class	Cutoff (g/t Au	)	Tonnes (x1000	)	g/t Au	Contained Gold (x1000 oz	)
Current Estimate (2011)		Measured	0.50		4,832		1.54	240
(alternative cut-offs)		Indicated	0.50		2,348		1.49	112
		Measured + Indicated	0.50		7,180		1.53	352
		Inferred	0.50/1.0		31,554		1.50	1,517

TheUpdated (2011) Mineral Resource estimate was based on 42,111.18 m ofdiamond and RC drilling in 342 holes as well as surface trenching andadit sampling data. The Mineral Resource includes drilling results thatwere not included in prior resource estimates including deep drilling.

Workhas also begun on the Scoping Study ("Preliminary Assessment" or "PA")on the Corcoesto Gold Project which will model the Project using theexpanded resource and including the evaluation of both open pit andunderground alternative and synergies. The PA is scheduled to becompleted in 2011. One diamond drill rig is currently active on theCorcoesto Gold Project conducting a program of step-out and infilldrilling to further define the total resource potential on the project.

TheCorcoesto resource estimate data in this news release was read andapproved by Alan Noble, P.E., of Ore Reserves Engineering Inc., aprofessional mining engineer registered in the State of Colorado, USAand a Qualified Person ("QP") as defined by National Instrument 43-101. Atechnical report is being prepared and will be filed in the next 45days.

Mr. Gregory Smith, P.Geo, the Vice-President of Explorationof the Company, is the Qualified Person as defined by NI 43-101, and isresponsible for the accuracy of the technical data and informationcontained in this news release.