Edgewater Advances Discussions With Potential Spanish Partner and Awaits Government Response

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 20, 2014) - Mr. George Salamis, President and CEO of Edgewater Exploration Ltd. ("Edgewater" or the "Company") (TSX VENTURE:EDW) is pleased to provide a corporate update regarding the current status of on-going discussions relating to the Company's 100% owned Corcoesto Gold Project (the "Project") in Galicia, Spain.

Edgewater has entered into a non-binding Letter of Intent pursuant to which one of Spain's largest engineering procurement and construction companies (the "Spanish Partner") will contemplate acquiring a meaningful ownership position in the Project. The Company's view is that this investment by the Spanish Partner would meet the request by the Galician Government (the "Government") that Edgewater secure additional balance sheet strength for the Project.

The negotiations with the Spanish Partner have taken place with the Government present, in full participation and in full view of the various permitting authorities. The Company believes that this potential transaction with the local Spanish Partner would have positive benefits for Edgewater, its shareholders and all local stakeholders, and that it will satisfy the project permitting criteria as interpreted and applied by the Government. Financial terms for the transaction been agreed upon in principle and final approval from the Government will be sought shortly.

To date, Edgewater has spent over US $35 million on the Project through the performance of significant engineering studies and extensive drilling. This major investment on the Company's part was encouraged by the Government and culminated in the approval of the Company's Environmental Impact Statement ("EIS") in December 2012. The Company's most recently published Preliminary Economic Assessment (see news release dated November 17, 2011) demonstrated positive preliminary economics on the Project and a discounted pre-tax net present value (NPV5%) of US $206 million*. In 2012 Edgewater secured financing arrangements with Credit Suisse and Barclays Bank for up to $120 million, subject to the completion of a Bankable Feasibility Study and receipt of its remaining mining permits. The mining leases covering the Project are in good standing for a further 50 years and have been acknowledged by the Government in 2011 as being valid for this period.