Edgewater Closes First Tranche of Private Placement and Kinross Gold Corporation Increases Investment

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/20/11 -- Edgewater Exploration Ltd. ('Edgewater' or the 'Company') (TSX VENTURE: EDW)(OTCQX: EDWZF) is pleased to announce the Company has closed the first tranche ('First Tranche') of its previously disclosed non-brokered private placement of $11,000,000 ('Private Placement').

The First Tranche consisted of 13,030,000 units ('Units') at $0.80 per Unit for gross proceeds of $10,424,000. Each Unit consists of one common share ('Share') and one half of a common share purchase warrant ('Warrant'). Each whole Warrant entitles the holder to acquire an additional Share for $1.10 for a period of 24 months from the closing date. The Shares and Warrants issued in connection with the First Tranche have a four month hold period ending on October 16, 2011. Edgewater paid finder's fees of $548,990 in connection with the First Tranche.

As previously announced by Kinross Gold Corporation ('Kinross') (TSX: K)(NYSE: KGC), Kinross purchased 625,000 of the Units issued in connection with the First Tranche. Following the First Tranche, Kinross holds 2,625,000 Shares and 6,312,500 warrants (5,000,000 of which are only exercisable in the event that Edgewater delineates a 3,000,000 Au oz resource for the Company's Enchi Gold project), representing 12.7% of Edgewater's outstanding shares (assuming the exercise of all warrants held by Kinross only).

The Company expects to complete the Private Placement by issuing an additional 720,000 Units for gross proceeds of $576,000 in connection with the second tranche shortly. The Private Placement is subject to final approval of the TSX Venture Exchange.

About Edgewater Exploration Ltd.

Edgewater is a mineral exploration company focused principally on acquisitions, advancement and development of precious metal properties. Edgewater is currently developing the Enchi Gold Project in Ghana, West Africa, and the Corcoesto Gold Project in northwest Spain.

On behalf of the board of EDGEWATER EXPLORATION LTD.

George Salamis, President and CEO

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts:

Edgewater Exploration Ltd.

Ryan King

Vice President

(604) 628-1012
rking@edge-water.com
www.edge-water.com