Photos Koegel

Maps Koegel

The Koegel Rawhide Property (the "Property") is located approximately 45 miles southeast of Fallon, Nevada, in the Rawhide Mining District, and five miles southwest of the Rawhide Mine. The Property is situated in the Koegel Hills, in the Walker Lane gold trend, six miles south of the Regent Property being explored by Pilot Gold Corporation and four miles south of Emgold's Buckskin Rawhide Property.

The geology and mineralization of the Property is similar to the nearby Rawhide Mine. The Rawhide Mine, formerly the Denton Rawhide Mine, was owned and operated by Kennecott Minerals ("Kennecott"). It is reported to have produced 1.5 million ounces of gold and 12.4 million ounces of silver from the years 1988 to 2009 (Muntean, 2010). Rawhide Mining Company ("RMC") acquired the mine in 2010 and continues to recover gold from historic heap leach pads. RMC is currently evaluating bringing the Rawhide Mine back into full production.

To date, exploration on the Property has consisted of grab and rock chip samples taken by former owners or by Emgold. Samples values range from non-detect to 1.99 ounces per ton gold from 464 historic samples and 14 Emgold samples. Exploration targets on the Property include high grade vein and bulk disseminated gold and silver mineralization. It is Emgold's intent to continue exploration with the goal of ultimately developing an NI 43-101 compliant mineral resource.

Potential exists to develop the Koegel Rawhide Property as a stand alone gold/silver exploration property or to consider a strategy to develop the Property in combination with the nearby Rawhide Mine, Regent, and/or Buckskin Rawhide properties. Emgold believes additional exploration activity is warranted on the Property, which would ultimately include reverse circulation drilling. The Company plans to commence exploration at Koegel Rawhide in 2012.

Koegel Rawhide Property Looking Northwest

The Koegel Property is located approximately 45 miles southeast of Fallon, Nevada in the Rawhide Mining District. It is five miles southwest of the Rawhide Mine, which is owned and operated by Rawhide Mining Company. The Property is also situated in the Koegel Hills, six miles south of the Regent Property being explored by Pilot Gold Corporation and four miles south of Emgold's Buckskin Rawhide Property.

The Koegel Rawhide Property consists of 36 unpatented lode mining claims totaling 720 acres. Nineteen of the 36 unpatented mining claims, totaling 380 acres, are currently under a lease and option to purchase agreement with Jeremy Wire, an individual. Information on that acquisition was disclosed in a February 13, 2012 news release. The other 17 unpatented mining claims, totaling 340 acres, were recently staked by Emgold, as disclosed in a news release dated February 15. 2012.

The 19 claims mentioned above are currently 100% owned by Jeremy C. Wire, an individual. Emgold has agreed to lease the property from Mr. Wire, subject to the following payments:

Table 1
Koegel Rawhide Property Payments

Year	Advance Royalty Payment
2012	US$10,000 (1)
2013	US$10,000 (2)
2014	US$10,000 (2)
2015	US$20,000 (3)
2016	US$30,000 (3)
2017	US$30,000 (3)
2018	US$30,000 (3)

Note: (1) Lease payments may be paid in 50% in cash and 50% in Emgold common shares. (2) Lease payments may be paid in cash or Emgold common shares, at the discretion of Emgold. (3) Lease payments may be paid in cash or Emgold common shares, at the discretion of the Lessor. Shares will be issued at "market value" which means the volume weighted closing price of the shares on the TSX Venture Exchange or the most senior stock exchange or quotation system on which the shares are then listed or quoted for fifteen (15) trading days ending on the date that is five (5) business days before the applicable payment.

During the lease period, Emgold may conduct exploration and, if warranted, complete a NI 43-101 Technical Report on the Property. On making the above payments and completion of the Technical Report, Emgold may acquire 100% ownership of the property. Upon commercial production Jeremy Wire will be entitled to a 2 percent Net Smelter Royalty on production from the property. Emgold will retain the right to purchase this royalty for $1 million, less any advance royalty payments already made.

Note that the location of the Koegel Rawhide Property in the vicinity of Rawhide Mine and other nearby exploration properties does not mean that a resource will be identified on the Property. However, the presence of similar geology and mineralized structures to those on the Buckskin Rawhide, Regent, and Rawhide properties and historic mine workings in the area are favorable indicators for the potential of discovery.

The Rawhide Mining District, formerly named the Regent Mining District, was discovered in the year 1906. The District was most active from 1908-1920 during which time 46,218 fine ounces of gold and 685,901 fine ounces of silver were produced from the historic mines. From 1921 through 1935 only 2,815 fine ounces of gold and 51,463 fine ounces of silver were produced (Vanderburg, 1937).

Modern mining in the Rawhide District began in 1988 with the startup of Kennecott's Denton Rawhide Mine (now called Rawhide Mine), which was located where most of the historic mine workings had been concentrated in the Rawhide area. Although mining was completed in May of 2003, Denton Rawhide Mine continues to produce gold from ongoing leaching of ore that was already in place on the heap leach pads. From 1990 through 2009, production at Denton Rawhide Mine is reported to have been 1,543,905 ounces of gold and 12,383,554 ounces of silver (Muntean, 2010).

In addition, from the 1980's through 2000, Newmont Mining Corporation and Kennecott explored the nearby Regent and Emgold's Buckskin Rawhide properties exploring for bulk minable resources. Pilot Gold Corporation currently owns the Regent Property and is conducting exploration, including drilling activities.

There is evidence of historic exploration activity on the Koegel Rawhide Property, due to the presence of shallow historic prospects. However, information on the extent of these workings is unknown at this time. While exploration success at the Rawhide or Regent properties does not guarantee success at Koegel Rawhide, it does indicate the potential of the Rawhide District for gold-silver discoveries.

Regional Geology

The Koegel Rawhide Property is a volcanic-hosted, structurally controlled, epithermal gold-silver prospect in the Walker Lane gold belt of western Nevada. The Walker Lane is a regional shear zone and known gold trend that hosts large and small historic and currently operating gold-silver mines, including mines of the Comstock Lode, Tonopah District and Rawhide District. From 1981 through 2009, mines located in Mineral County that were situated in the Walker Lane gold trend have produced 2,800,448 ounces of gold and 56,112,442 ounces of silver (Muntean, 2010).

Koegel Rawhide geology and mineralization are associated with lithologic units and structures of the Rawhide volcanic center, as well as structures from the Walker Lane and Basin and Range. The geology and mineralization is similar to the nearby Rawhide Mine, Regent Property, and Emgold's Buckskin Rawhide Property.

Property Geology

Geologic mapping by Charles P. Watson, a consulting geologist, completed in the years 1991-1992, indicates the area is covered mostly by Tertiary (Pliocene) age intermediate volcanic rocks including andesitic tuff breccias, sills and dikes. The volcanic units have been folded into minor anticlines and faulted. Faults of several orientations occur on the Property with north, northwest and northeast trends. Hydrothermal alteration (clay and silica) is present and is associated with structures and mineralization.

Gold and silver mineralization is known to be present at Koegel Rawhide, based on historic surface sampling, and appears to be structurally controlled and associated with faults and shear zones. Both high grade vein and bulk disseminated gold and silver mineralization has been identified.

Gold and silver mineralization is known to be present at Koegel Rawhide, based on historic randomly spaced surface sampling on the Property. A total of 464 chip and grab samples were taken in geologically derived locations by consulting geologist Charles P. Watson in the years 1991-1992. The average gold grade of these historic samples is shown in Table 2, below:

Table 2
Average Grades of Historic Gold Assays Koegel Rawhide Property, NV

Samples	No. of Samples	Average Gold Grade of Samples (opt)
All Historic Samples Including Historic T-10 Zone	464	0.02
Historic T-10 Zone	13	0.52

Sample weights are unknown. Samples include grab and chip samples. Gold grades are arithmetic averages.

The results of the historic grab samples on the Property ranged from non-detectable to 1.99 ounce per ton gold, with 98 percent of those samples having gold grades less than 0.10 ounces per ton gold and two percent being greater than 0.10 ounces per ton gold. The sampling indicates the potential for both high grade vein and low grade bulk disseminated gold and silver mineralization.

Watson identified the T-10 Zone as one of the potential mineralized high grade vein structures. Historic sampling in the T-10 high grade area included 13 samples ranging in grades from 0.004 to 1.99 ounce per ton gold, with an average grade of 0.52 ounces per ton gold. Dimensions of the zone have not been defined, although the exposure sampled has a width of approximately eight feet. The area is open for expansion in several directions, and the true width of the structure is unknown at this time.

The methods and quality control from the historic sampling are unknown and cannot be verified under NI 43-101, and should not be relied upon for investment purposes, but the results are useful guides for further exploration.

Emgold's surface samples were taken in areas of known mineralization on the Property, based on historic sampling done by Mr. Watson. The sampling was intended to confirm historic gold grades as part of due diligence work associated with the acquisition of the property and focused on high grade vein targets.

Ten rock chip-channel samples, each 12 inches in length, and four grab samples were taken from outcrops of bedrock and structures. The average gold grade of all samples is shown in Table 3. Dry sample weights varied from one to two pounds.

Table 3
Average Grades of Emgold Gold Assays Koegel Rawhide Property, NV

Samples	No. of Samples	Average Gold Grade of Samples (opt)
Emgold Samples (including Emgold T-10 Zone)	14	0.21
Emgold T-10 Zone	11	0.27

Gold grades are arithmetic averages. Emgold samples were taken December, 2011 and include rock chip-channel samples taken over 12 inch widths and grab samples. These are not true widths across the vein.

Emgold's sampling results ranged from non-detectable to 1.60 ounces per ton gold, with 79 percent of the samples having gold grades less than 0.10 ounce per ton gold. Twenty-one percent had grades greater than 0.10 ounce per ton gold. Note that the average of Emgold's 14 gold assays, as shown in Table 2, are higher than the average from the 464 samples historically assayed on the Property, and shown in Table 1. This is because most of Emgold's samples were taken from known higher grade mineralized structures and did not evaluate bulk disseminated targets.

Emgold specifically sampled the T-10 high grade area, with results shown in Table 2. The grade of the 11 samples taken in the T-10 Zone ranged between non-detectable and 1.60 ounce per ton gold. The average grade was 0.27 opt gold. Results of Emgold's sampling compared favorably with historic sampling on the Property.

Emgold's quality assurance program and quality control measures at Koegel Rawhide pertained to all samples taken on the property. Quality control measures included representative sampling, proper numbering, and accurately locating samples in the field both visually on maps and also with a GPS instrument. Samples were transported by the geological staff from the field to Emgold's office-warehouse facility to assure secure storage, and were then packaged for shipment to the assay laboratory. Samples were shipped by Emgold employees or via commercial carriers directly to the assay laboratory for analysis.

Samples taken by Emgold were analyzed using standard methods. Emgold's Qualified Person Mr. Robert Pease, Chief Geologist of the Company, visited the assay laboratory to review the general sample handling and preparation measures, to make sure they were adequate.

The assay laboratory catalogued all samples, maintained complete chain of custody throughout the analytical process, and electronically mailed the chain of custody forms to Emgold for review prior to initiating sample preparation. All sample preparation was done at the laboratory by their staff. As part of their quality assurance, the laboratory incorporated assaying standards, test blanks, and duplicate analyses of samples, and included those results in final reports. The final signed reports completed the chain of custody process. Thus far, no factors have been detected in any sampling programs conducted by Emgold on the Koegel Rawhide property that would materially affect the accuracy or reliability of Emgold's sample data.

Mr. Robert Pease, Chief Geologist of the Company and a Qualified Person as defined in National Instrument 43-101, participated in and directly supervised the sampling program and interpreted historic data.

If an economically viable resource is found, the the property might be evaluated for possible mining of high grade vein zones and bulk minable disseminated gold targets using either open pit or underground mining methods. Selection of mining methods would be subject to additional exploration activity and economic studies.

The Property is currently an exploration stage project and permits for drilling will be administered by BLM in Carson City, Nevada. Permits for small drilling programs disturbing less than five acres typically can be obtained in about 30 days, although the time can be longer depending on the work load of BLM staff at the time of application. Large programs requiring an environmental assessment would take several months.

The Koegel Rawhide Property does not appear to be situated close to any restricted areas (such as BLM wilderness areas). However, the Walker Lake Indian Reservation is situated approximately one mile west of the claims.

The State of Nevada is considered to be one of the best jurisdictions in the world for permitting mining operations. Permitting of a mining operation would be done under the National Environmental Policy Act (NEPA).

Koegel Rawhide is a favorable exploration property for Emgold because mineralization is present and because the geology and mineral deposition is similar to that found at the Rawhide Mine, a large and successful gold mine located nearby. Prior prospecting has delineated areas that can be prepared for further testing in a short timeframe and with minimal cost.

The Property not only represents a favorable exploration property, but also a strategic opportunity, being located near the active Rawhide Mine and other exploration properties.

The development strategies include advancing the Koegel Rawhide Property as a stand alone gold/silver exploration project, developing it in conjunction with Emgold's nearby Buckskin Rawhide Project, or alternatively (and subject to agreements with other companies), combining Koegel Rawhide with other existing properties in the area to with the goal of creating a larger combined resource.

Emgold's Qualified Person Mr. Robert Pease, Chief Geologist of the Company, has reviewed and approved the scientific and technical information on this webpage.

Muntean, J. L., 2010, Major Precious-Metal Deposits, in The Nevada Mineral Industry 2009: Nevada Bureau of Mines and Geology Special Publication MI-2009.

Vanderburg, W. O., 1937, Reconnaissance of Mining Districts in Mineral County, Nev.: Dept. of the Interior United States Bureau of Mines Information Circular 6941.