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The Buckskin Rawhide Property is an early stage gold/silver exploration property located adjacent to the Denton-Rawhide Mine, a gold/silver mine owned and operated by Kennecott Rawhide Mining Company, a subsidiary of Rio Tinto Mining Corporation. It is also adjacent to the Regent exploration property owned by Gryphon Gold Corporation.

The Buckskin Rawhide property was previously explored and drilled by Kennecott Minerals, including over 27 drill holes. Results indicate the potential for high grade mineralized gold/silver veins and bulk minable disseminated gold/silver zones. The development alternatives would include advancing the Buckskin Rawhide Property as a stand alone gold/silver exploration project or combining it with other existing properties in the region.

Location

The property is located approximately 40 miles southeast of Fallon, Mineral County, Nevada, as shown on the Property Location Map.

Buckskin Rawhide Property Location Map

Ownership

Emgold Mining Corporation (Emgold) has a lease and option to purchase agreement to acquire 100% of the Buckskin Rawhide Property from Nevada Sunrise LLC, a private company located at Auburn, California.

The property comprises 920 acres of unpatented mineral lode claims and is under the jurisdiction of the Bureau of Land Management (BLM). The terms of this agreement were disclosed in an Emgold news release dated December 1, 2009.

The Buckskin Rawhide Property is currently 75% owned by Nevada Sunrise LLC, a private Nevada company and 25% owned by Maurice and Lorraine Castagne. Emgold has agreed to lease the property from Nevada Sunrise LLC, subject to the following payments:

Buckskin Property Payments
Year	Advance Royalty Payment
2009	US$10,000 (1)
2010	US$10,000 (1)
2011	US$10,000 (1)
2012	US$20,000 (1)
2013	US$40,000 (1)
2014	US$60,000 (2)
2015	US$60,000 (2)
2016	US$60,000 (2)
2017	US$60,000 (2)
2018	US$60,000 (2)
2019	US$60,000 (2)

Note: (1) Lease payments may be paid in either cash or Emgold common shares based on an average price of shares traded during the calendar month prior to the payment due date. (2) Lease payments may be paid in Emgold common at the discretion of Nevada Sunrise based on an average price of shares traded during the calendar month prior to the payment due date.

During the lease period, Emgold may conduct exploration and, if warranted, complete a NI43-101 compliant feasibility study. On completion of the feasibility study, Emgold may acquire 100% ownership of the property by paying Nevada Sunrise an additional amount of US$250,000 which Nevada Sunrise is required to use to purchase the retained 25% interest from Maurice and Lorraine Castagne as per an underlying property agreement, and to transfer that title to Emgold. Upon commercial production and after acquisition of 100% interest in the property by Emgold, Nevada Sunrise will be entitled to a 2.5 percent Net Smelter Royalty on production from the property.

History

Historic mining activity occurred on the Buckskin Rawhide Property, mostly between the years 1906 and 1920. Modern exploration at the property reportedly began in 1982 and consisted of geologic and alteration mapping, surface rock chip geochemical sampling, geophysics, and reverse circulation drilling, most of which was done by Kennecott Minerals. At that time, the company was exploring the entire Rawhide District, and concluded that the best mineral deposits for mining were at Denton-Rawhide. Other companies also conducted reconnaissance exploration of the property.

Kennecott drilled 27 holes near Buckskin Mountain in the center of the property, and also drilled holes in the Black Eagle Hill area on the west side of the claims, with sample results indicating that low grade mineralization was present at both locations. Years later Kennecott Minerals drilled more holes on the Black Eagle Vein. One hole contained stronger mineralization, including a zone 25 feet wide with 0.13 ounce per ton (opt) gold and 1.68 opt silver. This drill hole also had five feet of 0.229 opt gold and five feet of 4.02 opt silver, as well as 165 feet of 0.031 opt gold. These were not true thicknesses.

No samples are known to remain from the historic sampling programs and no information exists on sampling methods, approach, preparation or security. Also, no QA/QC procedures were described. The results of historic sampling cannot be verified and therefore are not NI 43-101 compliant, but the data is a useful guide for future exploration.

The Denton-Rawhide Mine, a large gold/silver operation adjacent to the Buckskin Rawhide Property, began mining operations in 1988 with mining completed in May 2003. Reported production was 1.47 million ounces of gold and 11.7 million ounces of silver through 2005. Gold is still being produced from existing heap leach pads on the property.

In addition, from the 1980's through 2000, Newmont Mining Corporation and Kennecott Minerals drilled 580 mostly shallow, vertical reverse circulation holes on the adjacent Regent property exploring for bulk minable resources. Kennecott Minerals reported a resource of 51,901 ounces of gold and 473,627 ounces of silver at an average grade of 0.022 opt gold and 0.196 opt silver using a US $300 per ounce gold price. Presumably this resource estimate is not NI 43-101 compliant.

Kennecott Minerals discontinued mining activities at the Denton-Rawhide Mine and dropped the Buckskin Rawhide and Regent properties in the early 2000's when gold prices dropped below US $300 per ounce.

Geology and Mineralization

The Buckskin Rawhide property is a volcanic-hosted, structurally controlled, epithermal gold-silver target situated in the Walker Lane gold belt of western Nevada. The Walker Lane is a regional shear zone and known gold trend that has hosted large and small historic and recent gold-silver mines in western Nevada, including mines of the Comstock Lode, Tonopah District and Rawhide District.

Buckskin Rawhide geology and mineralization is similar to Kennecott's Denton-Rawhide Mine. Mineralization is associated with structures from the Walker Lane along with lithologic units and structures of the Rawhide caldera. Emgold's Buckskin Rawhide Property is located about 1.5 miles west of the Denton-Rawhide Mine, as shown on the Regional Gold/Silver Properties Map.

Regional Gold/Silver Properties Map

Exploration

Emgold plans to complete initial exploration work including surveying claim corners and monuments, geologic mapping, researching historic data on the property, geochemical sampling, and computerizing and modeling exploration data. Completion of these tasks will prepare Buckskin Rawhide for preliminary diamond core drilling to test veins and obtain further geological information for modeling and potentially resource delineation.

Resources and Reserves

Buckskin Rawhide is considered an early stage property. No NI 43-101 compliant resources have been defined for the property at this time.

Mining

Exploration would target high grade veins and low grade disseminated gold deposits suitable for mining by either surface or underground methods. Selection of mining methods would be determined following exploration and economic studies.

Metallurgy

The potential would exist for heap leaching of low grade ore or milling of higher grade ore. Kennecott Rawhide Mining Company operates a heap leach operation at the adjacent Denton-Rawhide Mine. Selection of a metallurgical process would be subject to additional exploration activity, metallurgical test work, and economic studies.

Permitting and Environmental

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 Buckskin Rawhide Property does not appear to be situated close to any restricted areas (such as BLM wilderness areas).

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).

Conclusions

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

The development strategies include advancing the Buckskin Rawhide Property as a stand alone gold/silver exploration project, or alternatively (and subject to agreements with other companies), combining Buckskin Rawhide with other existing properties in the region to create a larger resource and possibly reduce mining costs.

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