EMGOLD MINING CORP | CIK:0001199392 |

The Company has a 100% interest in the 52 unpatented mineral claims, totalling 835 acres that make up Buckskin Rawhide East Property, which is located near Fallon, Nevada.

The Buckskin Rawhide Property is leased to Rawhide Mining LLC (RMC), owners of the Rawhide Mine. The Lease is 20 years (start date of 1 June 2013). During the Lease Term, RMC will make all underlying claim fees to keep the claims in good standing. RMC will conduct a minimum of $250,000 in exploration activities by the end of Year 1. RMC will conduct an additional minimum of $250,000 in exploration activities by the end of Year 3, for a total of $500,000 in exploration activities by the end of Year 3. RMC will have the option of earning a 100% interest in the Property by bringing it into commercial production.

On 1 June 2016, RMC and Emgold mutually agreed to amend the original Lease Agreement whereby RMC can pay Emgold $175,000, in seven quarterly payments of $25,000, starting 1 June 2016, to keep the Lease Agreement in good standing. These payments will be in lieu of completing the additional $175,000 in exploration work required in the original Lease Agreement. The proceeds of these payments will be used by Emgold for general working capital. Payments of $25,000 each were completed for 1 June 2016, 1 September 2016, 1 December 2016, 1 March 2017, 1 June 2017, 1 September 2017, and 1 December 2017 respectively. In addition, RMC paid the 1 December 2017 payment in advance and the $10,000 annual advance royalty payment for the Buckskin Rawhide Property, due 1 June 2017.

Previously, the Company entered a Lease and Option to Purchase Agreement with Jeremy C. Wire to acquire the PC and RH mineral claims, located 0.3 miles west of Emgold’s existing Buckskin Rawhide Property, in Mineral County, Nevada. The PC and RH claims, called Buckskin Rawhide West, comprise 21 unpatented lode mining claims totalling 420 acres. Pursuant to the lease agreement, advance royalty payments were paid to Jeremy C. Wire in the amount of $10,000 per year during years 2013 to 2014 and $20,000 in 2015. The payments escalate to $30,000 per year in years 2016 to 2018. Payments were made in cash or shares, based on the discretion of the Company or the owner, depending on the year. The Company has met all current and past commitments on this property.

The Company issued 37,500 common shares during the year for the advance royalty payment for the Buckskin Rawhide West property of $30,000. This amount is treated as an acquisition cost, and capitalized as exploration and evaluation assts.

Previously the Company entered a Lease and Option to Purchase Agreement with Jeremy C. Wire to acquire the RHT and GEL claims, located four miles south of the Company’s Buckskin Rawhide Property in Mineral County, Nevada. The RHT and GEL claims comprise 19 unpatented lode mining claims totalling 380 acres. In addition, Emgold staked 17 additional unpatented lode claims totalling 340 acres. Together, the claims totalling 720 acres make up the Koegel Rawhide Property. Pursuant to the lease agreement, advance royalty payments were paid to Jeremy C. Wire in the amount of $10,000 per year during years 2013 to 2014 and $20,000 in 2015. The payments increased to $30,000 per year in years 2016 to 2018. The Company has met all current and past commitments on this property.

The Company issued 33,333 common shares during the year for the advance royalty payment for the Buckskin Rawhide West property of $30,000. This amount is treated as an acquisition cost, and capitalized as exploration and evaluation assts.