Mr. David Watkinson reports

EMGOLD LEASES ITS BUCKSKIN RAWHIDE EAST PROPERTY, NEVADA TO RAWHIDE MINING LLC

Emgold Mining Corp. has leased its 100-per-cent-owned Buckskin Rawhide East property to Rawhide Mining LLC, a private mining company that owns and operates the adjacent Denton Rawhide mine. RMC has agreed to conduct exploration activity on the property with the goal of delineating gold and silver resources that, if exploration is successful, may ultimately be permitted, mined and then processed using facilities at the Denton Rawhide mine.

About the lease agreement

Emgold has agreed to lease the property to RMC under the following general terms and conditions:

1. The term of the lease is 20 years.
2. Advance royalty payments will be $10,000 per year, paid by RMC to Emgold, with the first payment due at signing and subsequent payments due on the anniversary of the lease agreement.
3. During the term of the lease, RMC will make all underlying claim fees to keep the claims in good standing.
4. RMC will conduct a minimum of $250,000 (U.S.) in exploration activities by the end of year 1.
5. RMC will conduct an additional minimum of $250,000 (U.S.) in exploration activities by the end of year 3, for a total of $500,000 (U.S.) in exploration activities by the end of year 3.
6. RMC will have the option of earning a 100-per-cent interest in the property by bringing it into commercial production.
7. Upon bringing the property into commercial production, RMC will make bonus payments to Emgold. Bonus payments will be $15 (U.S.) per ounce of gold when the price of gold ranges between $1,200 (U.S.) per ounce and $1,799 (U.S.) per ounce. If the price of gold exceeds $1,800 (U.S.) per ounce, the bonus payment will increase to $20 (U.S.) per ounce.
8. After meeting its exploration requirements, should RMC subsequently elect to drop the property or decide not to advance it, the property will be returned to Emgold. Should Emgold subsequently advance the property into production, RMC shall then be entitled to the same type of bonus payments as contemplated in No. 7 above.

The effective date of the lease is June 1, 2013. Further to the company's news release dated June 17, 2013, RMC has completed initial exploration activities on the property, with results pending.

David Watkinson, president and chief executive officer of Emgold, stated: "We are pleased to have RMC as both a partner and a shareholder to advance the Buckskin Rawhide East property. While there are currently no NI 43-101 resources delineated on the property, Emgold management believes that there is potential for such resources to be delineated with additional exploration work. This deal with RMC ensures that, if such resources are successfully delineated, there is also potential that they may be permitted and fast-tracked into production using the adjacent facilities at Denton Rawhide mine. This deal therefore will provide Emgold with an opportunity for cash flow through the bonus payment structure."

About the Buckskin Rawhide East property

The property is located in the Rawhide mining district, about 40 miles southeast of Fallon, Nev. It consists of 52 unpatented mineral lode claims totalling approximately 835 acres. Gold and silver mineralization occurs throughout the property, which was sampled and drilled historically by Kennecott Exploration Co. and others. The property is surrounded by RMC's operating Denton-Rawhide mine and Regent property.

Historically, Kennecott drilled over 80 reverse circulation holes on the Buckskin-Rawhide East property. Those results indicated potential for delineation of both high-grade mineralized gold/silver veins and bulk-minable disseminated gold/silver zones. Emgold reviewed historic data, conducted geological mapping and field sampling, and subsequently discovered the Chicago Mountain/Chicago Gulch, Black Eagle and Buckskin Mountain exploration targets.

The scientific or technical information contained in this news release has been reviewed and approved by Robert Pease, PGeo, a qualified person as defined in National Instrument 43-101.

We seek Safe Harbor.