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<SEC-DOCUMENT>0001062993-04-000356.txt : 20040326
<SEC-HEADER>0001062993-04-000356.hdr.sgml : 20040326
<ACCEPTANCE-DATETIME>20040326161342
ACCESSION NUMBER:		0001062993-04-000356
CONFORMED SUBMISSION TYPE:	10KSB
PUBLIC DOCUMENT COUNT:		8
CONFORMED PERIOD OF REPORT:	20031231
FILED AS OF DATE:		20040326

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			NEW JERSEY MINING CO
		CENTRAL INDEX KEY:			0001030192
		STANDARD INDUSTRIAL CLASSIFICATION:	GOLD & SILVER ORES [1040]
		IRS NUMBER:				820490295
		STATE OF INCORPORATION:			ID
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		10KSB
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-28837
		FILM NUMBER:		04693148

	BUSINESS ADDRESS:	
		STREET 1:		89 APPLEBERG RD
		STREET 2:		PO BOX 1019
		CITY:			KELLOGG
		STATE:			ID
		ZIP:			83837
		BUSINESS PHONE:		2087833331

	MAIL ADDRESS:	
		STREET 1:		89 APPLEBERG ROAD
		STREET 2:		PO BOX 1019
		CITY:			KELLOGG
		STATE:			ID
		ZIP:			83837
</SEC-HEADER>
<DOCUMENT>
<TYPE>10KSB
<SEQUENCE>1
<FILENAME>form10ksb.htm
<DESCRIPTION>ANNUAL REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31, 2003
<TEXT>
<HTML>
<HEAD>
   <TITLE>Filed by Automated Filing Services Inc. (604) 609-0244 - New Jersey Mining Company - Form 10KSB</TITLE>

   <META name="HandheldFriendly" content="true">
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<BODY bgcolor="#FFFFFF" style="font-size: 10pt;">
<A name="page_1"></A>
<hr noshade align="center" width="100%" size=3 color="black">
<P align="center"> <B><font size="5">UNITED STATES<br>
  </font></B><font size="5"><B>SECURITIES AND EXCHANGE COMMISSION</B></font><B><br>
  </B><B>Washington, D.C. 20549</B> </P>
<P align="center"> <B><font size="5">FORM 10-KSB</font><br>
  </B>(Mark One) </P>
<P align="center"> <b><font face="Wingdings">&#120;</font></b>&nbsp; ANNUAL REPORT
  UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 <br>
  For the fiscal year ended December 31, 2003 </P>
<P align="center"> <b><font face="Wingdings">&#168;</font></b>&nbsp;TRANSITION
  REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 <br>
  For the transition period ________ to ________</P>
<P align="center"> Commission file number 000-28837</P>
<P align="center"><B><u><font size="5">NEW JERSEY MINING COMPANY</font></u><br>
  </B>(Name of small business issuer in its charter) </P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR align="center">
    <TD width="50%"><b><u>Idaho</u></b></TD>
    <TD width="50%"><b><u>82-0490295</u></b></TD>
  </TR>
  <TR align="center">
    <TD width="50%">(State or other jurisdiction of incorporation or</TD>
    <TD width="50%">(I.R.S. Employer Identification No.)</TD>
  </TR>
  <TR align="center">
    <TD width="50%">organization)</TD>
    <TD width="50%">&nbsp;</TD>
  </TR>
  <TR align="center">
    <TD width="50%">&nbsp;</TD>
    <TD width="50%">&nbsp;</TD>
  </TR>
  <TR align="center">
    <TD width="50%"><b><u>89 Appleberg Road, Kellogg, Idaho</u></b></TD>
    <TD width="50%"><b><u>83837</u></b></TD>
  </TR>
  <TR align="center">
    <TD width="50%">(Address of principal executive offices)</TD>
    <TD width="50%">(Zip code)</TD>
  </TR>
</TABLE>
<P align="center"> Issuer&#146;s telephone number, including area code: <b><u>(208)
  783-1032</u></b></P>
<P align="center"> Securities registered under Section 12(b) of the Exchange Act:<br>
  None </P>
<P align="center"> Securities registered under Section 12(g) of the Exchange Act:<br>
  Common Stock, No par value per share </P>
<P align="center"> Check whether the issuer (1) filed all reports required to
  be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months
  (or for such shorter period that the registrant was required to file such reports),
  and (2) has been subject to such filing requirements for the past 90 days. &nbsp;&nbsp;Yes
  <b><font face="Wingdings">&#120;</font></b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
  <b><font face="Wingdings">&#168;</font></b> </P>
<P align="center"> Check if there is no disclosure of delinquent filers in response
  to Item 405 of Regulation S-B contained in this form and no disclosure will
  be contained, to the best of registrant&#146;s knowledge, in definitive proxy
  or information statements incorporated by reference in Part III of this Form
  10-KSB or any amendment to this Form 10-KSB. &nbsp;<b><font face="Wingdings">&#168;</font></b></P>
<P align="center"> The registrant&#146;s revenues for its most recent fiscal year
  were $ nil. </P>
<P align="center"> The aggregate market value of the voting stock held by non-affiliates
  of the registrant, based on the average of the bid and ask prices on March 3,
  2004, as reported by the Over the Counter Bulletin Board was $7,560,270. </P>
<P align="center"> At March 3, 2004, the registrant had 19,604,390 outstanding
  shares of no par value common stock. </P>
<P align="right">
1
</P>

<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_2"></A> <br>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD colspan="3" align="center"><B>TABLE OF CONTENTS</B></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR bgcolor="#EEEEEE">
    <TD colspan=2><a href="#page_3">Glossary of Significant Mining Terms</a></TD>
    <TD width="3%" align="right"><a href="#page_3">3</a></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="3" align="center"><B>PART I</B></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR bgcolor="#EEEEEE">
    <TD width="12%"><a href="#page_4"><B>Item 1.</B></a></TD>
    <TD><a href="#page_4">Description of Business</a></TD>
    <TD width="3%" align="right"><a href="#page_4">4</a></TD>
  </TR>
  <TR>
    <TD width="12%"><a href="#page_8"><B>Item 2.</B></a></TD>
    <TD><a href="#page_8">Description of Property</a></TD>
    <TD align="right" width="3%"><a href="#page_8">8</a></TD>
  </TR>
  <TR bgcolor="#EEEEEE">
    <TD width="12%"><a href="#page_16"><B>Item 3 .</B></a></TD>
    <TD><a href="#page_16">Legal Proceedings</a></TD>
    <TD width="3%" align="right"><a href="#page_16">16</a></TD>
  </TR>
  <TR>
    <TD width="12%"><a href="#page_16"><B>Item 4.</B></a></TD>
    <TD><a href="#page_16">Submission of Matters to a Vote of Security Holders</a></TD>
    <TD align="right" width="3%"><a href="#page_16">16</a></TD>
  </TR>
  <TR>
    <TD width="12%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="3" align="center"><B>PART II</B></TD>
  </TR>
  <TR>
    <TD width="12%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR bgcolor="#EEEEEE">
    <TD width="12%"><a href="#page_16"><B>Item 5.</B></a></TD>
    <TD><a href="#page_16">Market for Common Equity and Related Stockholder Matters</a></TD>
    <TD width="3%" align="right"><a href="#page_16">16</a></TD>
  </TR>
  <TR>
    <TD width="12%"><a href="#page_18"><B>Item 6 .</B></a></TD>
    <TD><a href="#page_18">Management's Discussion and Analysis of Financial Condition
      and Results of Operations.</a></TD>
    <TD width="3%" align="right"><a href="#page_18">18</a></TD>
  </TR>
  <TR bgcolor="#EEEEEE">
    <TD width="12%"><a href="#page_19"><B>Item 7.</B></a></TD>
    <TD><a href="#page_19">Financial Statements</a></TD>
    <TD width="3%" align="right"><a href="#page_19">19</a></TD>
  </TR>
  <TR>
    <TD width="12%"><a href="#page_42"><B>Item 8 .</B></a></TD>
    <TD><a href="#page_42">Changes In and Disagreements With Accountants on Accounting
      and Financial Disclosure</a></TD>
    <TD width="3%" align="right"><a href="#page_42">42</a></TD>
  </TR>
  <TR>
    <TD colspan="3" align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="3" align="center"><B>PART III</B></TD>
  </TR>
  <TR>
    <TD width="12%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR bgcolor="#EEEEEE">
    <TD width="12%"><a href="#page_42"><B>Item 9.</B></a></TD>
    <TD><a href="#page_42">Directors, Executive Officers, Promoters and Control
      Persons; Compliance With Section 16(a) of the Exchange Act</a></TD>
    <TD width="3%" align="right"><a href="#page_42">42</a></TD>
  </TR>
  <TR>
    <TD width="12%"><a href="#page_45"><B>Item 10.</B></a></TD>
    <TD><a href="#page_45">Executive Compensation</a></TD>
    <TD align="right" width="3%"><a href="#page_45">45</a></TD>
  </TR>
  <TR bgcolor="#EEEEEE">
    <TD><a href="#page_46"><B>Item 11.</B></a></TD>
    <TD><a href="#page_46">Security Ownership of Certain Beneficial Owners</a></TD>
    <TD width="3%" align="right"><a href="#page_46">46</a></TD>
  </TR>
  <TR>
    <TD><a href="#page_47"><B>Item 12.</B></a></TD>
    <TD><a href="#page_47">Certain Relationships and Related Transactions</a></TD>
    <TD align="right" width="3%"><a href="#page_47">47</a></TD>
  </TR>
  <TR bgcolor="#EEEEEE">
    <TD><a href="#page_47"><B>Item 13.</B></a></TD>
    <TD><a href="#page_47">Exhibits and Reports on Form 8-K</a></TD>
    <TD width="3%" align="right"><a href="#page_47">47</a></TD>
  </TR>
  <TR>
    <TD><a href="#page_48"><B>Item 14.</B></a></TD>
    <TD><a href="#page_48">Principal Accounting Fees and Services</a></TD>
    <TD align="right" width="3%"><a href="#page_48">48</a></TD>
  </TR>
  <TR bgcolor="#EEEEEE">
    <TD><a href="#page_49"><B>Signatures</B></a></TD>
    <TD><a href="#page_49"></a></TD>
    <TD width="3%" align="right"><a href="#page_49">49</a></TD>
  </TR>
</TABLE>
<P align="right">
2
</P>

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<P align="justify"> <B>GLOSSARY </B> </P>
<P align="justify"> Ag- Silver. </P>
<P align="justify"> Au- Gold. </P>
<P align="justify"> Alluvial- Adjectivally used to identify minerals deposited
  over time by moving water. </P>
<P align="justify"> Argillites- Metamorphic rock containing clay minerals. </P>
<P align="justify"> Arsenopyrite- An iron-arsenic sulfide. Common constituent
  of gold mineralization. </P>
<P align="justify"> Bedrock- Solid rock underlying overburden. </P>
<P align="justify"> CIL- A standard gold recovery process involving the leaching
  with cyanide in agitated tanks with activated carbon. CIL means "carbon-in-leach."
</P>
<P align="justify"> Crosscut- A nominally horizontal tunnel, generally driven
  at right angles to the strike of a vein. </P>
<P align="justify"> Deposit- A mineral deposit is a mineralized body which has
  been intersected by sufficient closely-spaced drill holes or underground sampling
  to support sufficient tonnage and average grade(s)of metal(s)to warrant further
  exploration or development activities. Development Stage- As defined by the
  SEC- includes all issuers engaged in the preparation of an established commercially
  mineable deposit (reserves) for its extraction which are not in the production
  stage. </P>
<P align="justify"> Drift- A horizontal mine opening driven on the vein. Driving
  is a term used to describe the excavation of a tunnel. </P>
<P align="justify"> Exploration Stage- As defined by the SEC- includes all issuers
  engaged in the search for mineral deposits (reserves) which are not in either
  the development or production stage. </P>
<P align="justify"> Fault- A fracture in the earth's crust accompanied by a displacement
  of one side of the fracture with respect to the other and in a direction parallel
  to the fracture. </P>
<P align="justify"> Galena- A lead sulfide mineral. The most important lead mineral
  in the Coeur d'Alene Mining District. </P>
<P align="justify"> Grade- A term used to assign the concentration of metals per
  unit weight of ore. An example - ounces of gold per ton of ore (opt). One ounce
  per ton is 34.28 parts per million. </P>
<P align="justify"> Mineralization- The presence of minerals in a specific area
  or geologic formation. </P>
<P align="justify"> Ore- A mineral or aggregate of minerals which can be mined
  and treated at a profit. A large quantity of ore which is surrounded by non-ore
  ore sub-ore material is called an orebody. </P>
<P align="justify"> Production Stage- As defined by the SEC - includes all issuers
  engaged in the exploitation of a mineral deposit (reserve). </P>
<P align="justify"> Pyrite- An iron sulfide. A common mineral associated with
  gold mineralization. </P>
<P align="justify"> Quartz- Crystalline silica (SiO2). An important rock-forming
  and gangue material in gold veins. </P>
<P align="right"> 3</P>

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<A name="page_4"></A>

<P align="justify"> Quartzites- Metamorphic rock containing quartz. </P>
<P align="justify"> Raise- An opening driven upward generally on the vein. </P>
<P align="justify"> Reserves- That part of a mineral deposit which could be economically
  and legally extracted or produced at the time of the reserve determination.
  Reserves are subcategorized as either proven (measured) reserves, for which
  (a) quantity is computed from dimensions revealed in outcrops, trenches, workings,
  or drill holes, and grade and/or quality are computed from the results of detailed
  sampling, and (b) the sites for inspection, sampling, and measurement are spaced
  so closely and geologic character is so well defined that size, shape, depth,
  and mineral content are well-established; or probable(indicated) reserves, for
  which quantity and grade and/or quality are computed from information similar
  to that used for proven (measured) reserves, yet the sites for inspection, sampling
  and measurement are farther apart. </P>
<P align="justify"> Tetrahedrite- Sulfosalt mineral containing copper, antimony
  and silver. </P>
<P align="justify"> Vein- A zone or body of mineralized rock lying within boundaries
  separating it from neighboring wallrock. A mineralized zone having a more or
  less regular development in length, width and depth to give it a tabular form
  and commonly inclined at a considerable angle to the horizontal. </P>
<P align="justify"> Wallrock- Barren rock surrounding a vein. </P>
<P align="center"> <B>PART I </B> </P>
<P align="center"> <B>ITEM 1. </B> </P>
<P align="center"> <B>DESCRIPTION OF THE BUSINESS </B> </P>
<P align="justify"> <B>BUSINESS DEVELOPMENT </B> </P>
<P align="justify"> With the exception of historical matters, the matters discussed
  in this report are forward-looking statements within the meaning of the Private
  Securities Litigation Reform Act of 1995 and involve risks and uncertainties
  that could cause actual results to differ materially from projections or estimates
  contained herein. Such forward-looking statements include statements regarding
  planned levels of exploration and other expenditures, anticipated mine lives,
  timing of production and schedules for development and permitting. Factors that
  could cause actual results to differ materially include, among others, metals
  price volatility and permitting delays. Most of these factors are beyond the
  Company&#146;s ability to predict or control. The Company disclaims any obligation
  to update any forward-looking statement made herein. Readers are cautioned not
  to put undue reliance on forward-looking statements. </P>
<P align="justify"> <B>Form and Year of Organization </B> </P>
<P align="justify"> New Jersey Mining Company (&#147;the Company&#148;) is a corporation
  organized under the laws of the State of Idaho on July 18, 1996. The Company
  was dormant until December 31,1996, when all of the assets and liabilities of
  the New Jersey Joint Venture (a partnership) were transferred to the Company
  in exchange for 10,000,000 shares of common stock. The New Jersey Joint Venture,
  a partnership, was formed in 1994 to develop the New Jersey mine. The partnership
  consisted of Mine Systems Design, Inc. [75%], Plainview Mining Company [13%],
  Silver Trend Mining Company [10%], Mark C. Brackebusch [1%], and Mascot Silver-Lead
  Mines, Inc. [1%]. The New Jersey Joint Venture brought the New Jersey mine into
  production by building a 100 tonne per day concentrator with a gravity circuit
  for gold recovery. </P>
<P align="right"> 4</P>

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<A name="page_5"></A>

<P align="justify"> <B>Any Bankruptcy, Receivership or Similar Proceedings </B>
</P>
<P align="justify"> There have been no bankruptcy, receivership or similar proceedings.
</P>
<P align="justify"> <B>Any Material Reclassification, Merger, Consolidation, or
  Purchase or Sale of a Significant Amount of Assets Not in the Ordinary Course
  of Business. </B> </P>
<P align="justify"> There have been no material reclassifications or purchases
  or sales of a significant amount of assets not in the ordinary course of business
  for the past three years. However, on October 22, 2002, the Company completed
  a merger with Gold Run Gulch Mining Company (GRG). The Company exchanged 1,916,250
  common shares for all the outstanding shares of GRG. The exchange ratio was
  0.875 of a share of New Jersey Mining Co. for one share of (GRG). The shares
  issued to GRG were restricted by SEC Rule 144. GRG's primary asset was the New
  Jersey mine property which included 62 acres of patented mining claims, mineral
  rights to 108 acres of fee land, and approximately 130 acres of unpatented mining
  claims. </P>
<P align="justify"> <B>BUSINESS OF THE COMPANY </B> </P>
<P align="justify"> <B>General Description of the Business </B> </P>
<P align="justify"> The Company is involved in exploring for and developing gold,
  silver and base metal ore resources in the Pacific Northwest of the USA. The
  Company has a portfolio of seven mineral properties: the New Jersey mine, the
  Silver Strand mine, the Golden Chest mine, the CAMP project, the Lost Eagle
  project, the Wisconsin-Teddy project and the Roughwater Project. The New Jersey
  mine and the Silver Strand mine are the Company's development stage properties
  while the other five properties are exploration stage properties. </P>
<P align="justify"> The Company's New Jersey mine property has an area of approximately
  430 acres and includes two mineral leases. The Company owns 5 patented claims
  containing 62 acres, 7 unpatented claims containing 130 acres surrounding the
  patented claims, and mineral rights to fee land containing 108 acres. The known
  orebody is located on the patented claims. A mineral lease from William Zanetti
  in the New Jersey mill area contains about 60 acres. This mineral lease carries
  a 5% Net Smelter Royalty (NSR). A second mineral lease of 68 acres was acquired
  from Mine Systems Design, Inc. in September of 2001. This lease carries a 3%
  NSR. </P>
<P align="justify"> The Company's Silver Strand mine consists of fifteen unpatented
  lode claims on federal land administered by the U.S. Forest Service. The claims
  were acquired from Trend Mining Company pursuant to a purchase agreement dated
  July 14, 2000. </P>
<P align="justify"> <B>Effect of Existing or Probable Governmental Regulations
  on the Business </B> </P>
<P align="justify"> All operating plans have been made in consideration of existing
  governmental regulations. Regulations that would most affect operations are
  related to water quality. A plan of operation is usually required before exploration
  or mining activities can be conducted on public land that is administered by
  the Bureau of Land Management or US Forest Service. The New Jersey mine, the
  Silver Strand mine and the Golden Chest properties are part of the expanded
  Bunker Hill Superfund Site. Current plans for expanded cleanup do not include
  our mines. There is no known evidence that previous operations at the New Jersey
  mine prior to 1910 caused any ground water or stream pollution or discharged
  any tailings into the South Fork of the Coeur d'Alene River; however, such evidence
  could be uncovered. The nature of the risk would probably be to clean up or
  cover old mine tailings that may have washed downstream from upstream mining
  operations. No mineral processing operations were ever conducted </P>
<P align="right">5 </P>

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<A name="page_6"></A>

<P align="justify"> at the Silver Strand mine and water sampling data has not
  indicated any pollution. There are no mineral processing tailings deposits at
  the Golden Chest mine, however, at least two old adits have small water discharges.
  The Company could conceivably be required to conduct cleanup operations at its
  own expense, however the Record of Decision does not include any cleanup activities
  at the Company&#146;s mines. New Jersey Mining Company has not received any
  notifications that it could be liable for any environmental cleanup. The Bureau
  of Land Management is currently revising its regulations relative to exploration
  and mining operations, but the planned changes are not thought to have major
  effects on planned operations at the New Jersey mine. </P>
<P align="justify"> The Company submitted a Plan of Operation to the US Forest
  Service (USFS) in April 2003 for a seasonal, underground mining operation at
  the Silver Strand mine. USFS is conducting an environmental assessment of the
  plan and a FONSI (Finding of No Significant Impact) document is expected this
  year. A 30 day appeal period would follow the issuance of a FONSI document.
  An appeal of a FONSI could delay the permitting for an unknown period of time.
</P>
<P align="justify"> <B>Costs and Effects of Compliance with Environmental Laws
  (Federal, State and Local) </B> </P>
<P align="justify"> No major Federal permits [except EPA storm water permit which
  is a blanket state-wide permit] are required for the New Jersey mine because
  most operations are on private land and there are no process discharges to streams.
  Any exploration program conducted by the Company on unpatented mining claims,
  usually administered by the U.S. Bureau of Land Management (BLM), requires a
  Plan of Operation to be submitted. An approved plan of operations at the Silver
  Strand will most likely require water quality monitoring, a reclamation plan,
  and possibly treatment of the mine water discharge. A reclamation bond will
  be required before operations can begin at the Silver Strand. The amount of
  the reclamation bond is uncertain at this time. Water quality monitoring at
  the Silver Strand is expected to cost about $2,000 per year. </P>
<P align="justify"> The Company is also subject to the rules of the U.S. Department
  of Labor, Mine Safety and Health Administration (MSHA) for the New Jersey mine
  and Silver Strand mine operations. When a mine is operating, MSHA performs a
  series of inspections to verify compliance with mine safety laws. </P>
<P align="justify"> With respect to the New Jersey mine, two important State of
  Idaho permits are necessary to perform the mining and milling operation, both
  of which are in hand. The first is an Idaho Cyanidation Permit and the second
  is a reclamation plan for surface mining operations. An Idaho cyanidation permit
  was applied for, and the permit was granted October 10, 1995 [No. CN-000027]
  The cyanidation process, CIL, has not been implemented at the New Jersey mine
  as of this date. The deposition of tailings using paste technology is a unique
  part of the permit. Tailings will be dewatered to a paste consistency using
  a high density thickener. Cyanide will be destroyed in the paste using bleach,
  and the tailings will be deposited on a sloped stack. Fred W. Brackebusch has
  received a U.S. patent (5,636,942) on this new tailings technology. Reclamation
  of the tailings stack will be done concurrently with mining. The Cyanidation
  permit requires quarterly surface and groundwater monitoring prior to startup
  of the CIL plant and monthly sampling once operations commence. The current
  water monitoring program costs the Company about $2,000 on an annual basis.
  The estimated annual cost for sampling if CIL operations begin is about $25,000.
</P>
<P align="justify"> A surface mining reclamation plan was approved by the Idaho
  State Department of Lands in 1993. The plan calls for grading of steep fill
  slopes and planting of vegetation on the area disturbed by the open pit mine.
  An annual reclamation fee of $130 is paid to the Idaho Department of Lands for
  surface disturbance associated with the New Jersey mine open pit. </P>
<P align="justify"> The Company complies with local building codes and ordinances
  as required by law. </P>
<P align="right"> 6</P>

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<P>
<B>Number of Total Employees and Number of Full Time Employees </B>
</P>
<P align="justify"> The Company's total number of employees is three including
  President Fred Brackebusch, Vice President Grant Brackebusch and Secretary Tina
  Brackebusch. Grant Brackebusch is the only full-time employee at this time.
  Fred W. Brackebusch and Tina C. Brackebusch work part-time for the Company.
  Exploration and development work is currently performed independent contractors
  hired by the Company. It is expected that about three full time employees will
  be hired once mill operations commence. </P>
<P align="justify"> <B>REPORTS TO SECURITY HOLDERS </B> </P>
<P align="justify"> The Company is not required to deliver an annual report to
  shareholders, however, it plans to deliver an annual report to shareholders
  in 2004. The annual report will contain audited financial statements. The Company
  may also rely on the Internet in the future to deliver annual reports to shareholders.
</P>
<P align="justify"> The Company filed a Form 10-SB with the Securities and Exchange
  Commission on January 11, 2000. The filing became effective on January 27, 2000.
  The Company has filed the required annual 10-KSB reports, quarterly 10-QSB reports,
  and occasional 8-K reports since that time. </P>
<P align="justify"> The public may read a copy of any materials the Company files
  with the SEC at the SEC's Public Reference Room at 450 Fifth Street, N.W., Washington,
  D.C. 20549. The public may obtain information on the operation of the Public
  Reference Room by calling the SEC at 1-800-SEC-0330. The SEC maintains an Internet
  site (<U><FONT color="#0000ff">http://www.sec.gov</FONT></U>) that contains
  reports, proxy and information statements, and other information regarding issuers
  that file electronically with the SEC. </P>
<P align="justify"> The Company maintains a website where recent press releases
  and other information can be found. A link to the Company&#146;s filings with
  the SEC is provided on the Company&#146;s website - www.newjerseymining.com.
</P>
<P>&nbsp; </P>
<P align="center"> [The balance of this page has been intentionally left blank.]</P>
<P>&nbsp;</P>
<P align="right">
7
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<P align="center"> <B>ITEM 2.</B> </P>
<P align="center"> <B>DESCRIPTION OF PROPERTIES</B> </P>
<P>
<B>NEW JERSEY MINE </B>
</P>
<P>
Location
</P>
<P align="justify"> The New Jersey mine is located in the Gold Run Gulch area,
  comprising about 15 square miles in the Coeur d'Alene Mining District. Located
  2 miles east of Kellogg, Idaho, the New Jersey property area includes the gold
  bearing Coleman vein system, a base metal Sullivan-type prospect known as the
  Enterprise and another gold prospect called the Scotch Thistle. The mine is
  adjacent to U.S. Interstate 90 and is easily accessed by local roads throughout
  the entire year. The area is underlain by argillites and quartzites of the Prichard
  formation [member of Belt Supergroup], which commonly hosts gold mineralization.
</P>
<P align="justify"> Mineral Property </P>
<P align="justify"> The Company owns 62 acres of patented mining claims, mineral
  rights to 108 acres of fee land, and approximately 130 acres of unpatented mining
  claims. The unpatented claims are on federal land administered by the U.S. Bureau
  of Land Management. The known orebody is located on the patented mining claims.
</P>
<P align="justify"> Mineral Leases </P>
<P align="justify"> A mineral lease from William Zanetti in the New Jersey mill
  area contains about 60 acres. Alliance Title and Escrow Corporation of Wallace,
  Idaho has issued a Commitment for Title Insurance for the fee simple property
  leased from William Zanetti. The lease provides for the Company's exploration,
  development and mining of minerals on fee land through October 2008 and thereafter
  as long as mining operations are deemed continuous. The lessor may terminate
  the lease upon the Company's failure to perform under the terms of the lease.
  The lease provides for royalties of 5% of net sales of ores or concentrates
  less transportation also know as a Net Smelter Return. Additional royalties
  of 1% to 5% are due if the gold price exceeds $612 per ounce as of December
  31, 2003. This additional royalty gold price is indexed to the Consumer Price
  Index with the December 1988 CPI as the base. Also, annual advance royalties
  totaling $500 per year are required under the lease. The advance royalties are
  accumulated and will be credited against the royalty obligations. </P>
<P align="justify"> A second mineral lease was acquired from Mine Systems Design,
  Inc. (MSD) in 2001 in exchange for 1,000,000 shares of the Company's Common
  Stock. The lease covers the mineral rights to 68 acres located north of the
  New Jersey mine area. The lease has a fifteen year term and thereafter so long
  as mining operations are deemed continuous. The lessors may terminate the leases
  upon the Company's failure to perform under the terms of the lease. A 3% Net
  Smelter Return (NSR) royalty will be paid to the lessors if production is achieved.
  However, the NSR shall not exceed 10% of the net proceeds, and except that the
  NSR shall not be less than 1%. No advance royalties are required by this lease.
</P>
<P align="justify"> History </P>
<P align="justify"> There are at least 14 gold prospects in or near the New Jersey
  mine area. Most of the prospecting activity was completed before the turn of
  the century, and almost no work has been done for at least 50 years. Just after
  the turn of the century, at the New Jersey mine, more than 2,500 feet of development
</P>
<P align="right">8 </P>

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<P align="justify"> workings including drifts, crosscuts, shafts, and raises,
  were driven by the New Jersey Mining and Milling Company (an unrelated company)
  to develop the Coleman vein and the northwest branch of the Coleman vein. A
  10 stamp gravity mill was built and operated for a short period. The amount
  of money spent from 1899 to 1910 appears to have been $500,000 to $1,000,000
  in 1996 dollars. The operation was discontinued because of the difficulty in
  recovering fine gold without cyanidation technology, because of the lower price
  of gold relative to mining costs, and because of inadequate drilling and mining
  technology. For example, the Coleman vein, a hard quartz vein, was so difficult
  to drill using hand steel that drifts along the vein were not driven to any
  great lengths. A considerable portion of the gold is in free grains, so there
  is a strong nugget effect. </P>
<P align="justify"> Present Condition and Work Completed on the Property </P>
<P align="justify"> Presently, operations at the New Jersey mine are suspended,
  but construction has started on a flotation circuit at the mill. Operations
  were suspended in mid 1997 due to the low gold price. During the period from
  1994 through the suspension of operations in 1997 many projects were completed
  on the property. Several of the historic underground workings, namely the 2400
  level adit and the Keyhole tunnel, were opened up. This permitted personnel
  to sample, map and evaluate portions of the Coleman vein and associated gold
  bearing structures. </P>
<P align="justify"> A 100 ton per day gravity mill has been built and commissioned.
  A crushing plant was built and commissioned in 1996. An open pit mining program
  on the Coleman vein was initiated in 1995. Approximately 5,000 tons of ore were
  processed at the mill during 1995 through 1996. A gravity concentrate was produced
  and sold to ASARCO in East Helena, Montana. Gold recovery from the ore using
  gravity methods of concentration was relatively low (approx. 60%) so the decision
  was made to upgrade the mill to a CIL (Carbon-In-Leach) process. Testwork using
  the CIL process on New Jersey ores indicated gold recoveries of up to 95% were
  achievable. </P>
<P align="justify"> During 2001, the Company completed a diamond drilling exploration
  program at the New Jersey mine. Two holes were drilled to explore a geophysical
  anomaly detected in the autumn of 2000. One hole intercepted a broad zone of
  arsenopyrite mineralization, named the Grenfel zone, which contained two separate
  zones of anomalous gold content ( 0.70 grams per tonne gold over two separate
  10 meter intervals) In 2002, 1,317 meters of diamond drilling was completed
  amongst 11 holes at the New Jersey mine. The drilling confirmed the continuity
  of the Coleman vein system as nine of the holes intercepted the vein system.
  Reserves were not increased as the drilling was too widely spaced. The best
  intercept was in DDH02-02 which assayed 2.76 gpt gold over 12.5 meters including
  2.5 meters of 6.80 gpt gold. Drilling was conducted at the Scotch Thistle prospect,
  Enterprise prospect and northern Coleman vein in 2003. Silver, lead and zinc
  mineralization was discovered at the Enterprise and a new zone of gold mineralization
  was found at the Scotch Thistle. </P>
<P align="justify"> Exploration plans call for drifting from the 2400 Level north
  to explore for the downward projection of the DDH02-02 vein intercept. Follow-up
  drilling is also planned at for the Enterprise and Scotch Thistle prospects.
  In 2004, the Company started the construction of a flotation circuit at the
  New Jersey mill. Completion of the circuit is anticipated in August 2004. </P>
<P align="justify"> Geology and Reserve/Resource </P>
<P align="justify"> The description of the geology of the New Jersey mine and
  the calculation of mineral resources have been completed by the Company and
  not an independent third party. The description of the geology of the area can
  be verified from third party published reports by the U.S. Geological Survey
  and unpublished reports by Oscar Hershey, former Coeur d'Alene District geologist.
  The Company is solely responsible for the resource calculations. </P>
<P align="right"> 9</P>

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<P>
Geology
</P>
<P align="justify"> The Prichard formation, which is 25,000 feet in thickness,
  underlies the New Jersey mine area which is adjacent to and north of the major
  Osburn fault. The Osburn fault is in the center of a Proterozoic rifting basin.
  The Prichard formation is divided into nine rock units of alternating argillites
  and quartzites, and the units exposed in the New Jersey mine area appear to
  belong to the lower members. A broad domal structure with a series of tighter
  folds near the Osburn fault typifies the structure of the area. South of the
  Osburn fault, the Wallace formation is exposed on the north flank of the Big
  Creek anticline. A fault was discovered by the 2001 drilling program. The fault
  appears to be a fairly large east-west striking structure that may separate
  the Coleman veins from the Grenfel zone. However, more information is required
  to confirm that hypothesis. </P>
<P align="justify"> Gold mineralization is associated with sulfide-bearing quartz
  veins which cut the bedding in Prichard argillite and quartzite. Associated
  sulfides are pyrite, arsenopyrite, chalcopyrite, low-silver tetrahedrite, galena,
  and sphalerite. Most commonly in the Coleman vein of the New Jersey mine visible
  gold is associated with the tetrahedrite. Gold prospects are concentrated in
  the New Jersey mine area possibly because of the presence of lower Prichard
  stratigraphic members, an anticlinal structure, and/or the existence of a gold
  source. Gold is associated with arsenic, copper, and antimony. Igneous dikes
  are relatively rare. Some wallrock alteration has been observed. The Coleman
  vein shows a characteristic brecciation The cumulative strike length of the
  veins on the property based on exposures in drifts, outcrops and float is about
  460 meters. </P>
<P align="justify"> Reserves </P>
<P align="justify"> The reserves at the New Jersey mine as of this date are those
  contained within the open pit on the Coleman vein. Open pit reserves are from
  the planned pit which extends from the south portal north to the terminus of
  the Coleman Vein. The vertical extent of the pit is from the surface outcrop
  down to the Keyhole Tunnel level. Grade estimation for the blocks in the pit
  reserve is based upon calculated head grades from 5,000 short tons of gravity-mill
  production. Other sources include channel samples from the outcrop and also
  from the Keyhole Tunnel. </P>
<P>
Open Pit Reserve (Proven &amp; Probable)
</P>
<TABLE width="100%" border="2" cellpadding="3" cellspacing="0" bordercolor="#000000" style="font-size:10pt;border-color:black;border-collapse:collapse;">
  <TR>
    <TD valign="top">Ore Blocks</TD>
    <TD width="10%" align="center">Metric<br>
      Tonnes</TD>
    <TD width="27%" align="center">Gold Grade<br>
      (grams per tonne)</TD>
    <TD width="21%" align="center">Ounces (gold)</TD>
  </TR>
  <TR>
    <TD>Coleman (17+00to 21+00)</TD>
    <TD align="right" width="10%">56,250</TD>
    <TD align="right" width="27%">4.56</TD>
    <TD align="right" width="21%">8,306</TD>
  </TR>
  <TR>
    <TD width="36%">Coleman Split (21+00 to 23+00</TD>
    <TD align="right" width="10%">21,320</TD>
    <TD align="right" width="27%">3.53</TD>
    <TD align="right" width="21%">2,420</TD>
  </TR>
  <TR>
    <TD width="36%">North Vein (21+00)</TD>
    <TD align="right" width="10%">2,990</TD>
    <TD align="right" width="27%">8.57</TD>
    <TD align="right" width="21%">825</TD>
  </TR>
  <TR>
    <TD>Total</TD>
    <TD align="right" width="10%">80,560</TD>
    <TD align="right" width="27%">4.45</TD>
    <TD align="right" width="21%">11,551</TD>
  </TR>
</TABLE>
<P align="justify"> The open pit reserve tonnages are diluted. That is, the expected
  dilution from open pit mining is accounted for in the grade and tonnage of the
  reserve blocks. The ounces stated in the above table are contained ounces. According
  to metallurgical testwork, approximately 95% of the gold contained in the open
  pit reserve will be recovered at the mill using the CIL process. </P>
<P align="right">
10
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<P>
<B>SILVER STRAND MINE </B>
</P>
<P>
Location
</P>
<P align="justify"> The Silver Strand mine is located in Kootenai County, Idaho
  about 12 miles east-northeast of Coeur d'Alene, Idaho. The property consists
  of 15 unpatented lode claims. It is situated on Lone Cabin Creek, a tributary
  of Burnt Cabin Creek and of the Little North Fork Coeur d'Alene River. Primary
  access is from Coeur d'Alene via paved and dirt roads from Fernan Lake to Lone
  Cabin Creek. </P>
<P align="justify"> Mineral Property </P>
<P align="justify"> The Company's Silver Strand mine consists of fifteen unpatented
  lode claims on federal land administered by the U.S. Forest Service. The claims
  were acquired from Trend Mining Company pursuant to a purchase agreement dated
  July 14, 2000. Mine Systems Design, Inc. assumed Trend&#146;s royalty on the
  Silver Strand claims in July 2001. The royalty is a 1.5% Net Smelter Return
  (NSR) capped at $50,000 after which the NSR decreases to 0.5%. </P>
<P align="justify"> History </P>
<P align="justify"> The Silver Strand deposit was discovered during nearby logging
  activity during the 1960's and mined during the 1970's and 1980's for siliceous
  smelter flux. Production was 13,752 tons grading 0.093 ounces per ton gold,
  9.6 ounces per ton silver and 87.1% silica. The mining operation was shut down
  when the ASARCO Tacoma smelter closed in the early 1980's. Previous owner/operators
  include Silver Strand Mining Company, Silver Trend Mining Company and Trend
  Mining Company. Mine Systems Design, Inc. (MSD) had an exploration agreement
  with Silver Trend Mining Company that was terminated in 1997. During the term
  of that lease, MSD made an agreement with U.S. Bureau of Mines, Spokane Research
  Center to conduct a mining research product at the Silver Strand mine. The USBM
  monitored water quality and flows from the mine, maintained the underground
  openings and conducted some diamond drilling. </P>
<P align="justify"> Present Condition and Work Completed on the Property </P>
<P align="justify"> The Silver Strand mine is an underground mine that was mined
  during the 1970's and early 1980's. No mining has taken place at the property
  since that time. Since mining was suspended only limited exploration has taken
  place at the Silver Strand including geochemical sampling and diamond drilling.
  In 1997, Silver Trend Mining Company completed a four hole surface diamond drilling
  program which totaled 795 meters. The mine is accessed by three horizontal openings
  called levels: the No. 2 Level, the No. 225 Level and the No. 3 Level which
  is the lowest level and is located at the creek bottom adjacent to forest road
  No. 411. All three levels are accessible from the surface via a network of dirt
  roads. The USBM installed a large culvert at the portal of the No. 3 Level in
  order to stabilize that entrance. No surface infrastructure presently exists
  at the Silver Strand. There is no energy available at the site. Any electrical
  energy requirements would have to be satisfied with an on-site generator. </P>
<P align="justify"> During 2002, an exploration drilling program was completed
  at the Silver Strand. Also, rehabilitation of the 225 Level portal was started
  but not completed in 2002. The drilling was successful in extending the limits
  of the ore shoot below the No. 3 Level. In April 2003, the Company submitted
  a Plan of Operations (POO) to the USFS for a seasonal underground mining operation
  with a planned production rate of 1,000 tonnes per month. The USFS is currently
  evaluating the POO and a decision is expected in early 2004. The startup of
  mining at the Silver Stand is dependent on the timely receipt of a permit from
  the USFS and economic gold and silver prices. </P>
<P align="right"> 11</P>

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<P>
Geology and Reserve/Resource
</P>
<P align="justify"> Company geologists have completed the description of the geology
  of the Silver Strand mine. Reserve calculations were completed by the Company&#146;s
  geologists and engineers. Verification of the area&#146;s geology can be found
  from third party published reports by Alfred L. Anderson of the Idaho Bureau
  of Mines and Geology (Pamphlet 53). </P>
<P align="justify"> Geology </P>
<P align="justify"> The Silver Strand is located in the Belt Basin about 25 miles
  northwest of the Coeur d'Alene Mining District. The upper part of the Revett
  Formation outcrops at the mine. The upper Revett member contains alternating
  sequences of quartzite and siltite-argillite. Beds dip shallowly to moderately
  northerly (30 to 50 degrees). Alfred L. Anderson of the Idaho Bureau of Mines
  and Geology mapped the geology and discussed the mineral resources of Kootenai
  County in 1940 (Pamphlet 53). Anderson combined the Burke and Revett formations
  and estimated the combined thickness to be from 1,000 to 3000 feet. There are
  no major intrusive rocks near the Silver Strand mine. A major diabase dike has
  intruded the Silver Strand mineralized zone. The diabase dike is weathered and
  altered near the surface, but appears fresh in deeper drill hole intercepts.
  The Burnt Cabin fault is the major geologic structure near the Silver Strand
  mine. </P>
<P align="justify"> The Silver Strand orebody consists of a nearly-vertical, silicified
  (quartz) replacement zone which cuts the flat to moderately dipping Revett beds.
  The zone is not a fissure-filling vein. The boundaries and shape of the silicified
  zone were determined to some extent by the 1997 diamond drilling program. The
  sulfide ore mined to date appears to be enclosed within the quartz zone. The
  ore is black and very fine-grained. Sulfide minerals are not easy to identify
  because of the fine-grained texture. Occasional euhedral crystals of pyrite
  can be observed, and tetrahedrite is visible in the higher grade ore. Minerals
  observed by microscopic study during metallurgical tests include: pyrite, tetrahedrite,
  tennatite, sphalerite, arsenopyrite and stibnite. </P>
<P align="justify"> Reserves </P>
<P align="justify"> Ore grades and dimensions of the reserve blocks are based
  on chip sampling of the vein underground and diamond drilling. Reserves were
  calculated using the standard practices of the Coeur d&#146;Alene Mining District.
</P>
<TABLE width="100%" border="2" cellpadding="3" cellspacing="0" bordercolor="#000000" style="font-size:10pt;border-color:black;border-collapse:collapse;">
  <TR>
    <TD rowspan="2" valign="top">Classification</TD>
    <TD rowspan="2" align="center" valign="top">Metric Tonnes</TD>
    <TD colspan=2 align="center">Gold Grade</TD>
    <TD colspan=2 align="center">Silver Grade</TD>
  </TR>
  <TR>
    <TD align="center">Grams Per Tonne</TD>
    <TD align="center">Ounces Per Ton</TD>
    <TD align="center">Grams Per Tonne</TD>
    <TD align="center">Ounces Per Ton</TD>
  </TR>
  <TR>
    <TD valign="top">Proven &amp; Probable</TD>
    <TD align="center" valign="top">6,903</TD>
    <TD align="center">5.43</TD>
    <TD align="center">0.158</TD>
    <TD align="center">361</TD>
    <TD align="center">10.5</TD>
  </TR>
</TABLE>
<P align="justify"> The reserve tonnages are diluted. That is, the expected dilution
  from underground mining is accounted for in the grade and tonnage of the reserve
  blocks. </P>
<P align="justify"> <B>GOLDEN CHEST </B> </P>
<P align="justify"> Location </P>
<P align="justify"> The Golden Chest project is located in Reader Gulch about
  1.2 miles east of Murray, Idaho along Forest Highway 9. It is an exploration
  project without proven and probable ore reserves. The property consists of two
  exploration leases and unpatented claims covering approximately 490 acres. The
  site is </P>
<P align="right">12 </P>

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<P align="justify"> accessible by unimproved dirt roads and no surface infrastructure
  is present at the site. Electrical power is available at the site at lower elevations
  near Forest Highway 9. </P>
<P align="justify"> Mineral Lease </P>
<P align="justify"> On September 5, 2003, the Company signed an exploration lease
  and option to lease with Paymaster Resources Incorporated on the Golden Chest
  mine covering about 230 acres. The exploration lease calls for a 2.5 year exploration
  period during which the Company will issue 10,000 shares of its common stock
  per six month period. If the mining lease is executed, the Company would pay
  100,000 shares of its common stock and a sliding scale net smelter return (NSR)
  royalty which increases with the gold price. The royalty is 3% up to a gold
  price of $400/oz and then increases to a maximum of 6% at higher gold prices,
  but the trigger prices for higher royalties will be adjusted for inflation using
  the Consumer Price Index. Also, the Company would issue 50,000 shares of its
  common stock for each 10,000 ounces of gold produced at the Golden Chest. On
  February 24, 2004, Paymaster Resources notified the Company that it had assigned
  its interest in the Exploration Agreement and Option to Lease and Mining Lease
  and Agreement to Metaline Contact Mines of Murray, Idaho. The lease is attached
  as an exhibit to this 10-KSB filing. </P>
<P align="justify"> On November 7, 2003, the Company signed and exploration agreement
  and option to lease with Prichard Creek Resource Partners , LLC which covers
  about 100 acres of unpatented lode claims. The lease agreement is attached as
  an exhibit to this 10-KSB filing. </P>
<P align="justify"> History </P>
<P align="justify"> The Golden Chest was the largest lode producer in the Murray
  district, producing 65,000 ounces of gold from narrow high grade veins primarily
  in the late 1800&#146;s. Newmont Exploration Limited (NEL) spent over $500,000
  on an exploration program at the Golden Chest in the late 1980s, which consisted
  of soil and rock sampling; surface and underground mapping; and 11,133 feet
  of drilling. Newmont&#146;s work identified a potential open pit with an inferred
  geologic resource, not reserves, of 230,000 ounces of gold. Newmont dropped
  the property in 1990, apparently because it did not meet their criterion of
  a 1 million ounce open-pit resource. </P>
<P align="justify"> Present Condition / Exploration Plans </P>
<P align="justify"> The Company plans to drive a ramp to investigate a high grade
  drill-intercept thought to be the offset of the Katie Dora vein. If ore is encountered
  in the decline, it could be shipped to the New Jersey mill for processing. Interestingly,
  the deepest hole drilled on the property is only 140 meters vertically. The
  Company has evidence that more veins may be encountered at depth at the Golden
  Chest and a drilling program to explore this deep potential is being planned
  for 2004. </P>
<P align="justify"> Geology </P>
<P align="justify"> The Golden Chest veins are flatly-dipping, banded quartz veins
  ranging in thickness from centimeters to 3 meters and are generally conformable
  with bedding of Prichard formation argillite. Sulfide minerals including pyrite,
  arsenopyrite and galena occur with free gold in the quartz veins. Veins are
  stacked, in certain areas, to form bulk mineable bodies. Gold mineralization
  also occurs as disseminations in quartzite units of the Prichard formation.
</P>
<P align="right">
13
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<P>
<B>CAMP PROJECT </B>
</P>
<P>
Location
</P>
<P align="justify"> The CAMP project is an underground exploration project without
  known ore reserves. It is located south of the City of Osburn, Idaho, in the
  approximate center of the silver belt of the Coeur d'Alene Mining District.
  The CAMP is accessed by the Mineral Point mine road otherwise known as the McFarren
  Gulch road. The CAMP project covers approximately 380 acres. The Company controls
  17.75% of the land in the CAMP. Merger Mines and Coeur d'Alene Mines Corp. (CDE:NYSE)
  control the remainder. Coeur d'Alene Mines Corp. is the operator of the property.
  The CAMP area extends from the surface to 900 feet below sea level. </P>
<P align="justify"> Mineral Lease </P>
<P align="justify"> As part of a July 26, 1978 lease agreement with Coeur d'Alene
  Mines Corp. (Coeur), the Company will receive a 7.1% Net Profits Interest (NPI),if
  the property is put into production. However, according to the agreement, Coeur
  can retain 93.925% of the net profits until Coeur is reimbursed in total for
  its advance payments and expenditures. The term of the lease is 61 years. The
  Agreement also calls for Coeur to spend $50,000 annually on exploration. However,
  a December 18, 1992 Amendment to the Agreement allowed Coeur to fulfill the
  exploration work requirement until 2006 by applying past work in the amount
  of $1,436,243 towards the exploration work requirement. </P>
<P align="justify"> History </P>
<P align="justify"> Originally the CAMP project was leased to ASARCO during the
  period from 1969 through 1972. ASARCO developed an exploration drift on the
  1400 level of the Coeur d'Alene mine (aka Mineral Point mine), before terminating
  the drift 1000 feet short of its planned termination. The drift extended 1,000
  feet into the CAMP project area before terminating. A series of diamond drill
  holes were planned along the 1400 level drift, but ASARCO terminated the lease
  agreement before any drilling could take place. </P>
<P align="justify"> In 1978, Coeur signed a new lease agreement with Merger Mines
  and Plainview Mining Co. Plainview Mining Co. was acquired by the Company in
  February 1998. Coeur began an exploration program soon thereafter consisting
  of geochemical soil sampling, trenching, an exploration tunnel and diamond drilling
  (surface &amp; underground). The exploration program continued through 1982.
  Coeur spent a total of $1,436,243 on the project. The property has not received
  any more exploration activity since 1982 and to the best of our knowledge, Coeur
  d&#146;Alene Mines has no plans for exploration. </P>
<P align="justify"> Geology </P>
<P align="justify"> The CAMP area lies astride the Silver Belt of the Coeur d'Alene
  Mining District east of the Sunshine mine and west of the Coeur and Galena mines.
  The north limb of the Big Creek anticline trends through the CAMP area. Most
  of the silver orebodies in adjacent properties are located in the north limb
  of the Big Creek anticline. Prospective fault structures that trend through
  the CAMP property include the Polaris fault, Silver Summit vein-fault, Chester
  fault, and other structures. Favorable rock types are located in the footwall
  of the Polaris fault including the St. Regis and Revett formation. </P>
<P align="right">
14
</P>

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<A name="page_15"></A>

<P>
<B>LOST EAGLE PROJECT </B>
</P>
<P>
Summary
</P>
<P align="justify"> The Lost Eagle is an exploration project without known ore
  reserves. It is located in the West Fork of Eagle Creek near Murray, Idaho.
  The outcrop of the Lost Eagle vein is located on the hillside above a USFS road.
  Access to the outcrop is by foot only. The Company's five lode claims cover
  103 acres and are on federal land administered by the U.S. Forest Service. The
  project is a gold and silver exploration project. The Lost Eagle vein is a quartz
  vein carrying sulfides that outcrops in the Revett formation. The sulfide minerals
  found in the vein are galena, pyrite, hessite and petzite. Hessite is a silver
  telluride mineral and petzite is a gold-silver telluride mineral. The presence
  of tellurides is thought to be significant as tellurides are usually associated
  with high-grade gold deposits near alkaline-igneous bodies. However, no known
  igneous bodies are mapped in the area. Historical workings included two short
  adits, say 5 meters long, located along the strike of a quartz vein system.
  An upper adit established by the old-timers exposes the vein where it is mineralized.
  Work completed by the Company includes re-opening of the adit, channel sampling
  the vein, geochemical soil sampling, and a geophysical survey. </P>
<P align="justify"> In 2003, the Company completed two diamond drillholes each
  about 185 meters in length. Both holes intercepted abundant alteration including
  carbonate enrichment, potassic alteration, and a halo of specular hematite and
  pyrite with occasional galena. Gold and silver values were only weakly anomalous.
  Exploration plans call for additional diamond drilling but the holes will be
  collared closer to the outcrop by using a helicopter to place the drill. </P>
<P align="justify"> <B>WISCONSIN-TEDDY PROJECT </B> </P>
<P align="justify"> Summary </P>
<P align="justify"> The Wisconsin-Teddy is an exploration project without known
  ore reserves. The project area lies north of the New Jersey mine and is accessed
  by a local frontage road. The Company's claims cover 83 acres. The claims are
  unpatented and are on federal land administered by the U.S. Bureau of Land Management.
  The project is a base metal exploration project in the Prichard formation. Several
  tunnels with an aggregate length of 2,000 feet were driven on the property prior
  to 1930. This development was related to two veins systems - a copper-gold vein
  and a zinc-lead-silver vein. Work completed by the Company includes the opening
  of the Teddy underground workings, sampling on the surface and underground,
  and geologic mapping. Two exploration holes were drilled in the summer of 2003
  and anomalous base metal mineralization was found. </P>
<P align="justify"> <B>ROUGHWATER PROJECT </B> </P>
<P align="justify"> Roughwater is an exploration project without known ore reserves.
  The Roughwater prospect is comprised of nine unpatented claims in the Clark
  Fork mining district about 60 miles north of Kellogg. The property is located
  near Bear Creek in the Lightening Creek drainage. To date, the work completed
  on the property includes sampling of surface outcrops and preliminary metallurgical
  testwork. The property is a copper-gold showing with minor platinum group metal
  content. The host rock is a quartz diorite sill which has intruded the Prichard
  formation. A wide area of disseminated copper mineralization has been observed
  which may be a cumulate layer in the sill. No work was completed on the property
  in 2003. </P>
<P align="right"> 15</P>

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<A name="page_16"></A>

<P align="center"> <B>ITEM 3. </B> </P>
<P align="center"> <B>LEGAL PROCEEDINGS </B> </P>
<P align="justify"> The Company is not currently involved in any legal proceedings
  and is not aware of any pending or potential legal actions. </P>
<P align="center"> <B>ITEM 4. </B> </P>
<P align="center"> <B>SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS</B>
</P>
<P align="justify"> No matters were submitted to a vote of shareholders during
  the fourth quarter of 2003. </P>
<P align="center"> <B>PART II. </B> </P>
<P align="center"> <B>ITEM 5. </B> </P>
<P align="center"> <B>MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS</B>
</P>
<P align="justify"> Market Information </P>
<P align="justify"> The Company's stock trades on the NASD's OTCBB under the symbol
  "NJMC". The Company began trading on the OTCBB on January 28, 1998 following
  its merger with Plainview Mining Company, Inc. </P>
<P align="justify"> The following table sets forth, for the respective periods
  indicated, the prices for the Company's Common Stock in the over-the-counter
  market according to the NASD's OTC Bulletin Board. These prices represent inter-dealer
  quotations, without adjustments for retail markups, markdowns or commissions
  and may not necessarily represent actual transactions. All prices in the following
  table have been rounded to the nearest whole cent. </P>
<TABLE width="100%" border="2" cellpadding="3" cellspacing="0" bordercolor="#000000" style="font-size:10pt;border-color:black;border-collapse:collapse;">
  <TR>
    <TD><B>Year Ending December 31, 2003</B></TD>
    <TD align="center" width="12%"><B>High Bid</B></TD>
    <TD align="center" width="12%"><B>Low Bid</B></TD>
  </TR>
  <TR>
    <TD>First Quarter</TD>
    <TD align="center" width="12%">$0.65</TD>
    <TD align="center" width="12%">$0.29</TD>
  </TR>
  <TR>
    <TD>Second Quarter</TD>
    <TD align="center" width="12%">$0.48</TD>
    <TD align="center" width="12%">$0.27</TD>
  </TR>
  <TR>
    <TD>Third Quarter</TD>
    <TD align="center" width="12%">$0.56</TD>
    <TD align="center" width="12%">$0.27</TD>
  </TR>
  <TR>
    <TD>Fourth Quarter</TD>
    <TD align="center" width="12%">$0.90</TD>
    <TD align="center" width="12%">$0.44</TD>
  </TR>
  <TR>
    <TD><B>Year Ending December 31, 2002</B></TD>
    <TD width="12%" align="center"><B>High Bid</B></TD>
    <TD width="12%" align="center"><B>Low Bid</B></TD>
  </TR>
  <TR>
    <TD>First Quarter</TD>
    <TD align="center" width="12%">$0.12</TD>
    <TD align="center" width="12%">$0.07</TD>
  </TR>
  <TR>
    <TD>Second Quarter</TD>
    <TD align="center" width="12%">$0.40</TD>
    <TD align="center" width="12%">$0.09</TD>
  </TR>
  <TR>
    <TD>Third Quarter</TD>
    <TD align="center" width="12%">$0.38</TD>
    <TD align="center" width="12%">$0.21</TD>
  </TR>
  <TR>
    <TD>Fourth Quarter</TD>
    <TD align="center" width="12%">$0.35</TD>
    <TD align="center" width="12%">$0.24</TD>
  </TR>
</TABLE>
<P> Shareholders</P>
<P align="justify">As of March 3, 2004 there were approximately 600 shareholders
  of record of the Company's Common Stock. As of March 3, 2004 the Company had
  issued and outstanding 19,604,390 shares of Common Stock, and the Company had
  2,214,375 warrants outstanding for a fully diluted total of 21,818,765. </P>
<P align="right">
16
</P>

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<A name="page_17"></A>

<P>
Dividend Policy
</P>
<P align="justify"> The Company has not declared or paid cash dividends or made
  distributions in the past and the Company does not anticipate that it will pay
  cash dividends or make distributions in the foreseeable future. The Company
  currently intends to retain and reinvest future earnings, if any, to finance
  its operations. </P>
<P align="justify"> Transfer Agent </P>
<P align="justify"> The transfer agent for the Company's Common Stock is Columbia
  Stock Transfer Company, P.O. Box 2196, Coeur d'Alene, Idaho 83816-2196. </P>
<P align="justify"> Recent Sales of Unregistered Securities </P>
<P align="justify"> On May 5, 2003 the Company granted an accredited investor
  460,000 warrants exercisable at $0.25 until May 1, 2005 in exchange for the
  early exercise of 460,000 warrants at $0.25 which had an expiration date of
  May 1, 2004. No underwriter was involved and no commission was paid on the transaction.
  The shares underlying the warrants are restricted as defined by Rule 144 of
  the Securities Act and the offer was made in reliance on exemptions from registration
  provided by Section 4(2) and Rule 506 of Regulation D of the Securities Act
  of 1933, as amended. </P>
<P align="justify"> On February 19, 2004 the Company filed an 8-K report with
  the SEC announcing it had completed a non-brokered (i.e. no commissions were
  paid to an underwriter) private placement of 1,727,500 units for $0.40 per unit.
  Each unit consists of one share of common stock plus one-half of a warrant.
  Each full warrant is exercisable into one share of common stock at a price of
  $0.70. The warrant expires on April 1, 2005. The offering was made in reliance
  on exemptions from registration provided by Section 4(2) and Rule 506 of Regulation
  D of the Securities Act of 1933, as amended. </P>
<P align="center">&nbsp; </P>
<P align="center">[The balance of this page has been intentionally left blank.]
</P>
<P align="center">&nbsp;</P>
<P align="center">&nbsp; </P>
<P align="right">
17
</P>

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<A name="page_18"></A>

<P align="center"> <B>ITEM 6. </B> </P>
<P align="center"> <B>MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION</B>
  <B>AND RESULTS OF OPERATIONS</B> </P>
<P>
Plan of Operation:
</P>
<P align="justify"> The Company is executing its plan to continue exploration
  for gold, silver and base metal deposits in the greater Coeur d&#146;Alene Mining
  District of northern Idaho. One of the properties, the Silver Strand, owned
  by the Company is in the advanced permitting stage with the U.S. Forest Service
  (USFS) and will be readied for production once operating permits are received.
  Currently, the permitting schedule for the Silver Strand should allow pre-production
  work to commence in June or July, but interest groups that oppose all enterprises
  on public lands may attempt to delay the granting of permits by the USFS. </P>
<P align="justify"> The Company is upgrading its mineral processing plant, the
  New Jersey mill, to add the flotation process which is needed to produce marketable
  concentrates for smelters. Included in the upgrade are eight new flotation cells,
  pumps, a filter press, a concentrate bin, and various fabricated assemblies.
  A coarse-ore bin is also planned so that ore can be received at the New Jersey
  mill from outlying properties. Other improvements are being made to improve
  the process control of the plant. A special mine car is being built to transport
  ore in narrow, trackless mine openings. </P>
<P align="justify"> An exploration ramp at the Golden Chest is planned to expose
  an ore grade intercept drilled by Newmont Exploration Limited (NEL). If the
  mineralization exposed by the ramp is of sufficient size and grade, as indicated
  by the drilling, production may commence from development excavations which
  will be driven on the vein. </P>
<P align="justify"> An exploration drilling program is also planned for 2004.
  Drilling will commence at the New Jersey mine area at the Enterprise and Scotch
  Thistle prospects. Drilling will also be done at the Golden Chest property to
  test for the presence of deep gold mineralization. Drilling at the Lost Eagle
  prospect is also planned. A surface geophysical program is planned at the Silver
  Strand mine to test for a potential westward extension of the mineral zone.
  Reconnaissance geological studies are planned in the greater Coeur d&#146;Alene
  Mining District. Work will proceed to conduct a pre-feasibility study at the
  Golden Chest where previous drilling by NEL indicates a potential open-pittable
  resource of 230,000 ounces of gold. </P>
<P align="justify"> The Company has sufficient funding to execute the above projects
  in 2004, as well as fund necessary management tasks such as auditing/accounting
  and SEC reporting. Should additional funding become available in 2004, such
  as by the exercising of outstanding warrants, the Company may expand its exploration
  plans. </P>
<P align="justify"> It is likely that some production will be achieved in the
  next twelve months, which could generate additional cash flow. Production may
  be achieved from the New Jersey open pit mine or from the Silver Strand mine
  or Golden Chest project. </P>
<P align="justify"> The Company currently has three employees and uses consultants
  or contractors for project tasks. Up to four additional employees may be hired
  if production commences. </P>
<P align="right">
18
</P>

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<A name="page_19"></A>

<P align="center"> <B>ITEM 7. </B> </P>
<P align="center"> <B>FINANCIAL STATEMENTS</B> </P>
<TABLE cellpadding="2" cellspacing="0" width="100%" border="0">
  <TR>
    <TD>&nbsp;</TD>
    <TD width="20%"><font size="6">D</font><font size="5">E<font size="6">C</font>ORIA,</font></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="20%"><font size="6">M</font><font size="5">AICHEL</font></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="20%"><font size="6">&amp; T</font><font size="5">EAGUE</font></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="20%"><font size="1" face="Arial, Helvetica, sans-serif">A PROFESSIONAL SERVICES
      FIRM</font></TD>
  </TR>
</TABLE>
<P>
<B>Report of Independent Certified Public Accountants </B>
</P>
<P> Board of Directors <br>
  New Jersey Mining Company </P>
<P align="justify"> We have audited the accompanying balance sheet of New Jersey
  Mining Company (<I>A Development Stage Company</I>) (&#147;the Company&#148;)
  as of December 31, 2003, and the related statements of operations, changes in
  stockholders&#146; equity, and cash flows for the year then ended, and for the
  period from inception on July 18, 1996 to December 31, 2003. These financial
  statements are the responsibility of the Company&#146;s management. Our responsibility
  is to express an opinion on these financial statements based on our audits.
  We did not audit the cumulative totals of the Company for the period from inception
  on July 18, 1996 to December 31, 2002, which totals reflect a deficit of $161,247
  accumulated during the development stage. Those cumulative totals were audited
  by other auditors. Our opinion expressed herein, insofar as it relates to the
  amounts included for the cumulative totals for the period from inception on
  July 18, 1996 to December 31, 2002, is based solely on the report of the other
  auditors. </P>
<P align="justify"> We conducted our audit in accordance with auditing standards
  generally accepted in the United States of America. Those standards require
  that we plan and perform the audit to obtain reasonable assurance about whether
  the financial statements are free of material misstatement. An audit includes
  examining, on a test basis, evidence supporting the amounts and disclosures
  in the financial statements. An audit also includes assessing the accounting
  principles used and significant estimates made by management, as well as evaluating
  the overall financial statement presentation. We believe that our audit provides
  a reasonable basis for our opinion. </P>
<P align="justify"> In our opinion, the financial statements referred to above
  present fairly, in all material respects, the financial position of New Jersey
  Mining Company as of December 31, 2003, and the results of its operations and
  its cash flows for the year then ended, and for the period from inception on
  July 18, 1996 to December 31, 2003, in conformity with accounting principles
  generally accepted in the United States of America. </P>
<P align="justify"> As discussed in Note 2 to the financial statements, the Company
  changed its method of accounting for exploration costs in 2003. </P>
<P align="justify"> DeCoria, Maichel &amp; Teague P.S. <br>
  /s/ Decoria, Maichel &amp; Teague P.S. </P>
<P align="justify"> Spokane, Washington <br>
  February 19, 2004 </P>
<P align="right"> 19</P>

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<A name="page_20"></A>

<P align="center"> <B><font style="font-size:72pt;">W</font></B></P>
<P align="center"> <U><font size="3">NATHAN WENDT</font></U><br>
  <I>Certified Public Accountant</I></P>
<P>
<B>Report of Independent Certified Public Accountants </B>
</P>
<P> Board of Directors <br>
  New Jersey Mining Company </P>
<P align="justify"> We have audited the accompanying balance sheet of New Jersey
  Mining Company (<I>A Development Stage Company</I>) (&#147;the Company&#148;)
  as of December 31, 2002, and the related statements of operations, stockholders&#146;
  equity, and cash flows for the year then ended and from inception on July 18,
  1996 through December 31, 2002. These financial statements are the responsibility
  of the Company&#146;s management. Our responsibility is to express an opinion
  on these financial statements based on our audit. </P>
<P align="justify"> We conducted our audit in accordance with auditing standards
  generally accepted in the United States of America. Those standards require
  that we plan and perform the audit to obtain reasonable assurance about whether
  the financial statements are free of material misstatement. An audit includes
  examining, on a test basis, evidence supporting the amounts and disclosures
  in the financial statements. An audit also includes assessing the accounting
  principles used and significant estimates made by management, as well as evaluating
  the overall financial statement presentation. We believe that our audit provide
  a reasonable basis for our opinion. </P>
<P align="justify"> In our opinion, the financial statements referred to above
  present fairly, in all material respects, the financial position of New Jersey
  Mining Company as of December 31, 2002 and the results of its operations and
  its cash flows for the year then ended and from inception on July 18, 1996 through
  December 31, 2002 in conformity with auditing standards generally accepted in
  the United States of America. </P>
<P align="justify"> Nathan Wendt <br>
  /s/ Nathan Wendt </P>
<P align="justify"> Kellogg, Idaho </P>
<P align="justify"> March 24, 2003 <br>
  &nbsp;&nbsp;except for Note 2 as <br>
  &nbsp;&nbsp;to which date is <br>
  &nbsp;&nbsp;March 5, 2004 </P>
<P align="right">
20
</P>

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<A name="page_21"></A>
<P> <B>NEW JERSEY MINING COMPANY</B> <br>
  <I>(A Development Stage Company) <br>
  </I><B>TABLE OF CONTENTS </B> </P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR bgcolor="#EEEEEE">
    <TD>&nbsp;</TD>
    <TD width="6%" align="right">Page</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR bgcolor="#EEEEEE">
    <TD>Balance Sheets, December 31, 2003 and 2002</TD>
    <TD width="6%" align="right">22</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR bgcolor="#EEEEEE">
    <TD>Statements of Operations for the years ended December 31, 2003 and 2002
      and from the date of inception on July 18, 1996 through December 31, 2003</TD>
    <TD width="6%" align="right">23</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR bgcolor="#EEEEEE">
    <TD>Statement of Changes in Stockholders&#146; Equity for the period from
      inception on July 18, 1996 through December 31, 2003</TD>
    <TD width="6%" align="right">24</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR bgcolor="#EEEEEE">
    <TD>Statements of Cash Flows for the years ended December 31, 2003 and 2002
      and from the date of inception on July 18, 1996 through December 31, 2003</TD>
    <TD width="6%" align="right">26</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR bgcolor="#EEEEEE">
    <TD>Notes to Financial Statements</TD>
    <TD width="6%" align="right">27-41</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
</TABLE>
<P align="right">
21
</P>

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<A name="page_22"></A>
<P> <B>New Jersey Mining Company<br>
  </B><I>(A Development Stage Company)<br>
  </I><B>Balance Sheets <br>
  </B><I>December 31, 2003 and 2002</I> </P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD><b>ASSETS</b></TD>
    <TD align="center" width="1%">&nbsp;</TD>
    <TD align="right" width="11%">&nbsp;</TD>
    <TD align="center" width="2%">&nbsp;</TD>
    <TD align="center" width="1%">&nbsp;</TD>
    <TD align="right" width="11%">&nbsp;</TD>
    <TD align="center" width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%"><u>2003</u></TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%"><u>2002</u></TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right"><I>(As Restated</I></TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right"><I>See Note 2)</I></TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Current assets:</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;Cash and cash equivalents</TD>
    <TD width="1%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">$</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">346,268</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">$</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">40,436</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">346,268</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">40,436</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;Building and equipment</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">271,676</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">251,837</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;Mineral properties and deferred development costs</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">787,274</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">747,273</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;Other assets</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2,346</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">36,251</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets</TD>
    <TD width="1%" align="center" style="border-bottom-width:4px;border-bottom-style:double">$</TD>
    <TD width="11%" align="right" style="border-bottom-width:4px;border-bottom-style:double">1,407,564</TD>
    <TD width="2%" style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:4px;border-bottom-style:double">$</TD>
    <TD width="11%" align="right" style="border-bottom-width:4px;border-bottom-style:double">1,075,797</TD>
    <TD width="2%" style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD><B>LIABILITIES AND STOCKHOLDERS&#146; EQUITY</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Current liabilities:</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;Accounts payable</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="11%">11,610</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="11%">7,926</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;Accounts payable to related party</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2,000</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">13,610</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">7,926</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>Accrued reclamation costs</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">12,500</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Payable to officers, in common stock</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">11,519</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">37,629</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">7,926</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Commitments and contingencies (Note 10)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Stockholders&#146; equity:</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;Preferred stock; no par value, 1,000,000 shares</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;authorized; no shares issued and outstanding</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;Common stock; no par value, 50,000,000</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares authorized; 18,669,890</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares issued and outstanding</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">1,910,456</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;Common stock; no par value, 20,000,000</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares authorized; 18,583,919</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares issued and outstanding</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">1,365,418</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>Deficit accumulated during the development stage</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">(540,521</TD>
    <TD width="2%">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">(161,247</TD>
    <TD width="2%">)</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Treasury stock; 0 and 1,947,144 shares at December 31,</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2003 and 2002, respectively</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(136,300</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders&#146;
      equity</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">1,369,935</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">1,067,871</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities
      and stockholders&#146; equity</TD>
    <TD width="1%" align="center" style="border-bottom-width:4px;border-bottom-style:double">$</TD>
    <TD width="11%" align="right" style="border-bottom-width:4px;border-bottom-style:double">1,407,564</TD>
    <TD width="2%" style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:4px;border-bottom-style:double">$</TD>
    <TD width="11%" align="right" style="border-bottom-width:4px;border-bottom-style:double">1,075,797</TD>
    <TD width="2%" style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
  </TR>
</TABLE>
<P align="center">
<I>The accompanying notes are an integral part of these financial statements.</I>
</P>
<P align="right">
22
</P>

<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_23"></A>
<P> <B>New Jersey Mining Company<br>
  </B><I>(A Development Stage Company)<br>
  </I><B>Statements of Operations </B> </P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD align="center" colspan=2>From Inception</TD>
    <TD align="center" width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=5>Years Ended</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD align="center" colspan=2>(July 18, 1996)</TD>
    <TD align="center" width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=5><u>December 31,</u></TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD align="center" colspan=2>Through</TD>
    <TD align="center" width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2><u>2003</u></TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD align="center" colspan=2><u>2002</u></TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD align="center" colspan=2><u>December 31, 2003</u></TD>
    <TD align="center" width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD colspan=2 align="center"><I>(As Restated</I></TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD colspan=2 align="center"><I>(As Restated</I></TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD colspan=2 align="center"><I>See Note 2)</I></TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD colspan=2 align="center"><I>See Note 2)</I></TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>Operating expenses:</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;Expenses paid with common stock:</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management fees</TD>
    <TD width="1%">$</TD>
    <TD align="right" width="11%">137,126</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">$</TD>
    <TD align="right" width="11%">137,126</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Directors fees</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">7,200</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">$</TD>
    <TD width="11%" align="right">2,250</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">9,450</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Services</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">7,262</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">1,475</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">19,890</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exploration</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">8,000</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">8,000</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;Exploration expense</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">102,841</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">10,543</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">113,384</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;General and administrative expenses</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">85,657</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">27,035</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">190,875</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">348,086</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">41,303</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">478,725</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>Other (income) expense:</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;Royalty and other income</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">(2,762</TD>
    <TD width="2%">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">(5,613</TD>
    <TD width="2%">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">(59,154</TD>
    <TD width="2%">)</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;Write-off of goodwill</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">30,950</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">30,950</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;Write-off of investment</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">3,000</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">90,000</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other (income) expense</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">31,188</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(5,613</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">61,796</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD><B>Net loss</B></TD>
    <TD width="1%" style="border-bottom-width:4px;border-bottom-style:double">$</TD>
    <TD width="11%" align="right" style="border-bottom-width:4px;border-bottom-style:double">379,274</TD>
    <TD width="2%" style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:4px;border-bottom-style:double">$</TD>
    <TD width="11%" align="right" style="border-bottom-width:4px;border-bottom-style:double">35,690</TD>
    <TD width="2%" style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:4px;border-bottom-style:double">$</TD>
    <TD width="11%" align="right" style="border-bottom-width:4px;border-bottom-style:double">540,521</TD>
    <TD width="2%" style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>Net loss per common share-basic</TD>
    <TD width="1%" style="border-bottom-width:4px;border-bottom-style:double">$</TD>
    <TD width="11%" align="right" style="border-bottom-width:4px;border-bottom-style:double">0.02</TD>
    <TD width="2%" style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:4px;border-bottom-style:double">$ </TD>
    <TD width="11%" align="right" style="border-bottom-width:4px;border-bottom-style:double">Nil</TD>
    <TD width="2%" style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:4px;border-bottom-style:double">$</TD>
    <TD width="11%" align="right" style="border-bottom-width:4px;border-bottom-style:double">0.04</TD>
    <TD width="2%" style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>Weighted average common</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>shares outstanding-basic</TD>
    <TD width="1%" align="right" style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:4px;border-bottom-style:double">17,196,258</TD>
    <TD width="2%" style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
    <TD width="1%" align="right" style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:4px;border-bottom-style:double">14,305,169</TD>
    <TD width="2%" style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
    <TD width="1%" align="right" style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:4px;border-bottom-style:double">12,709,951</TD>
    <TD width="2%" style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
  </TR>
</TABLE>
<P align="center">
<I>The accompanying notes are an integral part of these financial statements.</I>
</P>
<P align="right">
23
</P>

<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_24"></A>
<P><B>New Jersey Mining Company </B><I><br>
  (A Development Stage Company) </I><B><br>
  Statement of Changes in Stockholders' Equity <br>
  From Inception (July 18, 1996) <br>
  Through December 31, 2003 </B></P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD align="center" colspan=2>Deficit </TD>
    <TD align="center" width="2%">&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD align="center" width="2%">&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=5>&nbsp;</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD align="center" colspan=2>Accumulated</TD>
    <TD align="center" width="2%">&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD align="center" width="2%">&nbsp;</TD>
    <TD align="center" colspan=2>Total</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=5><u>Common Stock</u></TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD align="center" colspan=2>During the</TD>
    <TD align="center" width="2%">&nbsp;</TD>
    <TD align="center" colspan=2>Treasury</TD>
    <TD align="center" width="2%">&nbsp;</TD>
    <TD align="center" colspan=2>Stockholders'</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2><u>Shares</u></TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD align="center" colspan=2><u>Amount</u></TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD align="center" colspan=2><u>Development Stage</u></TD>
    <TD align="center" width="2%">&nbsp;</TD>
    <TD align="center" colspan=2><u>Stock</u></TD>
    <TD align="center" width="2%">&nbsp;</TD>
    <TD align="center" colspan=2><u>Equity</u></TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD colspan=2 align="right">&nbsp;</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD colspan=2 align="right">&nbsp;</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD colspan=2 align="right">&nbsp;</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD colspan=2 align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Issuance of common stock for:</TD>
    <TD>&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD colspan=2 align="right">&nbsp;</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD colspan=2 align="right">&nbsp;</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD colspan=2 align="right">&nbsp;</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD colspan=2 align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD> &nbsp;&nbsp;&nbsp;&nbsp;Assets and liabilities of New Jersey Joint Venture</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%" align="right">10,000,000</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">$</TD>
    <TD width="9%" align="right">207,968</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">$</TD>
    <TD width="9%" align="right">207,968</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD> &nbsp;&nbsp;&nbsp;&nbsp;Acquisition of Plainview Mining Company</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%" align="right">1,487,748</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">148,000</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">148,000</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD> &nbsp;&nbsp;&nbsp;&nbsp;Cash from sales</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="9%">228,816</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">110,115</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD align="right" width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD align="right" width="9%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">110,115</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD> &nbsp;&nbsp;&nbsp;&nbsp;Services</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%" align="right">14,000</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">-</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">-</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>Net loss</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD align="right" width="9%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD align="right" width="9%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">$</TD>
    <TD align="right" width="10%" style="border-bottom-width:1px;border-bottom-style:solid">(44,174</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
    <TD width="1%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD align="right" width="9%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD align="right" width="9%" style="border-bottom-width:1px;border-bottom-style:solid">(44,174</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Balance, December 31, 1997</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%" align="right">11,730,564</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">466,083</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="10%" align="right">(44,174</TD>
    <TD width="2%">)</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">421,909</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="9%">&nbsp;</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD align="right" width="9%">&nbsp;</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD align="right" width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD align="right" width="9%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD align="right" width="9%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Issuance of common stock for:</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD> &nbsp;&nbsp;&nbsp;&nbsp;Acquisition of Plainview Mining Company</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%" align="right">1,512,252</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">152,000</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">152,000</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD> &nbsp;&nbsp;&nbsp;&nbsp;Cash from sales</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%" align="right">117,218</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">29,753</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">29,753</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD> &nbsp;&nbsp;&nbsp;&nbsp;Services</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%" align="right">18,000</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">-</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">-</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Treasury stock acquired with Plainview acquisition</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">$</TD>
    <TD width="9%" align="right">(136,300</TD>
    <TD width="2%">)</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">(136,300</TD>
    <TD width="2%">)</TD>
  </TR>
  <TR>
    <TD>Net loss</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(30,705</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
    <TD width="1%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(30,705</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Balance, December 31, 1998</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%" align="right">13,378,034</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">647,836</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="10%" align="right">(74,879</TD>
    <TD width="2%">)</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">(136,300</TD>
    <TD width="2%">)</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">436,657</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Issuance of common stock for services</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%" align="right">79,300</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">- </TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>Net loss</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(23,738</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
    <TD width="1%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(23,738</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Balance, December 31, 1999</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%" align="right">13,457,334</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">647,836</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="10%" align="right">(98,617</TD>
    <TD width="2%">)</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">(136,300</TD>
    <TD width="2%">)</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">412,919</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Issuance of common stock for:</TD>
    <TD>&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD> &nbsp;&nbsp;&nbsp;&nbsp;Silver Strand property </TD>
    <TD>&nbsp;</TD>
    <TD width="9%" align="right">50,000</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD width="9%" align="right">68,750</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD width="9%" align="right">68,750</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD> &nbsp;&nbsp;&nbsp;&nbsp;Services</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%" align="right">62,100</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">4,313</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">4,313</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>Net loss</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(20,492</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
    <TD width="1%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(20,492</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Balance at December 31, 2000</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">13,569,434</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">720,899</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="10%" align="right">(119,109</TD>
    <TD width="2%">)</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">(136,300</TD>
    <TD width="2%">)</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">465,490</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
</TABLE>
<P align="center"> <I>The accompanying notes are an integral part of these financial
  statements.</I> </P>
<P align="right"> 24</P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_25"></A>
<P> <B>New Jersey Mining Company </B><I><br>
  (A Development Stage Company) </I><B><br>
  Statement of Changes in Stockholders' Equity, Continued:<br>
  From Inception (July 18, 1996) Through December 31, 2003 </B></P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD align="center" colspan=2>Deficit </TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=5>&nbsp;</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD align="center" colspan=2>Accumulated</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="center" colspan=2>Total</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=5><u>Common Stock</u></TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD align="center" colspan=2>During the</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="center" colspan=2>Treasury</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="center" colspan=2>Stockholders'</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2><u>Shares</u></TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD align="center" colspan=2><u>Amount</u></TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD align="center" colspan=2><u>Development Stage</u></TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="center" colspan=2><u>Stock</u></TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="center" colspan=2><u>Equity</u></TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD colspan=2 align="right">&nbsp;</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD colspan=2 align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD colspan=2 align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD colspan=2 align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Issuance of common stock for:</TD>
    <TD>&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD colspan=2 align="right">&nbsp;</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD colspan=2 align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD colspan=2 align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD colspan=2 align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD> &nbsp;&nbsp;&nbsp;&nbsp;Grenfel lease</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%" align="right">1,000,000</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">$</TD>
    <TD width="9%" align="right">100,000</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">$</TD>
    <TD width="9%" align="right">100,000</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD> &nbsp;&nbsp;&nbsp;&nbsp;Lost Eagle property</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%" align="right">50,000</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">5,000</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">5,000</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD> &nbsp;&nbsp;&nbsp;&nbsp;Roughwater property</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%" align="right">255,000</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">25,500</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD align="right" width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD align="right" width="9%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">25,500</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD> &nbsp;&nbsp;&nbsp;&nbsp;Services</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%" align="right">68,400</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">6,840</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">6,840</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>Net loss</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">$</TD>
    <TD align="right" style="border-bottom-width:1px;border-bottom-style:solid">(6,448</TD>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
    <TD width="1%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD align="right" style="border-bottom-width:1px;border-bottom-style:solid">(6,448</TD>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Balance, December 31, 2001</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%" align="right">14,942,834</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">858,239</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="10%" align="right">(125,557</TD>
    <TD width="2%">)</TD>
    <TD width="1%" align="right">$</TD>
    <TD width="9%" align="right">(136,300</TD>
    <TD width="2%">)</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">596,382</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="9%">&nbsp;</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD align="right" width="9%">&nbsp;</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD align="right" width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD align="right" width="9%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD align="right" width="9%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Issuance of common stock for:</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;Cash from sales</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%" align="right">1,700,000</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">255,000</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">255,000</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;Services</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%" align="right">9,835</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">1,475</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">1,475</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;Directors fees</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%" align="right">15,000</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">2,250</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">2,250</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;Acquisition of Gold Run Gulch Mining Company</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%" align="right">1,916,250</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">273,954</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">273,954</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>Net loss, as previously reported</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(51,307</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
    <TD width="1%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD align="right" style="border-bottom-width:1px;border-bottom-style:solid">(51,307</TD>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Balance, December 31, 2002, as previously reported</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%" align="right">18,583,919</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">1,390,918</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="10%" align="right">(176,864</TD>
    <TD width="2%">)</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD align="right">(136,300</TD>
    <TD>)</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">1,077,754</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Change in accounting for exploration costs</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">(9,883</TD>
    <TD>)</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">(9,883</TD>
    <TD>)</TD>
  </TR>
  <TR>
    <TD>Correction of error in accounting for stock issuance costs </TD>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD align="right" style="border-bottom-width:1px;border-bottom-style:solid">(25,200</TD>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
    <TD align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD align="right" style="border-bottom-width:1px;border-bottom-style:solid">25,500</TD>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Balance, December 31, 2002, <i>(As Restated, See Note 2) </i></TD>
    <TD>&nbsp;</TD>
    <TD align="right"> 18,583,919</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">1,365,418</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">(161,247</TD>
    <TD>)</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">(136,300</TD>
    <TD>)</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">1,067,871</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Issuance of common stock for:</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;Cash from exercise of stock purchase warrants</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%" align="right">810,000</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">200,750</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">200,750</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;Cash from sales, net of issuance costs</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%" align="right">795,000</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">318,000</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">318,000</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;Management fees</TD>
    <TD>&nbsp;</TD>
    <TD width="9%" align="right">363,200</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD width="9%" align="right">137,126</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD width="9%" align="right">137,126</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;Directors fees</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,000</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">7,200</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">7,200</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;Equipment</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,000</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">3,000</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">3,000</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;Services</TD>
    <TD>&nbsp;</TD>
    <TD width="9%" align="right">21,915</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD width="9%" align="right">7,262</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD width="9%" align="right">7,262</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;Exploration lease</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%" align="right">20,000</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">8,000</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="9%" align="right">8,000</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Treasury stock cancelled</TD>
    <TD>&nbsp;</TD>
    <TD align="right"> (1,947,144</TD>
    <TD>)</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">(136,300</TD>
    <TD>)</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">136,300</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>Net loss</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(379,274</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
    <TD width="1%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD align="right" style="border-bottom-width:1px;border-bottom-style:solid">(379,274</TD>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Balance, December 31, 2003</TD>
    <TD width="1%" align="right" style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:4px;border-bottom-style:double"> 18,669,890</TD>
    <TD width="2%" align="right" style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
    <TD width="1%" align="right" style="border-bottom-width:4px;border-bottom-style:double">$</TD>
    <TD width="9%" align="right" style="border-bottom-width:4px;border-bottom-style:double">1,910,456</TD>
    <TD width="2%" align="right" style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
    <TD width="1%" align="right" style="border-bottom-width:4px;border-bottom-style:double">$</TD>
    <TD width="10%" align="right" style="border-bottom-width:4px;border-bottom-style:double">(540,521</TD>
    <TD width="2%" style="border-bottom-width:4px;border-bottom-style:double">)</TD>
    <TD width="1%" align="right" style="border-bottom-width:4px;border-bottom-style:double">$</TD>
    <TD width="9%" align="right" style="border-bottom-width:4px;border-bottom-style:double">0</TD>
    <TD width="2%" style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
    <TD width="1%" align="right" style="border-bottom-width:4px;border-bottom-style:double">$</TD>
    <TD width="9%" align="right" style="border-bottom-width:4px;border-bottom-style:double">1,369,935</TD>
    <TD width="2%" style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
  </TR>
</TABLE>
<P align="center"> <I>The accompanying notes are an integral part of these financial
  statements.</I> </P>
<P align="right">
25
</P>

<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_26"></A>
<p><b>New Jersey Mining Company<br>
  </b><i>(A Development Stage Company) <br>
  </i><b>Statements of Cash Flows </b></p>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center" colspan=2>From Inception</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=5>Years Ended</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center" colspan=2>(July 18, 1996)</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=5><u>December 31,</u></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center" colspan=2>Through</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2><u>2003</u></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center" colspan=2><u>2002</u></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center" colspan=2><u>December 31, 2003</u></TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="11%" align="center"><I>(As Restated</I></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD width="11%" align="center"><I>(As Restated</I></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="11%" align="center"><I>See Note 2)</I></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD width="11%" align="center"><I>See Note 2</I><I>)</I></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>Cash flows from operating activities:</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;Net loss</TD>
    <TD width="1%" align="center">$</TD>
    <TD width="11%" align="right">(379,274</TD>
    <TD width="2%">)</TD>
    <TD width="1%" align="center">$</TD>
    <TD width="11%" align="right">(35,690</TD>
    <TD width="2%">)</TD>
    <TD width="1%" align="center">$</TD>
    <TD width="11%" align="right">(540,521</TD>
    <TD width="2%">)</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;used by operating activities:</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Write-off of goodwill</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">30,950</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">30,950</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Write-off of investment</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">3,000</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">90,000</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock issued for:</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management fees</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">137,126</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">137,126</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Directors fees</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">7,200</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">2,250</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">9,450</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Services</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">7,262</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">1,475</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">19,891</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exploration</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">8,000</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">8,000</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in:</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">(44</TD>
    <TD width="2%">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">(104</TD>
    <TD width="2%">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">(624</TD>
    <TD width="2%">)</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">3,683</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">7,356</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">8,640</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable
      to related party</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">2,000</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">2,000</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued reclamation
      costs and other liabilities 12,500</TD>
    <TD>&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">(5,921</TD>
    <TD width="2%">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">12,500</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payable to officers</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">11,519</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">11,519</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
      cash used by operating activities</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(156,078</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(30,634</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(211,069</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Cash flows from investing activities:</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;Purchases of building and equipment</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">(16,839</TD>
    <TD width="2%">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">(1,407</TD>
    <TD width="2%">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">(74,134</TD>
    <TD width="2%">)</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;Purchases of mineral property</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">(5,904</TD>
    <TD width="2%">)</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;Deferral of development costs</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(40,001</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(166,188</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(225,535</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
      cash used by investing activities</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(56,840</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(167,595</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(305,573</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Cash flows from financing activities:</TD>
    <TD>&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;Exercise of stock purchase warrants</TD>
    <TD>&nbsp;</TD>
    <TD align="right" width="11%">200,750</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">200,750</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;Sales of common stock, net of issuance costs</TD>
    <TD>&nbsp;</TD>
    <TD width="11%" align="right">318,000</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">687,367</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;Principal payments on capital lease</TD>
    <TD>&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">(43,476</TD>
    <TD width="2%">)</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;Payments on note payable to bank</TD>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(20,000</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
      cash provided by financing activities</TD>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">518,750</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">229,500</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">824,641</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>Cash of acquired companies</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">-</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">8,954</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">38,269</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>Net change in cash</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">305,832</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">40,225</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">346,268</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Cash, beginning of period</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">40,436</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">211</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">0</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>Cash, end of period</TD>
    <TD width="1%" align="center" style="border-bottom-width:4px;border-bottom-style:double">$</TD>
    <TD width="11%" align="right" style="border-bottom-width:4px;border-bottom-style:double">346,268</TD>
    <TD width="2%" style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:4px;border-bottom-style:double">$</TD>
    <TD width="11%" align="right" style="border-bottom-width:4px;border-bottom-style:double">40,436</TD>
    <TD width="2%" style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:4px;border-bottom-style:double">$</TD>
    <TD width="11%" align="right" style="border-bottom-width:4px;border-bottom-style:double">346,268</TD>
    <TD width="2%" style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>Non-cash investing and financing activities:</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;Common stock issued for:</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equipment</TD>
    <TD width="1%" align="center" style="border-bottom-width:4px;border-bottom-style:double">$</TD>
    <TD width="11%" align="right" style="border-bottom-width:4px;border-bottom-style:double">3,000</TD>
    <TD width="2%" style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:4px;border-bottom-style:double">$</TD>
    <TD width="11%" align="right" style="border-bottom-width:4px;border-bottom-style:double">3,000</TD>
    <TD width="2%" style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mineral properties</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:4px;border-bottom-style:double">$</TD>
    <TD width="11%" align="right" style="border-bottom-width:4px;border-bottom-style:double">199,300</TD>
    <TD width="2%" style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisitions of companies, excluding
      cash</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:4px;border-bottom-style:double">$</TD>
    <TD width="11%" align="right" style="border-bottom-width:4px;border-bottom-style:double">265,000</TD>
    <TD width="2%" style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:4px;border-bottom-style:double">$</TD>
    <TD width="11%" align="right" style="border-bottom-width:4px;border-bottom-style:double">743,653</TD>
    <TD width="2%" style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital lease obligation for equipment
      acquired</TD>
    <TD>&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:4px;border-bottom-style:double">$</TD>
    <TD width="11%" align="right" style="border-bottom-width:4px;border-bottom-style:double">18,275</TD>
    <TD width="2%" style="border-bottom-width:4px;border-bottom-style:double">&nbsp; </TD>
  </TR>
</TABLE>
<P>
<I>The accompanying notes are an integral part of these financial statements. </I>
</P>
<P align="right">26</P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_27"></A>
<P> <B>New Jersey Mining Company <br>
  </B><I>(A Development Stage Company) <br>
  </I><B>Notes to Financial Statements</B> </P>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top"><b>1.</b></td>
    <td><p><b>Description of Business</b></p>
      <p align="justify"> New Jersey Mining Company (&#147;the Company&#148;)
        was incorporated as an Idaho corporation on July 18, 1996. The Company's
        primary business is exploring for and developing gold, silver and base
        metal mining resources in Idaho.</p>
      <p align="justify"> On December 31, 1996, the Company acquired all of the
        assets and liabilities of a partnership known as New Jersey Joint Venture
        (&#147;NJJV&#148;), including the New Jersey gold mine and mill located
        near Kellogg, Idaho, in exchange for 10,000,000 shares of common stock.
        NJJV was owned by various other individuals and mining companies including
        Mine Systems Design, Inc. ("MSD"), an Idaho corporation owned by Fred
        Brackebusch and his son, Grant Brackebusch, officers and directors of
        the Company. The assets and liabilities of NJJV, as transferred, consisted
        of:<br>
      </p></td>
  </tr>
</table>
&nbsp;<br>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>Assets acquired:</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;&nbsp;&nbsp;Cash</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="11%" align="right" bgcolor="#E6EFFF">16,565</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;Building and equipment</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">176,267</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;&nbsp;&nbsp;Other assets</TD>
    <TD width="1%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">63,306</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">256,138</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="11%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>Liabilities assumed:</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;&nbsp;&nbsp;Accounts payable</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="11%" align="right" bgcolor="#E6EFFF">2,969</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;Note payable to bank</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">20,000</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;&nbsp;&nbsp;Capitalized lease obligation</TD>
    <TD width="1%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">25,201</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">48,170</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">Net assets acquired as of December 31, 1996</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF" style="border-bottom-width:4px;border-bottom-style:double">$</TD>
    <TD width="11%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:4px;border-bottom-style:double">207,968</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
  </TR>
</TABLE>
&nbsp;<br>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top"><b>2.</b></td>
    <td><p><b>Restated Financial Statements</b></p>
      <p> <u>Change in Accounting Policy</u></p>
      <p align="justify"> During the fourth quarter of 2003, the Company changed
        its accounting policy, retroactive to January 1, 2002, with respect to
        its accounting for exploration costs. The Company now records exploration
        costs as operating expenses in the period that they occur, and only capitalizes
        exploration costs on areas of interest that have proven reserves and are
        in development for production. The Company's previous policy was to capitalize
        all such expenditures as deferred development costs of the properties
        being explored. The change was made in order for the Company&#146;s accounting
        practices to be consistent with prevailing mining industry accounting
        trends and securities regulations.</p></td>
  </tr>
</table>
<P align="right"> 27 </P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_28"></A>
<P> <B>New Jersey Mining Company <br>
  </B><I>(A Development Stage Company) </I> <br>
  <B>Notes to Financial Statements</B> </P>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top"><b>2.</b></td>
    <td><p><b>Restated Financial Statements, Continued:</b></p>
      <p> <u>Correction of Accounting Error</u></p>
      <p align="justify"> During the year ended December 31, 2002, the Company
        incorrectly accounted for offering costs (commissions) paid in connection
        with a private placement of its common stock (see Note 8). The amount
        of the commission, $25,500, was charged to operations instead of being
        accounted for in stockholders' equity as a reduction of the proceeds received
        from stock sales. Accordingly, a correction has been made to adjust the
        December 31, 2002 financial statements for this amount.</p>
      <p align="justify"> The effect on the December 31, 2002 financial statements
        for the change in accounting policy and for the correction of the accounting
        error is as follows: </p></td>
  </tr>
</table>
&nbsp;<br>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center">&nbsp;</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD align="center" colspan=2>Change in</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD width="1%" align="center">&nbsp;</TD>
    <TD width="11%" align="center">&nbsp;</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD width="1%" align="center">&nbsp;</TD>
    <TD width="11%" align="center">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan=2 align="center">As Previously</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD align="center" colspan=2>Accounting for</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD colspan="2" align="center">Correction</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD colspan="2" align="center">As</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan=2 align="center" ><u>Reported</u></TD>
    <TD width="2%" align="center"><u></u></TD>
    <TD align="center" colspan=2><u>Exploration Costs</u></TD>
    <TD width="2%" align="center"><u></u></TD>
    <TD colspan="2" align="center"><u>of Error</u></TD>
    <TD width="2%" align="center"><u></u></TD>
    <TD colspan="2" align="center"><u>Restated</u></TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">Deferred development costs</TD>
    <TD width="1%" bgcolor="#E6EFFF">$</TD>
    <TD width="11%" align="right" bgcolor="#E6EFFF">256,952</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">$</TD>
    <TD width="11%" align="right" bgcolor="#E6EFFF">(9,883</TD>
    <TD width="2%" bgcolor="#E6EFFF">)</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="11%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">$</TD>
    <TD width="11%" align="right" bgcolor="#E6EFFF">247,069</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>Accumulated deficit</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">(176,864</TD>
    <TD width="2%">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">(9,883</TD>
    <TD width="2%">)</TD>
    <TD width="1%">$</TD>
    <TD align="right" width="11%">25,500</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">(161,247</TD>
    <TD width="2%">)</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">Common stock</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="11%" align="right" bgcolor="#E6EFFF">1,390,918</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="11%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="11%" align="right" bgcolor="#E6EFFF">(25,500</TD>
    <TD width="2%" bgcolor="#E6EFFF">)</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="11%" align="right" bgcolor="#E6EFFF">1,365,418</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">Net loss</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="11%" align="right" bgcolor="#E6EFFF">51,307</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="11%" align="right" bgcolor="#E6EFFF">9,883</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="11%" align="right" bgcolor="#E6EFFF">(25,500</TD>
    <TD width="2%" bgcolor="#E6EFFF">)</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="11%" align="right" bgcolor="#E6EFFF">35,690</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
</TABLE>
&nbsp;<br>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td valign="top">&nbsp;</td>
    <td><p>The effect of the restatements on the net loss per share of common
        stock-basic is immaterial. <br>
        &nbsp; </p></td>
  </tr>
  <tr>
    <td width="5%" valign="top"><b>3.</b></td>
    <td><p><b>Summary of Significant Accounting Policies</b></p>
      <p> <u>Development Stage Enterprise</u></p>
      <p align="justify"> The Company's financial statements are prepared using
        the accrual method of accounting and according to the provisions of Statement
        of Financial Accounting Standards No. 7, &#147;Accounting for Development
        Stage Enterprises,&#148; as it devotes substantially all of its efforts
        to acquiring and developing mining interests that will eventually provide
        sufficient net profits to sustain the Company&#146;s existence. Until
        such interests are engaged in commercial production, the Company will
        continue to prepare its financial statements and related disclosures in
        accordance with entities in the development stage.</p>
      <p align="justify"> <u>Use of Estimates</u> </p>
      <p align="justify"> The preparation of the financial statements in conformity
        with accounting principles generally accepted in the United States of
        America requires management to make estimates and assumptions that affect
        the amounts reported in the financial statements and accompanying notes.
        Actual results could differ from those estimates.</p></td>
  </tr>
</table>
<p align="right">28</p>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_29"></A>
<P> <B>New Jersey Mining Company <br>
  </B><I>(A Development Stage Company) </I> <br>
  <B>Notes to Financial Statements</B> </P>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top"><b>3.</b></td>
    <td><p><b>Summary of Significant Accounting Policies, Continued:</b></p>
      <p> <u>Income Taxes</u></p>
      <p align="justify"> Income taxes are recognized in accordance with Statement
        of Financial Accounting Standards No. 109, "Accounting for Income Taxes,"
        whereby deferred income tax liabilities or assets at the end of each period
        are determined using the tax rate expected to be in effect when the taxes
        are actually paid or recovered. A valuation allowance is recognized on
        deferred tax assets when it is more likely than not that some or all of
        these deferred tax assets will not be realized.<br>
      </p>
      <p align="justify"> <u>Fair Values of Financial Instruments</u> </p>
      <p align="justify"> The carrying amounts of financial instruments including
        cash and cash equivalents, and accounts payable approximated their fair
        values as of December 31, 2003 and 2002. </p>
      <p align="justify"> <u>Net Loss Per Share</u> </p>
      <p align="justify"> Statement of Financial Accounting Standards No. 128,
        &#147;Earnings per Share,&#148; requires dual presentation of basic earnings
        per share (&#147;EPS&#148;) and diluted EPS on the face of all income
        statements, for all entities with complex capital structures. </p>
      <p align="justify"> <u>Cash Equivalents</u> </p>
      <p align="justify"> Highly liquid short-term investments with a remaining
        maturity when purchased of three months or less are classified as cash
        equivalents. The Company deposits its cash and cash equivalents in high
        quality financial institutions. The balances on deposits may at times
        exceed the federal insurance limit. Management believes that risk with
        respect to these balances in minimal due to the high credit quality of
        the depositories. </p>
      <p align="justify"> <u>Investments</u> </p>
      <p align="justify"> Marketable equity securities are categorized as available-for-sale
        and carried at quoted market value. Investments in securities of privately
        held entities are quoted at their estimated fair value. Realized gains
        and losses on the sale of securities are recognized on a specific identification
        basis. Unrealized gains and losses are included as a component of accumulated
        other comprehensive income or loss, net of related deferred income taxes,
        if applicable, unless a permanent impairment in value has occurred, which
        is then charged to operations. During 2003, the Company wrote-off its
        investment of $3,000 in a marketable equity security that had become permanently
        impaired. </p>
      <p align="justify"> <u>Comprehensive Income (Loss)</u> </p>
      <p align="justify"> Statement of Financial Accounting Standards No. 130,
        "Reporting Comprehensive Income," requires the disclosure of comprehensive
        income, which includes net income (loss), and unrealized gains and losses
        on marketable equity securities classified as available-for-sale. </p></td>
  </tr>
</table>
<P align="right"> 29</P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_30"></A>
<P> <B>New Jersey Mining Company <br>
  </B><I>(A Development Stage Company) </I> <br>
  <B>Notes to Financial Statements</B> </P>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top"><b>3.</b></td>
    <td><p align="justify"><b>Summary of Significant Accounting Policies, Continued:</b></p>
      <p align="justify"> <u>Building and Equipment</u></p>
      <p align="justify"> Building and equipment are stated at the lower of cost
        or estimated net realizable value. Depreciation and amortization is based
        on the estimated useful lives of the assets and is computed using straight-line
        and unit-of-production methods. When assets are retired or sold, the costs
        and related allowances for depreciation and amortization are eliminated
        from the accounts and any resulting gain or loss is reflected in operations.</p>
      <p align="justify"> <u>Mineral Properties</u> </p>
      <p align="justify"> Significant payments related to the acquisition of mineral
        properties, mineral rights, and mineral leases are capitalized. If a commercially
        mineable ore body is discovered, such costs are amortized when production
        begins using the units-of-production method based on proven and probable
        reserves. If no commercially mineable ore body is discovered or such rights
        are otherwise determined to have no value, such costs are expensed in
        the period in which it is determined the property has no future economic
        value. </p>
      <p align="justify"> <u>Mine Development and Exploration</u> </p>
      <p align="justify"> Exploration costs are charged to operations as incurred
        (see Note 2). </p>
      <p align="justify"> Mine development costs are capitalized after proven
        and probable reserves have been identified and classified as deferred
        development costs until production ensues. Amortization is calculated
        using the units-of-production method over the expected life of the operation
        based on the estimated recoverable mineral ounces. </p>
      <p align="justify"> <u>Property Evaluations</u> </p>
      <p align="justify"> The Company has adopted the provisions of Statement
        of Financial Accounting Standards No. 144, (&#147;SFAS No. 144&#148;),
        &#147;Accounting for the Impairment or Disposal of Long-Lived Assets.&#148;
        The provisions of SFAS No. 144 require that an impairment loss be recognized
        when the estimated future cash flows (undiscounted and without interest)
        expected to result from the use of an asset are less than the carrying
        amount of the asset. Measurement of an impairment loss is based on the
        estimated fair value of the asset if the asset is expected to be held
        and used. </p>
      <p align="justify"> Annually, or more frequently as circumstances require,
        the Company evaluates the carrying amounts of its mineral properties,
        including deferred development costs, to assess whether such amounts are
        recoverable. Estimated undiscounted future net cash flows from each mineral
        property are calculated using estimated future production, sales prices,
        operating capital and costs, and reclamations costs that will be in effect
        when the properties are in production. If it is determined that future
        cash flows from a mineral property are less than the carrying value, a
        write-down to the estimated fair value is made with a charge to operations.
      </p></td>
  </tr>
</table>
<P align="right"> 30</P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_31"></A>
<P> <B>New Jersey Mining Company <br>
  </B><I>(A Development Stage Company) </I> <br>
  <B>Notes to Financial Statements</B> </P>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top"><b>3.</b></td>
    <td><p align="justify"><b>Summary of Significant Accounting Policies, Continued:</b></p>
      <p align="justify"> <u>Property Evaluations, Continued:</u></p>
      <p align="justify"> The Company&#146;s estimates of future cash flows are
        subject to risks and uncertainties. It is reasonably possible that changes
        in estimates could occur which may affect the expected recoverability
        of the Company&#146;s investment in mineral properties.</p>
      <p align="justify"> <u>Goodwill</u> </p>
      <p align="justify"> Acquisitions of entities are accounted for using the
        purchase method whereby acquired assets and liabilities are recorded at
        fair value as of the date of acquisition. The excess of the purchase price
        over such fair value is recorded as goodwill. Pursuant to SFAS No. 142
        &#147;Goodwill and Other Intangible Assets,&#148; goodwill is assigned
        to assets acquired and is not amortized. Goodwill is subject to determination
        of fair value at least annually and at such times as events or circumstances
        indicate that an impairment has occurred. </p>
      <p align="justify"> <u>Reclamation and Remediation</u> </p>
      <p align="justify"> The Company&#146;s mineral properties have been and
        are subject to standards for mine reclamation that have been established
        by various governmental agencies. Environmental costs relating to properties
        put into production are estimated based primarily upon environmental and
        regulatory requirements, and are accrued and charged to expense over the
        expected economic life of the operation using the units-of-production
        method. The liability for reclamation is classified as current or long-term
        based on the expected timing of the expenditures. </p>
      <p align="justify"> The Company accrues costs associated with environmental
        remediation obligations when it is probable that such costs will be incurred
        and they are reasonably estimable. Such costs are based on management&#146;s
        estimate of amounts expected to be incurred when the remediation work
        is performed and are measured on an undiscounted basis. </p>
      <p align="justify"> <u>Reclassifications</u> </p>
      <p align="justify"> Certain comparative balances for 2002 have been reclassified
        to conform with the 2003 presentation. The reclassifications have no effect
        on net loss or accumulated deficit as previously reported. </p></td>
  </tr>
</table>
<P align="right"> 31 </P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_32"></A>
<P> <B>New Jersey Mining Company <br>
  </B><I>(A Development Stage Company) </I> <br>
  <B>Notes to Financial Statements</B> </P>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top"><b>3.</b></td>
    <td><p align="justify"><b>Summary of Significant Accounting Policies, Continued:</b></p>
      <p align="justify"> <u>New Accounting Pronouncements</u></p>
      <p align="justify"> In April 2002, the FASB issued SFAS No. 145, "Rescission
        of SFAS Statements No. 4, 44, and 64, Amendment of SFAS No. 13, and Technical
        Corrections." This statement culminates the current requirements that
        gains and losses on debt extinguishment must be classified as extraordinary
        items in the income statement. Instead, such gains and losses will be
        classified as extraordinary items only if they are deemed to be unusual
        and infrequent, in accordance with the current GAAP criteria for extraordinary
        classifications. In addition, SFAS No. 145 eliminates an inconsistency
        in lease accounting by requiring that modifications of capital leases
        that result in reclassification as operating leases be accounted for consistent
        with sales-leaseback accounting rules. The statement also contains other
        nonsubstantive corrections to authoritative accounting literature. The
        rescission of SFAS No. 4 is effective in fiscal years beginning after
        May 15, 2002. The amendment and technical corrections of SFAS No. 13 are
        effective for transactions occurring after May 15, 2002. All other provisions
        of SFAS No. 145 are effective for financial statements issued on or after
        May 15, 2002. SFAS No. 145 has no impact on the Company's financial statements.<br>
      </p>
      <p align="justify"> In June 2002, the FASB issued SFAS No. 146, "Accounting
        for Costs Associated with Exit or Disposal Activities," which addresses
        accounting for restructuring and similar costs. SFAS No. 146 supersedes
        previous accounting guidance, principally Emerging Issues Task Force Issue
        No. 94-3. SFAS No. 146 requires that the liability for costs associated
        with an exit or disposal activity be recognized when the liability is
        incurred. SFAS No. 146 also establishes that the liability should initially
        be measured and recorded at fair value. Accordingly SFAS No. 146 may affect
        the timing of recognizing future restructuring costs as well as the amount
        recognized. The provisions of SFAS 146 are effective for exit or disposal
        activities that are initiated after December 31, 2002. SFAS No. 146 has
        no impact on the Company's financial statements. </p>
      <p align="justify">In August 2002, the FASB issued SFAS No. 147, &#147;Acquisitions
        of Certain Financial Institutions.&#148; SFAS No. 147 removes acquisitions
        of financial institutions from the scope of SFAS No. 72 and FASB Interpretation
        No. 9, and requires that those transactions be accounted for in accordance
        with SFAS No. 141 and SFAS No. 142. In addition, SFAS No. 147 amends SFAS
        No. 144, to include in its scope long-term customer-relationship intangible
        assets of financial institutions. The provisions of SFAS No. 147 are generally
        effective October 1, 2002. SFAS No. 147 has no impact of the Company's
        financial statements. </p></td>
  </tr>
</table>
<P align="right"> 32 </P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_33"></A>
<P> <B>New Jersey Mining Company <br>
  </B><I>(A Development Stage Company) </I> <br>
  <B>Notes to Financial Statements</B> </P>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top"><b>3.</b></td>
    <td><p align="justify"><b>Summary of Significant Accounting Policies, Continued:</b></p>
      <p align="justify"> <u>New Accounting Pronouncements, Continued:</u></p>
      <p align="justify"> In November 2002, the FASB issued FASB Interpretation
        No. 45, "Guarantor's Accounting for Disclosure Requirements for Guarantees,
        Including Indirect Guarantees of Indebtedness of Others, an interpretation
        of FASB Statements No. 5, 57 and 107 and rescission of FASB Interpretation
        No. 34, Disclosure of Indirect Guarantees of Indebtedness of Others" ("FIN
        45"). FIN 45 clarifies the requirements for a guarantor's accounting for
        and disclosure of certain guarantees issued and outstanding. It also requires
        a guarantor to recognize, at the inception of a guarantee, a liability
        for the fair value of the obligation undertaken in issuing the guarantee.
        This interpretation also incorporates without reconsideration the guidance
        in FASB Interpretation No. 34, which is being superseded. The adoption
        of FIN 45 has no material effect on the Company's financial statements.<br>
      </p>
      <p align="justify"> In November 2002, the Emerging Issues Task Force ("EITF")
        reached a consensus on EITF 00-21, "Revenue Arrangements with Multiple
        Deliverables," related to the timing of revenue recognition for arrangements
        in which goods or services or both are delivered separately in a bundled
        sales arrangement. The EITF requires that when the deliverables included
        in this type of arrangement meet certain criteria they should be accounted
        for separately as separate units of accounting. This consensus is effective
        prospectively for arrangements entered into in fiscal periods beginning
        after June 15, 2003. EITF 00-21 will not have an impact upon initial adoption
        and is not expected to have a material impact on the Company's results
        of operations, financial position and cash flows. </p>
      <p align="justify"> In December 2002, the FASB issued SFAS No. 148, "Accounting
        for Stock-Based Compensation, Transition and Disclosure, an amendment
        of FASB Statement No. 123." SFAS No. 148 provides alternative methods
        of transition for an entity that voluntarily changes to the fair value
        based method of accounting for stock-based employee compensation. It also
        amends the disclosure provisions of SFAS No. 123 to require prominent
        disclosure about the effects of reported net income of an entity's accounting
        policy decisions with respect to stock-based employee compensation. Finally,
        this Statement amends APB Opinion No. 28, Interim Financial Reporting,
        to require disclosure about those effects in interim financial information.
        The amendments to SFAS No. 123, which provides alternative methods of
        transition for an entity that voluntarily changes to the fair value based
        method of accounting for stock-based employee compensation is effective
        for financial statements for fiscal years ending after December 15, 2002.
        The amendment to SFAS No. 123 relating to disclosures and the amendment
        to Opinion 28 is effective for financial reports containing condensed
        financial statements for interim periods beginning after December 15,
        2002. Management does not intend to adopt the fair value accounting provisions
        of SFAS No. 123 and currently believes that the adoption of SFAS No. 148
        will not have a material impact on the Company's financial statements.
      </p></td>
  </tr>
</table>
<P align="right"> 33 </P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_34"></A>
<P> <B>New Jersey Mining Company <br>
  </B><I>(A Development Stage Company) </I> <br>
  <B>Notes to Financial Statements</B> </P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD valign="top" width="5%"><B>3.</B><BR> &nbsp;&nbsp;</TD>
    <td valign="top"><div align="justify"><B>Summary of Significant Accounting
        Policies, Continued:</B> </div>
      <p align="justify"><u>New Accounting Pronouncements, Continued:</u></p>
      <p align="justify"> In April 2003, the FASB issued SFAS No. 149, "Amendment
        of Statement 133 on Derivative Instruments and Hedging Activities." This
        standard amends and clarifies the accounting for derivative instruments,
        including certain derivative instruments embedded in other contracts,
        and hedging activities under SFAS No. 133, "Accounting for Derivative
        Instruments and Hedging Activities." This statement is effective prospectively
        for contracts entered into or modified after June 30, 2003, and for hedging
        relationships designated after June 30, 2003. SFAS No. 149 will not have
        an impact upon initial adoption and is not expected to have a material
        effect on the Company's results of operations, financial position and
        cash flows.</p>
      <p align="justify"> In May 2003, the FASB issued SFAS No. 150, "Accounting
        for Certain Financial Instruments with Characteristics of both Liabilities
        and Equity." SFAS No. 150 establishes standards for the classification
        and measurement of certain financial instruments with characteristics
        of both liabilities and equity. The requirements of SFAS No. 150 become
        effective for the Company for financial instruments entered into or modified
        after May 31, 2003, and otherwise is effective at the beginning of the
        first interim period beginning after June 15, 2003. The Company has evaluated
        the impact of SFAS No. 150 to determine the effect it may have on its
        results of operations, financial position or cash flows and has concluded
        that the adoption of this statement is not expected to have a material
        effect on the Company's financial position or results of operations.<br>
        &nbsp; </p></td>
  </tr>
  <tr>
    <td valign="top" width="5%"><B>4.</B><BR> &nbsp;&nbsp;</td>
    <td valign="top"><div align="justify"><B>Acquisitions and Mergers</B> </div>
      <p align="justify"><u>Plainview Mining Company</u></p>
      <p align="justify"> In October 1997, the Company made an exchange offer
        for the outstanding common shares of Plainview Mining Company, Inc. (&#147;Plainview&#148;).
        The offer allowed Plainview&#146;s stockholders to exchange each one of
        their shares of Plainview stock for two shares of the Company&#146;s stock.
        At the time of the exchange Plainview was a minority shareholder of the
        Company holding 1,947,144 shares of the Company's common stock. Fred Brackebusch,
        president and a director of the Company, was also a director of Plainview
        at the time of the acquisition. In addition, the president of Plainview
        at the time of the acquisition, Charles F. Asher, is currently a director
        of the Company.<BR>
      </p></td>
  </tr>
</TABLE>
<P align="right"> 34 </P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_35"></A>
<P> <B>New Jersey Mining Company <br>
  </B><I>(A Development Stage Company) </I> <br>
  <B>Notes to Financial Statements</B> </P>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top"><b>4.</b></td>
    <td><p><b>Acquisitions and Mergers, Continued:</b></p>
      <p> <u>Plainview Mining Company, Continued:</u></p>
      <p align="justify"> As a result of the exchange offer, a merger with Plainview
        was consummated through the exchange of 1,500,000 shares of Plainview
        (100%), for 3,000,000 shares of the Company&#146;s stock. The Company
        accounted for the business combination using the purchase method prescribed
        in Accounting Principles Board Opinion No. 16, &#147;Business Combinations,&#148;
        whereby assets acquired and liabilities assumed are recorded at fair value
        at the date of acquisition. Allocation of the purchase price was based
        on an estimate of the fair value of the assets acquired at the purchase
        date. The estimated fair value of the Company&#146;s shares issued in
        the exchange was determined to be $0.10 per share, or $300,000. The purchase
        price was allocated as follows:</p></td>
  </tr>
</table>
&nbsp;<br>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">Cash</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="11%" align="right" bgcolor="#E6EFFF">12,750</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>Mineral property-CAMP</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">30,000</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">Investment in ConSil Corporation</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="11%" align="right" bgcolor="#E6EFFF">90,000</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>Investment in New Jersey Mining Company</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;&nbsp;&nbsp;(1,947,144 shares at $0.07 per share)</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="11%" align="right" bgcolor="#E6EFFF">136,300</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>Goodwill</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">30,950</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;&nbsp;&nbsp;Total purchase price</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF" style="border-bottom-width:4px;border-bottom-style:double">$</TD>
    <TD width="11%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:4px;border-bottom-style:double">300,000</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
  </TR>
</TABLE>
&nbsp;<br>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top">&nbsp;</td>
    <td><p align="justify">The shares of the Company&#146;s stock owned by Plainview
        were recorded as treasury stock (see Note 8). </p>
      <p align="justify"> During the third quarter of 2003, the Company's management
        determined that goodwill recorded as part of the Plainview merger was
        impaired in accordance with the tests of goodwill impairment set forth
        in SFAS 142, "Goodwill and Other Intangible Assets." As a result, all
        of the goodwill acquired in the Plainview merger was written off. </p>
      <p align="justify"> <u>Gold Run Gulch Mining Company</u> </p>
      <p align="justify"> During 2002, the Company acquired all of the outstanding
        shares of the Gold Run Gulch Mining Company (&#147;Gold Run&#148;). The
        acquisition allowed Gold Run&#146;s stockholders to exchange each one
        of their shares of Gold Run stock for 0.875 shares of the Company&#146;s
        stock. A total of 1,916,250 of the Company&#146;s shares were issued in
        exchange for 100% of the outstanding shares of Gold Run. The Company accounted
        for the business combination using the purchase method prescribed in SFAS
        141, &#147;Business Combinations,&#148; which became effective for business
        combinations initiated after June 30, 2001. Similar to APB 16, this statement
        requires, among other things, that assets acquired and liabilities assumed
        be recorded at their fair value at the date of acquisition. The shares
        issued were valued at $273,954 based upon an estimate of fair value of
        the assets received. The purchase price was allocated as follows: <br>
        &nbsp; </p></td>
  </tr>
</table>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">Cash</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="11%" align="right" bgcolor="#E6EFFF">8,954</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>Mineral Property&#150;Coleman</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">265,000</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;&nbsp;&nbsp;Total purchase price</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF" style="border-bottom-width:4px;border-bottom-style:double">$</TD>
    <TD width="11%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:4px;border-bottom-style:double">273,954</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
  </TR>
</TABLE>
<P align="right"> 35 </P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_36"></A>
<p> <b>New Jersey Mining Company <br>
  </b><i>(A Development Stage Company) </i> <br>
  <b>Notes to Financial Statements</b></p>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top"><b>5.</b>&nbsp;</td>
    <td><p><b>Building and Equipment </b> </p>
      <p> Building and equipment at December 31, 2003 and 2002 is comprised of
        the following: <br>
        &nbsp; </p></td>
  </tr>
</table>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right"><u>2003</u></TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right"><u>2002</u></TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">Mill building</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="11%" align="right" bgcolor="#E6EFFF">35,910</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="11%" align="right" bgcolor="#E6EFFF">35,910</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>Milling equipment</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">235,766</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">215,927</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;&nbsp;&nbsp;Total</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF" style="border-bottom-width:4px;border-bottom-style:double">$</TD>
    <TD width="11%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:4px;border-bottom-style:double">271,676</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF" style="border-bottom-width:4px;border-bottom-style:double">$</TD>
    <TD width="11%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:4px;border-bottom-style:double">251,837</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
  </TR>
</TABLE>
&nbsp;<br>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td valign="top">&nbsp;</td>
    <td><p>The Company's building and equipment are components of its New Jersey
        mill near Kellogg, Idaho. </p>
      <p> No depreciation has been taken on the building and equipment as they
        have not yet been placed in service.<br>
        &nbsp; </p></td>
  </tr>
  <tr>
    <td width="5%" valign="top"><b>5.</b></td>
    <td><p><b>Mineral Properties and Deferred Development Costs</b></p>
      <p> Mineral properties and deferred development costs at December 31, 2003
        and 2002, are as follows:<br>
        &nbsp; </p></td>
  </tr>
</table>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="8" align="center" style="border-bottom-width:1px;border-bottom-style:solid">2003</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD colspan="8" align="center" style="border-bottom-width:1px;border-bottom-style:solid">2002</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD colspan="2" align="center">Deferred</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD width="10%" align="center">&nbsp;</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD width="1%" align="center">&nbsp;</TD>
    <TD width="10%" align="center">&nbsp;</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD colspan="2" align="center">Deferred</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD width="1%" align="center">&nbsp;</TD>
    <TD width="10%" align="center">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center">Mineral</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD colspan=2 align="center">Development</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD width="10%" align="center">&nbsp;</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD colspan="2" align="center">Mineral</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD colspan=2 align="center">Development</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD width="1%" align="center">&nbsp;</TD>
    <TD width="10%" align="center">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2><u>Properties</u></TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD colspan="2" align="center"><u>Costs</u></TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD width="10%" align="center"><u>Total</u></TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD align="center" colspan=2><u>Properties</u></TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD colspan="2" align="center"><u>Costs</u></TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD colspan="2" align="center"><u>Total</u></TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>New Jersey Mine</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;&nbsp;&nbsp;Grenfel</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">100,000</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">7,324</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">107,324</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">100,000</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">100,000</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;Coleman</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="10%">265,000</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="10%">221,446</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="10%">486,446</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="10%">265,000</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="10%">194,269</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="10%">459,269</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">Silver Strand</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">74,704</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">58,300</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">133,004</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">74,704</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">52,800</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">127,504</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>CAMP</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="10%">30,000</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="10%">30,000</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="10%">30,000</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="10%">30,000</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">Roughwater</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">25,500</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">25,500</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">25,500</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">25,500</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>Lost Eagle</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">5,000</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">5,000</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">5,000</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">5,000</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF" style="border-bottom-width:4px;border-bottom-style:double">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:4px;border-bottom-style:double">500,204</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF" style="border-bottom-width:4px;border-bottom-style:double">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:4px;border-bottom-style:double">287,070</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF" style="border-bottom-width:4px;border-bottom-style:double">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:4px;border-bottom-style:double">787,274</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF" style="border-bottom-width:4px;border-bottom-style:double">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:4px;border-bottom-style:double">500,204</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF" style="border-bottom-width:4px;border-bottom-style:double">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:4px;border-bottom-style:double">247,069</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF" style="border-bottom-width:4px;border-bottom-style:double">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:4px;border-bottom-style:double">747,273</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
  </TR>
</TABLE>
<p align="justify" style="margin-left:5%">Since the Company's mineral properties
  are not yet in production, no amortization or depreciation has been recognized.
</p>
<p align="justify" style="margin-left:5%"><u>Grenfel </u>The Company's Grenfel
  property is a leasehold interest covering the mineral rights of 65 acres located
  at the New Jersey Mine. The lease was acquired from Mine Systems Design ("MSD")
  in 2001 in exchange for 1,000,000 shares of the Company&#146;s common stock
  (see Note 1). The 1,000,000 shares issued were valued at $0.10 per share, which
  approximated the market price for the restricted common stock on the date of
  the lease. MSD is also a major shareholder of the Company and is owned by Fred
  Brackebusch and Grant Brackebusch, officers and directors of the Company. The
  lease has a fifteen year term, and includes a 3% Net Smelter Return ("NSR")
  royalty that will be paid to MSD on any production achieved from the property.
  Deferred development costs at December 31, 2003 and 2002 consist primarily of
  drilling and tunnel development expenditures.</p>
<P align="right">36</P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_37"></A>
<P> <B>New Jersey Mining Company <br>
  </B><I>(A Development Stage Company) </I> <br>
  <B>Notes to Financial Statements</B> </P>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top"><b>6.</b></td>
    <td><p align="justify"><b>Mineral Properties and Deferred Development Costs,
        Continued:</b></p>
      <p align="justify"> <u>Coleman </u>The Coleman property is located at the
        New Jersey Mine and consists of 62 acres of patented mining claims, mineral
        rights to 108 acres of fee land, and approximately 130 acres of unpatented
        mining claims. The Coleman property was acquired in October 2002 with
        the acquisition of Gold Run Gulch Mining Company (see Note 4). Deferred
        development costs at December 31, 2003 and 2002 consist primarily of drilling
        and tunnel development expenditures.<br>
      </p>
      <p align="justify"> <u>Silver Strand </u>The Silver Strand mine consists
        of 15 unpatented claims and was acquired from Trend Mining Company (&#147;Trend&#148;)
        in 2000. The property was purchased in exchange for 50,000 shares of the
        Company&#146;s common stock and a 1.5% NSR royalty initially capped at
        $50,000 and then decreasing to 0.5%. In July of 2001, MSD assumed Trend&#146;s
        position in the agreement, and retained the NSR royalty interest. The
        Company valued the property at $74,704 which represented the estimated
        market value of the property at the date of acquisition. Deferred development
        costs at December 31, 2003 and 2002 consist primarily of drilling and
        permitting expenditures. </p>
      <p align="justify"> <u>CAMP </u>The CAMP property was acquired as part of
        the Company&#146;s acquisition of Plainview in 1997 (see Note 4). The
        CAMP property covers approximately 380 acres and is an underground exploration
        project. The Company holds a 17.75% interest in the CAMP property; the
        remaining ownership is held by various other mining companies, including
        Coeur d&#146;Alene Mines Corporation, which acts as the operator. The
        Company receives a $100 monthly advance royalty payment and will receive
        a 7.1% net profits interest if the property is put into production. </p>
      <p align="justify"> <u>Roughwater </u>The Roughwater property is an exploration
        project consisting of 180 acres in nine unpatented lode claims. In 2001,
        the Company purchased the property through the issuance of 255,000 shares
        of its common stock to Roughwater Mining Company. The shares were valued
        at $0.10 per share, for a total acquisition cost of $25,500. At the time
        of the acquisition, Fred Brackebusch, the Company's president and a director,
        was the president of Roughwater Mining Company and MSD was its majority
        stockholder. </p>
      <p align="justify"> <u>Lost Eagle </u>Lost Eagle is a gold and silver exploration
        project consisting of five claims covering 100 acres of federal land administered
        by the U.S. Forest Service. In 2001, the Company issued 50,000 shares
        of stock to an individual to acquire the property. The shares were valued
        at $0.10 for a total acquisition cost of $5,000. </p>
      <p align="justify"> <u>Wisconsin Teddy</u> The Wisconsin Teddy is an exploration
        project that lies north of the New Jersey Mine and covers 83 acres of
        unpatented claims on federal land administered by the U.S. Bureau of Land
        Management. The project has no carrying value. </p></td>
  </tr>
</table>
<P align="right"> 37 </P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_38"></A>
<P> <B>New Jersey Mining Company <br>
  </B><I>(A Development Stage Company) </I> <br>
  <B>Notes to Financial Statements</B> </P>
<table style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <tr>
    <td valign="top" width="5%"><b>6.</b><br> &nbsp;&nbsp;</td>
    <td valign="top"><div align="justify"><b>Mineral Properties and Deferred Development
        Costs, Continued:</b></div>
      <p align="justify"><u>Zanetti Mining Lease</u> The Company has been assigned
        a mining lease with William Zanetti. The lease provides for the Company's
        exploration, development and mining of minerals on fee land through October
        2008 and thereafter, as long as mining operations are deemed continuous.
        The lease provides for production royalties of 5% of net sales of ores
        or concentrates. Additional production royalties of 1% to 5% are due if
        gold exceeds a certain price per troy ounce as adjusted annually by the
        Consumer Price Index. At December 31, 2003, the gold price that would
        cause additional production royalties to be payable was $612 per troy
        ounce. Also, advance royalties of $500 are required annually under the
        lease. These advance royalties are charged to expense as incurred, but
        are still accumulated and will be credited against production royalty
        obligations if and when production ensues. The lessors may terminate the
        lease upon the Company's failure to perform under the terms of the lease;
        the Company has the right to terminate the lease at any time.</p>
      <p align="justify"><u>Golden Chest Exploration Leases</u></p>
      <p align="justify">On September 5, 2003, the Company entered into an exploration
        agreement and lease option with Paymaster Resources, Inc. (&#147;Paymaster&#148;)
        to explore Paymaster&#146;s Golden Chest property. The term of the exploration
        agreement is 2&frac12; years, commencing June 13, 2003. Pursuant to the
        terms of the agreement, the Company will conduct an economic study of
        the Golden Chest property. As consideration for the agreement, the Company
        will issue Paymaster 10,000 shares of its common stock during every six-month
        period of the agreement's term. A total of 20,000 shares were issued under
        the agreement during 2003. The Company recorded $8,000 of exploration
        expense in connection with these issuances based upon its estimate of
        the fair value of the shares of common stock issued. The Company's option
        to lease the property may be exercised anytime before the expiration of
        the exploration agreement, at an option price of 100,000 shares of the
        Company&#146;s common stock.</p>
      <p align="justify"> On November 7, 2003, the Company signed an exploration
        agreement and lease option with Prichard Creek Resource Partners LLC (&#147;Prichard&#148;)
        to explore Prichard&#146;s property, which is adjacent to the Golden Chest.
        The term of the exploration agreement is 2&frac12; years commencing June
        13, 2003. The Company's option to lease the property may be exercised
        anytime before expiration of the exploration agreement, at an option price
        of 30,000 shares of the Company&#146;s common stock.<br>
        &nbsp; </p></td>
  </tr>
  <tr>
    <td valign="top" width="5%"><b>7.</b><br> &nbsp;&nbsp;</td>
    <td valign="top"><p align="justify"><b>Income Taxes</b></p>
      <p align="justify">The Company has not recorded an income tax provision
        for the years ended December 31, 2003 and 2002, as it had no taxable income.
        At December 31, 2003 and 2002, the Company has net operating loss carryforwards
        available for income tax purposes of approximately $525,000 and $177,000,
        respectively, which will expire through 2023, and an associated deferred
        tax asset of approximately $218,500 and $26,500, respectively. The deferred
        tax assets have been fully reserved for as management believes it is more
        likely than not that the deferred tax assets will not be utilized.<br>
      </p></td>
  </tr>
</table>
<P align="right"> 38 </P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_39"></A>
<P> <B>New Jersey Mining Company <br>
  </B><I>(A Development Stage Company) </I> <br>
  <B>Notes to Financial Statements</B> </P>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top"><b>8.</b></td>
    <td><p><b>Common Stock</b></p>
      <p align="justify"> At December 31, 2002 and during all prior periods, the
        Company had one class of no par value common stock with 20,000,000 shares
        authorized. Effective September 25, 2003, the Company amended its articles
        of incorporation to increase the number of authorized shares to 50,000,000.
        In addition, the Company has authorized 1,000,000 shares of no par preferred
        stock, none of which had been issued at December 31, 2003 and 2002.</p>
      <p align="justify"> <u>Private Placements</u> </p>
      <p align="justify"> In May 2002, the Company completed a brokered private
        placement pursuant to Rule 506 of Regulation D of the Securities Act of
        1933, as amended (&#147;Rule 506&#148;). A total of 1,700,000 units at
        a price of $0.15 per unit were sold, yielding net proceeds of $229,500.
        Each unit consisted of one share of restricted common stock plus a common
        stock purchase warrant exercisable at $0.25 per share until May 1, 2004.
      </p>
      <p align="justify"> In November 2003, the Company began offering for sale
        units consisting of shares of its common stock and common stock purchase
        warrants, in a non-brokered private placement, and only to certain investors
        pursuant to Rule 506. The offering was for the sale of 2,000,000 units
        at $0.40 per unit. Each unit consisted of one share of the Company's restricted
        common stock and a one-half stock purchase warrant whereby each one whole
        warrant may purchase one share of the Company's restricted common stock
        at $0.70 per share until April 1, 2005. Through December 31, 2003, 795,000
        units had been sold generating net proceeds of $318,000. On February 19,
        2004, the Company completed this placement, resulting in the sale of an
        additional 932,500 units that generated additional proceeds of approximately
        $372,000. </p>
      <p align="justify"> <u>Exercise of Warrants</u> </p>
      <p align="justify"> During 2003, common stock purchase warrants were exercised
        by warrant holders that had purchased units of common stock and common
        stock purchase warrants during the Company's 2002 private placement offering.
        The Company issued 810,000 shares of its restricted common stock at a
        price of $0.25 per share, generating net proceeds of $200,750, pursuant
        to the exercise of these warrants. </p>
      <p align="justify"> <u>Common Stock Issued for Equipment</u> </p>
      <p align="justify"> During 2003, the Company issued 5,000 shares of its
        restricted common stock to vendors for equipment purchased. The Company
        recorded the issue at $3,000 based upon the value of the equipment purchased
        and shares issued. </p>
      <p align="justify"> <u>Common Stock Issued for Services</u> </p>
      <p align="justify"> During 2003, the Company issued 21,915 shares of its
        restricted common stock to vendors for services rendered the Company.
        The Company recorded $7,262 based upon the value of the services rendered
        and the shares issued. </p></td>
  </tr>
</table>
<P align="right"> 39</P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_40"></A>
<P> <B>New Jersey Mining Company <br>
  </B><I>(A Development Stage Company) </I> <br>
  <B>Notes to Financial Statements</B> </P>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top"><b>8.</b></td>
    <td><p><b>Common Stock, Continued:</b></p>
      <p> <u>Cancellation of Treasury Stock</u></p>
      <p> Effective December 31, 2003, the Company's board of directors resolved
        to cancel 1,947,144 shares of treasury stock the Company had acquired
        during its merger with Plainview Mining Company (see Note 4). As a result,
        the treasury shares were added to the Company's authorized common stock
        for issue at December 31, 2003.</p>
      <p><u>Stock Purchase Warrants Outstanding</u></p>
      <p>Transactions in common stock purchase warrants are as follows:<br>
        &nbsp; </p></td>
  </tr>
</table>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">Number of</TD>
    <TD align="center">&nbsp;</TD>
    <TD colspan=2 align="center">Exercise</TD>
    <TD align="center">Expiration</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">Warrants</TD>
    <TD align="center">&nbsp;</TD>
    <TD colspan=2 align="center">Prices</TD>
    <TD align="center">Dates</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">Warrants issued in connection with 2002</TD>
    <TD width="11%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="5%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;private placement</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">1,700,000</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">$</TD>
    <TD width="5%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">0.25</TD>
    <TD width="12%" align="center">(A)</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align="center" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Balance, December 31, 2002</TD>
    <TD align="right" width="11%">1,700,000</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="5%">0.25</TD>
    <TD width="12%" align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align="center" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>Warrants issued in connection with warrants exercised<SUP>(1)</SUP></TD>
    <TD align="right" width="11%">460,000</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="5%">0.25</TD>
    <TD width="12%" align="center">(B)</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align="center" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>Warrants issued in connection with 2003</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="12%" align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;&nbsp;&nbsp;private placement</TD>
    <TD width="11%" align="right" bgcolor="#E6EFFF">397,500</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="5%" align="right" bgcolor="#E6EFFF">0.70</TD>
    <TD width="12%" align="center" bgcolor="#E6EFFF">(C)</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">Warrants exercised during 2003</TD>
    <TD width="11%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">(810,000</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
    <TD width="1%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="5%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">0.25</TD>
    <TD width="12%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Balance, December 31, 2003</TD>
    <TD width="11%" align="right" style="border-bottom-width:4px;border-bottom-style:double">1,747,500</TD>
    <TD width="2%" style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
    <TD width="1%" align="right" style="border-bottom-width:4px;border-bottom-style:double">$</TD>
    <TD width="5%" align="right" style="border-bottom-width:4px;border-bottom-style:double">0.25-0.70</TD>
    <TD width="12%">&nbsp;</TD>
  </TR>
</TABLE>
&nbsp;<br>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD valign="top" width="5%">&nbsp;</TD>
    <TD valign="top" width="5%">(A)</TD>
    <TD valign="top">Warrants are exercisable on or before May 1, 2004.</TD>
  </TR>
  <TR>
    <TD valign="top" width="5%">&nbsp;</TD>
    <TD valign="top" width="5%">(B)</TD>
    <TD valign="top">Warrants are exercisable on or before May 1, 2005.</TD>
  </TR>
  <TR>
    <TD valign="top" width="5%">&nbsp;</TD>
    <TD valign="top" width="5%">(C)</TD>
    <td valign="top">Warrants are exercisable on or before April 1, 2005.</td>
  </tr>
</TABLE>
<p align="justify" style="margin-left:5%"> <sup>(1) </sup>During 2003 the Company
  issued 460,000 stock purchase warrants to an investor as an inducement for him
  to exercise warrants previously granted him in connection with the 2002 private
  placement of the Company's common stock. The Company recorded no value for the
  warrants issued as their fair value was not determinable at the date of issue.
</p>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top"><p><b>9.</b></p></td>
    <td><p><b>Related Party Transactions</b></p>
      <p align="justify"> Fred Brackebusch is president, treasurer, and a director
        of the Company. Grant Brackebusch, Fred Brackebusch's son, is the vice-president
        and a director of the Company. Grant Brackebusch's wife, Tina Brackebusch,
        is the Company's corporate secretary. Fred Brackebusch and Grant Brackebusch
        own 89.6% and 10.4%, respectively of Mine Systems Design, Inc. ("MSD"),
        a firm that has various related party transactions with the Company.</p></td>
  </tr>
</table>
<P align="right"> 40 </P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_41"></A>
<P> <B>New Jersey Mining Company <br>
  </B><I>(A Development Stage Company) </I> <br>
  <B>Notes to Financial Statements</B> </P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD valign="top" width="5%"><B>9.</B><BR> &nbsp;&nbsp;</TD>
    <td colspan="2" valign="top"><p align="justify"><B>Related Party Transactions,
        Continued:</B></p>
      <p> In addition to the related party transactions described in notes 1,
        4 and 6, the Company had the following transactions with related parties:</p>
      <ul>
        <li>
          <div align="justify"> During the years ended December 31, 2003 and 2002,
            the Company issued 18,000 and 15,000 shares, respectively, of its
            restricted common stock to members of the Board of Directors for their
            services as directors. These stock awards were recorded as directors'
            fees of $7,200 and $2,250, respectively, based upon the estimated
            value of the shares issued and services rendered.<br>
            &nbsp; </div>
        </li>
        <li>
          <div align="justify"> During the year ended December 31, 2003, the Company
            issued 179,133 shares of its restricted common stock valued at $67,501
            to Fred Brackebusch, and 184,067 shares of its restricted common stock
            valued at $69,625 to Grant Brackebusch for management services.<br>
            &nbsp; </div>
        </li>
        <li>
          <div align="justify"> At December 31, 2003, the Company has accrued
            non current liabilities due to Fred and Grant Brackebusch of $6,863
            and $4,656, respectively, for management services rendered. These
            amounts are anticipated to be paid in shares of the Company's stock
            during the first quarter of 2004.<br>
            &nbsp; </div>
        </li>
        <li>
          <div align="justify"> During the years ended December 31, 2003 and 2002,
            the Company paid MSD $20,000 and $9,688, respectively, for engineering
            services. At December 31, 2003, the Company had an account payable
            due MSD of $2,000.<br>
            &nbsp;&nbsp;</div>
        </li>
      </ul></td>
  </tr>
  <tr>
    <td valign="top" width="5%"><B>10.</B><BR> &nbsp;&nbsp;</td>
    <td valign="top" colspan="2"><p align="justify"><B>Environmental Matters</B></p>
      <p align="justify">During 2003, the Company accrued $12,500 relating to
        a reclamation liability at the New Jersey Mine site based on management's
        estimate of the disturbed area existing at the property and the related
        costs to reclaim the area. It is likely that in the near-term the Company
        will become responsible for additional reclamation liabilities as it continues
        in the development of its properties and eventually begins commercial
        production.</p>
      <p align="justify"> The Company owns or leases several mineral properties
        located in the Coeur d&#146;Alene River Basin. In recent years, certain
        other companies involved in mining activities on property interests upland
        of the Coeur d' Alene River Basin have been identified as potentially
        responsible parties under the Comprehensive Environmental Response, Compensation,
        and Liability Act of 1980 (CERCLA), and have entered into consent decrees
        with the Environmental Protection Agency and the state of Idaho, concerning
        environmental remediation obligations and damages to or loss of natural
        resources in the Coeur d' Alene River Basin. The Company has not received
        any notification of a pending action or proceeding against the Company
        relating to environmental damages it may be responsible for. As of December
        31, 2003, the Company has not accrued any amounts for potential liability
        associated with unasserted environmental claims or assessments as the
        amounts, if any, are not estimable. It is possible, however, that the
      </p></td>
  </tr>
</TABLE>
<P align="right"> 41</P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_42"></A>
<p align="justify" style="margin-left:5%">Company&#146;s obligation could change
  in the near or longer term, and the resultant liability or claim for damages
  could have a material adverse effect on the Company. </p>
<P align="center"> <B>ITEM 8. </B> </P>
<P align="center"> <B>CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON</B> <br>
  <B>ACCOUNTING AND FINANCIAL DISCLOSURE </B> </P>
<P align="justify"> On December 10, 2003, the Company filed an 8-K report concerning
  a Change in Certifying Accountant. An amended 8-K/A concerning the same topic
  was filed on February 2, 2004. </P>
<P align="center"> <B>ITEM 8A.</B> </P>
<P align="center"> <B>CONTROLS AND PROCEDURES </B> </P>
<P align="justify"> The Registrant's President and Principal Accounting Officer
  have evaluated the Registrant's disclosure controls and procedures within 90
  days of the filing date of this annual report. Based upon this evaluation, the
  Registrant's President and Principal Accounting Officer concluded that the Registrant's
  disclosure controls and procedures are effective in ensuring that material information
  required to be disclosed is included in the reports that it files with the Securities
  and Exchange Commission. </P>
<P align="justify"> There were no significant changes in the Registrant's internal
  controls or, to the knowledge of the management of the Registrant, in other
  factors that could significantly affect these controls subsequent to the evaluation
  date. </P>
<P align="justify">&nbsp;</P>
<P align="center"> [The balance of this page has been intentionally left blank.]</P>
<P>&nbsp;</P>
<P align="right"> 42 </P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_43"></A>
<P align="center"> <B>PART III </B> </P>
<P align="center"> <B>ITEM 9. </B> </P>
<P align="center"> <B>DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS;
  COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT </B> </P>
<TABLE width="100%" border="2" cellpadding="3" cellspacing="0" bordercolor="#000000" style="font-size:10pt;border-color:black;border-collapse:collapse;">
  <TR valign="top">
    <TD><B>Name &amp; Address</B></TD>
    <TD width="5%"><B>Age</B></TD>
    <TD width="32%"><B>Position</B></TD>
    <TD width="28%"><B>Date First Elected</B></TD>
  </TR>
  <TR>
    <TD>Fred W. Brackebusch<br>
      P.O. Box 1019<br>
      Kellogg, Idaho 83837</TD>
    <TD width="5%" valign="top">59</TD>
    <TD width="32%" valign="top">President, Director &amp; Treasurer</TD>
    <TD width="28%" valign="top">7/18/1996</TD>
  </TR>
  <TR>
    <TD>Grant A. Brackebusch<br>
      P.O. Box 131<br>
      Silverton, ID 83867</TD>
    <TD width="5%" valign="top">34</TD>
    <TD width="32%" valign="top">Vice President &amp; Director</TD>
    <TD width="28%" valign="top">7/18/1996</TD>
  </TR>
  <TR>
    <TD>Charles F. Asher<br>
      P.O. Box<br>
      Pinehurst, ID 83850</TD>
    <TD width="5%" valign="top">80</TD>
    <TD width="32%" valign="top">Director</TD>
    <TD width="28%" valign="top">1/1/1997</TD>
  </TR>
  <TR>
    <TD>Tina C. Brackebusch<br>
      P.O. Box 131<br>
      Silverton, ID 83867</TD>
    <TD width="5%" valign="top">34</TD>
    <TD width="32%" valign="top">Secretary</TD>
    <TD width="28%" valign="top">1/1/1997</TD>
  </TR>
  <TR>
    <TD>Ronald Eggart (1)<br>
      HC-01 Box 187<br>
      Kellogg, ID 83837</TD>
    <TD width="5%" valign="top">82</TD>
    <TD width="32%" valign="top">Director</TD>
    <TD width="28%" valign="top">1/1/1997</TD>
  </TR>
  <TR>
    <TD>M. Kathleen Sims (1)<br>
      2745 Seltice Way<br>
      Coeur d&#146;Alene, ID 83814</TD>
    <TD width="5%" valign="top">59</TD>
    <TD width="32%" valign="top">Director</TD>
    <TD width="28%" valign="top">9/25/2003</TD>
  </TR>
</TABLE>
(1) Member of the Audit Committee
<P align="justify"> Directors are elected by shareholders at each annual shareholders
  meeting to hold office until the next annual meeting of shareholders or until
  their respective successors are elected and qualified. </P>
<P align="justify"> <B>Fred W. Brackebusch, P.E.</B> is the President and a Director
  of the Company. He has a B.S. and an M.S. in Geological Engineering both from
  the University of Idaho. He is a consulting engineer with extensive experience
  in mine development, mine backfill, mine management, permitting, process control
  and mine feasibility studies. He has over 25 years of experience in the Coeur
  d'Alene Mining District principally with Hecla Mining Co. He has been the principal
  owner of Mine Systems Design, Inc., a mining consulting business, since 1987.
  Mr. Brackebusch is also on the Board of Directors of Mascot Silver-Lead Mines,
  Inc. </P>
<P align="justify"> <B>Grant A. Brackebusch, P.E.</B> is the Vice President and
  a Director of the Company. He holds a B.S. in Mining Engineering from the University
  of Idaho. He worked for Newmont Gold Co. in open pit mine planning and pit supervision
  for 3 years. Since that time he as worked with Mine Systems Design performing
  various engineering and geotechnical tasks. He supervises the daily operations
  of New Jersey Mining Co. which include management of drilling programs, construction,
  engineering, and is also responsible for the Company&#146;s SEC reporting and
  environmental monitoring. </P>
<P align="justify"> <B>Charles Asher</B> is a Director of the Company. He is also
  President and a Director of Mascot Silver-Lead Mines Inc. He was formerly President
  of Plainview Mining Co. and Silver Trend Mining Co. Mr. Asher has extensive
  experience as an underground mine operator in the Coeur d'Alene Mining District.
</P>
<P align="right"> 43</P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_44"></A>
<P align="justify"> <B>Tina C. Brackebusch </B>is Secretary of the Company. She
  has served as Office Manager for the Company. She holds a B.S. in Secondary
  Education from the University of Idaho. </P>
<P align="justify"> <B>Ronald Eggart</B> is a Director of the Company. He is a
  retired CPA with a long record of experience with Coeur d'Alene Mining District
  mining ventures. He is also a Director and Secretary for Mascot Silver-Lead
  Mines Inc. </P>
<P align="justify"> <B>M. Kathleen Sims</B> is a Director of the Company. She
  is a successful businesswoman who is majority owner of a car dealership. She
  is a former State Senator in the Idaho Legislature. She is a former member of
  the State of Idaho Human Rights Commission and is active in the Idaho Republican
  Party. She has extensive experience in starting a business with all the necessary
  experience in financing, business plans and management. </P>
<P align="justify"> Family Relationships </P>
<P align="justify"> Fred W. Brackebusch is the father of Grant A. Brackebusch.
  Tina C. Brackebusch is the wife of Grant A. Brackebusch. </P>
<P align="justify"> Legal Proceedings </P>
<P align="justify"> No Director or Officer has been involved in any legal action
  involving the Company for the past five years. </P>
<P align="justify"> <B>Section 16(a) Beneficial Ownership Reporting Compliance
  </B> </P>
<P align="justify"> Based solely upon a review of forms 3 and 4 and amendments
  thereto furnished to the Registrant pursuant to Section 240.16a-3 during the
  most recent fiscal year, and Form 5 and amendments thereto furnished to the
  Registrant with respect to the most recent fiscal year, no person who at any
  time during the fiscal year was a director, officer, or beneficial owner or
  more than ten percent of any class of equity securities of the Registrant registered
  pursuant to Section 12 of the Exchange Act, or any other person subject to Section
  16 of the Exchange Act with respect to the Registrant because of the requirements
  of Section 30 of the Investment Company Act or Section 17 of the Public Utility
  Holding Company Act (A reporting person) failed to file on a timely basis, as
  disclosed in the above Forms, reports required by Section 16(a) of the Exchange
  Act during the most recent fiscal year or prior fiscal years, except <I>Fred
  W. Brackebusch (one report, 5 transactions), Grant A. Brackebusch (one report,
  4 transactions), Tina C. Brackebusch (one report, 4 transactions), Ronald Eggart
  (one report, 4 transactions), Charles F. Asher (one report, 4 transactions)
  and M. Kathleen Sims (one report, 1 transaction). </I> </P>
<P align="justify"> <B>Code Of Ethics </B> </P>
<P align="justify"> The Company adopted a Code of Ethics at a Board of Directors
  meeting on December 9, 2003, that applies to the Company's executive officers.
  It is attached to this filing as an exhibit and can be found at the Company&#146;s
  website. </P>
<P align="justify"> <B>Board Committee </B> </P>
<P align="justify"> At a Board of Directors meeting on December 9, 2003, the Directors
  approved an audit committee comprised of Ronald Eggart and M. Kathleen Sims.
  Each member of the audit committee is deemed to be an independent director as
  that term is defined in Rule 4200(a)(14) of the NASD&#146;s listing standards.
</P>
<P align="right">44 </P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_45"></A>
<P align="justify"> Mr. Eggart is considered to be an &#147;audit committee financial
  expert&#148; as the term is defined under applicable SEC rules. The Board adopted
  an audit committee pre-approval policy. The audit committee is required to pre-approve
  the audit and non-audit services performed by the independent auditor in order
  to assure that the provision of such services do not impair the auditor&#146;s
  independence. </P>
<P align="center"> <B>ITEM 10. </B> </P>
<P align="center"> <B>EXECUTIVE COMPENSATION </B> </P>
<P align="center"> <B>SUMMARY COMPENSATION TABLE</B> </P>
<TABLE width="100%" border="2" cellpadding="3" cellspacing="0" bordercolor="#000000" style="font-size:10pt;border-color:black;border-collapse:collapse;">
  <TR valign="top">
    <TD>Name &amp; Principal Position </TD>
    <TD width="7%" align="center">Year</TD>
    <TD width="7%" align="center">Salary<br>
      ($)</TD>
    <TD width="7%" align="center">Bonus<br>
      ($)</TD>
    <TD align="center">Other Annual Comp. <br>
      ($)</TD>
    <TD align="center">Restricted Stock Awards <br>
      ($)</TD>
    <TD align="center">Securities Underlying Options <br>
      (#)</TD>
    <TD align="center">LTIP Payouts<br>
      ($)</TD>
    <TD align="center">All Other Compensation<br>
      ($)</TD>
  </TR>
  <TR>
    <TD rowspan="3" valign="top">Fred Brackebusch <br>
      President </TD>
    <TD width="7%" align="center">2001</TD>
    <TD width="7%" align="center">0</TD>
    <TD width="7%" align="center">0</TD>
    <TD align="center">0</TD>
    <TD align="center">300</TD>
    <TD align="center">0</TD>
    <TD align="center">0</TD>
    <TD align="center">0</TD>
  </TR>
  <TR>
    <TD width="7%" align="center">2002</TD>
    <TD width="7%" align="center">0</TD>
    <TD width="7%" align="center">0</TD>
    <TD align="center">0</TD>
    <TD align="center">450</TD>
    <TD align="center">0</TD>
    <TD align="center">0</TD>
    <TD align="center">0</TD>
  </TR>
  <TR>
    <TD width="7%" align="center">2003</TD>
    <TD width="7%" align="center">0</TD>
    <TD width="7%" align="center">0</TD>
    <TD align="center">0</TD>
    <TD align="center">68,701</TD>
    <TD align="center">0</TD>
    <TD align="center">0</TD>
    <TD align="center">0</TD>
  </TR>
  <TR>
    <TD rowspan="3" valign="top">Grant Brackebusch <br>
      Vice President </TD>
    <TD width="7%" align="center">2001</TD>
    <TD width="7%" align="center">0</TD>
    <TD width="7%" align="center">0</TD>
    <TD align="center">0</TD>
    <TD align="center">300</TD>
    <TD align="center">0</TD>
    <TD align="center">0</TD>
    <TD align="center">0</TD>
  </TR>
  <TR>
    <TD width="7%" align="center">2002</TD>
    <TD width="7%" align="center">0</TD>
    <TD width="7%" align="center">0</TD>
    <TD align="center">0</TD>
    <TD align="center">450</TD>
    <TD align="center">0</TD>
    <TD align="center">0</TD>
    <TD align="center">0</TD>
  </TR>
  <TR>
    <TD width="7%" align="center">2003</TD>
    <TD width="7%" align="center">0</TD>
    <TD width="7%" align="center">0</TD>
    <TD align="center">0</TD>
    <TD align="center">70,825</TD>
    <TD align="center">0</TD>
    <TD align="center">0</TD>
    <TD align="center">0</TD>
  </TR>
  <TR>
    <TD rowspan="3" valign="top">Charles. F. Asher <br>
      Director </TD>
    <TD width="7%" align="center">2001</TD>
    <TD width="7%" align="center">0</TD>
    <TD width="7%" align="center">0</TD>
    <TD align="center">0</TD>
    <TD align="center">300</TD>
    <TD align="center">0</TD>
    <TD align="center">0</TD>
    <TD align="center">0</TD>
  </TR>
  <TR>
    <TD width="7%" align="center">2002</TD>
    <TD width="7%" align="center">0</TD>
    <TD width="7%" align="center">0</TD>
    <TD align="center">0</TD>
    <TD align="center">450</TD>
    <TD align="center">0</TD>
    <TD align="center">0</TD>
    <TD align="center">0</TD>
  </TR>
  <TR>
    <TD width="7%" align="center">2003</TD>
    <TD width="7%" align="center">0</TD>
    <TD width="7%" align="center">0</TD>
    <TD align="center">0</TD>
    <TD align="center">1,200</TD>
    <TD align="center">0</TD>
    <TD align="center">0</TD>
    <TD align="center">0</TD>
  </TR>
  <TR>
    <TD rowspan="3" valign="top">Tina Brackebusch <br>
      Secretary </TD>
    <TD width="7%" align="center">2001</TD>
    <TD width="7%" align="center">0</TD>
    <TD width="7%" align="center">0</TD>
    <TD align="center">0</TD>
    <TD align="center">300</TD>
    <TD align="center">0</TD>
    <TD align="center">0</TD>
    <TD align="center">0</TD>
  </TR>
  <TR>
    <TD width="7%" align="center">2002</TD>
    <TD width="7%" align="center">0</TD>
    <TD width="7%" align="center">0</TD>
    <TD align="center">0</TD>
    <TD align="center">450</TD>
    <TD align="center">0</TD>
    <TD align="center">0</TD>
    <TD align="center">0</TD>
  </TR>
  <TR>
    <TD width="7%" align="center">2003</TD>
    <TD width="7%" align="center">0</TD>
    <TD width="7%" align="center">0</TD>
    <TD align="center">0</TD>
    <TD align="center">1,200</TD>
    <TD align="center">0</TD>
    <TD align="center">0</TD>
    <TD align="center">0</TD>
  </TR>
  <TR>
    <TD rowspan="3" valign="top">Ronald Eggart <br>
      Director </TD>
    <TD width="7%" align="center">2001</TD>
    <TD width="7%" align="center">0</TD>
    <TD width="7%" align="center">0</TD>
    <TD align="center">0</TD>
    <TD align="center">300</TD>
    <TD align="center">0</TD>
    <TD align="center">0</TD>
    <TD align="center">0</TD>
  </TR>
  <TR>
    <TD width="7%" align="center">2002</TD>
    <TD width="7%" align="center">0</TD>
    <TD width="7%" align="center">0</TD>
    <TD align="center">0</TD>
    <TD align="center">450</TD>
    <TD align="center">0</TD>
    <TD align="center">0</TD>
    <TD align="center">0</TD>
  </TR>
  <TR>
    <TD width="7%" align="center">2003</TD>
    <TD width="7%" align="center">0</TD>
    <TD width="7%" align="center">0</TD>
    <TD align="center">0</TD>
    <TD align="center">1,200</TD>
    <TD align="center">0</TD>
    <TD align="center">0</TD>
    <TD align="center">0</TD>
  </TR>
  <TR>
    <TD rowspan="3" valign="top">M. Kathleen Sims <br>
      Director</TD>
    <TD width="7%" align="center">2001</TD>
    <TD width="7%" align="center">N/A</TD>
    <TD width="7%" align="center">N/A</TD>
    <TD align="center">N/A</TD>
    <TD align="center">N/A</TD>
    <TD align="center">N/A</TD>
    <TD align="center">N/A</TD>
    <TD align="center">N/A</TD>
  </TR>
  <TR>
    <TD width="7%" align="center">2002</TD>
    <TD width="7%" align="center">N/A</TD>
    <TD width="7%" align="center">N/A</TD>
    <TD align="center">N/A</TD>
    <TD align="center">N/A</TD>
    <TD align="center">N/A</TD>
    <TD align="center">N/A</TD>
    <TD align="center">N/A</TD>
  </TR>
  <TR>
    <TD width="7%" align="center">2003</TD>
    <TD width="7%" align="center">0</TD>
    <TD width="7%" align="center">0</TD>
    <TD align="center">0</TD>
    <TD align="center">1,200</TD>
    <TD align="center">0</TD>
    <TD align="center">0</TD>
    <TD align="center">0</TD>
  </TR>
</TABLE>
<P align="justify"> At a Board of Directors meeting on December 9, 2003, the Directors
  approved a compensation plan for the Board of Directors and Management. For
  the Directors and the Secretary it was approved to increase the annual compensation
  to 10,000 common shares of restricted stock, commencing in 2004. Also, as a
  result of the need for full time management the following salaries were approved
  for 2004 by the Directors: Fred W. Brackebusch, $3,000 per month for management,
  Grant A. Brackebusch, $6,000 per month for management and Tina C. Brackebusch,
  $12 per hour for secretarial work. </P>
<P align="justify"> Officers and Directors were paid for their services with 3,000
  shares of restricted common stock per year for the years 2001, 2002 and 2003.
  A value of $0.10 per share was ascribed to the shares in 2001 , $0.15 per share
  in 2002 and $0.40 per share in 2003. </P>
<P align="right"> 45 </P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_46"></A>
<P align="center"> <B>ITEM 11. </B> </P>
<P align="center"> <B>SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND</B>
  <B>MANAGEMENT</B> </P>
<P align="justify"> The following table sets forth information on the ownership
  of the Company's voting securities by Officers, Directors and major shareholders
  as those who own beneficially more than five percent of the Company's common
  stock through the most current date - March 3, 2004. </P>
<B>Security Ownership </B><B>of Certain Beneficial Owners </B><B>and Management
</B>
<TABLE width="100%" border="2" cellpadding="3" cellspacing="0" bordercolor="#000000" style="font-size:10pt;border-color:black;border-collapse:collapse;">
  <TR>
    <TD>Title of Class</TD>
    <TD align="center" width="33%">Name and Address Of Beneficial Owner</TD>
    <TD align="center" width="25%">Amount and Nature of Beneficial Owner</TD>
    <TD width="23%" align="center">Percent of Class (1)</TD>
  </TR>
  <TR>
    <TD valign="top">Common</TD>
    <TD width="33%">Fred W. Brackebusch<br>
      P.O. Box 1019<br>
      Kellogg, Idaho 83837</TD>
    <TD width="25%" align="right">7,891,072 indirect (a)<br>
      207,100 direct</TD>
    <TD width="23%" align="center">41.31%</TD>
  </TR>
  <TR>
    <TD valign="top">Common</TD>
    <TD width="33%">Grant A. Brackebusch<br>
      P.O. Box 131<br>
      Silverton, ID 83837</TD>
    <TD width="25%" align="right">915,928 indirect (b)<br>
      231,276 direct</TD>
    <TD width="23%" align="center">5.85%</TD>
  </TR>
  <TR>
    <TD valign="top">Common</TD>
    <TD width="33%">Terry &amp; Marguerite Tyson<br>
      County Road U<br>
      Lipscomb, TX 79056</TD>
    <TD align="right" width="25%">1,259,500</TD>
    <TD align="center" width="23%">6.43%</TD>
  </TR>
  <TR>
    <TD valign="top">Common</TD>
    <TD width="33%">Charles F. Asher<br>
      P.O. Box 444<br>
      Pinehurst, ID 83850</TD>
    <TD align="right" width="25%">64,000</TD>
    <TD align="center" width="23%">0.33%</TD>
  </TR>
  <TR>
    <TD valign="top">Common</TD>
    <TD width="33%">Tina C. Brackebusch<br>
      P.O. Box 131<br>
      Silverton, ID 83867</TD>
    <TD align="right" width="25%">18,000</TD>
    <TD align="center" width="23%">0.09%</TD>
  </TR>
  <TR>
    <TD valign="top">Common</TD>
    <TD width="33%">Ronald Eggart<br>
      HC-01 Box 187<br>
      Kellogg, ID 83837</TD>
    <TD align="right" width="25%">57,332</TD>
    <TD align="center" width="23%">0.29%</TD>
  </TR>
  <TR>
    <TD valign="top">Common</TD>
    <TD width="33%">M. Kathleen Sims<br>
      2745 Seltice Way<br>
      Coeur d&#146;Alene, ID 83814</TD>
    <TD align="right" width="25%">3,000</TD>
    <TD align="center" width="23%">0.02%</TD>
  </TR>
  <TR>
    <TD valign="top">Common</TD>
    <TD width="33%">All Directors and Officers as a group (6 individuals)</TD>
    <TD align="right" width="25%">9,387,708</TD>
    <TD align="center" width="23%">47.89%</TD>
  </TR>
</TABLE>
<P align="justify"> (1)Based upon 19,604,390 outstanding shares of common stock
  at March 3, 2004. </P>
<P align="justify"> (a) Fred Brackebusch owns 89.6% of Mine Systems Design, Inc.(MSD)
  which is a Subchapter S corporation that owns 8,807,000 common shares of the
  Company. Neither MSD nor Fred Brackebusch have the right to acquire any securities
  pursuant to options, warrants, conversion privileges or other rights. </P>
<P align="justify"> (b) Grant Brackebusch owns 10.4% of Mine Systems Design, Inc.(MSD)
  which is a Subchapter S corporation that owns 8,807,000 common shares of the
  Company. Neither MSD nor Grant Brackebusch have the right to acquire any securities
  pursuant to options, warrants, conversion privileges or other rights. </P>
<P align="justify"> None of the directors or officers have the right to acquire
  any securities pursuant to options, warrants, conversion privileges or other
  rights. </P>
<P align="right"> 46</P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_47"></A>
<P align="center"> <B>ITEM 12. </B> </P>
<P align="center"> <B>CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS </B> </P>
<P align="justify"> During the years ended December 31, 2003 and 2002, the Company
  issued 18,000 and 15,000 shares, respectively, of its restricted common stock
  to members of the Board of Directors for their services as directors. These
  stock awards were recorded as directors' fees of $7,200 and $2,250, respectively,
  based upon the estimated value of the shares issued and services rendered. </P>
<P align="justify"> During the year ended December 31, 2003, the Company issued
  179,133 shares of its restricted common stock valued at $67,501 to Fred Brackebusch,
  and 184,067 shares of its restricted common stock valued at $69,625 to Grant
  Brackebusch for management services. </P>
<P align="justify"> At December 31, 2003, the Company has accrued non-current
  liabilities due to Fred and Grant Brackebusch of $6,863 and $4,656, respectively,
  for management services rendered. These amounts are anticipated to be paid in
  shares of the Company's stock during the first quarter of 2004. </P>
<P align="justify"> During the years ended December 31, 2003 and 2002, the Company
  paid MSD $20,000 and $9,688, respectively, for engineering services. At December
  31, 2003, the Company had an account payable due MSD of $2,000 </P>
<P align="center"> <B>ITEM 13. </B> </P>
<P align="center"> <B>EXHIBITS AND REPORTS ON FORM 8-K </B> </P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR bgcolor="#EEEEEE">
    <TD width="7%" valign="top">(3)(i)</TD>
    <TD>Articles of Incorporation - Filed as an exhibit to the registrant's registration
      statement on Form 10-SB (Commission File No. 000-28837) and incorporated
      by reference herein.</TD>
  </TR>
  <TR>
    <TD width="7%" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR bgcolor="#EEEEEE">
    <TD width="7%" valign="top">(3)(ii)</TD>
    <TD>Bylaws - Filed as an exhibit to the registrant's registration statement
      on Form 10-SB (Commission File No. 000-28837) and incorporated by reference
      herein.</TD>
  </TR>
  <TR>
    <TD width="7%" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR bgcolor="#EEEEEE">
    <TD width="7%" valign="top">(10)(1)</TD>
    <TD>Lease Agreement with William Zanetti - Filed as an exhibit to the registrant's
      registration statement on Form 10-SB (Commission File No. 000-28837) and
      incorporated by reference herein.</TD>
  </TR>
  <TR>
    <TD width="7%" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR bgcolor="#EEEEEE">
    <TD width="7%" valign="top">(10)(2)</TD>
    <TD>Articles of Merger For Plainview Mining Company Inc. and New Jersey Mining
      Co. - Filed as an exhibit to the registrant's registration statement on
      Form 10-SB (Commission File No. 000-28837) and incorporated by reference
      herein.</TD>
  </TR>
  <TR>
    <TD width="7%" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR bgcolor="#EEEEEE">
    <TD width="7%" valign="top">(10)(3)</TD>
    <TD>Lease Agreement with Mine Systems Design, Inc. - Filed as an exhibit to
      the registrant's annual report on Form 10-KSB for the year ended December
      31, 2001 and incorporated by reference herein.</TD>
  </TR>
  <TR>
    <TD width="7%" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR bgcolor="#EEEEEE">
    <TD width="7%" valign="top">(10)(4)</TD>
    <TD>Articles of Merger for Gold Run Gulch Mining Company and New Jersey Mining
      Co. Filed as an exhibit to the registrant's annual report on Form 10-KSB
      for the year ended December 31, 2002 and incorporated by reference herein.</TD>
  </TR>
  <TR>
    <TD width="7%" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR bgcolor="#EEEEEE">
    <TD width="7%" valign="top"><a href="exhibit10-5.htm">(10)(5)</a></TD>
    <TD><a href="exhibit10-5.htm">Exploration Agreement and Option to Lease between
      Paymaster Resources, Inc. and New Jersey Mining Company with the approval
      of J.W. Beasley Interests LLC. Filed as an exhibit to the registrant&#146;s
      annual report on Form 10-KSB for the year ended December 31, 2003.</a></TD>
  </TR>
  <TR>
    <TD width="7%" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR bgcolor="#EEEEEE">
    <TD width="7%" valign="top"><a href="exhibit10-6.htm">(10)(6)</a></TD>
    <TD><a href="exhibit10-6.htm">Exploration Agreement and Option to Lease between
      Prichard Creek Resource PartnersLLC and New Jersey Mining Company. Filed
      as an exhibit to the registrant&#146;s annual report on Form 10-KSB for
      the year ended December 31, 2003. </a></TD>
  </TR>
  <TR>
    <TD width="7%" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR bgcolor="#EEEEEE">
    <TD width="7%" valign="top"><a href="exhibit14.htm">(14)</a></TD>
    <TD><a href="exhibit14.htm">Code of Ethics. Filed as an exhibit to the registrant&#146;s
      annual report on Form 10-KSB for the year ended December 31, 2003.</a></TD>
  </TR>
</TABLE>
<P align="right"> 47 </P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_48"></A> <br>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR bgcolor="#EEEEEE">
    <TD width="7%" valign="top">(16)</TD>
    <TD>Letter on Change in Certifying Accountant. Filed as an 8-K report on December
      10, 2003 and later filed as an 8-K/A on February 2, 2004, and incorporated
      by reference herein.</TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR bgcolor="#EEEEEE">
    <TD width="7%" valign="top"><a href="exhibit18.htm">(18)</a></TD>
    <TD><a href="exhibit18.htm">Letter on Change in Accounting Principle.</a></TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR bgcolor="#EEEEEE">
    <TD width="7%" valign="top">(31)</TD>
    <TD>Rule 13a-14(a)/15d-14(a) Certifications</TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR bgcolor="#EEEEEE">
    <TD width="7%" valign="top"><a href="exhibit31-1.htm">(31)(i)</a></TD>
    <TD><a href="exhibit31-1.htm">Certification of Fred W. Brackebusch</a></TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR bgcolor="#EEEEEE">
    <TD width="7%" valign="top">(32)</TD>
    <TD>Section 1350 Certifications</TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR bgcolor="#EEEEEE">
    <TD width="7%" valign="top"><a href="exhibit32-1.htm">(32)(i)</a></TD>
    <TD><a href="exhibit32-1.htm">Certification of Fred W. Brackebusch</a></TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR bgcolor="#EEEEEE">
    <TD width="7%" valign="top"><a href="exhibit99-1.htm">(99)(i)</a></TD>
    <TD><a href="exhibit99-1.htm">Audit Committee Pre-Approval Policies</a></TD>
  </TR>
</TABLE>
<P> <B>Reports on Form 8-K</B> </P>
<P align="justify"> On December 10, 2003, the Company filed an 8-K report concerning
  a Change in Certifying Accountant. An amended 8-K/A concerning the same topic
  was filed on February 2, 2004. </P>
<P align="center"> <B>ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES </B> </P>
<P align="justify"> The Board of Directors has adopted an audit committee pre-approval
  policy. The audit committee is required to pre-approve the audit and non-audit
  services performed by the independent auditor in order to assure that the provision
  of such services do not impair the auditor&#146;s independence. </P>
<P align="justify"> Audit Fees </P>
<P align="justify"> The aggregate fees billed for professional services rendered
  by the Company&#146;s principal accountant for the audit of the Company&#146;s
  annual financial statements for the fiscal years ended December 31, 2003 and
  2002 and the review for the financial statements included in the Company&#146;s
  quarterly reports on Form 10-QSB during those fiscal years were $14,500 and
  $2,080 respectively. </P>
<P align="justify"> Audit Related Fees </P>
<P align="justify"> The Company incurred no fees during the last two fiscal years
  for assurance and related services by the Company&#146;s principal accountant
  that were reasonably related to the performance of the audit or review of the
  Company&#146;s financial statements, and not reported under &#147;Audit Fees&#148;
  above. </P>
<P align="justify"> Tax Fees </P>
<P align="justify"> The Company incurred no fees during the last two fiscal years
  for professional services rendered by the Company&#146;s principal accountant
  for tax compliance, tax advice and tax planning. </P>
<P align="justify"> All Other Fees </P>
<P align="justify"> The Company incurred other no fees during the last two fiscal
  years for products and services rendered by the Company&#146;s principal accountant.
</P>
<P align="right"> 48 </P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_49"></A>
<P align="center"> <b>SIGNATURES </b></P>
<P align="justify"> In accordance with the Exchange Act, this report has been
  signed below by the following persons on behalf of the registrant and in the
  capacities and on the dates indicated. </P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD colspan=2 width="101%">New Jersey Mining Company</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>Date: <u>March 26, 2004</u></TD>
    <TD width="73%"><u>By /s/ FRED W. BRACKEBUSCH</u></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="73%">Fred W. Brackebusch, President, Treasurer &amp; Director</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>Date: <u>March 26, 2004</u></TD>
    <TD width="73%"><u>By /s/ GRANT A. BRACKEBUSCH</u></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="73%">Grant A. Brackebusch, Vice President &amp; Director</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>Date: <u>March 26, 2004</u></TD>
    <TD width="73%"><u>By /s/ RONALD EGGART</u></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="73%">Ronald Eggart, Director</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>Date: <u>March 26, 2004</u></TD>
    <TD width="73%"><u>By /s/ CHARLES F. ASHER</u></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="73%">Charles F. Asher, Director</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>Date: <u>March 26, 2004</u></TD>
    <TD width="73%"><u>By /s/ M. KATHLEEN SIMS</u></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="73%">M. Kathleen Sims, Director</TD>
  </TR>
</TABLE>
<P align="center">&nbsp; </P>
<P align="center">[The balance of this page has been intentionally left blank.]</P>
<P align="center">&nbsp;</P>
<P align="right"> 49 </P>
<hr noshade align="center" width="100%" size=5 color="Black">
</BODY>

</HTML>


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.5
<SEQUENCE>3
<FILENAME>exhibit10-5.htm
<DESCRIPTION>EXPLORATION AGREEMENT AND OPTION TO LEASE DATED SEPTEMBER 5, 2003
<TEXT>
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN">
<html>
<head>
<title>Filed by Automated Filing Services Inc. (604) 609-0244 - New Jersey Mining Company - Exhibit 10.5</title>
</head>

<BODY bgcolor="#FFFFFF" style="font-size: 10pt;">
<A name="page_52"></A>
<hr noshade align="center" width="100%" size=3 color="black">
<P> <B>EXHIBIT 10.5</B> </P>
<P align="center"> <B>EXPLORATION AGREEMENT AND OPTION TO LEASE</B></P>
<P align="justify"> <B> THIS EXPLORATION AGREEMENT AND OPTION TO LEASE </B>dated
  as of <U>September </U>5, 2003, is between <B>PAYMASTER RESOURCES INCORPORATED
  </B>("Grantor"), and <B>NEW JERSEY MINING COMPANY</B>. ("Grantee") with the
  approval of <B>J. W. BEASLEY INTERESTS LLC</B> (&#147;Owner&#148;). </P>
<P> <B>RECITALS</B> </P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <td valign="top" width="3%">&nbsp;</td>
    <TD valign="top" width="5%">A.<BR> &nbsp;&nbsp;</TD>
    <td valign="top"><div align="justify">Grantor leases certain real property
        more particularly described in Exhibit A attached hereto and by this reference
        made a part hereof ("Premises"). Grantor warrants and represents that
        it has a valid mining lease and agreement dated December 1, 2001, as amended,
        with Owner of which Exhibit B is a copy.<BR>
        &nbsp;</div></td>
  </tr>
  <tr>
    <td valign="top" width="3%">&nbsp;</td>
    <td valign="top" width="3%">B.<BR> &nbsp;&nbsp;</td>
    <td valign="top"><div align="justify">The parties agree for the purposes of
        this Agreement that the Premises shall be deemed to include, without limitation,
        the surface and subsurface of the Premises, all mines, ores, metals, mineral
        rights and minerals thereon and thereunder, all veins, lodes, extralateral
        rights and mineral deposits now controlled or hereafter acquired by Grantor
        extending from or onto or contained in the Premises; and all water and
        water rights therein, thereon or thereunder.<BR>
        &nbsp;</div></td>
  </tr>
  <tr>
    <td valign="top" width="3%">&nbsp;</td>
    <td valign="top" width="3%">C.<BR> &nbsp;&nbsp;</td>
    <td valign="top"><div align="justify">Grantor and Grantee desire to enter
        into this Agreement covering the Premises.<BR>
        &nbsp;</div></td>
  </tr>
  <tr>
    <td valign="top" width="3%">&nbsp;</td>
    <td valign="top" width="3%">D.</td>
    <td valign="top"><div align="justify">Grantor also desires to grant to Grantee
        an option to lease the Premises.</div></td>
  </tr>
</TABLE>
<P> <B>AGREEMENT</B> </P>
<P align="justify"> IN CONSIDERATION of the sum of $10.00 and other good and valuable
  consideration, the receipt and sufficiency of which are hereby acknowledged,
  and the promises and covenants contained herein, the parties agree as follows:
</P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <B>GRANT</B>. Subject to
  Paragraph 8 below, Grantor grants exclusively to Grantee, its successors or
  assigns, the right to enter upon the Premises for the purpose of conducting
  a mineral evaluation of the Premises, including, without limitation, the right
  to drill and excavate holes, pits, shafts, and other excavations, construct
  roads and conduct surveys, explorations, sampling, investigations, and other
  operations in such a manner and to the extent that Grantee, in its sole judgment
  and discretion, may deem advisable for the purpose of ascertaining any and all
  facts related to the occurrence of Minerals (hereinafter defined) in and under
  the Premises and the metallurgical and physical properties of any Minerals discovered.
  The term "Minerals" shall mean all metallic and nonmetallic substances, whether
  now or at any time hereafter during the term of this Agreement, known as or
  considered minerals, including, without limitation, all base and precious metals,
  iron, and coal but excluding oil, gas and other liquid and gaseous hydrocarbons.
</P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <B>OPTION TO LEASE</B>. Grantor
  hereby grants to Grantee the irrevocable and exclusive option ("Option to Lease")
  during the term hereof to enter into a lease of the Premises, which lease shall
  be in the form of Exhibit C, attached hereto and by this reference made a part
  hereof, and herein referred to as "Said Lease," subject to the terms and conditions
  herein set forth. </P>
<P align="right"> 1</P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_53"></A>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lessee may exercise the Option
  to Lease from time to time at any time prior to the expiration of this Agreement.
  If and when Grantee shall elect to enter into Said Lease, it shall forward to
  Grantor executable copies of Said Lease together with 100,000 shares of Grantee&#146;s
  common stock and within fifteen (15) days of receipt, Grantor shall execute
  and deliver Said Lease to Grantee together with a recordable short form thereof.
</P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <B>PAYMENTS</B>. Grantee
  agrees to pay Grantor 10,000 shares of its common stock every six months, during
  the term of this Agreement, starting June 13, 2003. Grantor acknowledges that
  the first payment has been made. </P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <B>TERM</B>. This Agreement
  is granted for a two and one half [2 1/2] year term, commencing on June 13,
  2003, unless sooner terminated under any of the provisions herein. </P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <B>WORK COMMITMENT DURING
  EXPLORATION AGREEMENT</B>. During the term of this Agreement, Grantee agrees
  to conduct an economic study of the resource identified by Newmont Exploration
  Limited on the Premises. Grantee agrees to calculate resources and produce an
  ultimate open pit design using Newmont&#146;s drilling data with Gemcom software.
  Grantee agrees to conduct bench scale metallurgical tests, produce a conceptual
  engineering design of the mine, mineral processing plant, and tailings management
  system, and to construct an economic model with study quality capital and operating
  cost estimates using Lotus software. </P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <B>PRODUCTION DURING TERM
  OF EXPLORATION AGREEMENT</B>. During the term of this Agreement, Grantee may
  produce and sell Minerals derived from ores produced during exploration activities,
  including underground drifting and ramping. In addition, Grantee may produce
  and sell minerals from existing mine dumps which are more than 500 feet from
  the residence at 8601 Prichard Creek Road. Grantee shall pay Grantor a production
  royalty of 5% of the Net Smelter Return from such limited production. </P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <B>TITLE TO PREMISES</B>.
  This Agreement is executed and delivered expressly without warranty of any nature
  whatsoever on the part of Grantor, either expressed or implied, not even to
  the return of the consideration paid herefor. If Grantor controls less interest
  than the entire fee mineral estate, amounts to be paid Grantor may be reduced
  proportionately. </P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <B>CONDUCT OF OPERATIONS</B>.
</P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 <B>Use of Premises</B>.
  Grantee may use only so much of the surface of the Premises as shall be reasonably
  necessary for the exploration and evaluation contemplated in this Agreement.
  Grantee recognizes the surface of the Premises has many uses, including mining,
  exploration, timber cultivation and production, and other activities. Owner
  expressly reserves the right to use and manage the Premises for all uses except
  exploration for, development and mining of Minerals as provided herein, provided
  Owner shall not conduct or permit others to conduct any activities on the Premises
  which unreasonably interfere with Grantee's rights hereunder. Grantee shall,
  wherever practicable, minimize interference to Owner's activities as a result
  of Grantee's activities. Owner reserves the right to (i) harvest timber on the
  Premises, (ii) and occupy the surface of that portion of the Premises commonly
  known as 8601 Prichard Creek Road during the term of this Agreement. </P>
<P align="right"> 2</P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_54"></A>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 <B>Use of Roads</B>. Grantee
  shall have the right to use Owner's existing road networks, whether currently
  existing or subsequently constructed, as are necessary to its exercise of the
  rights conveyed hereunder. The foregoing grant of rights is subject to any restriction
  or prohibition contained in any easements, permits or licenses granting Owner
  the right to utilize such roadways, including but not limited to absolute prohibitions
  against assignment, if any, hauling fees, traffic regulations, maintenance costs,
  construction costs, or other restrictions. Grantee in its use of roads, whether
  currently existing or hereafter constructed by either party, shall comply with
  all reasonable regulations promulgated by Grantor or Owner. Nothing contained
  herein shall prohibit Owner from modifying or terminating any easement, license,
  or permit granting Owner a right to use any road. </P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 <B>Caretakers. </B>Caretakers
  retained by Grantor and Owner shall have the right to conduct recreational-type
  placer mining and metal detecting activities on the lower portion of Reeder
  Gulch below 3,050 feet elevation on the Premises, but such activities shall
  not involve any mechanized earthmoving equipment such as dozers, excavators
  or other mechanized equipment. In addition, this right is subject to and shall
  not conflict with exploration and mining operations conducted by Grantee. </P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4 <B>Exclusion of Residential
  Area</B>. Grantee shall not conduct any exploration or mining operations in
  the Residential Area without the written permission of Grantor. The Residential
  Area is part of the Premises and is described as 8601 Prichard Creek Road, and
  includes the residence, all outbuildings and any property on the Premises within
  500 feet to the west, south, east, and north of the structures, except the north
  boundary shall not extend past the Newmont Road which lies to the north of the
  structures. </P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5 <B>Exclusion of Trespassers.
  </B>The Individuals listed in Exhibit D attached hereto shall not be allowed
  on the Premises under any circumstances. In the event any of the Individuals
  are seen or known to have been on the Premises by Grantee, Grantee shall request
  that the Sheriff file criminal trespass charges against those Individuals. If
  Grantee knowingly allows said Individuals to trespass on the Premises, this
  Exploration Agreement and Option to Lease shall be in default and Grantor can
  terminate this Agreement immediately. </P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <B>TECHNICAL DATA</B>. Grantee
  shall furnish Grantor, on a quarterly basis, with copies of all technical data
  pertaining to its operations hereunder, including but not limited to all geological,
  geophysical, geochemical, mapping, drilling, sampling, assay, and other data
  or information pertaining to Grantee's exploration operations hereunder. Such
  data shall be treated as confidential. Notwithstanding the foregoing, Grantee
  shall not be obligated to disclose to Grantor any interpretive data or information
  nor shall Grantee be obligated to disclose any information obtained from Newmont
  Exploration which might conflict with a confidentiality agreement between Newmont
  and Grantee dated June 17, 2003. </P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <B>CONTROL OF EXPLORATION</B>.
  Grantee shall have full discretion in the exploration of the Premises and shall
  in no event be obliged to pursue a specific schedule to explore for, develop,
  drill, mine, mill, or concentrate Minerals. </P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <B>LESSER INTEREST</B>.
  If Grantor controls less than the entire undivided interest in the Minerals,
  or in any tract included in the Premises, then any payments due Grantor under
  this Agreement shall be due Grantor only in the proportion that its interest
  bears to the whole undivided fee mineral interest. Any interest in the Premises
  and/or Minerals hereafter acquired by Grantor shall be automatically subject
  to this Agreement. If any such acquisition changes Grantor's interest in the
  Premises or Minerals, an appropriate adjustment will be made after Grantee receives
  written notice thereof from Grantor.</P>
<P align="right"> 3</P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_55"></A>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <B>INDEMNITY</B>. Grantee
  shall assume all liability in connection with its operations on the Premises
  and shall hold Grantor and Owner harmless from any and all liability which may
  arise out of Grantee's operations on the Premises. Grantee shall use its best
  efforts to ensure that the work performed by Grantee hereunder shall be in compliance
  with applicable environmental, safety and health requirements of federal, state
  and local governments. Upon the termination of this Agreement, Grantee shall
  return the Premises to Grantor free and clear of liens for labor done or work
  performed upon the Premises or materials furnished to it for the exploration
  thereof under this Agreement, but Grantee shall have the right to dispute or
  contest the validity of such liens. Grantee's liability under this Section shall
  terminate upon termination of this Agreement except for obligations incurred
  before the date of termination. </P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <B>INSURANCE</B>. Grantee
  will maintain general liability insurance, subject to availability at reasonable
  cost, during the term of this agreement in the amount of $2,000,000. Grantee
  will instruct its insurance agent to issue certificates showing Grantor and
  Owner as additional insured parties. Grantee will require all subcontractors,
  including drillers and mining contractors, to supply evidence of insurance and
  name Grantee, Grantor, and Owner as additional insured parties. </P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <B>FORCE MAJEURE</B>. Grantee
  shall not be liable or in default under any provisions of this Agreement for
  failure to perform any of its obligations hereunder during periods in which
  performance is prevented by any cause reasonably beyond Grantee's control, which
  causes hereinafter are called "force majeure." For the purposes of this Agreement
  the term "force majeure" shall include, but not be limited to, fires, floods,
  windstorms and other damage from the elements; strikes, war, insurrection, mob
  violence and riots; unavailability of materials, labor and transportation; unavailability
  of smelting or refining facilities; interference, action, legislation or regulation
  by governmental or military authority, including a requirement by such authority
  that an environmental impact statement, plan of operation or similar statement
  or document be prepared or approved; litigation; and acts of God or acts of
  the public enemy. The duration of this Agreement and of the time for completion
  of performance by Grantee of its rights and obligations hereunder shall be extended
  for a period equal to the period of disability as a result of the event of force
  majeure, provided Grantee gives Grantor written notice of the existence of the
  event of force majeure. All periods of force majeure shall be deemed to begin
  at the time Grantee stops performance hereunder by reason of force majeure.
  Notwithstanding the foregoing, the parties understand that an event of force
  majeure shall not excuse any obligation to make a payment of common stock required
  by this Agreement. </P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <B>FIRST RIGHT OF REFUSAL</B>.
  If, at any time during the term of this Agreement, Grantor shall, in response
  to a bona fide offer to purchase all or part of its interest in the Premises
  from a third party, desire to sell or otherwise dispose of such interest, it
  shall notify Grantee in writing of the party to whom it desires to sell such
  interest and the price at which and the terms upon which it desires to sell
  the same, and Grantee shall, within 30 days of receipt of the notice, notify
  Grantor in writing whether it wishes to purchase such interest at the price
  and on the terms set forth in the notice. If Grantee elects to purchase such
  interest, Grantor shall be bound to convey, assign, or otherwise transfer such
  interest to Grantee promptly thereafter at such price and on such terms. If
  Grantee elects not to purchase such interest or fails to give notice of its
  intention within the 30-day period, Grantor shall be </P>
<P align="right"> 4</P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_56"></A>
<P align="justify"> free to convey, assign, or otherwise transfer such interest
  to the third party at a price not less than stated in the notice or on terms
  more favorable than those stated in the notice. Any conveyance by Grantor to
  a third party shall be subject to the terms of this Agreement, including without
  limitation Grantee's right to lease the Premises. If Grantor shall not have
  so disposed of such interest to said third party within 90 days after receipt
  of notice that Grantee elects not to exercise its right of first refusal or
  after expiration of that party's 30 day period within which to give notice,
  the provisions of this Section shall again apply to the disposition by Grantor
  of any such interest. </P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <B>ASSIGNMENT</B>. Subject
  to the provisions of Section 15 above, Grantor may assign this Agreement whether
  or not Grantee&#146;s consent is given. Grantee may not assign this Agreement
  without the consent of Grantor, which consent shall not be unreasonably withheld,
  except Grantee may assign this Agreement to an affiliate without Grantor&#146;s
  consent. In the event of any assignment, the rights of either party hereunder
  and the provisions hereof shall extend to their successors and assigns, but
  no change or division in ownership of the Premises, however accomplished, shall
  operate to enlarge the obligations or diminish the rights of either party under
  this Agreement, and neither Grantee nor its successors or assigns shall ever
  be required to make payments or to render reports or notices to more than one
  party. In the event Grantor's interest in the Premises is now or hereafter owned
  by more than one party, Grantee may withhold further payments until all such
  owners have designated a single party to act for all of them hereunder in all
  respects, including but not limited to the giving and receiving of all notices
  and the receipt of all payments and reports. No such change or division in the
  ownership of the Premises shall be binding upon Grantee for any purpose until
  such person acquiring any interest has further furnished Grantee with the instrument
  or instruments, or certified copies thereof, constituting his claim of title
  from the original Grantor. Grantee shall have the right to subcontract with
  others for the performance of exploration work hereunder, subject to all of
  the terms of this Agreement, but no such subcontract shall relieve Grantee of
  its obligations to Grantor hereunder. Grantee hereby discloses to Grantor, which
  disclosure shall be kept confidential, that it has entered into a confidentiality
  agreement with Newmont North America Exploration Limited [Newmont] that requires
  Grantee to allow Newmont the right of first offer if Grantee proposes to dispose
  of its interest in this Agreement. </P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <B>TERMINATION OF AGREEMENT</B>.
</P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1 <B>By Grantor</B>. If Grantee
  fails to keep and perform all of the terms and conditions of this Agreement
  on its part to be kept and performed, then Grantor may notify Grantee of the
  default in writing specifying the default. If within ten days after Grantee's
  receipt of such notice, in case of default arising through failure to make any
  payments required by this Agreement, and within 30 days in the case of any other
  default, except as provided in Paragraph 8.5, Grantee shall make such payments,
  or commence and diligently thereafter proceed to correct such other default,
  this Agreement shall continue in good standing. However, upon failure of Grantee
  to make such payment within ten days or to commence within 30 days to cure any
  other default and diligently thereafter proceed to correct the same, Grantor
  may then, by written notice or demand, forthwith terminate this Agreement and
  fully repossess itself of the Premises, and without prejudice to any other rights
  which might otherwise accrue to Grantor for the violation of the terms hereof.
  After such default and termination of this Agreement, Grantee shall have no
  further rights in or right to the possession of the Premises or any part thereof
  or to exercise the Option to Lease. </P>
<P align="right"> 5</P>
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<A name="page_57"></A>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.2 <B>By Grantee</B>. Grantee
  may terminate this Agreement in whole or in part at any time following the completion
  of the economic study set forth in Section 5 of this Agreement upon delivering
  written notice to Grantor. Said notice shall be effective upon delivery. Upon
  such termination, all right, title and interest of Grantee under this Agreement
  shall terminate as to that part of the Premises covered by the notice, and Grantee
  shall not be required to make any further payments, or to perform any further
  obligations hereunder as to said portion of the Premises, except payments or
  obligations which then have accrued under the express provisions of this Agreement
  and which have not been paid or performed. </P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <B>RECORDING OF SHORT-FORM
  NOTICE</B>. The parties hereby agree to execute a short-form counterpart of
  this Agreement contemporaneous herewith for the sole purpose of recordation
  in the real property records sufficient to give record notice, pursuant to the
  laws of the state where the Premises are located of the existence of this Agreement.
  This Agreement shall not be recorded without the consent of Grantee. </P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <B>NOTICES</B>. Any notice
  required or permitted to be given hereunder shall be in writing and shall be
  delivered in person or sent by regular mail. Notices so mailed shall be deemed
  effective on the third business day after mailing. Until change of address is
  communicated, all notices shall be addressed to: </P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="9%">Grantor:</TD>
    <TD>Paymaster Resources Incorporated</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>P. O. Box 387</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Murray, Idaho 83874</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>Grantee:</TD>
    <TD>New Jersey Mining Company</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>P.O. Box 1019</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Kellogg, Idaho 83837</TD>
  </TR>
</TABLE>
<P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <B>GENERAL</B>. </P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.1 <B>Modification</B>. The
  parties hereto by mutual written agreement may, at any time and from time to
  time, amend this Agreement and any of the terms hereof. </P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.2 <B>Further Documents</B>.
  The parties hereto further agree to execute all such further documents and do
  all such further things as may be necessary to give full effect to these presents.
</P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.3 <B>Entire Agreement</B>.
  This is the entire agreement between the parties and no modification shall be
  effective unless in writing and executed by the parties hereto. </P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.4 <B>Law</B>. The terms and
  provisions of this Agreement shall be interpreted in accordance with the laws
  of the state where the Premises are located. </P>
<P align="right"> 6</P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_58"></A>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.5 <B>Signing. </B> Each party
  may rely upon the signature of each other party on this Agreement, which is
  transmitted by facsimile as constituting a duly authorized, irrevocable, actual,
  current delivery of this Agreement with the original ink signature of the transmitting
  party. </P>
<P> IN WITNESS WHEREOF, this instrument is executed as of the date above written.
</P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD colspan=2 width="53%">GRANTOR:</TD>
    <TD colspan=2 width="48%">GRANTEE:</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan=2 width="53%">PAYMASTER RESOURCES INCORPORATED</TD>
    <TD colspan=2 width="48%">NEW JERSEY MINING COMPANY</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">By:</TD>
    <TD><u>/s/ John W. Beasley</u></TD>
    <TD width="5%">By:</TD>
    <TD><u>/s/ Fred W. Brackebusch</u></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>John W. Beasley, President</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>Fred W. Brackebusch, President</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan=2 width="53%">OWNER:</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan=2 width="53%">J. W. BEASLEY INTERESTS LLC</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">By:</TD>
    <TD><u>/s/ John W. Beasley</u></TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>John W. Beasley, President/Manager</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
</TABLE>
<P align="center">&nbsp; </P>
<P align="center">[The balance of this page has been intentionally left blank.]
</P>
<P align="center">&nbsp; </P>
<P align="right"> 7</P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_59"></A><br>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD width="18%">STATE OF WISCONSIN</TD>
    <TD>)</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>)ss.</TD>
  </TR>
  <TR>
    <TD>COUNTY OF Waushara</TD>
    <TD>)</TD>
  </TR>
</TABLE>
<P> On this 8<SUP>th </SUP>day of <U>September </U>, 2003, before me, the undersigned,
  a Notary Public in and for the State of Wisconsin, personally appeared John
  W. Beasley , known to me and to me known to be the <U>President</U> of PAYMASTER
  RESOURCES INCORPORATED, a corporation whose name is subscribed to the foregoing
  instrument and acknowledged to me that said individual executed the same. </P>
<P> IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal
  the day in this certificate first above written. </P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD width="50%">&nbsp;</TD>
    <TD width="50%"><u>&nbsp;&nbsp;&nbsp;/s/ Judy Berglund&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></TD>
  </TR>
  <TR>
    <TD width="50%">&nbsp;</TD>
    <TD width="50%">Notary Public for the State of Wisconsin</TD>
  </TR>
  <TR>
    <TD width="50%">&nbsp;</TD>
    <TD width="50%">Residing at Waushara County, Poy Sippi, WI</TD>
  </TR>
  <TR>
    <TD width="50%">&nbsp;</TD>
    <TD width="50%">My commission expires: <u>05/06/07</u></TD>
  </TR>
</TABLE>
<p>&nbsp;</p><TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD width="18%">STATE OF IDAHO</TD>
    <TD width="82%">)</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="82%">) ss.</TD>
  </TR>
  <TR>
    <TD>COUNTY OF SHOSHONE</TD>
    <TD width="82%">)</TD>
  </TR>
</TABLE>
<P align="justify"> On this 5<SUP>th </SUP>day of <U>September </U>, 2003, before
  me, the undersigned, a Notary Public in and for the State of Idaho, personally
  appeared Fred W. Brackebusch , known to me and to me known to be the <U>President</U>
  of NEW JERSEY MINING COMPANY, a corporation whose name is subscribed to the
  foregoing instrument and acknowledged to me that said officer executed the same.
</P>
<P align="justify"> IN WITNESS WHEREOF, I have hereunto set my hand and affixed
  my notarial seal the day in this certificate first above written. </P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD width="50%">&nbsp;</TD>
    <TD width="50%">Debra L. Hammerberg</TD>
  </TR>
  <TR>
    <TD width="50%">&nbsp;</TD>
    <TD width="50%">Notary Public for the State of Idaho</TD>
  </TR>
  <TR>
    <TD width="50%">&nbsp;</TD>
    <TD width="50%">Residing at Mullan, Idaho</TD>
  </TR>
  <TR>
    <TD width="50%">&nbsp;</TD>
    <TD width="50%">My commission expires: 09/17/07</TD>
  </TR>
</TABLE>
<P align="right"> 8</P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_60"></A> <br>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD width="18%">STATE OF WISCONSIN</TD>
    <TD>)</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>)ss.</TD>
  </TR>
  <TR>
    <TD>COUNTY OF Waushara</TD>
    <TD>)</TD>
  </TR>
</TABLE>
<P align="justify"> On this 8<SUP>th </SUP>day of <U>September </U>, 2003, before
  me, the undersigned, a Notary Public in and for the State of Wisconsin, personally
  appeared John W. Beasley , known to me and to me known to be the <U>President/Manager</U>
  of J.W. BEASLEY INTERESTS LLC, a corporation whose name is subscribed to the
  foregoing instrument and acknowledged to me that said individual executed the
  same. </P>
<P align="justify"> IN WITNESS WHEREOF, I have hereunto set my hand and affixed
  my notarial seal the day in this certificate first above written. </P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD width="50%">&nbsp;</TD>
    <TD width="50%"><u>&nbsp;&nbsp;&nbsp;/s/ Judy Berglund&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></TD>
  </TR>
  <TR>
    <TD width="50%">&nbsp;</TD>
    <TD width="50%">Notary Public for the State of Wisconsin</TD>
  </TR>
  <TR>
    <TD width="50%">&nbsp;</TD>
    <TD width="50%">Residing at Waushara County, Poy Sippi, WI</TD>
  </TR>
  <TR>
    <TD width="50%">&nbsp;</TD>
    <TD width="50%">My commission expires: <u>05/06/07</u></TD>
  </TR>
</TABLE>
<P>&nbsp; </P>
<P align="center">[The balance of this page has been intentionally left blank.]
</P>
<P>&nbsp;</P>
<P align="right"> 9</P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_61"></A>
<P align="center"> <B>EXHIBIT A</B> </P>
<P align="center"> <B><U>GOLDEN CHEST MINE PROPERTIES</U></B> </P>
<P> <B><U>PARCEL </U></B><u><B>1: </B></u> </P>
<P align="justify"> Golden Chest Patented Mining Claim, M.S. 4 (sometimes referred
  to as Lot 40) situated in the Summit Mining District in Section 4, Township
  49 North, Range 5 East, B.M., Shoshone County, State of Idaho. Patent recorded
  in Book X, Deeds, at page 278. </P>
<P align="justify"> <B><U>PARCEL </U></B><u><B>2: </B></u> </P>
<P align="justify"> Euphernia Patented Mining Claim, M.S. 994 situated in the
  Summit Mining District in Section 4, Township 49 North, Range 5 East, B.M.,
  Shoshone County, State of Idaho. Patent recorded in Book 4, Deeds, at page 530.
</P>
<P align="justify"> <B><U>PARCEL </U></B><u><B>3: </B></u> </P>
<P align="justify"> A.D. Coplen, No. 2, Thomas Kearn and Brile Placer Mining Claims,
  M.S. 995 situated in the Summit Mining District in Section 4, Township 49 North,
  Range 5 East, B.M. Shoshone County, State of Idaho. Patent recorded in Book
  4, Deeds, at page 533. </P>
<P align="justify"> <B><U>PARCEL </U></B><u><B>4: </B></u> </P>
<P align="justify"> <B>Dora Patented Mining Claim, M.S. 996 situated in the Summit
  Mining District in Section 5, Township 49 North, Range 5 East, B.M., Shoshone
  County, State of Idaho. Patent recorded in Book A, Patents, at page 61. </B>
</P>
<P align="justify"> <B><U>PARCEL </U></B><u><B>5; </B></u> </P>
<P align="justify"> Katie Burnett Patented Mining Claim, M.S. 997 situated in
  the Summit Mining District in Section 4, Township 49 North, Range 5 East, B.M.,
  Shoshone County, State of Idaho. Patent recorded in Book A, Patents, at page
  58. </P>
<P align="justify"> <B><U>PARCEL </U></B><u><B>6: </B></u> </P>
<P align="justify"> <B>Littlefield Bar Placer Patented Mining Claim, M.S. 1062
  situated in the Summit Mining District in Sections 4 and 9, Township 49 North,
  Range 5 East, B.M., Shoshone County, State of Idaho. Patent recorded in Book
  10, Deeds, at page 72. </B> </P>
<P align="justify"> <B><U>PARCEL </U></B><u><B>7: </B></u> </P>
<P align="justify"> Paymaster Patented Mining Claim, M.S. 1078 situated in the
  Summit Mining District in Section 4, Township 49 North, Range 5 East, B.M.,
  Shoshone County, State of Idaho. Patent recorded in Book A, Patents, at page
  1. </P>
<P align="justify"> <B><U>PARCEL </U></B><u><B>8: </B></u> </P>
<P align="justify"> Coumerilh Fraction Patented Mining Claim, M.S. 1162 situated
  in the Summit Mining District in Section 4, Township 49 North, Range 5 East,
  B.M., Shoshone County, State of Idaho. Patent recorded in Book A, Patents, at
  page 7. </P>
<P align="justify"> <B><U>PARCEL </U></B><u><B>9: </B></u> </P>
<P align="justify"> Red Star Patented Mining Claim, M.S. 1745 situated in the
  Summit Mining District in Section 4, Township 49 North, Range 5 East, B.M.,
  Shoshone County, State of Idaho. Patent recorded in Book A, Patents, at page
  364. </P>
<P align="justify"> <B>EXCEPT: </B>That portion of Red Star Patented Mining Claim
  conveyed to C.E. Kingman by deed recorded in Book 22, Deeds, at page 312 described
  as follows: </P>
<P align="justify"> Beginning at a point where Corner No. 6 Red Star Lode, M.S.
  1745 bears South 31&deg; 53" West, 465.91 feet; thence <br>
  South 62&deg; 42" West, 240.25 Feet; thence <br>
  South 46&deg; 18" West, 251.9 feet; thence <br>
  South 31&deg; 02" East, 373.88 feet; thence <br>
  North 27&deg; 50" East, 434.47 feet to the place of beginning. </P>
<P align="right"> 10</P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_62"></A>
<P> <B><U>PARCEL 10:</U></B> </P>
<P align="justify"> Stevens Fraction, Jim and Timberking Patented Mining Claims,
  M.S. 1732 situated in the Summit Mining District in Section 4, Township 49 North,
  Range 5 East, B.M., Shoshone County, State of Idaho. Patent recorded in Book
  A, Patents, at page 391. </P>
<P align="justify"> <B><U>PARCEL 11</U></B><B>: </B> </P>
<P align="justify"> Stevens Bar Patented Mining Claim, M.S. 1735 situated in the
  Summit Mining District in Section 4, Township 49 North, Range 5 East, B.M.,
  Shoshone County, State of Idaho. Patent recorded in Book 26, Deeds, at page
  481. </P>
<P align="justify"> <B><U>PARCEL 12</U></B><B>: </B> </P>
<P align="justify"> Hot Stuff Group consisting of Hot Stuff, Empire, Montana,
  Utah, Blister and Skookum Patented Mining Claims, M.S. 1826 situated in the
  Summit Mining District in Section 4, Township 49 North, Range 5 East, B.M.,
  Shoshone County, State of Idaho. Patent recorded in Book 38, Deeds, at page
  200. </P>
<P align="justify"> <B>EXCEPTION: </B>Except that portion of Hot Stuff Group consisting
  of the Empire and Montana Patented Mining Claims, M.S. 1826 situated in the
  Summit Mining District in Section 4, Township 49 North, Range 5 East, B.M.,
  Shoshone County, State of Idaho, Patent recorded in Book 38, Deeds, at page
  200 and except that portion of the Hot Stuff Group consisting of that portion
  of Utah Patented Mining Claim, M.S. 1826 situated in the Summit Mining District
  in Section 4, Township 49 North, Range 5 East, B.M., Shoshone County, State
  of Idaho, Patent recorded in Book 38, Deeds, at page 200 with the said excepted
  portion of Utah, described more particularly at that portion of Utah Patented
  Mining Claim lying to the South and East of a straight line from the Northeast
  corner of Utah to the Southwest corner of Utah, a portion of M.S. 1826 situated
  in the Summit Mining District in Section 4, Township 49 North, Range 5 East,
  B.M., Shoshone County, State of Idaho, patent recorded in Book 38, Deeds, at
  page 200. </P>
<P align="justify"> <B><U>PARCEL 13</U></B><B>: </B> </P>
<P align="justify"> Golden Bricks Patented Mining Claim, M.S. 2247 situated in
  the Summit Mining District in Section 4, Township 49 North, Range 5 East, B.M.,
  Shoshone County, State of Idaho. Patent recorded in Book 43, Deeds, at page
  493. </P>
<P align="justify"> <B><U>PARCEL 14</U></B><B>: </B> </P>
<P align="justify"> That 30' wide road way currently existing and commonly known
  as the Newmont Road which is located in the Southwest corner of the Ivy claim
  in Section 9, Township 49 North, Range 5 East, B.M., Shoshone County, State
  of Idaho which initiates on the Shoshone County road right-of-way and runs Westerly
  into the Littlefield Bar, M.S. 1062 Patented Mining Claim. </P>
<P align="center"> <B> EXHIBIT B </B> </P>
<P> Mining Lease between Paymaster Resources Incorporated and J. W. Beasley Interests
  LLC </P>
<P align="center"> <B>EXHIBIT C</B> </P>
<P> Mining Lease Form. </P>
<P align="center"> <B>EXHIBIT D</B> </P>
<P> List of Individuals Not Allowed on the Premises </P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD valign="top" width="5%">1.</TD>
    <TD valign="top">Christopher Nick Kalatzes</TD>
  </TR>
  <TR>
    <TD valign="top" width="5%">2.</TD>
    <TD valign="top">Nick Kalatzes</TD>
  </TR>
  <TR>
    <TD valign="top" width="5%">3.</TD>
    <TD valign="top">Brenda Migliaccio Kalatzes</TD>
  </TR>
  <TR>
    <TD valign="top" width="5%">4.</TD>
    <TD valign="top">Jack Riddle</TD>
  </TR>
  <TR>
    <TD valign="top" width="5%">5.</TD>
    <TD valign="top">Dale Miller</TD>
  </TR>
  <TR>
    <TD valign="top" width="5%">6.</TD>
    <td valign="top">David Miller</td>
  </tr>
</TABLE>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <tr>
    <td valign="top" width="5%">7.</td>
    <td valign="top">Sadie Miller</td>
  </tr>
  <tr>
    <td valign="top" width="5%">8.</td>
    <td valign="top">Warren Yeager</td>
  </tr>
  <tr>
    <td valign="top" width="5%">9.</td>
    <td valign="top">Sabrina Yeager</td>
  </tr>
</table>
<P align="right">11</P>
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</body>
</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.6
<SEQUENCE>4
<FILENAME>exhibit10-6.htm
<DESCRIPTION>EXPLORATION AGREEMENT AND OPTION TO LEASE DATED NOVEMBER 7, 2003
<TEXT>
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN">
<html>
<head>
<TITLE>Filed by Automated Filing Services Inc. (604) 609-0244 - New Jersey Mining Company - Exhibit 10.6</TITLE>
</head>

<BODY bgcolor="#FFFFFF" style="font-size: 10pt;">
<hr noshade align="center" width="100%" size=3 color="black">
<P align="justify"><B>EXHIBIT 10.6</B> </P>
<P align="center"> <B>EXPLORATION AGREEMENT AND OPTION TO LEASE</B></P>
<P align="justify"> <B> THIS EXPLORATION AGREEMENT AND OPTION TO LEASE </B>dated
  as of <U>November 7</U>, 2003, is between <B>PRICHARD CREEK RESOURCE PARTNERS
  LLC </B>("Grantor"), and <B>NEW JERSEY MINING COMPANY</B>. ("Grantee"). </P>
<P align="justify"> <B>RECITALS</B> </P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <td valign="top" width="3%">&nbsp;</td>
    <TD valign="top" width="5%">A.<BR> &nbsp;&nbsp;</TD>
    <td valign="top"><div align="justify">Grantor owns certain unpatented lode
        claims more particularly described in Exhibit A attached hereto and by
        this reference made a part hereof ("Premises")<BR>
        &nbsp;</div></td>
  </tr>
  <tr>
    <td valign="top" width="3%">&nbsp;</td>
    <td valign="top" width="3%">B.<BR> &nbsp;&nbsp;</td>
    <td valign="top"><div align="justify">The parties agree for the purposes of
        this Agreement that, subject to the paramount title of the United States,
        the Premises shall be deemed to include, without limitation, the surface
        and subsurface of the Premises, all mines, ores, metals, mineral rights
        and minerals thereon and thereunder, all veins, lodes, extralateral rights
        and mineral deposits now controlled or hereafter acquired by Grantor extending
        from or onto or contained in the Premises; and all water and water rights
        therein, thereon or thereunder.<BR>
        &nbsp;</div></td>
  </tr>
  <tr>
    <td valign="top" width="3%">&nbsp;</td>
    <td valign="top" width="3%">C.<BR> &nbsp;&nbsp;</td>
    <td valign="top"><div align="justify">Grantor and Grantee desire to enter
        into this Agreement covering the Premises.<BR>
        &nbsp;</div></td>
  </tr>
  <tr>
    <td valign="top" width="3%">&nbsp;</td>
    <td valign="top" width="3%">D.</td>
    <td valign="top"><div align="justify">Grantor also desires to grant to Grantee
        an option to lease the Premises.</div></td>
  </tr>
</TABLE>
<P align="justify"> <B>AGREEMENT</B> </P>
<P align="justify"> IN CONSIDERATION of the sum of $10.00 and other good and valuable consideration,
  the receipt and sufficiency of which are hereby acknowledged, and the promises
  and covenants contained herein, the parties agree as follows: </P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <B>GRANT</B>. Grantor grants
  exclusively to Grantee, its successors or assigns, the right to enter upon the
  Premises, subject to Bureau of Land Management rules, for the purpose of conducting
  a mineral evaluation of the Premises, including, without limitation, the right
  to drill and excavate holes, pits, shafts, and other excavations, construct
  roads and conduct surveys, explorations, sampling, investigations, and other
  operations in such a manner and to the extent that Grantee, in its sole judgment
  and discretion, may deem advisable for the purpose of ascertaining any and all
  facts related to the occurrence of Minerals (hereinafter defined) in and under
  the Premises and the metallurgical and physical properties of any Minerals discovered.
  The term "Minerals" shall mean all metallic and nonmetallic substances, whether
  now or at any time hereafter during the term of this Agreement, known as or
  considered minerals, including, without limitation, all base and precious metals,
  iron, and coal but excluding oil, gas and other liquid and gaseous hydrocarbons.
</P>
<P align="right"> 1</P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_64"></A>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <B>OPTION TO LEASE</B>. Grantor
  hereby grants to Grantee the irrevocable and exclusive option ("Option to Lease")
  during the term hereof to enter into a lease of the Premises, which lease shall
  be in the form of Exhibit B, attached hereto and by this reference made a part
  hereof, and herein referred to as "Said Lease," subject to the terms and conditions
  herein set forth. </P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lessee may exercise the Option
  to Lease from time to time at any time prior to the expiration of this Agreement.
  If and when Grantee shall elect to enter into Said Lease, it shall forward to
  Grantor executable copies of Said Lease together with 30,000 shares of Grantee&#146;s
  common stock and within fifteen (15) days of receipt, Grantor shall execute
  and deliver Said Lease to Grantee together with a recordable short form thereof.
</P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <B>TERM</B>. This Agreement
  is granted for a two and one half [2 1/2] year term, commencing on June 13,
  2003, unless sooner terminated under any of the provisions herein. </P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <B>WORK COMMITMENT AND CLAIM
  FEES</B>. Grantee agrees to pay all maintenance fees and perform all required
  work including filing of required forms on a timely schedule to keep the unpatented
  claims in good standing. Grantee shall provide to Grantor copies of all forms
  filed with the Bureau of Land Management and Shoshone County. In addition, Grantee
  agrees to perform an assessment to assure that the unpatented claims of the
  Premises are properly laid out and monumented, according to BLM rules, and will
  correct any deficiences in the name of Grantor. </P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <B>PRODUCTION DURING TERM
  OF EXPLORATION AGREEMENT</B>. During the term of this Agreement, Grantee may
  produce and sell Minerals derived from ores produced during exploration activities,
  including underground drifting and ramping. Grantee shall pay Grantor a production
  royalty of 5% of the Net Smelter Return from such limited production. </P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <B>TITLE TO PREMISES</B>.
  This Agreement is executed and delivered expressly without warranty of any nature
  whatsoever on the part of Grantor, either expressed or implied, not even to
  the return of the consideration paid herefor. If Grantor controls less interest
  than the entire fee mineral estate, amounts to be paid Grantor may be reduced
  proportionately. </P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <B>TECHNICAL DATA</B>. Grantee
  shall furnish Grantor, on a quarterly basis, with copies of all technical data
  pertaining to its operations hereunder, including but not limited to all geological,
  geophysical, geochemical, mapping, drilling, sampling, assay, and other data
  or information pertaining to Grantee's exploration operations hereunder. Such
  data shall be treated as confidential. Notwithstanding the foregoing, Grantee
  shall not be obligated to disclose to Grantor any interpretive data or information
  nor shall Grantee be obligated to disclose any information obtained from Newmont
  Exploration which might conflict with a confidentiality agreement between Newmont
  and Grantee dated June 17, 2003. </P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <B>CONTROL OF EXPLORATION</B>.
  Grantee shall have full discretion in the exploration of the Premises and shall
  in no event be obliged to pursue a specific schedule to explore for, develop,
  drill, mine, mill, or concentrate Minerals. </P>
<P align="right"> 2</P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_65"></A>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <B>LESSER INTEREST</B>. If
  Grantor controls less than the entire undivided interest in the Minerals, or
  in any tract included in the Premises, then any payments due Grantor under this
  Agreement shall be due Grantor only in the proportion that its interest bears
  to the whole undivided fee mineral interest. Any interest in the Premises and/or
  Minerals hereafter acquired by Grantor shall be automatically subject to this
  Agreement. If any such acquisition changes Grantor's interest in the Premises
  or Minerals, an appropriate adjustment will be made after Grantee receives written
  notice thereof from Grantor. </P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <B>INDEMNITY</B>. Grantee
  shall assume all liability in connection with its operations on the Premises
  and shall hold Grantor and Owner harmless from any and all liability which may
  arise out of Grantee's operations on the Premises. Grantee shall use its best
  efforts to ensure that the work performed by Grantee hereunder shall be in compliance
  with applicable environmental, safety and health requirements of federal, state
  and local governments. Upon the termination of this Agreement, Grantee shall
  return the Premises to Grantor free and clear of liens for labor done or work
  performed upon the Premises or materials furnished to it for the exploration
  thereof under this Agreement, but Grantee shall have the right to dispute or
  contest the validity of such liens. Grantee's liability under this Section shall
  terminate upon termination of this Agreement except for obligations incurred
  before the date of termination. </P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <B>INSURANCE</B>. Grantee
  will maintain general liability insurance, subject to availability at reasonable
  cost, during the term of this agreement in the amount of $2,000,000. Grantee
  will instruct its insurance agent to issue certificates showing Grantor as an
  additional insured party. Grantee will require all subcontractors, including
  drillers and mining contractors, to supply evidence of insurance and name Grantee
  and Grantor as additional insured parties. </P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <B>FORCE MAJEURE</B>. Grantee
  shall not be liable or in default under any provisions of this Agreement for
  failure to perform any of its obligations hereunder during periods in which
  performance is prevented by any cause reasonably beyond Grantee's control, which
  causes hereinafter are called "force majeure." For the purposes of this Agreement
  the term "force majeure" shall include, but not be limited to, fires, floods,
  windstorms and other damage from the elements; strikes, war, insurrection, mob
  violence and riots; unavailability of materials, labor and transportation; unavailability
  of smelting or refining facilities; interference, action, legislation or regulation
  by governmental or military authority, including a requirement by such authority
  that an environmental impact statement, plan of operation or similar statement
  or document be prepared or approved; litigation; and acts of God or acts of
  the public enemy. The duration of this Agreement and of the time for completion
  of performance by Grantee of its rights and obligations hereunder shall be extended
  for a period equal to the period of disability as a result of the event of force
  majeure, provided Grantee gives Grantor written notice of the existence of the
  event of force majeure. All periods of force majeure shall be deemed to begin
  at the time Grantee stops performance hereunder by reason of force majeure.
  Notwithstanding the foregoing, the parties understand that an event of force
  majeure shall not excuse any obligation to make a payment of common stock required
  by this Agreement. </P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <B>FIRST RIGHT OF REFUSAL</B>.
  If, at any time during the term of this Agreement, Grantor shall, in response
  to a bona fide offer to purchase all or part of its interest in the Premises
  from a third party, desire to sell or otherwise dispose of such interest, it
  shall notify Grantee in writing of the party to whom it desires to sell such
  interest and the price at which and the terms upon which it desires </P>
<P align="right"> 3</P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_66"></A>
<P align="justify"> to sell the same, and Grantee shall, within 30 days of receipt of the notice,
  notify Grantor in writing whether it wishes to purchase such interest at the
  price and on the terms set forth in the notice. If Grantee elects to purchase
  such interest, Grantor shall be bound to convey, assign, or otherwise transfer
  such interest to Grantee promptly thereafter at such price and on such terms.
  If Grantee elects not to purchase such interest or fails to give notice of its
  intention within the 30-day period, Grantor shall be free to convey, assign,
  or otherwise transfer such interest to the third party at a price not less than
  stated in the notice or on terms more favorable than those stated in the notice.
  Any conveyance by Grantor to a third party shall be subject to the terms of
  this Agreement, including without limitation Grantee's right to lease the Premises.
  If Grantor shall not have so disposed of such interest to said third party within
  90 days after receipt of notice that Grantee elects not to exercise its right
  of first refusal or after expiration of that party's 30 day period within which
  to give notice, the provisions of this Section shall again apply to the disposition
  by Grantor of any such interest. </P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <B>ASSIGNMENT</B>. Subject
  to the provisions of Section 13 above, Grantor may assign this Agreement whether
  or not Grantee&#146;s consent is given. Grantee may not assign this Agreement
  without the consent of Grantor, which consent shall not be unreasonably withheld,
  except Grantee may assign this Agreement to an affiliate without Grantor&#146;s
  consent. In the event of any assignment, the rights of either party hereunder
  and the provisions hereof shall extend to their successors and assigns, but
  no change or division in ownership of the Premises, however accomplished, shall
  operate to enlarge the obligations or diminish the rights of either party under
  this Agreement, and neither Grantee nor its successors or assigns shall ever
  be required to make payments or to render reports or notices to more than one
  party. In the event Grantor's interest in the Premises is now or hereafter owned
  by more than one party, Grantee may withhold further payments until all such
  owners have designated a single party to act for all of them hereunder in all
  respects, including but not limited to the giving and receiving of all notices
  and the receipt of all payments and reports. No such change or division in the
  ownership of the Premises shall be binding upon Grantee for any purpose until
  such person acquiring any interest has further furnished Grantee with the instrument
  or instruments, or certified copies thereof, constituting his claim of title
  from the original Grantor. Grantee shall have the right to subcontract with
  others for the performance of exploration work hereunder, subject to all of
  the terms of this Agreement, but no such subcontract shall relieve Grantee of
  its obligations to Grantor hereunder. Grantee hereby discloses to Grantor, which
  disclosure shall be kept confidential, that it has entered into a confidentiality
  agreement with Newmont North America Exploration Limited [Newmont] that requires
  Grantee to allow Newmont the right of first offer if Grantee proposes to dispose
  of its interest in this Agreement. </P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <B>TERMINATION OF AGREEMENT</B>.
</P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1 <B>By Grantor</B>. If Grantee
  fails to keep and perform all of the terms and conditions of this Agreement
  on its part to be kept and performed, then Grantor may notify Grantee of the
  default in writing specifying the default. If within ten days after Grantee's
  receipt of such notice, in case of default arising through failure to make any
  payments required by this Agreement, and within 30 days in the case of any other
  default, Grantee shall make such payments, or commence and diligently thereafter
  proceed to correct such other default, this Agreement shall continue in good
  standing. However, upon failure of Grantee to make such payment within ten days
  or to commence within 30 days to cure any other default and diligently thereafter
  proceed to correct the same, Grantor may then, by written notice or demand,
  forthwith terminate this Agreement and fully repossess itself of the Premises,
  and without prejudice to </P>
<P align="right"> 4</P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_67"></A>
<P align="justify"> any other rights which might otherwise accrue to Grantor for the violation
  of the terms hereof. After such default and termination of this Agreement, Grantee
  shall have no further rights in or right to the possession of the Premises or
  any part thereof or to exercise the Option to Lease. </P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.2 <B>By Grantee</B>. Grantee
  may terminate this Agreement in whole or in part at any time upon delivering
  written notice to Grantor. Said notice shall be effective upon delivery. Upon
  such termination, all right, title and interest of Grantee under this Agreement
  shall terminate as to that part of the Premises covered by the notice, and Grantee
  shall not be required to make any further payments, or to perform any further
  obligations hereunder as to said portion of the Premises, except payments or
  obligations which then have accrued under the express provisions of this Agreement
  and which have not been paid or performed. </P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <B>RECORDING OF SHORT-FORM
  NOTICE</B>. The parties hereby agree to execute a short-form counterpart of
  this Agreement contemporaneous herewith for the sole purpose of recordation
  in the real property records sufficient to give record notice, pursuant to the
  laws of the state where the Premises are located of the existence of this Agreement.
  This Agreement shall not be recorded without the consent of Grantee. </P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <B>NOTICES</B>. Any notice
  required or permitted to be given hereunder shall be in writing and shall be
  delivered in person or sent by regular mail. Notices so mailed shall be deemed
  effective on the third business day after mailing. Until change of address is
  communicated, all notices shall be addressed to: </P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="8%">Grantor:</TD>
    <TD>Prichard Creek Resource Partners LLC</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>P. O. Box 387</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Murray, Idaho 83874</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>Grantee:</TD>
    <TD>New Jersey Mining Company</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>P.O. Box 1019</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Kellogg, Idaho 83837</TD>
  </TR>
</TABLE>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.<b>GENERAL.</b> </p>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.1 <B>Modification</B>. The
  parties hereto by mutual written agreement may, at any time and from time to
  time, amend this Agreement and any of the terms hereof. </P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.2 <B>Further Documents</B>.
  The parties hereto further agree to execute all such further documents and do
  all such further things as may be necessary to give full effect to these presents.
</P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.3 <B>Entire Agreement</B>.
  This is the entire agreement between the parties and no modification shall be
  effective unless in writing and executed by the parties hereto. </P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.4 <B>Law</B>. The terms and
  provisions of this Agreement shall be interpreted in accordance with the laws
  of the state where the Premises are located. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P align="right"> 5</P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_68"></A>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.5 <B>Signing. </B> Each party
  may rely upon the signature of each other party on this Agreement, which is
  transmitted by facsimile as constituting a duly authorized, irrevocable, actual,
  current delivery of this Agreement with the original ink signature of the transmitting
  party. </P>
<P align="justify"> IN WITNESS WHEREOF, this instrument is executed as of the date above written.
</P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD>GRANTOR:</TD>
    <TD width="54%">GRANTEE:</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>PRICHARD CREEK RESOURCE</TD>
    <TD width="54%">NEW JERSEY MINING COMPANY</TD>
  </TR>
  <TR>
    <TD>PARTNERS LLC</TD>
    <TD width="54%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><u>By: /s/ John W. Beasley</u></TD>
    <TD width="54%"><u>By: /s/ Fred W. Brackebusch</u></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;John W. Beasley, Secretary</TD>
    <TD width="54%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fred W. Brackebusch,
      President</TD>
  </TR>
</TABLE>
<P align="justify">&nbsp; </P>
<P align="center">[The balance of this page has been intentionally left blank.]
</P>
<P align="justify">&nbsp;</P>
<P align="right"> 6</P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_69"></A> <br>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD colspan="2">&nbsp;</TD>
    <TD width="14%">STATE OF WISCONSIN</TD>
    <TD>)</TD>
  </TR>
  <TR>
    <TD width="14%">&nbsp;</TD>
    <TD>) ss.</TD>
    <TD width="14%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>COUNTY OF Waushara</TD>
    <TD>)</TD>
    <TD colspan="2" rowspan="2">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
</TABLE>
<P align="justify"> On this 13<SUP>th </SUP>day of <U>November </U>, 2003, before me, the undersigned,
  a Notary Public in and for the State of Wisconsin, personally appeared John
  W. Beasley , known to me and to me known to be the <U>Secretary</U> of PRICHARD
  CREEK RESOURCE PARTNERS LLC, a corporation whose name is subscribed to the foregoing
  instrument and acknowledged to me that said individual executed the same. </P>
<P align="justify"> IN WITNESS WHEREOF, I have hereunto set my hand and affixed
  my notarial seal the day in this certificate first above written. </P>
<table style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <tr>
    <td width="50%">&nbsp;</td>
    <td width="50%"><u>Pamela Strey</u></td>
  </tr>
  <tr>
    <td width="50%">&nbsp;</td>
    <td width="50%">Notary Public for the State of Wisconsin</td>
  </tr>
  <tr>
    <td width="50%">&nbsp;</td>
    <td width="50%">Residing at <u>Fremont, WI</u></td>
  </tr>
  <tr>
    <td width="50%">&nbsp;</td>
    <td width="50%">My commission expires: <u>09/19/04</u></td>
  </tr>
</table>
<br>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD width="16%">STATE OF IDAHO</TD>
    <TD width="84%">)</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="84%">) ss.</TD>
  </TR>
  <TR>
    <TD>COUNTY OF SHOSHONE</TD>
    <TD width="84%">)</TD>
  </TR>
</TABLE>
<P align="justify"> On this 7<SUP>th </SUP>day of <U>November </U>, 2003, before me, the undersigned,
  a Notary Public in and for the State of Idaho, personally appeared Fred W. Brackebusch
  , known to me and to me known to be the <U>President</U> of NEW JERSEY MINING
  COMPANY, a corporation whose name is subscribed to the foregoing instrument
  and acknowledged to me that said officer executed the same. </P>
<P align="justify"> IN WITNESS WHEREOF, I have hereunto set my hand and affixed
  my notarial seal the day in this certificate first above written. </P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD width="50%">&nbsp;</TD>
    <TD width="50%"><u>Debra L. Hammerberg</u></TD>
  </TR>
  <tr>
    <TD width="50%">&nbsp;</TD>
    <TD width="50%">Notary Public for the State of Idaho</TD>
  </TR>
  <TR>
    <TD width="50%">&nbsp;</TD>
    <TD width="50%">Residing at <u>Mullan, Idaho</u></TD>
  </TR>
  <tr>
    <TD width="50%">&nbsp;</TD>
    <TD width="50%">My commission expires: <u>9/17/07</u></TD>
  </TR>
  <TR>
    <TD width="50%">&nbsp;</TD>
    <TD colspan=1>&nbsp;</TD>
  </TR>
</TABLE>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<br>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD colspan="3" align="center"><p><B>EXHIBIT A</B></p>
      <p><B>PREMISES<br>
        &nbsp; </B></p></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>Claim Name</TD>
    <TD width="17%">IMC Number</TD>
    <TD width="29%">&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="2"><HR noshade width="100%" size=1 color="black"></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>Patti B No. 1</TD>
    <TD width="17%">183078</TD>
    <TD width="29%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>Patti B No. 2</TD>
    <TD width="17%">183079</TD>
    <TD width="29%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>Patti B No. 3</TD>
    <TD width="17%">183080</TD>
    <TD width="29%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>Patti B No. 4</TD>
    <TD>183 081</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>Patti B No. 5</TD>
    <TD width="17%">183082</TD>
    <TD width="29%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>Superintendent</TD>
    <TD width="17%">183083</TD>
    <TD width="29%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>Eveline</TD>
    <TD width="17%">183084</TD>
    <TD width="29%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="3" align="center"><B>EXHIBIT B</B></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>Mining Lease form</TD>
    <TD width="17%">&nbsp;</TD>
    <TD width="29%">&nbsp;</TD>
  </TR>
</TABLE>
<P align="center">&nbsp; </P>
<P align="center">[The balance of this page has been intentionally left blank.]</P>
<P align="center">&nbsp;</P>
<P align="right"> 8</P>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-14
<SEQUENCE>5
<FILENAME>exhibit14.htm
<DESCRIPTION>CODE OF ETHICS
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<title>Filed by Automated Filing Services Inc. (604) 609-0244 - New Jersey Mining Company - Exhibit 14</title>
</head>

<BODY bgcolor="#FFFFFF" style="font-size: 10pt;">
<div align="justify"><A name="page_71"></A>
  <hr noshade align="center" width="100%" size=3 color="black">
</div>
<P> <B>Exhibit 14 </B> </P>
<P align="center"><B>NEW JERSEY MINING COMPANY </B> <br>
  <B>CODE OF ETHICS FOR CEO AND SENIOR FINANCIAL OFFICERS </B> </P>
<P align="justify"> 1. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The CEO and all senior financial
  officers are responsible for full, fair, accurate, timely and understandable
  disclosure in the periodic reports required to be filed by the Company with
  the SEC. Accordingly, it is the responsibility of the CEO and each senior financial
  officer promptly to bring to the attention of the Disclosure Committee (or in
  the event that the Company has not established a Disclosure Committee, to the
  Board of Directors) any material information of which he or she may become aware
  that affects the disclosures made by the Company in its public filings or otherwise
  assist the Disclosure Committee in fulfilling its responsibilities. </P>
<P align="justify"> 2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The CEO and each senior
  financial officer shall promptly bring to the attention of the Disclosure Committee
  and the Audit Committee (or in the event that the Company has not established
  an audit committee, to the Board of Directors) any information he or she may
  have concerning (a) significant deficiencies in the design or operation of internal
  controls which could adversely affect the company&#146;s ability to record,
  process, summarize and report financial data or (b) any fraud, whether or not
  material, that involves management or other employees who have a significant
  role in the Company&#146;s financial reporting, disclosures or internal controls.
</P>
<P align="justify"> 3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The CEO and each senior
  financial officer shall promptly bring to the attention of the General Counsel
  or the CEO and to the Audit Committee any information he or she may have concerning
  any actual or apparent conflicts of interest between personal and professional
  relationships, involving any management or other employees who have a significant
  role in the Company&#146;s financial reporting, disclosures or internal controls.
</P>
<P align="justify"> 4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The CEO and each senior
  financial officer shall promptly bring to the attention of the General Counsel
  or the CEO and to the Audit Committee any information he or she may have concerning
  evidence of a material violation of the securities or other laws, rules or regulations
  applicable to the Company and the operation of its business, by the Company
  or any agent thereof, or of violation of these procedures. </P>
<P align="justify"> 5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Board of Directors shall
  determine, or designate appropriate persons to determine, appropriate actions
  to be taken in the event of violations of these procedures by the CEO and the
  Company&#146;s senior financial officers. Such actions shall be reasonably designed
  to deter wrongdoing and to promote accountability for adherence to these procedures,
  and shall include written notices to the individual involved that the Board
  has determined that there has been a violation, censure by the Board, demotion
  or re-assignment of the individual involved, suspension with or without pay
  or benefits (as determined by the Board) and termination of the individual&#146;s
  employment. In determining what action is appropriate in a particular case,
  the Board of Directors or such designee shall take into account all relevant
  information, including the nature and severity of the violation, whether the
  violation appears to have been intentional or inadvertent, whether the individual
  in question had been advised prior to the violation as to the proper course
  of action and whether or not the individual in questions had committed other
  violations in the past. </P>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-18
<SEQUENCE>6
<FILENAME>exhibit18.htm
<DESCRIPTION>LETTER ON CHANGE IN ACCOUNTING PRINCIPLE
<TEXT>
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<head>
<title>Filed by Automated Filing Services Inc. (604) 609-0244 - New Jersey Mining Company - Exhibit 18</TITLE>

</head>

<BODY bgcolor="#FFFFFF" style="font-size: 10pt;">
<A name="page_72"></A>
<hr noshade align="center" width="100%" size=3 color="black">
<P> <B>Exhibit 18</B> </P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD>&nbsp;</TD>
    <TD width="164" rowspan="6"><font size="6">D</font><font size="5">ECORIA,<br>
      <font size="6">M</font>AICHEL<br>
      <font size="6">&amp; T</font>EAGUE</font><br>
      <font size="1" face="Arial, Helvetica, sans-serif">A PROFESSIONAL SERVICES FIRM</font></TD>
    <TD width="165" height="20" style="border-Left-width:3px;border-Left-style:solid">&nbsp;&nbsp;1105 W. Francis Suite A</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="165" height="20" style="border-Left-width:3px;border-Left-style:solid">&nbsp;&nbsp;Spokane, Washington 99205</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="165" height="20" style="border-Left-width:3px;border-Left-style:solid">&nbsp;&nbsp;<u><FONT color="#0000ff">jeff@dm-t.com</FONT></u></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="165" height="20" style="border-Left-width:3px;border-Left-style:solid">&nbsp;&nbsp;Facsimile (509) 535-9391</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="165" height="20" style="border-Left-width:3px;border-Left-style:solid">&nbsp;&nbsp;Telephone (509) 535-3503</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="165" style="border-Left-width:3px;border-Left-style:solid">&nbsp;</TD>
  </TR>
</TABLE>
<P> February 19, 2004 </P>
<P> <B>Board of Directors </B> <br>
  New Jersey Mining Company </P>
<P> Dear Directors: </P>
<P align="justify"> We are providing this letter to you for inclusion as an exhibit
  to your Form 10-KSB filing pursuant to Item 601 (18) of Regulation S-B. </P>
<P align="justify"> We have audited the financial statements included in the Company&#146;s
  Annual Report on Form 10-KSB for the year ended December 31, 2003 and issued
  our report thereon dated February 19, 2004. Note 2<B> </B>to the financial statements
  describes a change in accounting principle from capitalizing mining exploration
  costs to expensing such costs as incurred during the exploration stage of specific
  projects. It should be understood that the preferability of one acceptable method
  of accounting over another for mining exploration costs<B> </B>has not been
  addressed in any authoritative accounting literature, and in expressing our
  concurrence below we have relied on management&#146;s determination that this
  change in accounting principle is preferable. Based on our reading of management&#146;s
  stated reasons and justification for this change in accounting principle in
  the Form 10-KSB, and our discussions with management as to their judgment about
  the relevant business planning factors relating to the change, we concur with
  management that such change represents, in the Company&#146;s circumstances,
  the adoption of a preferable accounting principle in conformity with Accounting
  Principles Board Opinion No. 20. </P>
<P> Very truly yours, </P>
<P>&nbsp;</P>
<P> DeCoria, Maichel and Teague P.S. </P>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>7
<FILENAME>exhibit31-1.htm
<DESCRIPTION>SECTION 302 CERTIFICATION OF CEO AND CFO
<TEXT>
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<head>
<TITLE>Filed by Automated Filing Services Inc. (604) 609-0244 - New Jersey Mining Company - Exhibit 31.1</TITLE>
</head>

<BODY bgcolor="#FFFFFF" style="font-size: 10pt;">
<A name="page_50"></A>
<hr noshade align="center" width="100%" size=3 color="black">
<P align="center"> <B>Exhibit 31.1 </B> </P>
<P align="center"> <B>Certification</B> </P>
<P> I, Fred W. Brackebusch, certify that: </P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD valign="top" width="5%">(1)<BR> &nbsp;&nbsp;</TD>
    <td valign="top" colspan="2"><div align="justify">I have reviewed this annual
        report on Form 10-KSB of New Jersey Mining Company.<BR>
        &nbsp;</div></td>
  </tr>
  <tr>
    <td valign="top" width="3%">(2)<BR> &nbsp;&nbsp;</td>
    <TD valign="top" colspan="2"><div align="justify">Based on my knowledge, this
        report does not contain any untrue statement of a material fact or omit
        to state a material fact necessary to make the statements made, in light
        of the circumstances under which such statements were made, not misleading
        with respect to the period covered by this report;<BR>
        &nbsp;</div></TD>
  </TR>
  <TR>
    <TD valign="top" width="5%">(3)<BR> &nbsp;&nbsp;</TD>
    <TD valign="top" colspan="2"><div align="justify">Based on my knowledge, the
        financial statements, and other financial information included in this
        report, fairly present in all material respects the financial condition,
        results of operations and cash flows of the small business issuer as of,
        and for, the periods presented in this report;<BR>
        &nbsp;</div></TD>
  </TR>
  <TR>
    <TD valign="top" width="5%">(4)<BR> &nbsp;&nbsp;</TD>
    <TD valign="top" colspan="2"><div align="justify">I am responsible for establishing
        and maintaining disclosure controls and procedures (as defined in Exchange
        Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial
        reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for
        the small business issuer and have:<BR>
        &nbsp;</div></TD>
  </TR>
  <TR>
    <td valign="top" width="3%">&nbsp;</td>
    <TD valign="top" width="5%">(a)<BR> &nbsp;&nbsp;</TD>
    <TD valign="top"><div align="justify">Designed such disclosure controls and
        procedures, or caused such disclosure controls and procedures to be designed
        under our supervision, to ensure that material information relating to
        the small business issuer, including its consolidated subsidiaries, is
        made known to us by others within those entities, particularly during
        the period in which this report is being prepared;<BR>
        &nbsp;</div></TD>
  </TR>
  <TR>
    <td valign="top" width="3%">&nbsp;</td>
    <TD valign="top" width="5%">(b)<BR> &nbsp;&nbsp;</TD>
    <TD valign="top"><div align="justify">Designed such internal control over
        financial reporting, or caused such internal control over financial reporting
        to be designed under our supervision, to provide reasonable assurance
        regarding the reliability of financial reporting and the preparation of
        financial statements for external purposes in accordance with generally
        accepted accounting principles;<BR>
        &nbsp;</div></TD>
  </TR>
  <TR>
    <td valign="top" width="3%">&nbsp;</td>
    <TD valign="top" width="5%">(c)<BR> &nbsp;&nbsp;</TD>
    <TD valign="top"><div align="justify">Evaluated the effectiveness of the small
        business issuer's disclosure controls and procedures and presented in
        this report our conclusions about the effectiveness of the disclosure
        controls and procedures, as of the end of the period covered by this report
        based on such evaluation; and<BR>
        &nbsp;</div></TD>
  </TR>
  <TR>
    <td valign="top" width="3%">&nbsp;</td>
    <TD valign="top" width="5%">(d)<BR> &nbsp;&nbsp;</TD>
    <TD valign="top"><div align="justify">Disclosed in this report any change
        in the small business issuer's internal control over financial reporting
        that occurred during the small business issuer's most recent fiscal quarter
        (the small business issuer's fourth fiscal quarter in the case of an annual
        report) that has materially affected, or is reasonably likely to materially
        affect, the small business issuer's internal control over financial reporting;
        and<BR>
        &nbsp;</div></TD>
  </TR>
  <TR>
    <TD valign="top" width="5%">(5)<BR> &nbsp;&nbsp;</TD>
    <TD valign="top" colspan="2"><div align="justify">I have disclosed, based
        on our most recent evaluation of internal control over financial reporting,
        to the small business issuer's auditors and the audit committee of the
        small business issuer's board of directors (or persons performing the
        equivalent functions):<BR>
        &nbsp;</div></TD>
  </TR>
  <TR>
    <td valign="top" width="3%">&nbsp;</td>
    <TD valign="top" width="5%">(a)<BR> &nbsp;&nbsp;</TD>
    <TD valign="top"><div align="justify">All significant deficiencies and material
        weaknesses in the design or operation of internal control over financial
        reporting which are reasonably likely to adversely affect the small business
        issuer's ability to record, process, summarize and report financial information;
        and<BR>
        &nbsp;</div></TD>
  </TR>
  <TR>
    <td valign="top" width="3%">&nbsp;</td>
    <TD valign="top" width="5%">(b)</TD>
    <td valign="top"><div align="justify">Any fraud, whether or not material,
        that involves management or other employees who have a significant role
        in the small business issuer's internal control over financial reporting.</div></td>
  </tr>
</TABLE>
<P> Date: <U>March 26, 2004</U> </P>
<P> <U>By /s/ FRED W. BRACKEBUSCH</U> <br>
  Fred W. Brackebusch, President, Treasurer &amp; Director </P>
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<TYPE>EX-32.1
<SEQUENCE>8
<FILENAME>exhibit32-1.htm
<DESCRIPTION>SECTION 906 CERTIFICATION OF CEO AND CFO
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<title>Filed by Automated Filing Services Inc. (604) 609-0244 - New Jersey Mining Company - Exhibit 32.1</title>
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<P> <B>Exhibit 32.1</B> </P>
<P align="center"> <B>CERTIFICATION PURSUANT TO<br>
  </B><B>18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO </B> <br>
  <B>SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 </B> </P>
<P align="justify"> In connection with the Annual Report of New Jersey Mining
  Company, (the "Company") on Form 10-KSB for the period ending December 31, 2003,
  as filed with the Securities and Exchange Commission on the date hereof (the
  "Report"), I, Fred W. Brackebusch, President, Treasurer and Director of New
  Jersey Mining Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted
  pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that: </P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD valign="top" width="5%">(1)<BR> &nbsp;&nbsp;</TD>
    <td valign="top"><div align="justify">The Report fully complies with the requirements
        of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and<BR>
        &nbsp;</div></td>
  </tr>
  <tr>
    <td valign="top" width="3%">(2)</td>
    <td valign="top"><div align="justify">The information contained in the Report
        fairly presents, in all material respects, the financial condition and
        results of operations of the Company.</div></td>
  </tr>
</TABLE>
<P> Date: <U>March 26, 2004</U> </P>
<P> <U>By /s/ FRED W. BRACKEBUSCH</U> <br>
  Fred W. Brackebusch, President, Treasurer &amp; Director </P>
<P>&nbsp;</P>
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</P>
<P align="center">&nbsp;</P>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>9
<FILENAME>exhibit99-1.htm
<DESCRIPTION>AUDIT COMMITTEE PRE-APPROVAL POLICIES
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<title>Filed by Automated Filing Services Inc. (604) 609-0244 - New Jersey Mining Company - Exhibit 99.1</title>
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<P> <B>Exhibit 99.1</B> </P>
<P align="center"> <B>AUDIT COMMITTEE PRE-APPROVAL POLICY</B></P>
<p><B>I. STATEMENT OF PRINCIPLES</B></p>
<p align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Audit Committee (or if no
  Audit Committee has been appointed, the entire Board of Directors performing
  the function of the Audit Committee) is required to pre-approve the audit and
  non-audit services performed by the independent auditor in order to assure that
  the provision of such services do not impair the auditor&#146;s independence.
  Unless a type of service to be provided by the independent auditor has received
  general pre-approval, it will require specific pre-approval by the Audit Committee.
  Any proposed services exceeding pre-approved cost levels will require specific
  pre-approval by the Audit Committee. </p>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The appendices to this Policy,
  which are for illustrative purposes only, describe the Audit, Audit-related,
  Tax and All Other services that have the general pre-approval of the Audit Committee.
  The term of any general pre-approval is 12 months from the date of pre-approval,
  unless the Audit Committee specifically provides for a different period. The
  Audit Committee will annually review and pre-approve the services that may be
  provided by the independent auditor without obtaining specific pre-approval
  from the Audit Committee. The Audit Committee will revise the list of general
  pre-approved services from time to time, based on subsequent determinations.
  The Audit Committee does not delegate its responsibilities to pre-approve services
  performed by the independent auditor to management. </P>
<P align="justify"> <B>II.</B><B> </B><B>DELEGATION </B> </P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Audit Committee may delegate
  pre-approval authority to one or more of its members. The member or members
  to whom such authority is delegated shall report any pre-approval decisions
  to the Audit Committee at its next scheduled meeting. </P>
<P align="justify"> <b>III. AUDIT SERVICES</b> </P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The annual Audit services engagement
  terms and fees will be subject to the specific pre-approval of the Audit Committee.
  The Audit Committee will approve, if necessary, any changes in terms, conditions
  and fees resulting from changes in audit scope, Company structure or other matters.
</P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to the annual Audit
  services engagement specifically approved by the Audit Committee, the Audit
  Committee may grant general pre-approval for other Audit services, which are
  those services that only the independent auditor reasonably can provide. The
  Audit Committee has pre-approved the Audit services listed in Appendix A. All
  other Audit services not listed in Appendix A must be specifically pre-approved
  by the Audit Committee. </P>
<P align="right"> 1</P>
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<P> <B>IV.</B><B> </B><B>AUDIT-RELATED SERVICES </B> </P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Audit-related services are assurances
  and related services that are reasonably related to the performance of the audit
  or review of the Company&#146;s financial statements or that are traditionally
  performed by the independent auditor. The Audit Committee believes that the
  provision of Audit-related services does not impair the independence of the
  auditor, and has pre-approved the Audit-related services listed in Appendix
  B. All other Audit-related services not listed in Appendix B must be specifically
  pre-approved by the Audit Committee. </P>
<p align="justify"><B>V. TAX SERVICES</B></p>
<p align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Audit Committee believes
  that the independent auditor can provide Tax services to the Company such as
  tax compliance, tax planning and tax advice without impairing the auditor&#146;s
  independence. However, the Audit Committee will not permit the retention of
  the independent auditor in connection with a transaction initially recommended
  by the independent auditor, the purpose of which may be tax avoidance and the
  tax treatment of which may not be supported in the Internal Revenue Code and
  related regulations. The Audit Committee has pre-approved the Tax services listed
  in Appendix C. All Tax services involving large and complex transactions not
  listed in Appendix C must be specifically pre-approved by the Audit Committee.
</p>
<P align="justify"> <B>VI.</B><B> </B><B>ALL OTHER SERVICES </B> </P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Audit Committee may grant
  general pre-approval to those permissible non-audit service classified as All
  Other services that it believes are routine and recurring services, and would
  not impair the independence of the auditor. The Audit Committee has pre-approved
  the All Other services listed in Appendix D. Permissible All Other services
  not listed in Appendix D must be specifically pre-approved by the Audit Committee.
</P>
<P align="justify"> <B>VII.</B><B> </B><B>PRE-APPROVAL FEE LEVELS </B> </P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pre-approval fee levels for
  all services to be provided by the independent auditor will be established annually
  by the Audit Committee. Any proposed services exceeding these levels will require
  specific pre-approval by the Audit Committee. </P>
<P align="justify"> <B>VIII.</B><B> </B><B>PROCEDURES </B> </P>
<P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Requests or applications to
  provide services that require specific approval by the Audit Committee will
  be submitted to the Audit Committee by both the independent auditor and the
  Chief Financial Officer, or the person performing such function for the Company,
  and must include a joint statement as to whether, in their view, the request
  or application is consistent with the SEC&#146;s rules on auditor independence.
</P>
<P align="right"> 2</P>
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