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<SEC-DOCUMENT>0001062993-06-001992.txt : 20060712
<SEC-HEADER>0001062993-06-001992.hdr.sgml : 20060712
<ACCEPTANCE-DATETIME>20060712164647
ACCESSION NUMBER:		0001062993-06-001992
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20060811
FILED AS OF DATE:		20060712
DATE AS OF CHANGE:		20060712
EFFECTIVENESS DATE:		20060712

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:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-28837
		FILM NUMBER:		06958748

	BUSINESS ADDRESS:	
		STREET 1:		89 APPLEBERG RD
		STREET 2:		PO BOX 1019
		CITY:			KELLOGG
		STATE:			ID
		ZIP:			83837
		BUSINESS PHONE:		208-783-3331

	MAIL ADDRESS:	
		STREET 1:		89 APPLEBERG ROAD
		STREET 2:		PO BOX 1019
		CITY:			KELLOGG
		STATE:			ID
		ZIP:			83837
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>def14a.htm
<TEXT>
<!DOCTYPE HTML PUBLIC "NJMC2006proxy.pdf">


<HTML>
<HEAD>
   <TITLE>Filed by Automated Filing Services Inc. (604) 609-0244 - New Jersey Mining Co - Def 14A</TITLE>
   <META name="HandheldFriendly" content="true">
</HEAD>

<BODY style="font-size:10pt;">

<HR noshade align="center" width=100% size=3 color="black">
<A name=page_1></A>
<P align=center><B><font size="5">SCHEDULE 14A </font><br>
  Information Required in Proxy Statement</B></P>
<P align=center>SCHEDULE 14A INFORMATION<br>
  Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of
  1934</P>
<P align=justify>Filed by the Registrant [<B>X</B>]<br>
  Filed by a Party other than the Registrant [ ] </P>
<P align=justify>Check the appropriate box: <br>
  [ ] &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preliminary Proxy Statement<br>
  [ ] &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Confidential, for Use of the Commission Only
  (as permitted by Rule 14a-6(e)(2)) <br>
  [X] &nbsp;&nbsp;&nbsp;Definitive Proxy Statement <br>
  [ ] &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Definitive Additional Materials <br>
  [ ] &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Soliciting Material Pursuant to ' 240.14a
  -11(c) or ' 240.14a -12</P>
<P align=center><B><font size="5"><u>New Jersey Mining Company</u></font><br>
  </B>(Name of Registrant as Specified In Its Charter)</P>
<P align=center><u>N/A</u><br>
  (Name of Person(s) Filing Proxy Statement if other than the Registrant)</P>
<P align=justify>Payment of Filing Fee (Check the appropriate box):<br>
  [ ] &nbsp;&nbsp;&nbsp;&nbsp;$125 per Exchange Act Rules 0-11(c)(1)(ii), 14a-6(i)(1),
  14a-6(i)(2) or Item 22(a)(2) of Schedule 14A.<br>
  [ ] &nbsp;&nbsp;&nbsp;&nbsp;$500 per each party to the controversy pursuant
  to Exchange Act Rule 14a-6(i)(3).<br>
  [<B>X</B>] &nbsp;&nbsp;Fee computed on table below per Exchange Act Rules 14a-6(i)(4)
  and 0-11.</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">1) </TD>
    <TD>
      <P align=justify>Title of each class of securities to which transaction
      applies: None</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">2) </TD>
    <TD>
      <P align=justify>Aggregate number of securities to which transaction
      applies: None</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">3) </TD>
    <TD>
      <P align=justify>Per unit price or other underlying value of transaction
      computed pursuant to Exchange Act Rule 0-11 (Set forth the amount on which
      the filing fee is calculated and state how it was determined): -$0- no fee
      is payable pursuant to Rule 0-11(c) (ii)</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">4) </TD>
    <TD>
      <P align=justify>Proposed maximum aggregate value of transaction:
    n/a</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">5) </TD>
    <TD>
      <P align=justify>Total fee paid: $-0-</P></TD></TR></TABLE>
<P align=justify>[ ] &nbsp; &nbsp; Fee paid previously with preliminary materials.<br>
  [ ] &nbsp;&nbsp;&nbsp;Check box if any part of the fee is offset as provided
  by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting
  fee was paid previously. Identify the previous filing by registration statement
  number, or the Form of Schedule and the date of its filing.</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">1) </TD>
    <TD>
      <P align=justify>Amount Previously Paid: n/a</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">2) </TD>
    <TD>
      <P align=justify>Form, Schedule or Registration Statement No.:
  n/a</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">3) </TD>
    <TD>
      <P align=justify>Filing Party: n/a</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">4) </TD>
    <TD>
      <P align=justify>Date Filed: n/a</P></TD></TR></TABLE>
<P align=justify>1</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_2></A>
<P align=center><B>New Jersey Mining Company</B></P>
<P align=center><B>Notice of 2006 Annual Meeting of Shareholders <br>
  To be Held on August 11, 2006</B></P>
<P align=justify><B>NOTICE IS HEREBY GIVEN</B> that the 2006 Annual Meeting of
Shareholders of New Jersey Mining Company (the "Company"), will be held at 10:00
a.m. Pacific Standard time, on August 11, 2006, at the Best Western Wallace Inn,
100 Front Street, Wallace, Idaho 83873 to consider and act upon the following
matters:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">1. </TD>
    <TD>
      <P align=justify>To elect five (5) members to the Board of Directors to
      serve for a one year term or until their respective successors are elected
      and qualified</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">2. </TD>
    <TD>
      <P align=justify>To transact such other business as may properly come
      before the meeting or any adjournment thereof.</P></TD></TR></TABLE>
<P align=justify>The close of business on June 28, 2006 has been fixed as the
record date for the determination of the Shareholders entitled to notice of, and
to vote at, the Annual Meeting and at any postponements or adjournments thereof.
Only Shareholders of record on the books of the Company at the close of business
on June 28, 2006 shall be entitled to notice of, and to vote at, the meeting or
any adjournment thereof.</P>
<P align=justify>It is important that your shares be represented at the meeting
whether or not you are personally able to attend. You are therefore urged to
complete, date and sign the accompanying Proxy and mail it in the enclosed
postage-paid envelope as promptly as possible. Your Proxy is revocable, either
in writing or by voting in person at the Annual Meeting, at any time prior to
its exercise.</P>
<P align=justify>Thank you for your cooperation</P>
<P align=justify>Sincerely,<br>
  &nbsp;</P>
<P align=justify>Fred W. Brackebusch</P>
<P align=justify>2</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name="page_3"></A>
<P align="center"> <B>New Jersey Mining Company <br>
  P.O. Box 1019 <br>
  Kellogg, Idaho 83837</B></P>
<P align="center"> _________________________</P>
<P align="center"> <B>PROXY STATEMENT<br>
  </B>Relating to<br>
  Annual Meeting of Shareholders<br>
  to be held on August 11, 2006 <BR>
  _________________________</P>
<P align="center"> <B>INTRODUCTION</B></P>
<P align="justify">
This Proxy Statement is being furnished by the Board of Directors of New Jersey Mining Company (the "Company") to holders of shares of the Company's no par value Common Stock (the "Common Stock") in connection with the solicitation by the Board of
Directors of Proxies to be voted at the Annual Meeting of Shareholders of the Company to be held on August 11, 2006, and any adjournment or adjournments thereof (the "Annual Meeting") for the purposes set forth in the accompanying Notice of Annual
Meeting. This Proxy Statement is first being mailed to Shareholders on or about July 12, 2006.</P>
<P align="justify">
Management is the record and beneficial owner of 9,833,761 shares (approximately 36.1 %) of the Company's outstanding Common Stock. It is management's intention to vote all of its shares in favor of each matter to be considered by the
Shareholders.</P>
<P align="center"> <B>PURPOSES OF ANNUAL MEETING</B></P>
<P align="justify">
<B>Election of Directors</B></P>
<P align="justify">
At the Annual Meeting, Shareholders will be asked to consider and to take action on the election of five (5) members to the Board of Directors to serve for one-year terms or until their respective successors are elected and qualified (see "Election
of Directors").</P>
<P align="justify">
<B>Other Business</B></P>
<P align="justify">
To transact such other business as may properly come before the Annual Meeting or any postponements or adjournments thereof.</P>
<P align="justify">
<B><I>As your vote is important, it is requested that you complete and sign the enclosed Proxy and mail it promptly in the return envelope provided. Shares cannot be voted at the meeting unless the owner is present to vote or is represented by
Proxy.</I></B></P>
<P align="justify">
3</P>

<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">




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

<P align="justify">
<B>VOTING AT ANNUAL MEETING</B></P>
<TABLE BCLLIST style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
<TR>
	<TD width=5% valign=top>
<B>1.</B> 	</TD>
	<TD>
<P align="justify"><B>Record Date</B>. The Board of Directors of the Company has fixed the close of business on June 28, 2006, as the record date for the purpose of determining Shareholders of the Company entitled to notice of and to vote at the
Annual Meeting. At the close of business on that date, the Company had 27,222,855 issued and outstanding shares of Common Stock. A majority of such shares will constitute a quorum for the transaction of business at the Annual Meeting. Proxies, which
are submitted but are not voted for or against (because of abstention, broker non-votes or otherwise), will be treated as present for all matters considered at the meeting.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify"><B>Solicitation of Proxies. </B>The accompanying Proxy is solicited on behalf of the Board of Directors of the Company, and the cost of solicitation will be borne by the Company. Following the original mailing of the Proxies and
soliciting materials, directors, officers and employees of the Company may, but do not presently intend, to solicit Proxies by mail, telephone, telegraph, or personal interviews. The Company may request brokers, custodians, nominees, and other
record holders to forward copies of the Proxies and soliciting materials to persons for whom they hold shares of the Company and to request authority for the exercise of Proxies. In such cases, the Company will reimburse such holders for their
reasonable expenses.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify"><B>Revocation of Proxy. </B>Any Proxy delivered in the accompanying form may be revoked by the person executing the Proxy by written notice to that effect received by the Secretary of the Company at any time before the authority
thereby granted is exercised, by execution of a Proxy bearing a later date presented at the meeting, or by attendance of such person at the Annual Meeting.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
<B>4.</B> 	</TD>
	<TD>
<P align="justify"><B>How Proxies will be Voted. </B>Proxies received by the Board of Directors in the accompanying form will be voted at the Annual Meeting as specified therein by the person giving the Proxy. If no specification is made with
respect to the matters to be voted upon at the meeting, the shares represented by such Proxy will be voted : FOR the nominees to the Board of Directors in the election of Directors.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">All shares represented by valid Proxy will be voted at the discretion of the proxy holders on any other matters that may properly come before the meeting. However, the Board of Directors does not know of any matters to be
considered at the meeting other than those specified in the Notice of Meeting.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
<B>5.</B> 	</TD>
	<TD>
<P align="justify"><B>Voting Power. </B>Shareholders of the Common Stock of the Company are entitled to one vote for each share held. There is no cumulative voting for directors.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
<B>6.</B> 	</TD>
	<TD>
<P align="justify"><B>Principal Shareholders. </B>The following table sets forth information regarding the number and percentage of shares of Common Stock of the Company held by any person known to the Company to be the beneficial owner of more than
five percent and each director, each of the named executive officers and directors and officers as a group.</P>
	</TD>
</TR>
</TABLE>
<P align="justify">
4</P>

<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">

<A name=page_5></A>
<P align=center><B>SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT</B></P>
<P align=justify>The following tables 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 - June 28, 2006.</P>
<P align=justify><B>Security Ownership of Certain Beneficial Owners</B></P>
<DIV>
  <TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>
    <TR vAlign=top>
    <TD align=left>Title of Class <BR></TD>
    <TD align=center width="25%">Name and Address Of <BR>Beneficial Owner </TD>
      <TD width="25%">Amount and Nature of <BR>
        Beneficial Owner </TD>
    <TD align=left width="25%">Percent of Class (1) <BR></TD></TR>
  <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Common </TD>
    <TD align=left width="25%">Terry &amp; Marguerite Tyson <BR>County Road U
      <BR>Lipscomb, TX 79056 </TD>
    <TD align=right width="25%">1,719,500 direct <BR>
        612,000 indirect</TD>  <TD width="25%" align=center valign="middle">8.56%<BR></TD></TR>
  <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Common <BR></TD>
    <TD align=left width="25%">Fred W. Brackebusch <BR>P O. Box 1019
      <BR>Kellogg, Idaho 83837 </TD>
      <TD align=right width="25%">7,915,757 indirect (a)<BR>
        639,075 direct </TD>  <TD width="25%" align=center valign="middle">31.43%</TD>
    </TR></TABLE></DIV>
<P align=justify>(1)Based upon 27,222,855 outstanding shares of common stock on
  June 28, 2006.</P>
<P align=justify>&nbsp;</P>
<P align=center>[The balance of this page intentionally left blank]</P>
<P align=justify>&nbsp;</P>
<P align=justify>&nbsp;</P>
<P align=justify>5</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_6></A>
<P align=justify><B>Security Ownership of Management</B></P>
<DIV>
  <TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>
    <TR vAlign=top>
    <TD align=left>Title of Class </TD>
    <TD align=center width="25%">Name and Address Of Beneficial Owner </TD>
    <TD align=right width="25%">Amount and Nature of Beneficial Owner </TD>
    <TD align=left width="25%">Percent of Class (1) </TD></TR>
  <TR vAlign=top>
    <TD align=left>Common </TD>
    <TD align=left width="25%">Fred W. Brackebusch <BR>P.O. Box 1019
      <BR>Kellogg, Idaho 83837 </TD>
      <TD width="25%" align=right valign="middle">7,915,757 indirect (a) <BR>
        639,075 direct </TD>
      <TD width="25%" align=center valign="middle"> 31.43% </TD>
    </TR>
  <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Common </TD>
    <TD align=left width="25%">Grant A. Brackebusch <BR>P.O. Box 131
      <BR>Silverton, ID 83837 </TD>
      <TD width="25%" align=right valign="middle">956,793 indirect (b) <BR>
        259,136 direct
<BR></TD>
      <TD width="25%" align=center valign="middle">4.47%</TD>
    </TR>
  <TR vAlign=top>
    <TD align=left>Common </TD>
    <TD align=left width="25%">Ivan R. Linscott, Director <BR>7150 Burke Road
      <BR>Wallace, ID 83873 </TD>
      <TD width="25%" align=right valign="middle">20,000 </TD>
      <TD width="25%" align=center valign="middle">0.07% </TD>
    </TR>
  <TR vAlign=top>
      <TD align=left>Common </TD>
    <TD align=left width="25%">William C. Rust, Director <BR>P.O. Box 648
      <BR>Wallace, ID 83873 </TD>
      <TD width="25%" align=right valign="middle">20,000 </TD>
      <TD width="25%" align=center valign="middle">0.07% </TD>
    </TR>
  <TR vAlign=top>
    <TD align=left>Common </TD>
    <TD align=left width="25%">M. Kathleen Sims, Director <BR>2745 Seltice Way
      <BR>Coeur d&#146;Alene, ID 83814 </TD>
      <TD width="25%" align=right valign="middle">23,000 </TD>
      <TD width="25%" align=center valign="middle">0.08% </TD>
    </TR>
  <TR vAlign=top>
      <TD align=left>Common </TD>
    <TD align=left width="25%">All Directors and Executive Officers <BR>as a
      group (5 individuals) </TD>
      <TD width="25%" align=right valign="middle">9,833,761 </TD>
      <TD width="25%" align=center valign="middle">36.12% </TD>
    </TR></TABLE></DIV>
<P align=justify>(1)Based upon 27,222,855 outstanding shares of common stock on
June 28, 2006.</P>
<P align=justify>(a) Fred Brackebusch owns 89.6% of Mine Systems Design, Inc.
(MSD) which is an S corporation that owns 8,834,550 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 an S corporation that owns 8,834,550 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.
Also included in the indirect total are 38,000 shares held by his spouse, Tina
C. Brackebusch.</P>
<P align=justify>None of the directors or officers has the right to acquire any
  securities pursuant to options, warrants, conversion privileges or other rights.</P>
<P align=justify>&nbsp;</P>
<P align=center>[The balance of this page intentionally left blank]</P>
<P align=center>&nbsp;</P>
<P align=justify>&nbsp;</P>
<P>6</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_7></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>7.</B> </TD>
    <TD>
      <P align=justify><B>Required Approvals. </B>By unanimous consent the Board
      of Directors of the Company unanimously adopted resolutions (1) to elect
      Fred W. Brackebusch, Grant A. Brackebusch, Ivan R. Linscott, William C.
      Rust, and M. Kathleen Sims to the Board of Directors of the Company to
      serve for a one- year term or until his/her respective successor is
      elected and has qualified.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Directors are elected by a plurality of the votes cast by
      the holders of the Common Stock meeting at which a quorum is present.
      "Plurality" means that the individuals who receive the largest number of
      votes cast are elected as Directors up to the maximum number of Directors
      to be chosen at the meeting. Consequently, any shares not voted (whether
      by abstentions, broker non-votes or otherwise) have no impact in the
      election of Directors, except to the extent the failure to vote for an
      individual results in another individual receiving a larger number of
      votes. The election of Directors will be accomplished by determining the
      five nominees receiving the highest total votes.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>8.</B> </TD>
    <TD>
      <P align=justify><B>Dissenters&#146; Rights. </B>There are no dissenters&#146;
      rights applicable to any matters to be considered at the Annual
      Meeting.</P></TD></TR></TABLE>
<P align=center><B>RECENT MARKET PRICES</B></P>
<P align=justify>Our common stock currently trades on the OTC Bulletin Board
under the symbol "NJMC". The following table sets forth the range of high and
low bid prices as reported by the Over the Counter Bulletin Board ("OTCBB") for
the periods indicated These quotations represent inter-dealer prices, without
retail mark-up, markdown or commission, and may not represent actual
transactions.</P>
<DIV>
  <TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>
    <TR vAlign=top>
      <TD width="40%" align=left style="BORDER-BOTTOM: #000000 1px solid"><B>Year
        Ending December 31, 2006</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="30%"><B>High Bid</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="30%"><B>Low Bid</B> </TD>
    </TR>
  <TR vAlign=top>
      <TD width="40%" align=left style="BORDER-BOTTOM: #000000 1px solid">First
        Quarter </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="30%">$0.80 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="30%">$0.32 </TD>
    </TR>
  <TR vAlign=top>
      <TD width="40%" align=left style="BORDER-BOTTOM: #000000 1px solid">Second
        Quarter </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="30%">$1.25 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="30%">$0.64 </TD>
    </TR>
  <TR vAlign=top>
      <TD width="40%" align=left style="BORDER-BOTTOM: #000000 1px solid"><B>Year
        Ending December 31, 2005</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="30%"><B>High Bid</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="30%"><B>Low Bid</B> </TD>
    </TR>
  <TR vAlign=top>
      <TD width="40%" align=left style="BORDER-BOTTOM: #000000 1px solid">First
        Quarter </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="30%">$0.60 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="30%">$0.45 </TD>
    </TR>
  <TR vAlign=top>
      <TD width="40%" align=left style="BORDER-BOTTOM: #000000 1px solid">Second
        Quarter </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="30%">$0.52 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="30%">$0.37 </TD>
    </TR>
  <TR vAlign=top>
      <TD width="40%" align=left style="BORDER-BOTTOM: #000000 1px solid">Third
        Quarter </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="30%">$0.45 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="30%">$0.38 </TD>
    </TR>
  <TR vAlign=top>
      <TD width="40%" align=left style="BORDER-BOTTOM: #000000 1px solid">Fourth
        Quarter </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="30%">$0.45 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="30%">$0.22 </TD>
    </TR></TABLE></DIV>
<P align=justify>Shareholders</P>
<P align=justify>As of June 28, 2006 there were approximately 1,100 shareholders
of record of the Company's Common Stock. As of June 28, 2006 the Company had
issued and outstanding 27,222,855 shares of Common Stock, and the Company had
5,530,750 warrants outstanding for a fully diluted total of 32,753,605.</P>
<P align=justify>7</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_8></A>
<P align=center><B>DIRECTORS AND EXECUTIVE OFFICERS</B></P>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Name &amp;
      Address</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>Age</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>Position</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>Date First Elected</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Fred W. Brackebusch <BR>P.O. Box 1019 <BR>Kellogg, Idaho
      83837 </TD>
    <TD align=left width="25%">61 </TD>
    <TD align=left width="25%">President, Director &amp; <BR>Treasurer </TD>
    <TD align=left width="25%">7/18/1996 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Grant A. Brackebusch <BR>P.O. Box 131 <BR>Silverton, ID
      83867 </TD>
    <TD align=left width="25%">36 </TD>
    <TD align=left width="25%">Vice President &amp; <BR>Director </TD>
    <TD align=left width="25%">7/18/1996 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Ivan R. Linscott <BR>7150 Burke Road <BR>Wallace, ID 83873
    </TD>
    <TD align=left width="25%">63 </TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">9/21/2004 </TD></TR>
  <TR vAlign=top>
    <TD align=left>William C. Rust (1) <BR>P.O. Box 648 <BR>Wallace, ID 83873
    </TD>
    <TD align=left width="25%">59 </TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">9/21/2004 </TD></TR>
  <TR vAlign=top>
    <TD align=left>M. Kathleen Sims (1) <BR>2745 Seltice Way <BR>Coeur
      d&#146;Alene, ID 83814 </TD>
    <TD align=left width="25%">61 </TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">9/25/2003 </TD></TR></TABLE></DIV>
<P align=justify>(1) Member of the Audit Committee</P>
<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 35 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 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. on the Carlin Trend in open
pit mine planning and pit supervision for 3 years. He also has worked with Mine
Systems Design, Inc. performing various engineering and geotechnical tasks. He
supervises the daily operations of New Jersey Mining Co. which include mine
operations, mill operations, management of contractors, construction,
engineering, and is also responsible for the Company&#146;s environmental monitoring
and permitting.</P>
<P align=justify><B>Ivan R. Linscott, PhD </B>is a Director of the Company. He
is a physicist at Stanford University. He is a Senior Research Associate for
radioscience spacecraft instrument development and is Co-Investigator and
Science Team Member for the New Horizons Mission to encounter the planet Pluto.
Dr. Linscott has a strong interest in doing research on exploration techniques
in the Coeur d&#146;Alene Mining District. </P>
<P align=justify><B>William C. Rust </B>is a Director of the Company. He is a
metallurgical engineer with extensive experience in </P>
<P align=justify>8</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>



<A name="page_9"></A>

<P align="justify">
the Silver Valley. He worked for Asarco as Chief Metallurgist. Later he worked for CoCa mines at Grouse Creek in Central Idaho and for McCulley, Frick and Gilman, an environmental consulting firm. He was with Getchell Gold Inc. in Nevada where he
was Mill Manager and Senior Metallurgist for a 3,200 ton/day gold plant. Currently, Mr. Rust is self-employed as a metallurgical engineering consultant. Mr. Rust is a member of the Audit Committee.</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. Ms. Sims is a member of the Audit Committee.</P>
<P align="justify">
<B>Family Relationships</B></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">
<B>Legal Proceedings</B></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">&nbsp;</P>
<P align="center">[The balance of this page intentionally left blank]</P>
<P align="justify">&nbsp;</P>
<P align="justify">&nbsp;</P>
<P align="justify">
9</P>

<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">

<A name=page_10></A>
<P align=justify><B>Compensation of Directors and Officers</B></P>
<P align=justify>A summary of cash and other compensation for the Company's
President and Chief Executive Officer for the four most recent years is as
follows:</P>
<P align=center><B>EXECUTIVE COMPENSATION SUMMARY COMPENSATION TABLE</B></P>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>

  <TR vAlign=top>
    <TD align=left>Name &amp; <BR>Principal <BR>Position </TD>
    <TD align=center width="10%">Year <BR><BR></TD>
    <TD align=center width="10%">Salary <BR>($) <BR></TD>
    <TD align=center width="10%">Bonus <BR>($) <BR></TD>
    <TD align=center width="10%">Other <BR>Annual <BR>Comp. ($) </TD>
    <TD align=right width="10%">Restricted <BR>Stock <BR>Awards ($) </TD>
    <TD align=center width="10%">Securities <BR>Underlying <BR>Options (#) </TD>
    <TD align=center width="10%">LTIP <BR>Payouts <BR>($) </TD>
    <TD align=center width="10%">All Other <BR>Compensation <BR>($) </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=4>Fred <BR>Brackebusch <BR>President </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="10%">2002
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">0 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="10%">0
</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="10%">0
</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">450
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="10%">0
</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="10%">0
</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="10%">0
  </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="10%">2003
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">0 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="10%">0
</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="10%">0
</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">75,564 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="10%">0
</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="10%">0
</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="10%">0
  </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="10%">2004
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">36,000 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="10%">0
</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="10%">0
</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">41,754 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="10%">0
</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="10%">0
</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="10%">0
  </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="10%">2005
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">36,000 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="10%">0
</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="10%">0
</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">114,725 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="10%">0
</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="10%">0
</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="10%">0
  </TD></TR></TABLE></DIV>
<P align=justify><B>Directors Compensation</B></P>
<P align=justify>At a Board of Directors meeting on December 9, 2003, the
Directors approved a compensation plan for the Board of Directors. Each director
receives annual compensation of 10,000 common shares of restricted stock.</P>
<P align=justify><B>Audit Committee</B></P>
<P align=justify>The Company&#146;s audit committee is comprised of M. Kathleen Sims,
and William C. Rust. 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. Ms. Sims is considered to be an audit committee financial
expert as the term is defined under applicable SEC rules. The Company does not
have a written Audit Committee Charter.</P>
<P align=justify><B>Appointment of Auditors</B></P>
<P align=justify>The Audit Committee has appointed the firm DeCoria, Maichel
&amp; Teague P.S. as independent certified public accountants for the Company
for the fiscal year ending December 31, 2006. DeCoria, Maichel &amp; Teague P.S.
has served as the Corporation's independent auditors since 2004. No
representative of DeCoria, Maichel &amp; Teague P.S. is expected to be present
at the Annual Meeting Under the Sarbanes-Oxley Act of 2002, the Audit Committee
has the sole authority to appoint the independent auditors for the Corporation.
Therefore, the Corporation is not submitting the selection of DeCoria, Maichel
&amp; Teague P.S. to our shareholders for ratification. It is intended that
DeCoria, Maichel &amp; Teague P.S. will continue as the independent auditors for
the Company.</P>
<P align=justify><B>Policy on Audit Committee Pre-Approval of Audit and
Non-Audit Services of Independent Auditors </B></P>
<P align=justify>The Audit Committee is responsible for appointing, setting
compensation and overseeing the work of the independent auditors. The Audit
Committee has established a policy regarding pre-approval of all audit and
non-audit services provided by the independent auditors. On an ongoing basis,
management communicates specific projects and categories of services for which
advance approval of the Audit Committee is requested.</P>
<P align=justify>10</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>



<A name="page_11"></A>

<P align="justify">
The Audit Committee reviews these requests and advises management if the Audit Committee approves the engagement of the independent auditors for specific projects. On a periodic basis, management reports to the Audit Committee regarding the actual
spending for such projects and services compared to the approved amounts. The Audit Committee may also delegate the ability to pre-approve audit and permitted non-audit services to a subcommittee consisting of one or more Audit Committee members,
provided that any such pre-approvals are reported on at a subsequent Audit Committee meeting. </P>
<P align="justify">
<B>Audit Fees</B></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, 2005 and December 31, 2004 were
&#36;17,606 and &#36;15,313 respectively.</P>
<P align="justify">
<B>Audit Related Fees</B></P>
<P align="justify">
The Company incurred <B>no </B>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 of the Company&#146;s financial
statements.</P>
<P align="justify">
<B>Tax Fees</B></P>
<P align="justify">
The Company incurred <B>no </B>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">
<B>All Other Fees</B></P>
<P align="justify">
The Company incurred fees totaling &#36;5,423 and &#36;4,500 during the fiscal years ended December 31, 2005 and December 31, 2004, respectively, for services rendered by the Company&#146;s principal accountant relating to the <U>preparation of
quarterly financial statements for inclusion in the Company&#146;s quarterly reports on Form 10QSB</U><U>.</U></P>
<P align="justify">
<B>Nominating Committee</B></P>
<P align="justify">
The entire Board of Directors serves as the Nominating and Compensation Committees. All Directors participate in the consideration and selection of director nominees. The Company does not have a written charter for the nominating committee, but a
nominee recommended by the nominating committee would be evaluated based upon their mining, scientific, or business experience. The nominee&#146;s level of share ownership in the Company would also contribute to the evaluation.  The Company does not
have a policy for consideration of director nominees submitted by shareholders because it has not been deemed necessary.</P>
<P align="justify">
Directors Linscott, Rust and Sims are considered independent directors.</P>
<P align="justify">
11</P>

<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">




<A name="page_12"></A>

<P align="justify">
<B>Board Meetings</B></P>
<P align="justify">
<B>During the fiscal year ended December 31, 2005 there were three meetings of the Board of Directors. All Directors were present at each meeting.</B></P>
<P align="center"> <B>COMPLIANCE WITH SECTION 16(a) <br>
  OF THE SECURITIES EXCHANGE ACT OF 1934</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.</P>
<P align="center"> <B>ADDITIONAL SHAREHOLDER INFORMATION</B></P>
<P align="justify">
<B>Shareholder Proposals for 2007 Annual Meeting</B></P>
<P align="justify">
The Company will review shareholder proposals intended to be included in the Company&#146;s proxy materials for the 2007 Annual Meeting of Shareholders which are received by the Company at its principal executive offices no later than April 13, 2007
(unless the date of the next annual meeting is changed by more than 30 days from the date of this year&#146;s meeting, in which case the proposal must be received a reasonable time before the Company begins to print and mail its proxy materials).
Such proposals must be submitted in writing and should be sent to the attention of the Secretary of the Company. The Company will comply with Rule 14a-8 of the Exchange Act with respect to any proposal that meets its requirements.</P>
<P align="center"> <B>THE FOLLOWING PROPOSALS ARE SUBMITTED TO THE SHAREHOLDERS
  FOR <br>
  CONSIDERATION AT THE ANNUAL MEETING OF SHAREHOLDERS:</B></P>
<P align="justify"> <B>1. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ELECTION
  OF DIRECTORS</B></P>
<P align="justify">
At the meeting, five (5) Directors are to be elected who shall hold office until the next Annual Meeting of Shareholders and until their respective successors shall have been elected and qualified. </P>
<P align="justify">
The Proxies appointed in the accompanying Proxy intend to vote, unless directed to the contrary therein, in their discretion, for the election to the Board of Directors of the five persons named below, all of whom management believes are willing to
serve the Company in such capacity. However, if any nominee at the time of election is unable or unwilling to serve, or is otherwise unavailable for election, such that substitute nominees are designated, the Proxies in their discretion intend to
vote for all or a lesser number of such other nominees.</P>
<P align="justify">
12</P>

<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">

<A name=page_13></A>
<P align=justify>The nominees for Directors, together with certain information
with respect to them, are as follows:</P>
<DIV>
  <TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>
    <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Name &amp;
      Address</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="13%"><B>Age</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>Position</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>Date First Elected</B> </TD>
    </TR>
  <TR vAlign=top>
    <TD align=left>Fred W. Brackebusch <BR>P.O. Box 1019 <BR>Kellogg, Idaho
      83837 </TD>
    <TD align=left width="13%">61 </TD>
      <TD align=left width="25%">President, Director &amp; Treasurer </TD>
      <TD align=left width="25%">7/18/1996 </TD>
    </TR>
  <TR vAlign=top>
    <TD align=left>Grant A. Brackebusch <BR>P.O. Box 131 <BR>Silverton, ID
      83867 </TD>
    <TD align=left width="13%">36 </TD>
      <TD align=left width="25%">Vice President &amp; Director </TD>
      <TD align=left width="25%">7/18/1996 </TD>
    </TR>
  <TR vAlign=top>
    <TD align=left>Ivan R. Linscott <BR>7150 Burke Road <BR>Wallace, ID 83873
    </TD>
    <TD align=left width="13%">63 </TD>
      <TD align=left width="25%">Director </TD>
      <TD align=left width="25%">9/21/2004 </TD>
    </TR>
  <TR vAlign=top>
    <TD align=left>William C. Rust (1) <BR>P.O. Box 648 <BR>Wallace, ID 83873
    </TD>
    <TD align=left width="13%">59 </TD>
      <TD align=left width="25%">Director </TD>
      <TD align=left width="25%">9/21/2004 </TD>
    </TR>
  <TR vAlign=top>
    <TD align=left>M. Kathleen Sims (1) <BR>2745 Seltice Way <BR>Coeur
      d&#146;Alene, ID 83814 </TD>
    <TD align=left width="13%">61 </TD>
      <TD align=left width="25%">Director </TD>
      <TD align=left width="25%">9/25/2003 </TD>
    </TR></TABLE></DIV>
<P align=justify>(1) Member of the Audit Committee</P>
<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 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. on the Carlin Trend in open
pit mine planning and pit supervision for 3 years. He also has worked with Mine
Systems Design, Inc. performing various engineering and geotechnical tasks. He
supervises the daily operations of New Jersey Mining Co. which include mine
operations, mill operations, management of contractors, construction,
engineering, and is also responsible for the Company&#146;s environmental monitoring
and permitting.</P>
<P align=justify><B>Ivan R. Linscott, PhD </B>is a Director of the Company. He
is a physicist at Stanford University. He is a Senior Research Associate for
radioscience spacecraft instrument development and is Co-Investigator and
Science Team Member for the New Horizons Mission to encounter the planet Pluto.
Dr. Linscott has a strong interest in doing research on exploration techniques
in the Coeur d&#146;Alene Mining District. </P>
<P align=justify><B>William C. Rust</B> is a Director of the Company. He is a
metallurgical engineer with extensive experience in the Silver Valley. He worked
for Asarco as Chief Metallurgist. Later he worked for CoCa mines at Grouse </P>
<P align=justify>13</P>
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<A name="page_14"></A>

<P align="justify">
Creek in Central Idaho and for McCulley, Frick and Gilman, an environmental consulting firm. He was with Getchell Gold Inc. in Nevada where he was Mill Manager and Senior Metallurgist for a 3,200 ton/day gold plant. Currently, Mr. Rust is
self-employed as a metallurgical engineering consultant. Mr. Rust is a member of the Audit Committee.</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. Ms. Sims is a member of the Audit Committee.</P>
<P align="justify">
<B>Board Recommendation</B></P>
<P align="justify">
The Board of Directors recommends a vote FOR each nominee to the Board of Directors.</P>
<P align="justify">
<B>Annual Report</B></P>
<P align="justify">
The Company's Annual Report to Shareholders is being mailed to all Shareholders with this Proxy Statement. The Annual Report is not part of the proxy solicitation materials for the Annual Meeting. In addition, a Shareholder of record will receive a
copy of the Company&#146;s Form 10-KSB for the fiscal year ended December 31, 2005. The Company&#146;s Form 10-KSB may also be accessed at the SEC&#146;s website at <U><FONT color="#0000ff">www.sec.gov</FONT></U>. </P>
<P align="justify">
<B>Other Business</B></P>
<P align="justify"> As of the date of this Proxy Statement, the Board of Directors
  is not aware of any matters that will be presented for action at the Annual
  Meeting other than those described above. However, should other business properly
  be brought before the Annual Meeting, the proxies will be voted thereon in the
  discretion of the persons acting hereunder.</P>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="50%" valign="top">&nbsp;</td>
    <td><p align="justify">By Order of the Board of Directors</p>
      <p align="justify"> Fred W. Brackebusch, President</p> </td>
  </tr>
</table>
<P align="justify">
14</P>

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<A name=page_15></A>
<P align=justify>1. Election of Directors (check one)</P>
<P style="MARGIN-LEFT: 5%" align=justify>For All Nominees (Fred W. Brackebusch,
Grant A. Brackebusch, Ivan R. Linscott, William C. Rust and M. Kathleen
Sims)</P>
<P style="MARGIN-LEFT: 10%" align=justify>Withhold All Nominees</P>
<P style="MARGIN-LEFT: 10%" align=justify>Withhold Authority to Vote For Any
Individual Nominee. Write name below:</P>
<P style="MARGIN-LEFT: 10%" align=justify>_____________________________</P>
<P align=justify>2. In their discretion, the proxies are authorized to vote upon
such other business as may properly come before the meeting.</P>
<P style="MARGIN-LEFT: 10%" align=justify>Yes
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No</P>
<P align=justify>This proxy, when properly executed, will be voted in the manner
directed herein by the undersigned shareholder. If no direction is made, this
proxy will be voted for each proposal.</P>
<P align=justify>Please sign exactly as name appears below. When shares are held
by joint tenants, both should sign. When signing as attorney, as executor,
administrator, trustee, or guardian, please give full title as such. If a
corporation, please sign in full corporate name by President or other authorized
officer. If a partnership, please sign in partnership name by authorized
person.</P>
<P align=justify>DATED: __________________________</P>
<P align=justify>&nbsp;</P>
<P align=justify>PLEASE MARK, SIGN, DATE, AND RETURN THIS <BR>
  PROXY PROMPTLY USING THE ENCLOSED ENVELOPE&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;________________________________</P>
<P align=justify>&nbsp;</P>
<P align=justify>15</P>
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