<SEC-DOCUMENT>0001062993-11-002924.txt : 20110715
<SEC-HEADER>0001062993-11-002924.hdr.sgml : 20110715
<ACCEPTANCE-DATETIME>20110715170237
ACCESSION NUMBER:		0001062993-11-002924
CONFORMED SUBMISSION TYPE:	PRE 14A
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20110826
FILED AS OF DATE:		20110715
DATE AS OF CHANGE:		20110715

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:		PRE 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-28837
		FILM NUMBER:		11971087

	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>PRE 14A
<SEQUENCE>1
<FILENAME>schedule14a.htm
<TEXT>
<HTML>
<HEAD>
   <TITLE>New Jersey Mining Company: Schedule 14A - Filed by newsfilecorp.com</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>UNITED STATES</FONT><BR></B><B><FONT
size=5>SECURITIES AND EXCHANGE COMMISSION </FONT><BR>WASHINGTON, D.C.
20549</B></P>
<P align=center><B><FONT size=5>SCHEDULE 14A INFORMATION<BR></FONT></B>Proxy
Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934</P>
<P align=justify>Filed by the Registrant [X]<BR>Filed by a Party other than the
Registrant [ ] <BR>Check the appropriate box: <BR>&nbsp;&nbsp;&nbsp;&nbsp; [X]
Preliminary Proxy Statement<BR>&nbsp;&nbsp;&nbsp;&nbsp; [ ] Confidential, for
Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
<BR>&nbsp;&nbsp;&nbsp;&nbsp; [ ] Definitive Proxy Statement
<BR>&nbsp;&nbsp;&nbsp;&nbsp; [ ] Definitive Additional Materials
<BR>&nbsp;&nbsp;&nbsp;&nbsp; [ ] Soliciting Material Pursuant to Sec. 240.14a
-12</P>
<P align=center><B><U><FONT size=5>New Jersey Mining
Company</FONT></U><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>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left colSpan=2>Payment of Filing Fee (Check the appropriate
      box): </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;[X] </TD>
    <TD align=left width="95%">No fee required. </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;[ ] </TD>
    <TD align=left width="95%">Fee computed on table below per Exchange Act
      Rules 14a-6(i)(1) and 0-11. </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="10%"  >&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="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="10%" >&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="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="10%" >&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):
  n/a</P></TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="10%" >&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="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD vAlign=top width="5%">5) </TD>
    <TD>
      <P align=justify>Total fee paid: $-0-</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left >[ ] </TD>
    <TD align=left width="95%">Fee paid previously with preliminary materials.
    </TD></TR>
  <TR vAlign=top>
    <TD align=left >[ ] </TD>
    <TD align=left width="95%">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. </TD></TR></TABLE><BR>
<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><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<!--$$/page=--><A name=page_2></A>
<P align=center><B>New Jersey Mining Company</B></P>
<P align=center><B>Notice of 2011 Annual Meeting of Shareholders <BR>To be Held
on August 26, 2011</B></P>
<P align=justify><B>NOTICE IS HEREBY GIVEN </B>that the 2011 Annual Meeting of
Shareholders of New Jersey Mining Company (the "Company"), will be held at 10:00
a.m. Pacific Standard time, on August 26, 2011, at the 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 amend the Articles of Incorporation to increase the
      authorized par no value common stock of the Company from 50,000,000 to
      200,000,000 shares.</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>To ratify the appointment of DeCoria, Maichel &amp;
      Teague P.S. as the independent registered public accounting firm for the
      Company for the year ending December 31, 2011; and</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>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 30, 2011 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 30, 2011 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 card 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>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="50%">Sincerely, </TD></TR>
  <TR>
    <TD >&nbsp;</TD>
    <TD width="50%">&nbsp; </TD></TR>
  <TR>
    <TD >&nbsp;</TD>
    <TD width="50%">&nbsp; </TD></TR>
  <TR>
    <TD >&nbsp;</TD>
    <TD width="50%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="50%">Fred W. Brackebusch </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="50%">Chairman of the Board, President </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="50%">and Chief Executive Officer
</TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<!--$$/page=--><A name=page_3></A>
<P align=center><B>TABLE OF CONTENTS</B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>&nbsp; <A href="#page_Page"></A></TD>
    <TD align=right width="10%"><U>Page</U> </TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="10%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A href="#page_4">INTRODUCTION </A></TD>
    <TD align=right width="10%" bgColor=#eeeeee><A href="#page_4">4 </A></TD></TR>
  <TR vAlign=top>
    <TD align=left><A href="#page_4">PURPOSES OF ANNUAL MEETING </A></TD>
    <TD align=right width="10%"><A href="#page_4">4 </A></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>&nbsp; &nbsp;<A href="#page_4">Election of
      Directors </A></TD>
    <TD align=right width="10%" bgColor=#eeeeee><A href="#page_4">4 </A></TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;<A href="#page_4">Amendment to the Articles of
      Incorporation </A></TD>
    <TD align=right width="10%"><A href="#page_4">4 </A></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>&nbsp; &nbsp;<A href="#page_4">Ratification
      of Appointment of Independent Registered Public Accounting Firm </A></TD>
    <TD align=right width="10%" bgColor=#eeeeee><A href="#page_4">4 </A></TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;<A href="#page_5">Other Business </A></TD>
    <TD align=right width="10%"><A href="#page_5">5 </A></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A href="#page_5">VOTING AT ANNUAL MEETING
      </A></TD>
    <TD align=right width="10%" bgColor=#eeeeee><A href="#page_5">5 </A></TD></TR>
  <TR vAlign=top>
    <TD align=left><A href="#page_8">PROPOSAL 1. ELECTION OF DIRECTORS </A></TD>
    <TD align=right width="10%"><A href="#page_8">8 </A></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>&nbsp; &nbsp;<A href="#page_8">Board
      Recommendation </A></TD>
    <TD align=right width="10%" bgColor=#eeeeee><A href="#page_8">8 </A></TD></TR>
  <TR vAlign=top>
    <TD align=left><A href="#page_9">BOARD OF DIRECTORS OF THE COMPANY </A></TD>
    <TD align=right width="10%"><A href="#page_9">9 </A></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A href="#page_10">PROPOSAL 2. AMENDMENT TO
      THE ARTICLES OF INCORPORATION TO INCREASE AUTHORIZED COMMON STOCK </A></TD>
    <TD align=right width="10%" bgColor=#eeeeee><A href="#page_10">10
  </A></TD></TR>
  <TR vAlign=top>
    <TD align=left><A href="#page_11">Board Recommendation </A></TD>
    <TD align=right width="10%"><A href="#page_11">11 </A></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A href="#page_12">PROPOSAL 3. RATIFICATION
      OF APPOINTMENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM </A></TD>
    <TD align=right width="10%" bgColor=#eeeeee><A href="#page_12">12
  </A></TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;<A href="#page_12">Board Recommendation
</A></TD>
    <TD align=right width="10%"><A href="#page_12">12 </A></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A href="#page_12">AUDIT COMMITTEE REPORT
      </A></TD>
    <TD align=right width="10%" bgColor=#eeeeee><A href="#page_12">12
  </A></TD></TR>
  <TR vAlign=top>
    <TD align=left><A href="#page_13">INDEPENDENT REGISTERED PUBLIC ACCOUNTING
      FIRM'S FEES </A></TD>
    <TD align=right width="10%"><A href="#page_13">13 </A></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A href="#page_13">PRE-APPROVAL OF AUDIT
      AND NON-AUDIT SERVICES OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
      </A></TD>
    <TD align=right width="10%" bgColor=#eeeeee><A href="#page_13">13
  </A></TD></TR>
  <TR vAlign=top>
    <TD align=left><A href="#page_14">INFORMATION CONCERNING THE BOARD OF
      DIRECTORS </A></TD>
    <TD align=right width="10%"><A href="#page_14">14 </A></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>&nbsp; &nbsp;<A href="#page_14">Board
      Meetings </A></TD>
    <TD align=right width="10%" bgColor=#eeeeee><A href="#page_14">14
  </A></TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;<A href="#page_14">Affirmative Determinations
      Regarding Director Independence </A></TD>
    <TD align=right width="10%"><A href="#page_14">14 </A></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>&nbsp; &nbsp;<A href="#page_14">Audit
      Committee </A></TD>
    <TD align=right width="10%" bgColor=#eeeeee><A href="#page_14">14
  </A></TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;<A href="#page_14">Nominating Committee
</A></TD>
    <TD align=right width="10%"><A href="#page_14">14 </A></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>&nbsp; &nbsp;<A
      href="#page_15">Compensation Committee </A></TD>
    <TD align=right width="10%" bgColor=#eeeeee><A href="#page_15">15
  </A></TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;<A href="#page_15">Communication with the
      Board of Directors </A></TD>
    <TD align=right width="10%"><A href="#page_15">15 </A></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A href="#page_16">COMPENSATION OF
      DIRECTORS </A></TD>
    <TD align=right width="10%" bgColor=#eeeeee><A href="#page_16">16
  </A></TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;<A href="#page_16">Director Compensation
    </A></TD>
    <TD align=right width="10%"><A href="#page_16">16 </A></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A href="#page_16">EXECUTIVE OFFICERS
    </A></TD>
    <TD align=right width="10%" bgColor=#eeeeee><A href="#page_16">16
  </A></TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;<A href="#page_17">Family Relationships
</A></TD>
    <TD align=right width="10%"><A href="#page_17">17 </A></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>&nbsp; &nbsp;<A href="#page_17">Legal
      Proceedings </A></TD>
    <TD align=right width="10%" bgColor=#eeeeee><A href="#page_17">17
  </A></TD></TR>
  <TR vAlign=top>
    <TD align=left><A href="#page_18">EXECUTIVE COMPENSATION </A></TD>
    <TD align=right width="10%"><A href="#page_18">18 </A></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>&nbsp; &nbsp;<A
      href="#page_18">Compensation of Officers </A></TD>
    <TD align=right width="10%" bgColor=#eeeeee><A href="#page_18">18
  </A></TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;<A href="#page_18">Outstanding Equity Awards
      at Fiscal Year-end </A></TD>
    <TD align=right width="10%"><A href="#page_18">18 </A></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A href="#page_19">SECURITY OWNERSHIP OF
      CERTAIN BENEFICIAL OWNERS AND MANAGEMENT </A></TD>
    <TD align=right width="10%" bgColor=#eeeeee><A href="#page_19">19
  </A></TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;<A href="#page_19">Security Ownership of
      Certain Beneficial Owners </A></TD>
    <TD align=right width="10%"><A href="#page_19">19 </A></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>&nbsp; &nbsp;<A href="#page_20">Security
      Ownership of Management </A></TD>
    <TD align=right width="10%" bgColor=#eeeeee><A href="#page_20">20
  </A></TD></TR>
  <TR vAlign=top>
    <TD align=left><A href="#page_21">RECENT MARKET PRICES </A></TD>
    <TD align=right width="10%"><A href="#page_21">21 </A></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A href="#page_21">SECTION 16(a) BENEFICIAL
      OWNERSHIP REPORTING COMPLIANCE </A></TD>
    <TD align=right width="10%" bgColor=#eeeeee><A href="#page_21">21
  </A></TD></TR>
  <TR vAlign=top>
    <TD align=left><A href="#page_22">ADDITIONAL SHAREHOLDER INFORMATION
    </A></TD>
    <TD align=right width="10%"><A href="#page_22">22 </A></TD></TR></TABLE>
<P align=right>3</P>
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<!--$$/page=--><A name=page_4></A>
<P align=center><B>New Jersey Mining Company <BR>P.O. Box 1019 <BR>Kellogg,
Idaho 83837<BR></B>_________________________</P>
<P align=center><B>PROXY STATEMENT<BR></B>Relating to<BR>Annual Meeting of
Shareholders <BR>to be held on August 26, 2011 <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 and any adjournment or adjournments
thereof (the "Annual Meeting") to be held at 10:00 a.m. on August 26, 2011 at
the Wallace Inn, 100 Front Street, Wallace, Idaho 83873 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 1, 2011 and is accompanied
by a proxy card for use at the Annual Meeting.</P>
<P align=justify>Members of the Company's management are the record and
beneficial owners of an aggregate of 11,764,331 shares (approximately 26.1%) of
the Company&#146;s outstanding Common Stock. It is management's intention to vote all
of their 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>Amendment to Articles of Incorporation to Increase
Authorized Common Stock</B></P>
<P align=justify>At the Annual Meeting, Shareholders will be asked to consider
and to take action on an amendment to the Articles of Incorporation to increase
the authorized no par value common stock of the Company from 50,000,000 shares
to 200,000,000 shares. (See "Amendment to Articles of Incorporation").</P>
<P align=justify><B>Ratification of Appointment of Independent Registered Public
Accounting Firm</B></P>
<P align=justify>At the Annual Meeting, Shareholders will be asked to ratify the
appointment of DeCoria, Maichel &amp; Teague P.S. as the independent registered
public accounting firm for the Company for the year ending December 31, 2011.
(See "Ratification of Appointment of Independent Registered Public Accounting
Firm").</P>
<P align=right>4</P>
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<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>Because your vote is important, it is requested that you
complete and sign the enclosed proxy card 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=center><B>VOTING AT ANNUAL MEETING</B></P>
<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>1.</B> </TD>
    <TD>
      <P align=justify><B>Record Date</B>; <B>Shares Entitled to Vote. </B>The
      Board of Directors of the Company has fixed the close of business on June
      30, 2011, as the record date (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, there were
      45,045,662 issued and outstanding shares of Common Stock. Each holder of
      Common Stock is entitled to one vote for each share of Common Stock owned
      as of the Record Date.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>2.</B> </TD>
    <TD>
      <P align=justify><B>Quorum</B>. A majority of the shares issued and
      outstanding as of the record date will constitute a quorum for the
      transaction of business at the Annual Meeting. Proxies that are submitted
      but are not voted for or against (because of abstention, broker non-votes
      or otherwise) will count toward a quorum and will be treated as present
      for all matters considered at the meeting.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>3.</B> </TD>
    <TD>
      <P align=justify><B>Vote Required. </B>Directors are elected by a
      plurality of the votes cast by the holders of the Common Stock at a
      meeting of shareholders 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 on 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 number of votes.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>If a quorum exists at the Annual Meeting, the affirmative
      vote by the holders of a majority of the Common Stock present in person or
      represented by proxy and entitled to vote is required to approve the
      Amendment of the Articles of Incorporation to increase the number of
      authorized no par Common Stock of the Company to 200,000,000
  shares.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>If a quorum exists at the Annual Meeting, the affirmative
      vote by the holders of a majority of the Common Stock present in person or
      represented by proxy and entitled to vote is required to approve the
      ratification of the appointment of DeCoria, Maichel &amp; Teague P.S. as
      the independent registered public accounting firm for the Company for the
      year ending December 31, 2011.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>4.</B> </TD>
    <TD>
      <P align=justify><B>Solicitation of Proxies. </B>The Board of Directors
      requests that you complete date and sign the proxy card accompanying this
      Proxy Statement and promptly return the card in the enclosed postage-paid
      envelope. The accompanying proxy card is solicited on behalf of the
      Company, and the cost of solicitation will be borne by the Company.
      Although they do not presently intend to do so, following the original
      mailing of the Proxy materials, directors, officers and employees of the
      Company may, without additional remuneration, solicit Proxies by mail,
      internet, telephone,</P></TD></TR></TABLE>
<P align=right>5</P>
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<TABLE
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cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>facsimile, 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 width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>5.</B> </TD>
    <TD>
      <P align=justify><B>Revocation of Proxy. </B>You may revoke your proxy at
      any time by taking any of the following actions before your proxy is voted
      at the Annual Meeting:</P></TD></TR></TABLE>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <P style="MARGIN-LEFT: 5%">Deliver to the Company a written notice bearing a
  date later than the date of the proxy card, stating that you revoke the proxy;
  </P>
  <LI>
  <P style="MARGIN-LEFT: 5%">Sign and deliver to the Company a proxy card
  relating to the same shares and bearing a later date; or </P>
  <LI>
  <P style="MARGIN-LEFT: 5%">Attend the meeting and vote in person, although
  attendance at the meeting will not, by itself, revoke a proxy. </P></LI></UL>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Also, please note that if you have voted through your
      broker, bank or other nominee and you wish to change your vote, you must
      follow the instructions received from such entity to change your
    vote.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>6.</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: &#147;FOR&#148; the
      nominees to the Board of Directors in the election of Directors, &#147;FOR&#148; the
      amendment to the Articles of Incorporation to increase the authorized
      Common Stock and &#147;FOR&#148; the ratification of the appointment of the
      Company's independent registered public accounting firm.</P></TD></TR>
  <TR>
    <TD width="5%">&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. If the Annual Meeting is postponed or adjourned,
      your Proxy will still be effective and may be voted at the rescheduled
      meeting. You will still be able to change or revoke your Proxy until it is
      voted.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>If you own your shares in "street name," that is, through
      a brokerage account or in another nominee form, you must provide
      instructions to the broker or nominee as to how your shares should be
      voted. Otherwise, your shares may not be voted and will be recorded as
      broker non- votes. Your broker or nominee will usually provide you with
      the appropriate instruction forms at the time you receive this proxy
      statement. If you own your shares in this manner, you cannot vote in
      person at the Annual Meeting unless you receive a Proxy to do so from the
      broker or the nominee and you bring the Proxy to the Annual
  Meeting.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>7.</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 width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>8.</B> </TD>
    <TD>
      <P align=justify><B>Recommendation of the Board of Directors. </B>The
      Board of Directors of the Company believes</P></TD></TR></TABLE>
<P align=right>6</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>the proposals described herein are in the best interests
      of the Company and its Shareholders and, accordingly, recommends that the
      Shareholders vote "FOR" the proposals identified in the Notice.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>9.</B> </TD>
    <TD>
      <P align=justify><B>Required Approvals. </B>By unanimous consent, the
      Board of Directors of the Company unanimously adopted resolutions to: (1)
      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 or her respective successor is
      elected and qualified; (2) to amend the Articles of Incorporation to
      increase the authorized Common Stock to 200,000,000 shares and (3) to
      appoint DeCoria, Maichal &amp; Teague P.S. as the independent registered
      public accounting firm for the Company for the year ending December 31,
      2011.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>10.</B> </TD>
    <TD>
      <P align=justify><B>Dissenters' Rights. </B>There are no dissenters'
      rights applicable to any matters to be considered at the Annual
      Meeting.</P></TD></TR></TABLE>
<P align=center>[The balance of this page intentionally left blank]</P>
<P align=right>7</P>
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<P align=center><B>PROPOSAL 1. 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 card 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
have consented to serve the Company in such capacity if elected. However, if any
nominee at the time of election is unable or unwilling to serve, or is otherwise
unavailable for election, the Board of Directors shall designate a substitute
nominee. Unless instructions to the contrary are specified on the proxy card,
proxies will be voted in favor of the persons who have been nominated by the
Board of Directors. </P>
<P align=justify>The nominees for Directors, together with certain information
with respect to each of 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 align=left><BR><B>Name &amp; Address</B> </TD>
    <TD align=left width="15%" ><BR><B>Age</B> </TD>
    <TD align=left width="28%"><BR><B>Position</B> </TD>
    <TD align=center width="28%"><B>Date First Elected</B> <BR><B>As
      Director</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Fred W. Brackebusch <BR>P.O. Box 1019 <BR>Kellogg, Idaho
      83837 <BR></TD>
    <TD align=left width="15%" >66 <BR><BR><BR></TD>
    <TD align=left width="28%">Chairman of the Board, <BR>President, Chief
      <BR>Executive Officer &amp; <BR>Treasurer </TD>
    <TD align=left width="28%">7/18/1996 <BR><BR><BR></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="15%" >41 <BR><BR></TD>
    <TD align=left width="28%">Vice President &amp; <BR>Director <BR></TD>
    <TD align=left width="28%">7/18/1996 <BR><BR></TD></TR>
  <TR vAlign=top>
    <TD align=left>Ivan R. Linscott <BR>7150 Burke Road <BR>Wallace, ID 83873
    </TD>
    <TD align=left width="15%" >68 <BR><BR></TD>
    <TD align=left width="28%">Director <BR><BR></TD>
    <TD align=left width="28%">9/21/2004 <BR><BR></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="15%" >64 <BR><BR></TD>
    <TD align=left width="28%">Director <BR><BR></TD>
    <TD align=left width="28%">9/21/2004 <BR><BR></TD></TR>
  <TR vAlign=top>
    <TD align=left>M. Kathleen Sims (1) <BR>2745 Seltice Way <BR>Coeur
      d'Alene, ID 83814 </TD>
    <TD align=left width="15%" >66 <BR><BR></TD>
    <TD align=left width="28%">Director <BR><BR></TD>
    <TD align=left width="28%">9/25/2003 <BR><BR></TD></TR></TABLE></DIV>
<P align=justify>(1) Member of the Audit Committee</P>
<P align=justify><B>Board Recommendation</B></P>
<P align=justify>The Board of Directors recommends a vote &#147;FOR&#148; each nominee to
the Board of Directors.</P>
<P align=right>8</P>
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<P align=center><B>BOARD OF DIRECTORS OF THE COMPANY</B></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. The
following individuals are currently serving as members of the Board of Directors
of the Company:</P>
<P align=justify><B>Fred W. Brackebusch, P.E. </B>has served as the Chairman of
the Board, President, Chief Executive Officer and Treasurer of the Company since
1996. 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, about half of which was with Hecla Mining Co. He has
been the principal owner of Mine Systems Design, Inc., a mining consulting
business which is a large shareholder in the Company, since 1987.</P>
<P align=justify><B>Grant A. Brackebusch, P.E. </B>has served as the Vice
President and a Director of the Company since 1996. 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 three years. He
also has worked with Mine Systems Design, Inc. performing various engineering
and geotechnical tasks. He has worked for New Jersey Mining Company since 1996;
he supervises the daily operations of the various mining operations, mill
operations, performs various engineering tasks, and coordinates environmental
permitting.</P>
<P align=justify><B>Ivan R. Linscott, PhD </B>has served as a Director of the
Company since 2004. 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'Alene Mining District. He has made
significant contributions to the Company's exploration program through by
completing geophysical surveys on several properties.</P>
<P align=justify><B>William C. Rust </B>has served as a Director of the Company
since 2004. 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 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>has served as a Director of the Company
since 2003. She is a successful businesswoman who is majority owner of a car
dealership. She is a former State Senator in the Idaho Legislature, and is
currently a Representative in the Idaho House of Representatives. 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 the chairperson of the Audit Committee.</P>
<P align=right>9</P>
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<P align=center><B>PROPOSAL 2. AMENDMENT TO THE ARTICLES OF INCORPORATION TO
INCREASE AUTHORIZED COMMON STOCK</B></P>
<P align=justify>The Company proposes to amend Article VI of its Articles of
Incorporation to increase the amount of Common Stock the Company is authorized
to issue to 200,000,000 shares with no par value. Currently, the Company is
authorized to issue 50,000,000 shares of Common Stock with no par value and
1,000,000 shares of Preferred Stock with no par value. No change to the
authorized Preferred Stock is proposed. </P>
<P align=justify>On June 27, 2011, the Board unanimously adopted resolutions
setting forth the proposed amendment to our Articles of Incorporation declaring
its advisability and directing that the proposed amendment be submitted to the
shareholders for their approval at the Annual Meeting. If adopted by the
shareholders, the amendment will become effective upon filing of an appropriate
amendment to our Articles of Incorporation with the Idaho Secretary of
State.</P>
<P align=justify>The text of the Article VI shall be amended as follows: </P>
<P align=justify><I>The aggregate number of shares which this corporation shall
have authority to issue is 201,000,000 shares, of which 200,000,000 shares shall
be Common Stock having no par value per share and 1,000,000 shares shall be
Preferred Stock having no par value per share. Cumulative voting rights shall
not exist with respect to any shares of stock of securities converted into
shares of stock of the Corporation.</I></P>
<P align=justify><B>Discussion</B></P>
<P align=justify>The Company is currently authorized to issue 50,000,000 shares
of its no par value Common Stock, of which 45,045,662 shares were issued and
outstanding and held of record by approximately 1,200 shareholders as of June
30, 2011. If approved, the amendment to the Articles of Incorporation will
increase the number of authorized shares of common stock to 200,000,000 shares
of no par value common stock.</P>
<P align=justify>Management believes that the increased number of authorized
shares of common stock will provide the Company with an adequate supply of
authorized but unissued shares of Common Stock for general corporate needs
including obtaining additional financing, possible stock dividends, employee
incentive and benefit plans or consummation of acquisitions at times when the
Board, in its discretion, deems it advantageous to do so. At present, the
Company has no commitment for the issuance of additional shares.</P>
<P align=justify>All shares of Common Stock are equal to each other with respect
to voting, liquidation, dividend and other rights. Owners of shares of Common
Stock are entitled to one vote for each share they own at any Shareholders'
meeting. Holders of shares of Common Stock are entitled to receive such
dividends as may be declared by the Board of Directors out of funds legally
available therefore, and upon liquidation are entitled to participate pro rata
in a distribution of assets available for such a distribution to Shareholders.
There are no conversion, preemptive or other subscription rights or privileges
with respect to any shares. Although the Board of Directors would authorize the
issuance of additional shares of Common Stock based on its judgment as to the
best interests of the Company and its Shareholders, the issuance of authorized
shares of Common Stock could have the effect of diluting the voting power and
book value per share of the outstanding Common Stock.</P>
<P align=right>10</P>
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<P align=justify>Authorized shares of Common Stock in excess of those shares
outstanding will be available for general corporate purposes, may be privately
placed and could be used to make a change in control of the Company more
difficult. Under certain circumstances, the Board of Directors could create
impediments to, or frustrate, persons seeking to effect a takeover or transfer
in control of the Company by causing such shares to be issued to a holder or
holders who might side with the Board of Directors in opposing a takeover bid
that the Board of Directors determines is not in the best interests of the
Company and its stockholders, but in which unaffiliated stockholders may wish to
participate. In this connection, the Board of Directors could issue authorized
shares of Common Stock to a holder or holders which, when voted together with
the shares held by members of the Board of Directors and the executive officers
and their families, could prevent the majority stockholder vote required by the
Company's Articles of Incorporation to effect certain matters. Furthermore, the
existence of such shares might have the effect of discouraging any attempt by a
person, through the acquisition of a substantial number of shares of Common
Stock, to acquire control of the Company, since the issuance of such shares
should dilute the Company's book value per share and the Common Stock ownership
of such person. This may be beneficial to management in a hostile tender offer,
thus having an adverse impact on stockholders who may want to participate in
such tender offer.</P>
<P align=justify>The additional authorized shares of Common Stock would, when
issued, have the same rights as the issued and outstanding existing shares of
Common Stock. Shareholders of the Company currently have neither preemptive
rights nor cumulative voting rights for directors, nor will they as a result of
the amendment.</P>
<P align=justify>If the amendment is approved, the additional, authorized Common
Stock would be available for issuance in the future for such corporate purposes
as the Board of Directors deems advisable from time to time without the delay
and expense incident to obtaining shareholder approval, unless such action is
required by applicable law, or of any stock exchange upon which the Company's
shares may then be listed. It should be noted that subject to the limitations
discussed above, all of the types of Board action with respect to the issuance
of additional shares of Common Stock that are described in the preceding
paragraphs can currently be taken and that the power of the Board of Directors
to take such actions would not be enhanced by amendment to the Articles of
Incorporation, although the amendment would increase the number of shares of
Common Stock that are available for the taking of such action.</P>
<P align=justify><B>Board Recommendation </B></P>
<P align=justify>The proposal to amend the Company&#146;s Articles of Incorporation
will require the affirmative vote of the holders of at least a majority of the
shares entitled to vote thereon. The Board of Directors recommends a vote &#147;FOR&#148;
amendment to the Articles of Incorporation</P>
<P align=right>11</P>
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<P align=center><B>PROPOSAL 3. RATIFICATION OF APPOINTMENT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM</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, 2011. At the Annual Meeting,
Shareholders will be asked to ratify the appointment of DeCoria, Maichel &amp;
Teague P.S. as the independent registered public accounting firm. DeCoria,
Maichel &amp; Teague P.S. has served as the Company's independent auditors and
has conducted the audit of the Company's financial statements since 2004. No
representative of DeCoria, Maichel &amp; Teague P.S. is expected to be present
at the Annual Meeting. If the appointment of DeCoria, Maichel &amp; Teague P.S.
is not ratified by the required number of votes, the Board will review its
future selection of independent registered public accounting firms.</P>
<P align=justify><B>Board Recommendation</B></P>
<P align=justify>The Board of Directors recommends a vote &#147;FOR&#148; the ratification
of the appointment of DeCoria, Maichel &amp; Teague P.S. as the independent
registered public accounting firm for the Company for the year ending December
31, 2011.</P>
<P align=center><B>AUDIT COMMITTEE REPORT</B></P>
<P align=justify>During fiscal year 2010, Directors Rust and Sims served on the
Audit Committee, with Director Sims serving as the chairperson. The Audit
Committee is responsible for overseeing the Company's accounting and financial
reporting processes, including the quarterly review and the annual audit of the
Company's financial statements by DeCoria, Maichel &amp; Teague P.S., the
Company's independent registered public accounting firm. The Sarbanes-Oxley Act
of 2002 requires the Audit Committee to be directly responsible for the
appointment, compensation and oversight of the audit work of the independent
registered public accounting firm. </P>
<P align=justify>As part of fulfilling its responsibilities, the Audit Committee
has reviewed and discussed the Company's audited financial statements with
management. The Audit Committee has also discussed with the independent
registered public accounting firm the matters required to be discussed by
Statement on Auditing Standards No. 61 (Communication with Audit Committees).
Finally, the Audit Committee has received the written disclosures and the letter
from the independent registered public accounting firm required by Independence
Standards Board Standard No. 1 (Independence Discussions with Audit Committees)
and has discussed with the independent registered public accounting firm that
firm's independence.</P>
<P align=justify>Based on its review and discussions, the Audit Committee
recommended to the Board of Directors that the audited financial statements for
the year ending December 31, 2010 be included in the Company's 2010 Annual
Report on Form 10-KSB filed with the SEC.</P>
<P align=center><I>Submitted by the Audit Committee of the Board of Directors of
the Company.</I></P>
<P align=center>William C. Rust <BR>M. Kathleen Sims</P>
<P align=right>12</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_13></A>
<P align=center><B>INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM'S FEES</B></P>
<P align=justify><B><U>Audit Fees<BR></U></B>The aggregate fees billed for
professional services rendered by the Company&#146;s principal accountant for the
audit of the annual financial statements included in the Company&#146;s annual report
on Form 10-K for the fiscal years ended December 31, 2009 and December 31, 2010
and the review for the financial statements included in the Company&#146;s quarterly
reports on Form 10-Q during those fiscal years, were $29,479 and $23,948
respectively.</P>
<P align=justify><B><U>Audit Related Fees<BR></U></B>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><B><U>Tax Fees<BR></U></B>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><B><U>All Other Fees<BR></U></B>The Company incurred no other
fees during the last two fiscal years for products and services rendered by the
Company&#146;s principal accountant.</P>
<P align=center><B>PRE-APPROVAL OF AUDIT AND NON-AUDIT SERVICES OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM</B></P>
<P align=justify>The Audit Committee is responsible for appointing, setting
compensation and overseeing the work of the independent registered public
accountants. The Audit Committee has established a policy regarding pre-approval
of all audit and non-audit services provided by the independent registered
public accountants. On an ongoing basis, management communicates specific
projects and categories of services for which advance approval of the Audit
Committee is requested. The Audit Committee reviews these requests and advises
management if the Audit Committee approves the engagement of the independent
registered public accountants 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. All services provided by the Company's independent registered public
accounting firm in each of the last two fiscal years were pre-approved by the
Audit Committee.</P>
<P align=right>13</P>
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noShade SIZE=5>
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<P align=center><B>INFORMATION CONCERNING THE BOARD OF DIRECTORS</B></P>
<P align=justify><B>Board Meetings</B></P>
<P align=justify>During the fiscal year ended December 31, 2010 there were three
meetings of the Board of Directors. All Directors were present at each meeting.
It is the Company's policy that members of the Board of Directors should attend
all annual meetings of Shareholders except for absences due to causes beyond the
reasonable control of the Directors. The Company did not hold an annual meeting
of shareholders during 2010.</P>
<P align=justify><B>Affirmative Determinations Regarding Director Independence
</B></P>
<P align=justify>The Board of Directors has determined that each of the
following Directors is an "independent director" as such term is defined by the
rules of the Financial Industry Regulatory Authority ("FINRA"), and the
Securities Exchange Commission (the "SEC"):</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=center>Ivan R. Linscott, PhD </TD></TR>
  <TR vAlign=bottom>
    <TD align=center>William C. Rust </TD></TR>
  <TR vAlign=top>
    <TD align=center>M. Kathleen Sims </TD></TR></TABLE>
<P align=justify>The rules of FINRA and the SEC generally provide that an
"independent director" is a person other than an officer or employee of the
Company or any other individual having a relationship that, in the opinion of
the Board of Directors, would interfere with the exercise of independent
judgment in carrying out the responsibilities of a Director. The FINRA rules
also provide specific criteria that, if met, disqualify a director from being
independent. </P>
<P align=justify><B>Audit Committee</B></P>
<P align=justify>The Company has an audit committee established in accordance
with the Securities Exchange Act of 1934, as amended, (the "Exchange Act") for
the purpose of overseeing the Company's accounting and financial reporting
processes, the audits of the financial statements, as well as compliance with
legal and regulatory requirements. The Audit Committee is also responsible for
appointing and reviewing the performance of the Company's independent registered
public accounting firm. The members of the Company's audit committee are William
C. Rust and M. Kathleen Sims. Each member of the audit committee is deemed to be
an independent director as that term is defined under the listing standards of
FINRA. Ms. Sims is considered to be an audit committee financial expert as the
term is defined under applicable SEC rules, and is the Chairperson of the Audit
Committee. The Audit Committee held one meeting during 2010. The Company does
not have a written Audit Committee Charter.</P>
<P align=justify><B>Nominating Committee</B></P>
<P align=justify>The entire Board of Directors serves as the Nominating
Committee and all Directors participate in the consideration and selection of
nominees to the Board of Directors. The Nominating Committee identifies
potential nominees from various sources, including recommendations from
Directors and officers of the Company. The Nominating Committee will consider
nominees recommended by shareholders upon submission in writing to the Chairman
of the Board of Directors the names of such nominees, together with their
qualifications for service as Directors of the Company. Individuals recommended
by shareholders are evaluated in the same manner as other potential nominees.
The Nominating Committee </P>
<P align=right>14</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_15></A>
<P align=justify>reviews and discusses recommendations received for Director
candidates and evaluates the qualifications of such candidates before selecting
a slate of nominees to be recommended by the Board. Qualifications that the
Nominating Committee will consider in evaluating Director candidates include
their mining, scientific, or business experience, contacts within the Company's
market area, relevant skills, and time availability. A candidate's level of
share ownership in the Company is also considered as part of the evaluation
along with such other criteria as the Nominating Committee determines to be
relevant. The Nominating Committee did not hold any meetings in 2010. The
Company does not have a written charter for the Nominating Committee.</P>
<P align=justify><B>Compensation Committee</B></P>
<P align=justify>The entire Board of Directors serves as the Compensation
Committee and all Directors review personnel policies of the Company that
include, but are not limited to, compensation for executive officers of the
Company, as well as employee compensation and benefit programs. The Board of
Directors has determined that a Compensation Committee is not currently
necessary because the Company is a small business. The Company does not have a
written charter for the Compensation Committee.</P>
<P align=justify>The compensation for the President and Vice President, as the
executive officers of the Company, is generally set on an annual basis by the
disinterested members of the Board. In determining the appropriate compensation
levels for the executive officers, the Board of Directors considers a number of
factors, including, but not limited to the executive officers' mining experience
and experience with the Company, and the level of compensation paid by the
Company's peers in the mining industry. Compensation for the Board of Directors
has been approved by the entire Board of Directors. The President and Vice
President have been authorized by the Board of Directors to set the salaries and
wages of the non-executive employees of the Company, subject to the review of
the Board of Directors.</P>
<P align=justify><B>Communication with the Board of Directors</B></P>
<P align=justify>Shareholders may send communications to the Board of Directors
of the Company by addressing such correspondence to:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD align=center>Fred W. Brackebusch </TD></TR>
  <TR vAlign=bottom>
    <TD align=center>Chairman of the Board </TD></TR>
  <TR vAlign=top>
    <TD align=center>New Jersey Mining Company </TD></TR>
  <TR vAlign=bottom>
    <TD align=center>P.O. Box 1019 </TD></TR>
  <TR vAlign=bottom>
    <TD align=center>Kellogg, ID 83837 </TD></TR></TABLE>
<P align=justify>As Chairman of the Board, Mr. Brackebusch monitors shareholder
communications, forwards correspondence to the appropriate committee(s) or
Director(s), and facilitates an appropriate response.</P>
<P align=right>15</P>
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noShade SIZE=5>
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<P align=center><B>COMPENSATION OF DIRECTORS</B></P>
<P align=justify>During 2010, each of the Directors of the Company was paid
25,000 shares of restricted Common Stock valued at $5,000. At a Board of
Directors meeting on November 9, 2009, the Directors approved a compensation
plan for the Board of Directors. Pursuant to the compensation plan, each
Director receives annual compensation of 25,000 common shares of restricted
stock. No additional fees are paid for attendance at Board of Directors'
meetings.</P>
<P align=justify>The following table sets forth information with regard to
compensation earned by non-employee Directors in 2010. Compensation earned by
Fred and Grant Brackebusch, as employee Directors, is included in the "Executive
Compensation" section of this Proxy Statement.</P>
<P align=justify><B>Director Compensation </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=center ><BR><BR><BR><BR>Name (1) </TD>
    <TD align=center width="11%">Fees <BR>Earned <BR>or Paid <BR>in Cash
      <BR>($) </TD>
    <TD align=center width="11%"><BR><BR>Stock <BR>Awards <BR>($) (2) </TD>
    <TD align=center width="11%"><BR><BR>Option <BR>Awards <BR>($) </TD>
    <TD align=center width="11%"><BR>Non-Equity <BR>Incentive Plan
      <BR>Compensation <BR>($) </TD>
    <TD align=center width="11%">Nonqualified <BR>Deferred <BR>Compensation
      <BR>Earnings <BR>($) </TD>
    <TD align=center width="11%">All <BR>Other <BR>Compen <BR>sation <BR>($)
    </TD>
    <TD align=center width="11%"><BR><BR><BR>Total <BR>($) </TD></TR>
  <TR vAlign=top>
    <TD align=left >Ivan R. Linscott </TD>
    <TD align=center width="11%">0 </TD>
    <TD align=center width="11%">5,000 </TD>
    <TD align=center width="11%">0 </TD>
    <TD align=center width="11%">0 </TD>
    <TD align=center width="11%">0 </TD>
    <TD align=center width="11%">0 </TD>
    <TD align=center width="11%">5,000 </TD></TR>
  <TR vAlign=top>
    <TD align=left >William C. Rust </TD>
    <TD align=center width="11%">0 </TD>
    <TD align=center width="11%">5,000 </TD>
    <TD align=center width="11%">0 </TD>
    <TD align=center width="11%">0 </TD>
    <TD align=center width="11%">0 </TD>
    <TD align=center width="11%">0 </TD>
    <TD align=center width="11%">5,000 </TD></TR>
  <TR vAlign=top>
    <TD align=left >M. Kathleen Sims </TD>
    <TD align=center width="11%">0 </TD>
    <TD align=center width="11%">5,000 </TD>
    <TD align=center width="11%">0 </TD>
    <TD align=center width="11%">0 </TD>
    <TD align=center width="11%">0 </TD>
    <TD align=center width="11%">0 </TD>
    <TD align=center width="11%">5,000 </TD></TR></TABLE></DIV><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%">(1) </TD>
    <TD>
      <P align=justify>Directors Fred W. Brackebusch and Grant A. Brackebusch
      are executive officers of the Company; therefore, disclosure regarding
      their compensation as Directors is included in the Summary Compensation
      Table. See Executive Compensation.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(2) </TD>
    <TD>
      <P align=justify>There were no stock awards for Directors outstanding as
      of December 31, 2010.</P></TD></TR></TABLE>
<P align=center><B>EXECUTIVE OFFICERS</B></P>
<P align=justify>The executive officers of the Company, together with certain
information with respect to each of 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 align=left><B>Name &amp; Address</B> </TD>
    <TD align=left width="15%" ><B>Age</B> </TD>
    <TD align=left width="28%"><B>Position</B> </TD>
    <TD align=left width="28%"><B>Date First Elected (1)</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Fred W. Brackebusch <BR>P.O. Box 1019 <BR>Kellogg, Idaho
      83837 <BR></TD>
    <TD align=left width="15%" >66 <BR><BR><BR></TD>
    <TD align=left width="28%">Chairman of the Board, <BR>President, Chief
      <BR>Executive Officer &amp; <BR>Treasurer </TD>
    <TD align=left width="28%">7/18/1996 <BR><BR><BR></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="15%" >41 <BR><BR></TD>
    <TD align=left width="28%">Vice President &amp; <BR>Director <BR></TD>
    <TD align=left width="28%">7/18/1996
<BR><BR></TD></TR></TABLE></DIV><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%">(1) </TD>
    <TD>
      <P align=justify>Messrs. Brackebusch have been appointed by the Board of
      Directors to serve in their respective offices until such time that a
      successor may be appointed by the Board of
Directors</P></TD></TR></TABLE>
<P align=justify><B>Fred W. Brackebusch, P.E. </B>has served as the Chairman of
the Board, President, Chief Executive Officer and Treasurer of the Company since
1996. 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, </P>
<P align=right>16</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_17></A>
<P align=justify>mine backfill, mine management, permitting, process control and
mine feasibility studies. He has over 35 years of experience in the Coeur
d'Alene Mining District, about half of which was with Hecla Mining Co. He has
been the principal owner of Mine Systems Design, Inc., a mining consulting
business which is a large shareholder in the Company, since 1987.</P>
<P align=justify><B>Grant A. Brackebusch, P.E. </B>has served as the Vice
President and a Director of the Company since 1996. He holds a B.S. in Mining
Engineering from the University of Idaho. He worked for Newmont Gold Co. on the
Carlin Trend in open pit mine planning and pit supervision for three years. He
also has worked with Mine Systems Design, Inc. performing various engineering
and geotechnical tasks. He has worked for New Jersey Mining Company since 1996;
he supervises the daily operations of the various mining operations, mill
operations, performs various engineering tasks, and coordinates environmental
permitting.</P>
<P align=justify><B>Family Relationships</B></P>
<P align=justify>Fred W. Brackebusch is the father of Grant A. Brackebusch.</P>
<P align=justify><B>Legal Proceedings</B></P>
<P align=justify>No Director or Officer has been involved in any legal action
involving the Company for the past five years.</P>
<P align=center>[The balance of this page intentionally left blank]</P>
<P align=right>17</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_18></A>
<P align=center><B>EXECUTIVE COMPENSATION </B></P>
<P align=justify><B>Compensation of Officers</B></P>
<P align=justify>A summary of cash and other compensation for Fred Brackebusch,
the Company&#146;s President and Chief Executive Officer, and Grant Brackebusch, the
Company's Vice President (the "Named Executive Officers"), for the two (2) most
recent years is as follows:</P>
<P align=justify><B>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 ><BR><BR><BR>Name &amp; <BR>Principal
      <BR>Position </TD>
    <TD align=center width="9%"><BR><BR><BR><BR><BR>Year </TD>
    <TD align=center width="9%"><BR><BR><BR><BR>Salary <BR>($) </TD>
    <TD align=center width="9%"><BR><BR><BR><BR>Bonus <BR>($) </TD>
    <TD align=center width="9%"><BR><BR><BR>Stock <BR>Awards<SUP>1</SUP>
      <BR>($) </TD>
    <TD align=center width="9%"><BR><BR><BR>Option <BR>Awards <BR>($) </TD>
    <TD align=center width="9%">Nonequity <BR>Incentive Plan <BR>Compensa-
      <BR>tion <BR>($) <BR></TD>
    <TD align=center width="9%">Nonqualified <BR>Deferred <BR>Compensa-
      <BR>tion <BR>Earnings <BR>($) </TD>
    <TD align=center width="9%"><BR><BR><BR>All Other <BR>Compensa <BR>-tion
      ($) </TD>
    <TD align=center width="9%"><BR><BR><BR><BR>Total <BR>($) </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=2 >Fred <BR>Brackebusch <BR>President
    </TD>
    <TD align=center width="9%">2010 </TD>
    <TD align=center width="9%">30,000 </TD>
    <TD align=center width="9%">0 </TD>
    <TD align=right width="9%">5,000 </TD>
    <TD align=center width="9%">0 </TD>
    <TD align=center width="9%">0 </TD>
    <TD align=center width="9%">0 </TD>
    <TD align=center width="9%">0 </TD>
    <TD align=right width="9%">35,000 </TD></TR>
  <TR vAlign=top>
    <TD align=center width="9%">2009 </TD>
    <TD align=center width="9%">26,250 </TD>
    <TD align=center width="9%">0 </TD>
    <TD align=right width="9%">201,648 </TD>
    <TD align=center width="9%">0 </TD>
    <TD align=center width="9%">0 </TD>
    <TD align=center width="9%">0 </TD>
    <TD align=center width="9%">0 </TD>
    <TD align=right width="9%">227,898 </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=2 >Grant <BR>Brackebusch <BR>Vice
      <BR>President </TD>
    <TD align=center width="9%">2010 </TD>
    <TD align=center width="9%">67,708 </TD>
    <TD align=center width="9%">0 </TD>
    <TD align=right width="9%">5,000 </TD>
    <TD align=center width="9%">0 </TD>
    <TD align=center width="9%">0 </TD>
    <TD align=center width="9%">0 </TD>
    <TD align=center width="9%">0 </TD>
    <TD align=right width="9%">72,708 </TD></TR>
  <TR vAlign=top>
    <TD align=center width="9%">2009 </TD>
    <TD align=center width="9%">46,263 </TD>
    <TD align=center width="9%">0 </TD>
    <TD align=right width="9%">107,650 </TD>
    <TD align=center width="9%">0 </TD>
    <TD align=center width="9%">0 </TD>
    <TD align=center width="9%">0 </TD>
    <TD align=center width="9%">0 </TD>
    <TD align=right width="9%">153,913 </TD></TR></TABLE></DIV>
<P style="MARGIN-LEFT: 5%" align=justify>(1) Stock Awards includes fees earned
as Directors.</P>
<P align=justify>The compensation of the Named Executive Officers has been set
by disinterested members of the Board of Directors. In April of 2007, the Board
of Directors approved a compensation plan for our President, Fred W. Brackebusch
that states that any time over 130 hours per month is compensated with
restricted common stock at a rate of $150 per hour. In January of 2009, the
Board of Directors approved a compensation plan for Vice President Grant
Brackebusch that awarded him with restricted common stock for an average of 84.5
hours per month at a rate of $100 per hour. The number of shares was calculated
quarterly using the average bid price for the quarter as quoted on the OTCQB.
Additionally, in 2009, both Fred W. Brackebusch and Grant Brackebusch were
compensated with shares in lieu of cash for some of their base salaries as well
to conserve limited cash.</P>
<P align=justify>In 2010, the restricted stock compensation plans for both Fred
W. Brackebusch and Grant A. Brackebusch were discontinued. During the years
ended December 31, 2010 and 2009, the Company issued zero and 651,320 shares,
respectively, of its restricted common stock valued at $0 and $195,398,
respectively, to Fred Brackebusch for management services. During the years
ended December 31, 2010 and 2009, the Company issued zero and 338,000 shares,
respectively, of its restricted common stock valued at $0 and $101,400,
respectively, to Grant Brackebusch for management services.</P>
<P align=justify>The Company does not have a retirement plan for its executive
officers and there is no agreement, plan or arrangement that provides for
payments to executive officers in connection with resignation, retirement,
termination or a change in control of the Company. </P>
<P align=justify><B>Outstanding Equity Awards at Fiscal Year-end </B></P>
<P align=justify>The Company does not currently award the Named Executive
Officers options to purchase the Company's shares, and there were no outstanding
equity awards as of December 31, 2010.</P>
<P align=right>18</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_19></A>
<P align=center><B>SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT</B></P>
<P align=justify>The following tables set forth information as of June 30, 2011
regarding the shares of Company Common Stock beneficially owned by: (i) each
person known by the Company to own beneficially more than 5% of the Company's
Common Stock; (ii) each Director of the Company; (iii) the CEO and CFO of the
Company (the "Named Executive Officers"); and (iv) all Directors and the Named
Executive Officers of the Company as a group. Except as noted below, each holder
has sole voting and investment power with respect to shares of the Company
Common Stock listed as owned by that person. </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=left width="25%">Name and Address Of Beneficial <BR>Owner </TD>
    <TD align=center width="25%">Amount and Nature of <BR>Beneficial Owner </TD>
    <TD align=center width="25%">Percent of Class (1) <BR></TD></TR>
  <TR vAlign=top>
    <TD align=left>Common <BR><BR></TD>
    <TD align=left width="25%">Fred W. Brackebusch <BR>P.O. Box 1019
      <BR>Kellogg, Idaho 83837 </TD>
    <TD align=center width="25%"><BR>7,900,077 indirect (a) <BR>1,807,861
      direct </TD>
    <TD align=center width="25%"><BR>21.55% <BR></TD></TR>
  <TR vAlign=top>
    <TD align=left>Common <BR><BR></TD>
    <TD align=left width="25%">Constance Meisel <BR>105 East Atlantic Avenue
      <BR>Delray Beach, FL 33444 </TD>
    <TD align=center width="25%"><BR>3,158,607 <BR></TD>
    <TD align=center width="25%"><BR>7.01% <BR></TD></TR>
  <TR vAlign=top>
    <TD align=left>Common </TD>
    <TD align=left width="25%">William Ritger <BR>Ocean Royale Way <BR>Juno
      Beach, FL 33408 </TD>
    <TD align=center width="25%"><BR>3,162,425 <BR></TD>
    <TD align=center width="25%"><BR>7.02% </TD></TR></TABLE></DIV><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%">1) </TD>
    <TD>
      <P align=justify>Based upon 45,045,662 outstanding shares of Common Stock
      on June 30, 2011.</P></TD></TR></TABLE>
<P align=justify>(a) Fred Brackebusch owns 89.6% of Mine Systems Design, Inc.
(MSD) which is an S corporation that owns 8,817,050 common shares of the
Company. Neither MSD nor Fred Brackebusch has the right to acquire any
securities pursuant to options, warrants, conversion privileges or other
rights.</P>
<P align=center>[The balance of this page intentionally left blank]</P>
<P align=right>19</P>
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<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 <BR></TD>
    <TD align=center width="25%">Name and Address Of Beneficial <BR>Owner </TD>
    <TD align=center width="25%">Amount and Nature of <BR>Beneficial Owner </TD>
    <TD align=center width="25%">Percent of Class (1) <BR></TD></TR>
  <TR vAlign=top>
    <TD align=left>Common <BR><BR></TD>
    <TD align=left width="25%">Fred W. Brackebusch <BR>P.O. Box 1019
      <BR>Kellogg, Idaho 83837 </TD>
    <TD align=center width="25%"><BR>7,900,077 indirect (a) <BR>1,807,861
      direct </TD>
    <TD align=center width="25%"><BR>21.55% <BR></TD></TR>
  <TR vAlign=top>
    <TD align=left>Common <BR><BR></TD>
    <TD align=left width="25%">Grant A. Brackebusch <BR>P.O. Box 131
      <BR>Silverton, ID 83837 </TD>
    <TD align=center width="25%">916,973 indirect (b) <BR><BR>725,920 direct
    </TD>
    <TD align=center width="25%">3.65% <BR><BR></TD></TR>
  <TR vAlign=top>
    <TD align=left>Common <BR><BR></TD>
    <TD align=left width="25%">Ivan R. Linscott, Director <BR>7150 Burke Road
      <BR>Wallace, ID 83873 </TD>
    <TD align=center width="25%"><BR>160,500 <BR></TD>
    <TD align=center width="25%"><BR>0.36% <BR></TD></TR>
  <TR vAlign=top>
    <TD align=left>Common <BR><BR></TD>
    <TD align=left width="25%">William C. Rust, Director <BR>P.O. Box 648
      <BR>Wallace, ID 83873 </TD>
    <TD align=center width="25%"><BR>120,000 <BR></TD>
    <TD align=center width="25%"><BR>0.27% <BR></TD></TR>
  <TR vAlign=top>
    <TD align=left>Common <BR><BR></TD>
    <TD align=left width="25%">M. Kathleen Sims, Director <BR>2745 Seltice Way
      <BR>Coeur d'Alene, ID 83814 </TD>
    <TD align=center width="25%"><BR>133,000 <BR></TD>
    <TD align=center width="25%"><BR>0.30% <BR></TD></TR>
  <TR vAlign=top>
    <TD align=left>Common <BR></TD>
    <TD align=left width="25%">All Directors and Executive Officers <BR>as a
      group (5 individuals) </TD>
    <TD align=center width="25%"><BR>11,764,331 </TD>
    <TD align=center width="25%"><BR>26.12% </TD></TR></TABLE></DIV><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left >(1) </TD>
    <TD align=left width="95%">
      <P align=justify>Based upon 45,045,662 outstanding shares of Common Stock
      on June 30, 2011. </P></TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="95%">
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >(a) </TD>
    <TD align=left width="95%">
      <P align=justify>Fred Brackebusch owns 89.6% of Mine Systems Design, Inc.
      (MSD), which is a corporation that owns 8,817,050 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></TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="95%">
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >(b) </TD>
    <TD align=left width="95%">
      <P align=justify>Grant Brackebusch owns 10.4% of Mine Systems Design, Inc.
      (MSD), which is a corporation that owns 8,817,050 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></TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="95%">
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left ></TD>
    <TD align=left width="95%">
      <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. No shares are pledged as security.
  </P></TD></TR></TABLE>
<P align=center>[The balance of this page intentionally left blank]</P>
<P align=right>20</P>
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<P align=center><B>RECENT MARKET PRICES</B></P>
<P align=justify>Our Common Stock currently trades on the OTCQB tier of the OTC
Market under the symbol "NJMC". The following table sets forth the range of high
and low bid prices as reported by the 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 align=center>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="70%" border=1>

  <TR vAlign=top>
    <TD align=left ><B>Year Ending December 31, 2011</B> </TD>
    <TD align=center width="27%"><B>High Bid</B> </TD>
    <TD align=center width="27%"><B>Low Bid</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left >First Quarter </TD>
    <TD align=center width="27%">$0.30 </TD>
    <TD align=center width="27%">$0.24 </TD></TR>
  <TR vAlign=top>
    <TD align=left >Second Quarter </TD>
    <TD align=center width="27%">$0.32 </TD>
    <TD align=center width="27%">$0.19 </TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>Year Ending December 31, 2010</B> </TD>
    <TD align=center width="27%"><B>High Bid</B> </TD>
    <TD align=center width="27%"><B>Low Bid</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left >First Quarter </TD>
    <TD align=center width="27%">$0.29 </TD>
    <TD align=center width="27%">$0.19 </TD></TR>
  <TR vAlign=top>
    <TD align=left >Second Quarter </TD>
    <TD align=center width="27%">$0.28 </TD>
    <TD align=center width="27%">$0.20 </TD></TR>
  <TR vAlign=top>
    <TD align=left >Third Quarter </TD>
    <TD align=center width="27%">$0.26 </TD>
    <TD align=center width="27%">$0.18 </TD></TR>
  <TR vAlign=top>
    <TD align=left >Fourth Quarter </TD>
    <TD align=center width="27%">$0.35 </TD>
    <TD align=center width="27%">$0.18 </TD></TR></TABLE></DIV>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>SECTION 16(a) BENEFICIAL
OWNERSHIP REPORTING COMPLIANCE </B><B>Section 16(a) Beneficial Ownership
Reporting Compliance </B></P>
<P align=justify>Section 16(a) of the Securities Exchange Act of 1934, as
amended, requires the Company&#146;s officers, directors, and persons who
beneficially own more than 10% of the Company&#146;s common stock (&#147;10%
Stockholders&#148;), to file reports of ownership and changes in ownership with the
Securities and Exchange Commission (&#147;SEC&#148;). Such officers, directors and 10%
Stockholders are also required by SEC rules to furnish us with copies of all
Section 16(a) forms that they file.</P>
<P align=justify>Based solely on our review of the copies of such forms received
by us, or written representations from certain reporting persons, we believe
that during fiscal year ended December 31, 2010, all filing requirements
applicable to its officers, directors and greater than 10% percent beneficial
owners were complied with, except for the following:</P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="70%" border=1>

  <TR vAlign=top>
    <TD align=left ><B>NAME &amp; NATURE OF AFFILIATION</B>
    <BR></TD>
    <TD align=center width="22%"><B>LATE REPORTS</B> <BR></TD>
    <TD align=center width="22%"><B>REPORTS NOT</B> <BR><B>FILED</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left >Fred W. Brackebusch, <BR>Chairman of the
      Board, President, Chief Executive <BR>Officer &amp; Treasurer </TD>
    <TD align=center width="22%"><BR>Form 4 (one) <BR></TD>
    <TD align=center width="22%"><BR>N/A <BR></TD></TR>
  <TR vAlign=top>
    <TD align=left >Grant A. Brackebusch, <BR>Vice-President
      &amp; Director </TD>
    <TD align=center width="22%"><BR>Form 4 (one) </TD>
    <TD align=center width="22%"><BR>N/A </TD></TR>
  <TR vAlign=top>
    <TD align=left >Ivan R. Linscott, Director </TD>
    <TD align=center width="22%">Form 4 (one) </TD>
    <TD align=center width="22%">N/A </TD></TR>
  <TR vAlign=top>
    <TD align=left >William C. Rust, Director </TD>
    <TD align=center width="22%">Form 4 (one) </TD>
    <TD align=center width="22%">N/A </TD></TR>
  <TR vAlign=top>
    <TD align=left >M. Kathleen Sims, Director </TD>
    <TD align=center width="22%">Form 4 (one) </TD>
    <TD align=center width="22%">N/A </TD></TR></TABLE></DIV>
<P align=right>21</P>
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<P align=center><B>ADDITIONAL SHAREHOLDER INFORMATION</B></P>
<P align=justify><B>Shareholders</B></P>
<P align=justify>As of June 30, 2011, there were approximately 1,200
shareholders of record of the Company's Common Stock. As of June 30, 2011, the
Company had issued and outstanding 45,045,662 shares of Common Stock.</P>
<P align=justify><B>Shareholder Proposals for 2011 Annual Meeting</B></P>
<P align=justify>The Company will review shareholder proposals intended to be
included in the Company's proxy materials for the 2012 Annual Meeting of
Shareholders which are received by the Company at its principal executive
offices no later than April 15, 2012 (unless the date of the next annual meeting
is changed by more than 30 days from the date of this year'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=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's Form 10-K for the fiscal year
ended December 31, 2010. The Company's Form 10-K may also be accessed at the
SEC's website at <U>www.sec.gov</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="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="50%">By Order of the Board of Directors </TD></TR>
  <TR>
    <TD >&nbsp;</TD>
    <TD width="50%">&nbsp; </TD></TR>
  <TR>
    <TD >&nbsp;</TD>
    <TD width="50%">&nbsp; </TD></TR>
  <TR>
    <TD >&nbsp;</TD>
    <TD width="50%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="50%">Fred W. Brackebusch </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="50%">Chairman of the Board, President </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="50%">and Chief Executive Officer
</TD></TR></TABLE>
<P align=right>22</P>
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<P align=center>ANNUAL MEETING OF STOCKHOLDERS OF<BR>NEW JERSEY MINING
COMPANY</P>
<P align=justify>The undersigned appoints <U>Fred W. Brackebusch</U>, Chairman
of the Board, President, Chief Executive Officer and Treasurer, or <U>Grant A.
Brackebusch</U>, Vice President and Director, of New Jersey Mining Company with
full power of substitution, the attorney and proxy of the undersigned, to attend
the annual meeting of shareholders of New Jersey Mining Company, to be held
August 26, 2011 beginning at 10:00A.M, Pacific Daylight Time, at the Wallace
Inn, 100 Front Street, Wallace, Idaho, 83873, and at any adjournment thereof,
and to vote the stock the undersigned would be entitled to vote if personally
present, on all matters set forth in the proxy statement sent to shareholders, a
copy of which has been received by the undersigned, as follows:</P>
<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%">1. </TD>
    <TD>
      <P align=justify>Election of Directors (check one)</P></TD></TR></TABLE>
<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: 15%" align=justify>Withhold All Nominees</P>
<P style="MARGIN-LEFT: 15%" align=justify>Withhold Authority to Vote For Any
Individual Nominee. Write name below:</P>
<P style="MARGIN-LEFT: 15%"
align=justify>____________________________________</P>
<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%">2. </TD>
    <TD>
      <P align=justify>Ratification of Amendment to Articles of Incorporation to
      increase authorized Common Stock (check one)</P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 15%" align=justify>For <BR>Against <BR>Abstain</P>
<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%">3. </TD>
    <TD>
      <P align=justify>Ratification of Appointment of Independent Registered
      Public Accounting Firm (check one)</P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 15%" align=justify>For <BR>Against <BR>Abstain</P>
<P align=justify>The Board of Directors recommends a vote "For" Items 1, 2, and
3. This proxy, when properly executed, will be voted in the manner directed
herein by the undersigned shareholder. In the absence of specific instructions,
proxies will be voted &#147;For&#148; Items 1, 2, and 3 at the discretion of the Proxy
Agents as to any other matters that may properly come before the Annual Meeting
of Shareholders.</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>
<TABLE
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cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>PLEASE MARK, SIGN, DATE, AND RETURN THIS </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="50%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>PROXY PROMPTLY USING THE ENCLOSED ENVELOPE </TD>
    <TD align=left width="50%" >&nbsp;</TD></TR></TABLE>
<P align=right>23</P>
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