North American Gold Gold Producer Producer Corporate Update September August 2018 2018
Forward Looking Statements Forward Looking Statements contained herein that are not based upon current or historical fact are forward-looking in nature and constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward looking statements reflect the Company's expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties. These statements include but are not limited to: statements relating to forecasted gold production, projected net income cash costs, and all-in costs, future optimization and resource expansion and potential resource upgrade or extending the Golden Chest Mine life-of-mine, mineral resource estimates. When used herein, the words "anticipate," "believe," "estimate," upcoming, "plan," target, "intend" and "expect" and similar expressions, as they relate to New Jersey Mining Company, its subsidiaries, joint venture partners or its management, are intended to identify such forward looking statements. These forward looking statements are based on information currently available to the Company and are subject to a number of risks, uncertainties, and other factors that could cause the Company's actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward looking statements. Factors that could cause or contribute to such differences include, but are not limited to risks related to mining activities and production shortfalls, metallurgical recovery problems, ore grade or tonnage shortfalls, changes in project parameters, future metal prices, changes in quantity and costs of future production, risks related to the ability to finance future development at the Golden Chest Mine,, risks related to mineral resource estimates and other such factors, including risk factors discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. Except as required by Federal Securities law, the Company does not undertake any obligation to release publicly any revisions to any forward looking statements. Cautionary Statements Cautionary Note Regarding Estimates of Measured, Indicated and Inferred Resources. The United States Securities and Exchange Commission (SEC) permits mining companies, in their filings with the SEC, to disclose only reserves, which are those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this presentation, such as resource, measured resources, indicated resources, and inferred resources that are recognized by Canadian regulations, but that SEC guidelines generally prohibit U.S. registered companies from including in their filings with the SEC, except in certain circumstances. U.S. investors are urged to consider closely the disclosure in our most recent Form10-K and Form10-Q. You can review and obtain copies of these filings from the SEC s web site at www.sec.gov. 2
Our patented/unpatented land strategy focusing on former gold mines/prospects on private land with ownership of adjacent unpatented mining claims. From an operational and permitting perspective, this approach not only fits our current strategy of starting small and growing, but also provides a potential base for sizeable operations on private land should that opportunity become available. John Swallow, New Jersey Mining Co. CEO & President 3
Two States / Three Gold Districts Idaho: Murray Gold Belt Central Idaho Montana: Butte Highlands 4
Three Gold Districts: Significant Potential Murray Gold Belt Golden Chest Mine Crown Point Buckskin Butte Gulch Giant Ledge Central Idaho Eastern Star South Fork McKinley Butte Highlands Established and permitted underground mine 5
Foundation for Growth Why NJMC Experienced, Successful Management Team Dual Listing: CSE in Canada / OTCQB in U.S. Ability to advance projects in difficult market conditions NJMC holds 68 patented & 388 unpatented mining claims covering 6,195 acres Proven Mine & Mill Operators Golden Chest Mine produces gold ore from open pit & underground All ore processed at New Jersey s own State-of- Art floatation mill Shareholder Focused Management and Culture Management owns more than 15% shares Acquired through financings and open market purchases Employees are shareholders 6
Current and Future Production EXPLORATION PRE-DEVELOPMENT PRODUCTION Murray Gold Belt District-scale exploration and multitiered expansion potential; Crown Point Buckskin Butte Gulch Giant Ledge Central Idaho Recently rediscovered historic gold district makes for opportunity; Eastern Star South Fork Murray Gold Belt Advanced Exploration Projects become Pre-Development Projects; New Klondike surface pit Layback to current surface pit Paymaster underground Butte Highlands Historic gold district located south of Butte, MT; Fully permitted underground gold mine NJMC interest is carried to production, with its share of costs paid from future production. Golden Chest Mine Pre-Development Projects become gold producers; Producing gold from open pit and underground; Processing ore at the New Jersey Mill. 2017 NI 43-101 shows openpit gold resource; 254,000 oz Measured/Indicated 223,000 oz Inferred All debt associated with surface pit and underground mine start up is paid in full 7
Murray Gold Belt 8
Murray Gold Belt History Historic Mining District 1879 Gold first discovered in the Murray Gold Belt (MGB) of Idaho Geologically similar to lode mines of Cariboo District and Sheep Camp in Canada (producing an estimated 4 million oz. gold) Forgotten and Overlooked By 1885, Murray Gold Belt became secondary with the discovery of rich lead-silver veins in southern part of district Most world class districts are zoned; MGB is the gold zone within a world class silver district 9
Murray Gold Belt - How we got here Rebirth of MGB led by NJMC 2008-2010 Newmont and NJMC JV on Toboggan Project 2010-2012 Marathon Gold & NJMC JV on Golden Chest Project 2016 NJMC s refines Idaho Fault/Vein position leading to trenching and core drilling for additional open pit targets 2017 Hecla core drilling at Little Baldy 2017-2018 NJMC producing gold from underground and open pit 10
Murray Gold Belt Where we are going Modern Development and Production Activity 2013-2015 Infrastructure modernized new portal, decline and spiral ramp 2017-2018 Hecla increases land position to approximately 14 square miles 2018 Hecla purchases Toboggan claims and data set from NJMC 2018 NJMC significantly increases land position; Crown Point, Buckskin, Butte Gulch, Giant Ledge 2019 Golden Chest Lay-Back Pit, Klondike Surface Pit, Crown Butte Exploration Drilling 11
Murray Gold Belt Elephant Country Geological setting provides opportunity to host several large deposits: Location on major north-south faults Sulfide mineralogy - Galena (lead), Pyrite (iron), Chalcopyrite (copper), Sphalerite (zinc) Gold and tungsten association Shear-hosted orogenic Mineralization associated with alkalic intrusives 12
Murray Gold Belt Why we like it NJMC s strategic land position Crown Point Project Crown Point Vein Zone exhibits 40 to 100-foot widths along at least 3,000 feet of strike in surface outcrop Four Square Mine, an historical producer of gold and tungsten Currently undergoing surface diamond core drilling Buckskin Project Historic underground workings and 20-stamp mill Recent trenching revealed mineralized veins 218 acres of patented land and 700 acres of unpatented land Butte Gulch Project Historic producer of placer gold with unidentified lode source Documented gold-bearing veins Giant Ledge Project Historic underground workings Core drilling by Sunshine Mining Large gold anomaly identified 13
Golden Chest Mine
The Golden Chest Mine Located in the Murray Gold Belt of the Coeur d Alene Mining District NJMC owns 100% (subject to 2% NSR royalty) More than $13M invested in infrastructure, exploration & development Open-pit and underground mining underway 2017 NI 43-101 open-pit gold resource: 254,000 oz M&I and 223,000 oz Inferred Good exploration/expansion potential both at depth and along strike 15
Open-Pit Gold Production Commenced underground operations in December 2017 Expanded Golden Chest open pit design has an estimated 100,000 tonnes @ 3.97 grams Au (gpt), totaling 12,700 ounces of gold Additional 30-meter lay-back of current pit is possible Drilling and modelling work currently underway on next open pit, the Klondike Work currently underway to evaluate additional open pits along Idaho Fault 16
Underground Gold Production Commenced underground operations in December 2017 Open-Pit Initial production focused on Skookum Shoot orebody Modern exploration (including nearly 30,000 meters of drilling) has revealed six northwest trending shoots that demonstrate consistent widths and spacing along Idaho Fault Outstanding platform for future exploration and resource development 17
Near-Term Resource Expansion Similar to deposits of the nearby Coeur d Alene District, ore shoots at the Golden Chest suggest potential for vertical continuity, greater extent in dip than strike CROSS SECTION SHOWING VERTICAL CONTINUITY OF SKOOKUM ORE SHOOT Over 1,000 meters of strike identified As one of six identified ore shoots, the Skookum Shoot, the site of targeted production, demonstrates a strike of 100 meters and down dip extent of 600+ meters Expansion potential in several drill-tested areas including Skookum up-dip and the Paymaster zone Confirmation drilling expected to increase resources and extend mine life 18
District-Scale Potential Golden Chest property located within the Murray Gold Belt includes 68 patented & 388 unpatented mining claims covering 6,195 acres Six ore shoots demonstrate strong periodicity along Idaho Fault, with consistent width & spacing Over 30,000 meters of drilling on property, beginning with Newmont in 1980s Excellent mineralization potential in unmined northern shoots and in Joe Dandy & Paymaster shoots to the south 19
Central Idaho Gold Belt IDAHO
Central Idaho Advanced Exploration Eastern Star Project Located in the Elk City Mining District 11 patented (220 ac) and 38 unpatented (760 ac) lode claims acres totaling 980 acres Near surface high grade-target revealed by NJMC trenching Drill ready for 2019 field season Excellent infrastructure located near high voltage power and highway access Of 27 samples collected by the Company over multiple vein zones, 12 returned gold values exceeding 5.5 gpt with five of those exceeding 17.0 gpt. 21
Central Idaho Early Stage Exploration South Fork Project Located in the historic Elk City Mining District Historic high-grade producer Three adits provide access to four veins Located near highway 5 patented and 34 unpatented lode claims totaling 704 acres 22
Butte Highlands
Butte Highlands Joint Venture Butte Highlands Project Historic gold producer, 1937-1942. Nearly 30,000 meters of drilling by Battle Mtn, Placer Dome, Orvana & ASARCO in the 1980s & 1990s. 1,600 meters of underground development and surface facilities, built by industry leader SMD. 16,150 meters of core drilled from underground stations in 2011, outlining initial production zones. IDAHO NJMC purchased a 50% interest in Butte Highlands JV LLC ( BHJV ). Fully permitted with nearly $40 million invested. Located south of Butte, in a region that hosted several multi-million ounce gold deposits. NJMC interest is carried to production with its share of costs paid from future production. 24
In its most basic form, we have incorporated a number of moving parts into an overall business approach that separates us from other junior mining and exploration companies. Our goal is to continue to build the Company as we have done, paying off start up debt, utilizing revenues from existing operations to expand and grow our asset base. More simply put, we put our money where our mouth is, focus on doing the heavy lifting and just get shit done. John Swallow, New Jersey Mining Co. CEO & President 25
Management & Directors John Swallow CEO / President & Director Majority shareholder of NJMC. Mr. Swallow is a successful business owner and entrepreneur in both the mining and high-tech industries. With a focus on team building and corporate culture he has helped to build a drilling subsidiary (20+ million in revs, +100 employees), advance publicly listed companies to senior exchanges in the U.S. and Canada and currently mentors and is on the board of a continuous fiber 3D printing company and owner of an established company focused on the design and manufacture of surface science testing equipment. Mr. Swallow holds a B.S. in Finance from Arizona State University. Grant Brackebusch, P.E. Vice-President & Director Mr. Brackebusch has served as the V.P. and a Director of NJMC since 1996. He holds a B.S. in Mining Engineering and is a registered Professional Engineer. With extensive experience mill operations, mine operations, mine engineering, and environmental permitting he currently, he supervises the daily operations of the Golden Chest. His background in the mining industry also includes open pit mine planning, underground mine planning, and operational supervision. Prior to working for NJMC he worked for Newmont Mining. Rob Morgan Vice President Geology Mr. Morgan has over 21 years of exploration experience, including 19 years focused on gold exploration, of which 11 years were in Northern Idaho and Montana. Mr. Morgan has worked for some of the world s leading gold exploration and mining companies including Newmont and ASARCO throughout the western United States, Alaska and South America. He is practiced in designing, implementing and managing large exploration programs for gold, silver, base metals and rare earth elements. Del Steiner Chairman Mr. Steiner has 35 years in the mining industry. He has practiced law in Idaho for more than 25 years, with an extensive background in environmental and mining law, including permitting projects from the exploration to mining phases with primary focus on central Idaho. He holds a B.S. from Lewis Clark State College and a Juris Doctor from the University of Idaho. Kevin Shiell Director Mr. Shiell has more than 35 years of operating and management experience in the mining and mineral processing industries. He has held executive leadership positions at several public companies, including General Manager and Vice President of Mine Operations at Stillwater Mining Company, Chief Operating Officer at MDM Gold, and various mine supervisory positions at Hecla Mining Company. Mr. Shiell is currently the General Manager of the Hollister and Midas Gold Mines which are owned and operated by Hecla Mining Company. Monique Hayes Investor Relations / Corporate Secretary Ms. Hayes has 12 years of mining industry experience in investor relations and corporate governance most recently overseeing community relations in northwest Montana for Hecla Mining following its acquisition of Revett Mining Company. At Revett she was Director of Investor Relations and Corporate Secretary where she managed stakeholder relations, and directed its up-listing to the NYSE MKT. 26
Share Structure Market Cap as of September, 2018 $19.62M Issued and Outstanding 122.5M 52 Week Hi-Low US$0.25/$0.11 Officer and Director Holding 15% 27
Monique Hayes Investor Relations 208.625.9001 monique@ John Swallow CEO / President & Director jswallow@ New Jersey Mining Company 201 N. 3 rd, Street, Coeur d Alene, ID 83814 www.