New Jersey Mining Co. — Lost Eagle Exploration Update

Business Wire, Nov 29, 2001

Business Editors

KELLOGG, Idaho--(BUSINESS WIRE)--Nov. 29, 2001

New Jersey Mining Company (OTCBB:NJMC) has completed exploration of its Lost Eagle prospect for the season.

The results of electron microprobe analysis, geochemical soil sampling, and excavation of the quartz vein were all very encouraging.

The prospect is located near the Murray Mining District of northern Idaho where approximately 400,000 ounces of gold have been recovered. The Lost Eagle prospect is a quartz vein carrying sulfides that outcrops in the Revett formation. The averages of eight grab samples taken at the Lost Eagle discovery site were 16.3 grams/tonne gold and 159 grams/tonne silver. Electron microprobe analysis has shown that the gold and silver-bearing minerals of the vein are the telluride minerals petzite and hessite, which are inclusions in pyrite. Geochemical assays of the vein material averaged 30 ppm tellurium confirming the presence of telluride minerals. Galena and tetrahedrite are also present in the ore.

A portion of the vein was exposed by an old adit that had been buried from the hillside sloughing in. NJMC excavated the material and re-opened the adit. The adit exposes only about 15 feet of strike length along which the vein pinches and swells from 2 feet to 6 inches wide. The vein is in the face of the adit which indicates that it continues on strike. A grid of soil samples was established on the projected extension of the vein. A lead anomaly was detected in the soil as far as 50 meters from the adit indicating the possibility that the vein continues at least that far.

The geology in the area of the Lost Eagle includes a broad, north-trending anticline traversed by north northwest trending faults. The prospect is on the west flank of the anticline in flat-lying Revett quartzite. Northwesterly trending structures in the prospect area appear to be mineralized and may be hosts for mineralizing solutions. The Lost Eagle vein, itself, strikes N 20(degrees) E and dips to the east.

Telluride mineralization is typically associated with igneous stocks of alkaline composition. No igneous rocks are known in the vicinity of the Lost Eagle. Telluride mineralization is present in some major gold mining districts including Cripple Creek, Colorado and Kalgoorlie, Australia. Telluride mineralization has not been known to exist in the nearby Coeur d'Alene Mining District nor the adjacent Murray District. The presence of gold and silver tellurides raises the possibility of the presence of bonanza grade shoots because the tellurides are about 65% precious metals.

New Jersey Mining Company is involved in exploring for and developing gold, silver and base metal ore resources in the Coeur d'Alene Mining District of northern Idaho. The Company has a portfolio of five mineral properties in the Coeur d'Alene Mining District: the New Jersey mine, the Silver Strand mine, the Lost Eagle project, the CAMP project and the Wisconsin-Teddy project.

Disclaimer:

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy, and some of which might not even be anticipated.