Piedmont Signs Letter Of Intent on Bullion Mountain Gold Project, Nevada.

RENO, Nev. -- Piedmont Mining Company, Inc. (PIED) has signed a Letter of Intent to enter into a 'Lease with Option to Purchase Agreement' with Nevada Eagle Resources (NER) on the 17 unpatented 'Bully' claims on Bullion Mountain in the northern Shoshone Range in Lander County, Nevada. These claims are located in the Battle Mountain - Cortez trend, approximately 12 kilometers north-northwest of the Gold Acres and Pipeline gold mines; about 25 kilometers north-northwest of the Cortez and Cortez Hills gold deposits; about 35 kilometers southeast of the Phoenix-Fortitude gold project and about 48 kilometers southeast of Piedmont's Dome-HiHo project. The Shoshone Range is underlain by siliceous and volcanic rocks of Ordovician and Devonian age, in a complex array of faults in the upper plate of the Roberts Mountain Thrust. These sequences were subsequently intruded by 38 million year old intrusions and overlain by Miocene basalts and andesites.

Exploration and small-scale mining on these claims date back to about 1900. In 1989, ASARCO drilled eight vertical reverse circulation holes on the property obtaining intersections of 20 feet of 0.023 ounces of gold per ton; 10 feet of 0.204 ounces of gold per ton and several other 10 foot intersections grading more than 0.01 ounces of gold per ton. The Hilltop deposit, approximately 7 kilometers to the northwest, and Tenabo, about 3 kilometers to the southeast, both host significant gold mineralization in similar rock sequences. Gold mineralization in this environment is associated with silver and arsenic as well as barite and quartz. Assays of brecciated and limonitic surface samples on this property have returned assays of up to several tenths of an ounce of gold per ton.

Upon signing the formal Agreement, Piedmont would pay Nevada Eagle Resources $5,000 in cash plus reimbursement for claim holding fees, or at NER's election, an equivalent amount in Piedmont's Common Stock, with the same amounts being due to NER on the first anniversary of the Agreement. At the beginning of the third lease year, Piedmont would pay NER $10,000 in cash or an equivalent amount in stock, and $15,000 in cash or stock at the beginning of each successive lease year after that. Work commitment expenditures would be $20,000 during the first lease year and $50,000 in the second lease year, and in addition Piedmont would pay all property maintenance costs while the Agreement is in effect. During the term of the Agreement, Piedmont could purchase the property package for $500,000, subject to a 3% NSR royalty on production from the property. Two of the three royalty points could be bought down for $1,000,000 each. The term of the Agreement would be for 10 years, with Piedmont having the right to terminate it at any time upon 60 days notice.

Piedmont is a development-stage company with minimal revenues, limited assets, and an $11.5 million tax-loss carryforward. Its Common Stock is traded in the US electronic pink sheets under the symbol PIED.

Certain statements contained herein are forward-looking statements and accordingly involve risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events of performance, and underlying assumptions and other statements that are other than statements of historic facts. The forward-looking statements contained herein are based on various assumptions including, but not limited to, an assumption that the Company will be able to raise sufficient capital to execute on its business plan. The Company's expectations, beliefs and projections are expressed in good faith and are believed by the Company to have a reasonable basis, but there can be no assurance that management's expectations, beliefs or projections will be achieved or accomplished.

Piedmont Mining Company, Inc. Reno, Nevada