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PIEDMONT MINING COMPANY REPORTS FIRST QUARTER RESULTS

 PIEDMONT MINING COMPANY REPORTS FIRST QUARTER RESULTS
 CHARLOTTE, N.C., May 18 /PRNewswire/ -- Piedmont Mining Company,


Inc.(NASDAQ: PIED) which engages in exploration and production of gold in the Southeast, reported a loss of $586,000, or $0.04 per share, in the first quarter ended March 31, 1992, compared with a loss of $394,000, or $0.03 per share, in the first quarter of 1991. Net sales were $426,000 compared with net sales of $1,392,000 in the first quarter of 1991, and gold production totalled 755 ounces, compared with 3,316 ounces in the first quarter of 1991.
 The first quarter loss and the drop in net sales and gold production were primarily due to the suspension of mining activities since last August. Option payments from a subsidiary of Amax Gold Inc., (NYSE: AU), in the first quarter totalled $157,000 and are not reflected in the income statement. Leaching and recovery of gold continued through the first quarter of 1992 and will continue for Piedmont's account through June 30th.
 On May 1, 1992 a subsidiary of Amax Gold Inc. exercised its option to acquire a 62.5 percent undivided interest in Piedmont's Haile property near Kershaw, South Carolina. Piedmont received $1,750,000 in cash and 1,000,000 unregistered shares of Amax Gold's common stock on exercise. Piedmont now has cash and cash equivalents in excess of $3,000,000, compared with $1,376,000 at March 31, 1992 and long-term debt has been reduced to $0, compared with $544,000 at March 31, 1992. The value of the Amax Gold shares and cash received will not be reflected in Piedmont's income statement, since the gain on sale of the 62.5 percent interest in the Haile property will be deferred.
 Pursuant to the terms of the option and earn-in agreement, Piedmont and the Amax Gold subsidiary are now forming a joint venture to further explore and develop the Haile property. This joint venture will be managed by another Amax Gold subsidiary. Amax Gold has presented Piedmont with a detailed work plan and budget totalling $3,850,000 for the Haile property through December 1992, including $1,500,000 for further exploration, development and condemnation drilling. Piedmont should have adequate funds to meet its 37.5 percent share of expenses for 1992. Additional financing may be required after 1992.
 American Mine Services, Inc. of Aurora, Colorado is now updating its Preliminary Economic Evaluation for the Haile property, and these updated results should be available by early June.
 Piedmont pioneered the resumption of gold mining in the Southeast in early 1985 at its Haile Gold Mine near Kershaw, South Carolina, employing for the first time the heap leaching process in the humid southeastern climate.
 CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (Unaudited)
 Three Months Ended
 March 31
 1992 1991
 NET SALES $ 426,000 $1,392,000
 COST OF SALES:
 Mine operating costs 523,000 1,135,000
 Depreciation expense 151,000 288,000
 Amortization of deferred costs 34,000 100,000
 708,000 1,523,000
 GROSS LOSS FROM OPERATIONS: (282,000) (131,000)
 OTHER (INCOME) EXPENSES:
 General and administrative 215,000 169,000
 Stock appreciation rights
 and awards 29,000 0
 Exploration 29,000 22,000
 Amortization of non-compete
 agreement 25,000 25,000
 Interest expense 43,000 48,000
 Interest and other income (37,000) (1,000)
 304,000 263,000
 LOSS BEFORE INCOME TAXES (586,000) (394,000)
 Provision for federal and
 state income taxes 0 0
 NET LOSS $(586,000) $(394,000)
 NET LOSS PER COMMON SHARE $ (.04) $ (.03)
 CASH DIVIDENDS PER SHARE None None
 WEIGHTED AVERAGE NUMBER OF
 COMMON SHARES OUTSTANDING 14,433,000 14,312,000
 BALANCE SHEET DATA (at end of period)
 Working Capital $1,122,000 $1,422,000
 Total Assets 9,328,000 11,951,000
 Long-Term debt, less current
 maturities 544,000 1,044,000
 Shareholders' Equity 5,595,000 8,502,000
 -0- 5/18/92
 /CONTACT: Thomas L. Ross III, Piedmont Mining Company, Inc., 704-523-6866/
 (PIED AU) CO: Piedmont Mining Company, Inc. ST: North Carolina IN: MNG SU: ERN


JZ -- CH005 -- 1297 05/18/92 11:53 EDT
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Date:May 18, 1992
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