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PIEDMONT MINING COMPANY REPORTS THIRD QUARTER RESULTS

 CHARLOTTE, N.C., Nov. 17 ~PRNewswire~ -- Piedmont Mining Compan y, Inc. (NASDAQ: PIED), which is engaged in exploration and production of gold in the Southeast, reported a loss of $784,000, or $0.05 per share, in the third quarter ended Sept. 30, 1992, compared with a loss of $619,000, or $0.04 per share, in third quarter of 1991. The third quarter loss includes a $523,000 provision for estimated income taxes. In addition, the loss reflects amortization to income of $728,000 of the deferred gain resulting from the sale of a 62.5 percent interest in the Haile property to a subsidiary of Amax Gold Inc. (NYSE: AU) in 1992. The deferred gain is being amortized to income in amounts equal to the sum of Piedmont's share of the costs and expenses and its other direct costs of participation in the mining venture with Amax Gold. Net sales in the third quarter were $118,000, compared with $959,000 in the third quarter of 1991.
 For the first nine months of 1992, Piedmont reported a loss of $2,881,000, or $0.20 per share, compared with a loss of $1,279,000 or $0.09 per share, in the nine month period of 1991. Net sales were $1,127,000 compared with $3,794,000 in the nine month period of 1991.
 On May 1, 1992, a wholly-owned subsidiary of Amax Gold Inc. exercised its option and acquired a 62.5 percent interest in Piedmont's Haile property. Through a wholly-owned subsidiary, Piedmont is now participating with a wholly-owned subsidiary of Amax Gold Inc. in the Haile Mining Venture to further explore and evaluate and, if warranted, develop and operate a gold mine producing at least 100,000 ounces per year at the Haile property. Piedmont holds a 37.5 percent interest in the Haile Mining Venture which is managed by another wholly-owned subsidiary of Amax Gold Inc.
 The 1992 loss and drop in net sales reflect the suspension of mining activities at the Haile property in August 1991 in connection with the anticipated mining venture and the sale of the Mineralite(R) business in July 1992. Leaching and recovery of gold has continued longer than expected and will probably cease in the fourth quarter of 1992. During the first half of 1992 and prior to the commencement of the Haile Mining Venture, Piedmont produced 1,917 ounces of gold.
 Piedmont's financial condition continues to be strong. Accounts payable were $28,000 at Sept. 30, 1992 compared with $184,000 at Dec. 31, 1991, and long term debt has been totally paid off. Cash and cash equivalents increased again to $3,229,000 at Sept. 30, 1992, compared with $3,197,000 at June 30, 1992 and $1,483,000 at Dec. 31, 1991. Piedmont also holds 1,000,000 unregistered shares of Amax Gold's common stock.
 Expenditures for the Haile Mining Venture are about $1,000,000 less than budgeted in early July and are expected to total about $3,500,000 for 1992, with Piedmont paying 37.5 percent of these expenditures. A budget of $6,000,000 for the venture has been approved by Piedmont and Amax Gold for 1993. Piedmont expects that an updated ore reserve calculation will be completed by late January, a mine plan in the second quarter of 1993, and a bankable feasibility study by late 1993. Drilling, engineering and environmental studies at the Haile property are continuing. Three drill rigs are expected to continue operating on the property into December and for most of 1993 as well.
 At Piedmont's Russell-Coggins property in North Carolina, soil sampling, trenching and core drilling are continuing. To date, three core holes totalling 1,550 feet have been drilled. Assays are pending. Five trenches totalling 1,200 feet have been completed to date. Assays for each trench averaged 0.01 to 0.03 ounces per ton. Exploration expenditures this year through Oct. 31, 1992 totalled approximately $45,000 at this property.
 We regret to announce the passing of Irving Kiff, our Vice President of Exploration and founding partner. Irv's expertise and generous spirit will be missed by us all.
 Piedmont pioneered the resumption of gold mining in the Southeast in early 1985 at the Haile Gold Mine near Kershaw, S.C., employing for the first time the heap leaching process in the humid southeastern climate.
 CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED):
 Three Months Ended Nine Months Ended
 September 30 September 30
 1992 1991 1992 1991
 Net Sales $ 118,000 $ 959,000 $ 1,127,000 $3,794,000
 Cost Of Operations:
 Mine Operating
 Costs 90,000 953,000 1,085,000 3,020,000
 Haile Mining Venture
 Expense 514,000 --- 728,000 ---
 Amortization Of
 Deferred Gain (728,000) --- (728,000) ---
 Depreciation And
 Amortization Of
 Other Deferred
 Items 45,000 360,000 385,000 1,145,000
 Total Cost Of
 Operations (79,000) 1,313,000 1,470,000 4,165,000
 Gross Profit (Loss)
 From Operations 197,000 (354,000) (343,000) (371,000)
 Other Expenses (Income):
 General And
 Administrative 143,000 196,000 586,000 666,000
 Stock Appreciation
 Rights~Awards 273,000 --- 445,000 ---
 Exploration 56,000 23,000 122,000 68,000
 Amortization Of
 Non-Compete
 Agreement 8,000 25,000 58,000 75,000
 Loss On Sales Of
 Sericite Mining
 Operations 10,000 --- 875,000 ---
 Other Expenses
 (Income) (32,000) 21,000 (71,000) 99,000
 Total Other
 Expenses 458,000 265,000 2,015,000 908,000
 Income (Loss) Before
 Income Taxes (261,000) (619,000) (2,358,000)(1,279,000)
 Provision For Income
 Taxes 523,000 --- 523,000 ---
 Net Income (Loss) $ (784,000) $ (619,000) $(2,881,000) $(1,279,000)
 Net Income (Loss)
 Per Common Share $ (0.05) $ (0.04) $ (0.20) $ (0.09)
 Cash Dividends Per
 Share NONE NONE NONE NONE
 Weighted Average
 Number Of Common
 Shares Outstanding 14,716,432 14,323,290 14,591,444 14,319,317
 Balance Sheet Data (At End Of Period):
 Cash And Cash
 Equivalents $ 3,229,000 $ 1,326,000
 Working Capital 2,805,000 1,959,000
 Total Assets 11,104,000 10,741,000
 Long Term Debt,
 Less Current
 Maturities --- 798,000
 Deferred Gain 6,241,000 ---
 Shareholders'
 Equity 4,092,000 7,628,000
 -0- 11~17~92
 ~CONTACT: Thomas L. Ross, Piedmont Mining Company, Inc., 704-523-6866~
 (PIED AU)


CO: Piedmont Mining Company, Inc.; Amax Gold Inc. ST: North Carolina IN: MNG SU: ERN

MM -- CH003 -- 1751 11~17~92 10:36 EST
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Date:Nov 17, 1992
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