piedmont investor presentation - clean

8/14/2019 Piedmont Investor Presentation - Clean

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Investor Presentation

August 2008 OTC BB:PIED

Nevada Gold & Silver


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Cautionary StatementThe following presentation shall not be deemed to be an offer to sell, or an invitation of an offer to buy, thesecurities of Piedmont Mining Company, Inc. An offer may only be made by a private placement memorandum

and offers will only be made to accredited investors as that term is defined in Securities and ExchangeCommission Regulation D.

This presentation contains expressions of future expectations, projections and other forward-lookingstatements. Those statements are based on managements expectations, projections and beliefs, not historicalfacts and are subject to risks, uncertainties, assumptions and other factors, which are beyond management andthe Companys control, that could cause the actual results to differ from those contemplated by thestatements. These statements are only predictions and should not be construed as statements of material fact.Actual results will vary from the projections, and such variances may be material. Assumptions regarding

future revenues are necessarily speculative in nature and should not be relied upon in making an investmentdecision. When used in this document, the words anticipates, may, can, believes, expects, projects,intends, likely, will, to be and similar expressions and other statements that are not historical facts areintended to identify those assertions as forward-looking statements. Management believes that itsexpectations are based on reasonable assumptions. However, any such statement may be influenced by factorsthat could cause actual outcomes and results to be materially different from those projected or anticipated.

Forward-looking statements are subject to numerous risks and uncertainties. There are factors that could

cause actual results to differ materially from those in any forward-looking statement, many of which are beyondthe control of Piedmont, including economic and industry conditions such as the competitive environment,unanticipated operating problems, accidents, gold and silver price declines, changes in political, social oreconomic circumstances, variances in mineralization grades, labor relations, adverse weather conditions, therisks of mineral exploration, adverse market conditions, the inability to raise sufficient capital to fundexploration, regulatory uncertainties and risks, changes in tax and other laws, the risk of obtaining regulatoryapprovals and permits. Actual results could differ materially from those expressed in, or implied by, anyforward-looking statement. There may also be other factors that cause results not to be as anticipated. Noassurance can be given that any of the events anticipated by the forward-looking statements will occur or what

impact they will have on Piedmonts results and operations. Except as required by law, we are under noobligation to any forward-looking statement, whether written or oral, that may be made as a result of newinformation or future events.

August 20082


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Exploring for gold and silver in Nevada thebest gold environment in the world

Near major gold and silver producers

$16 million tax loss carry forward

Strong, experienced management

Flexible and proactive business modelwith minimal G&A expenses

Undervalued relative to industry peers

What Sets Piedmont Apart?

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1. Earn majority interest by fundingexploration over 5 years or less

2. If exploration results not satisfactory, can

terminate agreement upon 30-daysnotice

3. Work only with experienced and

successful exploration groups

4. Qualified people utilized only as needed

do not incur costs of full time staff

Piedmonts Unique Business Model

August 20084


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Methodology

n Evaluate and select properties with goodpotential for hosting significant gold and/orsilver deposits

n Enter into option and earn-in agreements only

with experienced and successful explorationgroups

n Highly skilled people are utilized only on as-needed basis thereby minimizing G&A costs

n If exploration results are encouraging, we earninto a majority interest by funding exploration

n If exploration results are not satisfactory, we can

terminate agreement upon 30-days noticeAugust 20085


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Gold Price History

August 20086


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Gold & Silver Price History

U.S. Gold -

Monthly

August 20087

Silver - Monthly


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Gold Price Outlook

World mine production of gold continues to decline

European Central Bank sales have slowed to atrickle

World governments continue to print increasing

amounts of paper money Demand for physical gold continues to increase in

the Middle East and Asia

Reports of shortages of physical gold are now

surfacing with increasing frequency The gold market is a very inelastic market

Gold prices should continue to increase over theforthcoming years with intermittent corrections

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Why Nevada?

Nevada hosts the 2nd largest goldenvironment in the world, after SouthAfrica

Past production plus current resources

exceed 300 million ounces of gold! Good infrastructure; major gold producers

Supportive of mining & exploration

Accessibility - good road system No state income taxes

Stable government

The Nevada DividendAugust 20089


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Piedmont Mining Projects

Source: Nevada Bureau Mines & Geology OF03-2

August 200810

Dutch FlatGoldCompleted 2 drillprogramsWide intervals oflow grade gold at

shallow depthPotential low costheap leach mineNext drill programFall 2008

Willow CreekGold5,000 ft drill programpermitted, bonded andfunded$300,000 1st year

exploration programfully fundedDrilling expected tocommence in Sept orOct

Trinity Silver9 sq.mi. of mostly privatelandDrill data from ~280 drillholesShallow mineralizationSilver resource currently

being compiled

PPM GoldDrilling programpermitted/bonded

Adjacent to sedimenthosted mercurydistrict.NE striking faultsintersect gold insagebrush anomalies

Piedmont projects in relationto gold and silver resources

discovered in Nevada since1930


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Strategic Partners

AuEx Ventures

Miranda Gold Corporation

Cordex Exploration Company /Columbus Gold Corporation

Gryphon Gold Corporation

Carlin Gold Corporation

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Exploration Project Pipeline

Phase 1 Phase 2 Phase 3

Willow

Creek

PPMProje

ct

PascoCanyon

DutchFlat

Morgan

Pass

Bullion

Mtn.

TrinitySilver

Evaluation &Agreement Identify properties

Evaluate potential for gold

and silver Select promising

properties

Negotiate and signoption/earn-in agreement

Secure preliminaryfunding

ExplorationCommence exploration

Drill and analyze results

If results satisfactory

If results not satisfactory

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Drilling &EngineeringDrill out reserves

Engineering &metallurgical studies

Estimate reserves &preliminary economics

Give 30-day notice to terminateagreement

NewGoldProje

ct 1 NewGoldProject 2

NewSilverProject 1


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Companies

Life of an Exploration Company

Valuation

A B C D

Exploration& Drilling Fill in &Definition Drilling

Drilling for

Resource/reserveDetermination

Risk Profile: High Medium Low

InvestmentHorizon:

1 - 3 years 2 4 years 2 - 4 years

August 200813

Discovery

Buyout

Development& Production

Resource/Reserve

compilation


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Potential Economics

Reserve (# of oz): 500,000 1,000,000

Recovery (at 85%): 425,000 850,000Revenue ($850/oz): $361,250,000 $722,500,000Operating Costs($515/oz):

$218,875,000 $437,750,000

Capital Cost: $30,000,000 $60,000,000

Pre-Tax Profit: $112,375,000 $224,750,000

For an Open Pit Heap Leach Gold Operation

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Dutch Flat Gold Project

Wide intervals of low grade gold mineralization at shallowdepths

Potential low cost open pit mine

Most likely heap leach extraction

Working with Cordex Exploration and Columbus Gold

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Dutch Flat Gold Project

114 claims 11 miles west of Pinson & Turquoise

Ridge; 14 miles west of Twin Creeks

Exploration managed by Cordex Exploration Co.,run by Andy Wallace & John Livermore

District with many old workings, placer goldproduction & widespread indications of gold

41 holes totaling 12,830 feet drilled acrossswarms of quartz veins most holes encounteredlow grade gold

Multiple vein swarms to be tested, open on 3directions

Best intercepts

145 ft averaging 0.021 ounces per ton

160 ft averaging 0.011 ounces per tonAugust 200816


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Willow Creek Gold Project

Elko County

Working withCarlin Gold

Corporation

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Willow Creek Gold Project

30 miles northwest of Wells, Nevada Nearly 6 square miles covering 5 miles of

strike length on Roberts Mountain Thrust

Favorable structures, rock types,alteration, pathfinder elements andintrusive dikes.

Structurally controlled jasperoid outcrops

5,000 ft. drill program permitted, bondedand funded

Drilling to commence in Sept/Oct 2008August 200818


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Willow Creek Gold Project Geology

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Distribution

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Silicification Sanding

Types

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NURE Gold CorrelationWith Trends

Data set identifies allknown Carlin style

belts

Snake Mountain Trend is unique

- it shares majorattributes of the producing belts

Regional Data Sets Provide Clues

August 200822


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Trinity Silver Project

Pershing County

Working with AuExVentures

Small open pit silver mineoperated there for 2 yearsin late 1980s

Drilling data from ~280drill holes

Silver resource currentlylbeing compiled

Shallow mineralization,probably grades ~2 oz ofmostly silver sulfide perton

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Trinity Silver Project

6,906 acres, including 5,687 acres of fee land, 25miles northwest of Rochester Silver, the largestopen pit silver mine in the U.S.; 10 miles east ofthe 7-Troughs gold district

2006 drilling program returned numerousintercepts of 10 - 26 ounces of silver per ton

Past production: 1.1 million tons of silver oxideore grading about 6 ounces of silver per ton

Drilling data from more than 280 drill holes beinganalyzed for compilation of silver resource on theproperty

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Sample of Silver Mineralization

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PPM Gold Project

HumboldtCounty

Working

withMirandaGold Corp.

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PPM Gold Project

81 Unpatented Claims in north end of Battle

Mountain Eureka Trend About 12 miles northwest of Twin Creeks, Turquoise

Ridge and Pinson gold deposits

Northeast striking fault system intersects gold insagebrush anomalies

Adjacent to sediment-hosted mercury district

Near margin of shallow buried intrusive

Gravity & magnetics surveys completed. Gold &mercury in sagebrush surveys have refined drilltargets

Permitted & bonded drilling program planned for

Fall 2008 August 200827


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Location of PPM Gold Project

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Additional Projects Highlights

Morgan PassElko County

Working with GryphonGold

28 miles SE of Pequop /Long Canyon golddiscoveries

Carlin type goldmineralization hosted inbrecciated jasperoidsreplacing limestones

17/24 holes drilled byDuval International in

1985-86 intersected goldmineralization of 0.01 to0.24 oz/ton

14 rock chip samples in2008 assayed up to 0.14oz/ton

Currently in wilderness

Pasco CanyonNye County

Working with AuExVentures

14 miles NE of RoundMountain gold mine(largest U.S. open pit gold

mine)

23M+ oz of gold in thisCaldera includes GoldHill, Jefferson & CorcoranCanyon gold deposits

Surface rocks anomalous

in certain pathfinderelements

Awaiting U.S. ForestService permit for 2-holedrill program totaling2,700 feet

Bullion

MountainLander County

Working with GryphonGold

21 miles SE of Battle

Mountain near CortezHills & Pipeline golddeposits

In upper plate of RobertsMountain Thrust

Attempting to combine

this with neighboringproperties

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Management Team

Lewis B. Gustafson Vice President ofExploration & Director

Peter Ingersoll Director

Ralph W. Kettell II Director

Ian C. MacDonald Director

Robert M. Shields, Jr. Chairman, President& CEO

Richard Rabbito Advisory Board

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ew us a son o xp ora on


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ew us a son o xp ora onDirector

BSE Degree, Princeton University

MS, California Institute of Technology

PhD Degree, Harvard University

45 years in mining & exploration

Authored/co-authored 17 major geology publications

Lived & worked in Chile, Australia, US with major miningcompanies;

Professor of Economic Geology for 6 years at AustralianNational University in Canberra, Australia

Society of Economic Geologists: Received Lindgren Award in1962; Member, Editorial Board, 1970-80; Thayer LindseyLecturer, 1973-4; Distinguished Lecturer in Applied Geology,1989; Chairman, Committee on Geologic Mapping, 1989-1993.

Member, Advisory Committee, Nevada Bureau of Mines &Geology August 200831

o er e s a rman res en


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o er e s a rman, res enCEO

AB Degree, Geology, Dartmouth College

PhD Degree, Geochemistry, MassachusettsInstitute of Technology

MBA Degree, Stanford University GraduateSchool of Business Administration

Two years at NASA working on Earth ResourcesTechnology Satellite, late 1960s

Security Analyst, Paine Webber Jackson & Curtis,mid-1960s; Associate, Corporate Finance,

Morgan Stanley & Co., in 1970sFounded predecessor of Piedmont Mining

Company, Inc. in 1980; 27 years experiencerunning exploration & mining company

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Peter Ingersoll Director

BA Degree from Williams College

MBA Degree from Harvard University GraduateSchool of Business Administration

33 years as Financial Analyst on Wall Street,primarily with Salomon Brothers & LehmanBrothers; 46 years of experience

9 consecutive years 1984 to 1992 - elected to

Institutional Investor Magazines All-Star Teamin Gold and/or Nonferrous Metals

Formerly, Director of Getchell Gold & StillwaterMining

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Ian MacDonald Director

Executive Director for Gold & Silver, Dubai Multi

Commodities Centre, Dubai, U.A.E.BA Degree, Business, Highbury College, UK

From 1982-1998 with Credit Suisse Manager ofPrecious Metals Division

Then Vice President & Manager of Global PreciousMetals at Commerzbank AG in NY

Formerly Director of Billiton (UK) Ltd.; Director of

Gold Institute; Member of COMEX Division of NewYork Mercantile Exchange

30+ yrs experience in precious metals trading andinvestment banking

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Ralph Kettell Director

BS & MS Degrees in Electrical Engineering from

Lehigh University

Founder or founding partner of several naturalresource companies, including AuEx Ventures,Nevada Sunrise, Concentric Energy and NorthRange Resources

Lead engineer in B-1B Electronic Warfare System;Designed components for other warfare and

communications systemsInvolved in engineering & communications

projects for NASA, the Space Shuttle, Dept. ofDefense & International Space Station

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Corporate Information

Preferred Shares 0

Common Shares Outstanding 67,632,000

Options 5,725,000

Warrants 10,300,000

Authorized Common Shares 200,000,000

Shares in Street Name 35,455,742

Stock Price Range $0.38 52-WkHigh

$0.08 52-Wk

Low$0.14 Last

Close

Market Capitalization $8.8 Million

Stock Symbol PIED.OB

Fully reporting company trading on the U.S. OTC Bulletin Board

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e mon s n erva ue en ompare o


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e mon s n erva ue en ompare oPeers

Company Symbol Exchange Market Cap 52 Wk High 52 Wk LowATNAResources

ATN TSE $41.8M $1.94 $0.51

AuEx Ventures XAU TSE $39.3M $3.05 $1.60

Gryphon Gold GGN TSE $22.9M $0.99 $0.33

Klondex Mines KDX TSE $27.8M $2.57 $1.21

Midway Gold MDW AMEX $69.4M $4.68 $1.38

Miranda Gold MRDDF OTC $19.8M $1.45 $0.35

U.S. Gold UXG AMEX $108.3M $7.19 $3.42

Piedmont PIED OTC $8.8M $0.38 $0.08

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Recent Recommendations

Piedmont Mining: Announced acquisition of option on a

new property. Stock is cheap at $0.17 Morning Notes,Michael A. Berry, Ph.D 5/27/08

With PIED selling at around $0.20 and gold pricescurrently depressed, we think this could be an opportunetime for our subscribers to be buying PIED J. Taylors

Gold & Technology Stocks 4/4/08 PIED now has the opportunity to acquire significant

positions at reasonable (value/contrarian) Discoveryprices. This is the key to great wealth creation andestablishment of a favorable reward to risk ratio

Morning Notes, Michael A. Berry, Ph.D 3/31/08

We think they [Miranda Gold Corp] are going to bepicked up by a senior companythat will probablyhappen to Piedmont Mining Company, Inc. as well. Roger Wiegand, Trader Tracks 4/4/08

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Stock Symbol OTC BB: PIED

www.piedmontmining.com

August 2008

piedmont investor presentation - clean

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