Dear Shareholder:

Several significant accomplishments were realized since I last communicated with you. These accomplishments include:

We acquired the Silver Strand mine from Trend Mining Company. The Silver Strand mine is located in the western part of the Coeur d' Alene Mining District. It contains a gold-silver orebody which has a production history of over 12,000 tonnes grading 3.19 grams/tonne gold and 328.5 grams/tonne silver. It has developed reserves of 4,500 tonnes and additional probable reserves of 7,000 tonnes. The acquisition was made with 50,000 shares of restricted stock plus work commitments of $200,000 over a 3 year period. Trend will retain a NSR royalty of 1.5%, decreasing to 0.5% after $50,000 in royalty payments. The Company plans to obtain permits for mining the existing reserves and processing the ore at the New Jersey mill. The exploration potential of the Silver Strand property is excellent for finding additional ore reserves.

We became a fully reporting company under SEC regulations and maintained our stock listing on the OTC Bulletin Board. We were one of a handful of Coeur d'Alene mining companies who kept the OTC listing. All of our reports which include financial statements are now available on the internet at www.freeedgar.com. Stock quotes are also available on the internet under the stock symbol: NJMC. We also plan to revamp our web page this winter.

The New Jersey mill facility was improved by completing the buildings planned for the cyanidation facility.

A geophysical exploration program is being conducted at the New Jersey mine using induced polarization and resistivity methods. The purpose of the work is to delineate drilling targets.

We sold 145,000 shares of Con Sil Corporation of the 175,000 shares owned. Proceeds were $6,000 and were used for general corporate purposes and to help pay for the geophysical program. Con Sil is considered a shell with no significant assets.

To remind you of the value of assets that the Company has, please review the following:

The most important asset of the Company is the mineral property containing the Coleman veins and other mineral showings. Estimated ore resources are 328,400 tonnes of ore containing 52,000 ounces of gold at an average grade of 4.90 grams per tonne. The property also has potential for significant silver and base metal deposits. Fixed assets include the 100 tonnes per day New Jersey mill which is capable of producing gold gravity concentrates. The expansion of the mill to include cyanidation is nearly completed. When completed, the mill will be the only mineral processing plant in the area which could treat custom gold and silver ores.

Other mining assets include a 17.75% interest in the CAMP area which lies in the heart of the silver belt of the Coeur d'Alene mining district. The CAMP area consists of 380 acres. The area is leased by Coeur d'Alene Mines Corporation. As part of a 1979 lease agreement with Coeur, New Jersey will receive a 7.1% Net Profits Interest if the property is put into production. The agreement calls for annual expenditures for exploration of $50,000 by the lessee, but previous expenses are being carried forward to meet this annual expenditure requirement. Recently, it was announced that Coeur Silver Valley had drilled a significant ore intercept on the Polaris fault easterly of the CAMP area. The Polaris fault extends through the CAMP area.

New Jersey Mining Company claims the mineral rights to an area just north of the Coleman veins known as the Wisconsin and Teddy mines. This property has promising base-metal potential. Several tunnels with an aggregate length of 2,000 feet were driven on the property prior to 1930. Preliminary field investigations have delineated a large structure about 30 meters in width which contains anomalous copper, lead and silver mineralization.

Mine Systems Design, Inc. [MSD], the majority shareholder of the Company, is paying for ongoing costs of the mill and mine.

Our plans, which are dependent upon financing, include the following projects:

Diamond drilling program at the New Jersey mine We would conduct a drilling program to increase gold-silver reserves and test geochemical and geophysical anomalies for a Sullivan-type base metal deposit and a stratabound silver occurrence.

Mill upgrade program. We would complete the conversion of the 100 ton per day gravity mill to a cyanidation mill to improve recovery to the 95% level.

Other activities. We will continue to explore possible mergers and acquisitions, potential sources of private placement capital, and possible business relationships with other mining companies.
Our long term goals are:

We are optimistic that the economic climate for gold and silver mining will improve in the near future and that the Company will be able to make significant progress with its plans.

Best Regards,

Fred W. Brackebusch
President