KELLOGG, IDAHO. New Jersey Mining Company (Symbol: NJMC - OTC Bulletin Board) has completed a geophysical exploration program on its New Jersey mine property located near Kellogg, Idaho in the Coeur d'Alene mining district. The geophysical survey was performed by Gradient Geophysics of Missoula, MT.

The results of the exploration are quite impressive to Management. The Gradient report states: "Prominent induced polarization anomalies indicate targets for gold mineralization at the New Jersey mine. Three lines show evidence for quartz veining and sulfides that are associated with gold in the project area."

The program consisted of an induced polarization [IP] and resistivity survey. Three parallel survey lines, each 420 meters in length, and spaced 120 meters apart were established. The survey lines straddled the known orebody on the Coleman vein system and also covered the postulated extension of the vein system to the north.

As shown by the results of the line which straddled the known orebody there was a very good IP and resistivity response of the gold orebody. The other two lines indicate that the orebody extends at least 240 meters to the north, increasing the known strike length to 500 meters. In addition, the northernmost line shows a larger, deep target which could have special significance. Plans are being made to drill the geophysical targets during this coming summer.

Presently, open pit ore reserves are 80,000 tonnes grading 4.5 grams per tonne gold. About 4,500 tonnes have been mined and processed in a previous test project. A 100 tonne per day mineral processing plant has been constructed and permits have been obtained to build and operate a cyanidation process.

The lower Teddy tunnel was re-opened for inspection. The Teddy property, owned by the Company, is north of the New Jersey mine. At least three veins were observed in the tunnel. One of the veins is a copper-gold occurrence. Samples were taken and assay results are pending.

Statements made which are not historical facts, such as anticipated payments, production, sales of assets, exploration results and plans, costs, prices or sales performance are ``forward-looking statements'' within the meaning of the Private Securities Litigation Reform Act of 1995, and involve a number of risks and uncertainties that could cause actual results to differ materially from those projected, anticipated, expected or implied. These risks and uncertainties include, but are not limited to, metals price volatility, volatility of metals production, market conditions and project development risks. Refer to the company's Form 10-Q and 10-K reports for a more detailed discussion of factors that may impact expected future results. The company undertakes no obligation and has no intention of updating forward-looking statements.