KELLOGG, IDAHO. New Jersey Mining Company (Symbol: NJMC - OTC Bulletin Board) has acquired all of the outstanding shares of Roughwater Mining Company, an Idaho corporation, through an exchange of stock. The exchange was 255,000 shares of NJMC for 2.5 million shares of Roughwater.

Roughwater owns nine unpatented mining claims in the Clark Fork mining district about 60 miles north of Kellogg. The property is a copper-gold showing with minor platinum group metal content. The host rock is a quartz diorite sill which has intruded Prichard formation. A wide area of disseminated copper mineralization has been observed which may be a cumulate layer in the sill. Two conventional flotation tests have been conducted showing gold contents of 0.8 and 1.9 g/t in the mineralized rock. Platinum group elements were 12% of the gold content with the palladium to platinum ratio being 3.76 : 1.

Clearly more exploration work is necessary to evaluate and explore the Roughwater prospect. Management is encouraged by the presence of wide-spread copper mineralization in a diorite sill containing anomalous gold and platinum group elements, additionally with anomalous amounts of silver, zinc and gallium. An induced polarization geophysical survey is planned to locate drilling targets.

The stock exchange with Roughwater shareholders has enlarged NJMC's land position by 180 acres. NJMC issued 255,000 shares of restricted Rule 144 stock to Mine Systems Design, Inc. and the Miller family in exchange for all 2.5 million outstanding shares of Roughwater Mining Company.

New Jersey Mining Company is involved in exploring for and developing gold, silver and base metal ore resources in northern Idaho. The Company has a portfolio of five mineral properties in the Coeur d'Alene Mining District: the New Jersey mine, the Silver Strand mine, the Lost Eagle prospect, the CAMP project and the Wisconsin-Teddy project. The Roughwater prospect is now the sixth property.