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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
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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
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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
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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
August 200823
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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
August 200830
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
August 200836
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
August 200837
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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
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