BHJV owns the high-grade underground Butte Highlands Gold Project ("Butte Highlands"), located 15 miles south of Butte, Montana, within a prolific gold-producing region that includes several world-class, multi-million ounce gold deposits including Butte, Golden Sunlight, Montana Tunnels, and Virginia City.

NJMC’s interest in Butte Highlands is "carried to production" by the joint venture partner, Montana State Gold Company LLC ("MSGC"), which is funding all mine development costs through to commercial production with NJMC’s share of those costs to be repaid from proceeds of future mine production.

To-date, MSGC and prior funding partner, Highland Mining LLC ("Highland"), have invested more than $30-million at Butte Highlands including more than 4,500 feet of underground development and construction of surface facilities for the project, all of which are located on private lands owned by BHJV. Mine and facility construction at Butte Highlands was completed primarily by Small Mine Development Corporation ("SMD"), which also constructed a modern gold mine at NJMC’s Golden Chest project.

The project has experienced significant timeline delays due, in part, to miscalculations of the permitting process and other technical issues. However, with the Road Use Permit now issued by the U.S. Forest Service, and the Hard Rock Operating Permit EIS and MPDES Water Discharge Permit also issued in the last 30 months, the project is now fully permitted.

The Agreement calls for NJMC to make a $50,000 down payment, to be followed by a $175,000 payment and delivery of 3-million shares of NJMC common stock by January 31, 2016 to close the purchase.

NJMC President John Swallow stated, "The gold mine at Butte Highlands is a natural fit for us as we seek to leverage our mining and milling expertise to expand our base of potential cash flow producing assets. As at Golden Chest, the mine was built by industry leader SMD. We believe that our technical team can help finalize engineering and development of the mine – and while it would entail additional permitting, we also see an opportunity to possibly enhance project economics by constructing an on-site mill."

Mr. Swallow continued, "In our recent Letter to Shareholders, we professed our belief that great companies can be built in difficult times. An additional goal of ours has been to provide optionality for our fellow shareholders by reducing reliance on any singular property or asset – and this transaction is another step in that process."

Butte Highlands was extensively drilled by Battle Mountain Gold, Placer Dome, ASARCO, and Orvana Minerals in the 1980s and 1990s, prior to its acquisition and development by Timberline in 2006. In 2009, Timberline formed BHJV with Highland for the purpose of developing and mining the property.

In 2012, Highland was sold to MSGC, which assumed Highland’s $24-million loan and its commitment to fund all remaining mine development costs through to commercial production.