Clifton Mining Company Inc. (OTC : CFTN)

Clifton Mining Co.  Summary of Annual General Meeting held on August 26,
2011

ALPINE, UT, Sept. 29, 2011 /PRNewswire/ -

Voting: The directors and auditors were re-elected, without apparent
controversy.  No other matters had been submitted for voting.

Michael Free Presentation: Professor Free, of the Department of Metallurgy at the University of
Utah, gave a talk in which he simply and elegantly explained the
function of roasting and/or microwaving on ore, creating microscopic
fractures that allow the lixiviant to reach and dissolve the metals. 
He presented the results of his work on Clifton ore samples that had
been microwaved.  The results ranged from 0 to more than 5 ounce of
gold per ton and from 0 to nearly 50 ounces of silver per ton, with
about a quarter of the samples appearing potentially economic.

Of particular interest to Clifton, there were six samples taken from the
Kiewit zone, taken from three different depths of two holes. These were
analyzed both before and after roasting. The following were the
extracted gold results: (Ounces of gold per ton in parenthesis)

    Sample Number           Before                     After Roasting
                            Roasting 

    5KZRC002-180            1.64 grams per             91.73 grams per
    A                       ton                        ton (3.24)

    5KZCR002-180            1.37 grams per             90.72 grams per
    B                       ton                        ton (3.2)

    5KZRC002-180            1.30 grams per             94.12 grams per
    C                       ton                        ton (3.32)

    5KZCR002-160            2.34 grams per             154.18 grams
    A                       ton                        per ton (5.44)

    5KZRC002-160            2.06 grams per             154.54 grams
    B                       ton                        per ton (5.45)

    5KZRC002-160            2.28 grams per             155.53 grams
    C                       ton                        per ton (5.49)

The primary significance of these results is that the Kiewit zone is
very large, with estimates at 10+ million tons.  If these samples are
representative of the material in that zone, Kiewit could be one of the
largest and highest grade gold deposits in the world.  Professor Free,
aware of the extraordinary nature of his results – while roasting is
commonly used in the industry to increase recoveries, it rarely
produces such a large increase – took extraordinary care and tested
each sample three times.  He obtained the same results each time.

Ken Friedman Presentation: Dr. Friedman stressed that the company’s strategy has been to trade
off both potential reward and time for risk.  Clifton’s management has
been able to obtain more than $8 million dollars in work on the
property through joint venture partners.  That work has included
mapping, sampling and drilling many of the potential deposits on the
property, including the discovery and drilling of the Kiewit gold
property.  We understand that it has taken time, but more importantly,
management has been able to position the company to succeed at little
cost to shareholders.

Presently, our joint-venture partner, Desert Hawk Mining, who provided
the funds for Clifton to repurchase the Dumont interest in the
properties, has done some mining at Yellow Hammer and is currently
reprocessing the tailings to extract tungsten.  We have received
minimal royalties from those base metal operations.

Desert Hawk’s primary target is the Kiewit Zone, and they have applied
for a permit for a heap leach facility at that site.  The State Board
has issued an intent to permit, which requires a waiting period for
comments.  If, as we expect, all goes smoothly, Desert Hawk will have
the permit before the end of this year.  They will then apply to the
Bureau of Land Management for a federal permit for a heap leach, hoping
to have that by next summer.  Consulting geologist, Robert Cameron, has
estimated annual production of 10,000 ounces of gold.  At a 15% net
smelter return for Clifton (the highest in the industry, to the best of
our knowledge), that would generate about $2.7 million annually at a
gold price of $1,800 per ton.

Of course, if the roasting and/or microwaving continues to prove
successful, producing results similar to those obtained by Professor
Free, this will become a much larger project.

Addendum:

At his talk at the annual general meeting of Clifton, Ken Friedman
briefly discussed the state of the precious metals markets.  While he
was bullish for the longer term, he was cautious-to-bearish in the
shorter term.  Typically, precious metals have a 3-4 year cycle, and in
the previous three years, there had been no substantial correction. 
The sharpness of the correction over the past week surprised even him. 
Gold and the major producers were down 20% in less than a week, junior
producers down 25% in that time frame, and silver and silver producers
down nearly 30%.

This is ballpark (in magnitude) for a cyclic correction within an
ongoing secular bull market.  (The time frame of the bear has been
compressed, but this is compatible with an ongoing secular bull.)  If
this is the case, as it appears to be, then the next two years could
take precious metals prices considerably higher.  Friedman now believes
that the worst is behind us, that even if we have not made the lows for this cycle (and for many years), it is not likely that we will
go much lower than the lows of September 26.

Disbursements From American Biotech Labs

Clifton received a cash disbursement from American Silver of
approximately $100,000 in March and American Silver is presently
considering paying a similar distribution this fall. Of course, this is
not huge, but it is growing and will continue to help cover Clifton’s
minimal expenses, including BLM and State fees, while work continues to
bring the Kiewit property into production.

Clifton trades on the U.S. OTC: (CFTN). 

Note: Any statements released by Clifton Mining Company that are forward
looking are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995.  Editors and investors are
cautioned that forward looking statements invoke risk and uncertainties
that may affect the company’s business prospects and performance.

 

SOURCE Clifton Mining Company