Thunder Mountain Gold, Inc.

Thunder Mountain Gold completed a successful core drilling program at the South Mountain Project in 2008. Results of the drill program proved that ore mineralization in the main DMEA ore zone extends at least 300 feet below known mineralization in the mine, and possibly deeper. The drill targets were identified by using a detailed mine model that was developed using the Vulcan mine modeling software. Information obtained from a three dimensional geologic model was used to target subsurface ore shoots. Two of the best mineralized ore shoots, the DMEA 2 and Texas, were modeled and targets were determined for intersection of the projected zones approximately 300 to 400 feet below the Sonneman Tunnel level, the lowest level that these favorable ore shoots were mined during the 1940s and 1950s.

Early in 2008 and prior to any drilling, Kleinfelder completed an independent assessment and validation of geological and mineral data for the South Mountain Mine. Kleinfelder reviewed the historic South Mountain data package including drill data, historical development and production data. Kleinfelder subsequently developed a resource model using existing historical records to estimate total remaining mineral resources within the core part of the mine. Based upon such data, Kleinfelder`s modeling estimated an indicated resource of 629,979 tons containing 12,197,500 equivalent silver ounces, with This resource is consistent with resource calculations by South Mountain Mines, Inc. and W.A. Bowes Company/J.R.Bowes in 1985, of 469,890 tons containing approximately 12,948,460 silver equivalent ounces. A copy of the report can be downloaded from this website.

Other site exploration during 2008 produced the discovery of a multi-lithic mineralized intrusive breccia outcrop on property leased by the Company in the later part of 2008. Gold assays of rock chips samples from the outcrop area ranged from 0.49 ppm to 1.7 ppm gold. An orientation soil survey was conducted near the outcrop area at a grid spacing of 100 feet over a distance of 800 feet east/west and 1,000 feet north/south. The soil assays ranged from a trace to 0.31 ppm Gold. Surface mapping indicates that the intrusive breccia covers an area of approximately 5,000 feet x 1,500 feet. This intrusive mineralized breccia has the potential to host a larger gold target.

Also during 2008, portal rehabilitation on the Sonneman level of the mine was completed, and this portion of the mine reopened. Sampling and mapping was completed on key zones for data confirmation. Additionally, a detailed land survey was completed at South Mountain by a licensed surveyor. The South Mountain Mines` grid network was re-established, along with a survey of critical patented claim boundaries, place surface drill hole locations and re-establish the original surveys

At Clover Mountain, an expanded soil sampling program was completed in 2008, with an additional 215 soil samples collected, on a soil grid spacing of 200 feet x 200 feet within the claim block. Anomalous gold values in the soils ranged from a trace to 783 ppb (0.023 ounces per ton). The 2008 soil sampling program identified two distinct areas of anomalous gold mineralization with values greater than 20 ppb. The anomalies have a surface expression of approximately 1,000 feet x 400 feet and trend northeasterly parallel to observed structures and fracture sets. A 2,500 foot base metal soil anomaly is observed trending northwest proximal to rhyolite and rhyodacitic dikes which intrude the granitic stock.

Thunder Mountain Gold, Inc. was formed in 1978 when the owners of the claims containing the Sunnyside Deposit obtained Montgomery Mines, Inc. and gave it new life as Thunder Mountain Gold, Inc. in order to persue production on the property.

See the District History for a more detailed history of the Thunder Mountain property.

The Thunder Mountain property was put into production in the mid-1980's by Couer d'Alene Mines under a net profits agreement. It produced 100,000 ounces of gold and 200,000 ounces of silver until the property was relinquished back to TMG and surface-reclaimed in the early 1990's.

Subsequently the property was leased to and explored by several other companies, including Kennecott and USMX/Dakota Mining. A joint venture between the Company and Dewey Mining unified the mining district during this period, and USMX/Dakota Mining expended approximately $4 million to explore the district and define a significant measured mineral resource on the Dewey property.