----

----

**UNITED        STATES SECURITIES AND EXCHANGE COMMISSION**

**Washington,        D.C. 20549**

**FORM        10-QSB**

**PIEDMONT        MINING COMPANY, INC.**

| **North                  Carolina**                                                             |   | **56-1378516**                                          |
|-------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------|
| (State                  or Other JurisdictionOf                  Incorporation or Organization) |   | (I.R.S.                  Employer IdentificationNumber) |
|                                                                                            |   |                                                    |
| **18124                  Wedge Parkway, Suite 214****Reno,                  Nevada**            |   | **89511**                                               |
| (Address                  of Principal Executive Offices)                                       |   | (Zip                  Code)                             |

**(212)        734-9848**

----

**PIEDMONT        MINING COMPANY, INC.**

**FORM        10-QSB INDEX**

|                                                                                                                                                                                                 | Page                    Number |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------|
|                                                                                                                                                                                                 |                                     |
| PART                  I – FINANCIAL INFORMATION                                                                                                                                                |                                     |
|    Item                  1. Financial Statements                                                                                                                                      |                                     |
| Consolidated                  Balance Sheets as of  September 30, 2007 (unaudited) and                  December 31, 2006                                                                  | 3                                        |
| Consolidated                  Statements of Loss for the Three Months Ended September 30, 2007                  and 2006,                  Nine Months Ended September 30, 2007 and 2006 (unaudited) | 4                                        |
| Consolidated                  Statements of Cash Flows for the Nine Months Ended September 30,                  2007 and                  2006 (unaudited)                                           | 5                                        |
| Notes                  to Consolidated Financial Statements (unaudited)                                                                                                                              | 6                                        |
|    Item                  2. Management’s Discussion and Analysis or Plan of                  Operation                                                                          | 22                                       |
|    Item                  3. Controls and Procedures                                                                                                                                   | 27                                       |
|                                                                                                                                                                                                 |                                     |
| PART                  II – OTHER INFORMATION                                                                                                                                                   |                                     |
|    Item                  1. Legal Proceedings                                                                                                                                         | 27                                       |
|    Item                  2. Unregistered Sales of Equity Securities and Use of                  Proceeds                                                                              | 27                                       |
|    Item                  3. Defaults Upon Senior Securities                                                                                                                           | 28                                       |
|    Item                  4. Submission of Matters to a Vote of Security Holders                                                                                                       | 28                                       |
|    Item                  5. Other Information                                                                                                                                         | 28                                       |
|    Item                  6. Exhibits                                                                                                                                                  | 29                                       |
|    Signature                  Page                                                                                                                                                    | 30                                       |
|                                                                                                                                                                                                 |                                     |

----

**PART        I – FINANCIAL INFORMATION**

**Item        1. Financial Statements**

**PIEDMONT        MINING COMPANY,        INC.**

**(An        Exploration Stage        Company)**

**CONSOLIDATED        BALANCE        SHEETS**

|                                                                                            |   | **September                  30,** |        |   | **December                  31,** |   |
|-------------------------------------------------------------------------------------------------|--------|------------------------------------|-------------|--------|-----------------------------------|--------|
|                                                                                            |   | **2007****(unaudited)**            |        |   | **2006**                          |   |
|                                                                                                 |   | $                                  |        |   | $                                 |   |
| **CURRENT                  ASSETS**                                                             |   |                               |        |   |                              |   |   |   |
| Cash                  and cash                  equivalents                                     |   |                               | 152,432     |   |                              |   | 17,222 |   |
| Prepaid                  expenses and                  other                                    |   |                               | 64,769      |   |                              |   | 27,682 |   |
| Total                  current                  assets                                          |   |                               | 217,201     |   |                              |   | 44,904 |   |
| **MINERAL                  PROPERTIES (Note                  3)**                               |   |                               | 260,500     |   |                              |   | 177,167 |   |
| **PROPERTY                  AND EQUIPMENT (Note                  4)**                           |   |                               | 1,359       |   |                              |   | 1,527 |   |
|                                                                                            |   |                               |        |   |                              |   |   |   |
| Total                  Assets                                                                   |   |                               | 479,060     |   |                              |   | 223,598 |   |
|                                                                                            |   |                               |        |   |                              |   |   |   |
| **CURRENT                  LIABILITIES**                                                        |   |                               |        |   |                              |   |   |   |
| Accounts                  payable and accrued                  liabilities                      |   |                               | 98,429      |   |                              |   | 116,341 |   |
| Due                  to related parties (Note                  5)                               |   |                               | 127,952     |   |                              |   | 136,728 |   |
| Total                  current                  liabilities                                     |   |                               | 226,381     |   |                              |   | 253,069 |   |
|                                                                                            |   |                               |        |   |                              |   |   |   |
| **STOCKHOLDERS’EQUITY                  (DEFICIENCY)**                                     |   |                               |        |   |                              |   |   |   |
| Capital                  Stock (Note                  6)                                        |   |                               |        |   |                              |   |   |   |
| Authorized:                                                                                     |   |                               |        |   |                              |   |   |   |
| 25,000,000                  Preferred stock $1.00                  par value                    |   |                               |        |   |                              |   |   |   |
| 100,000,000                  Common stock no par                  value                         |   |                               |        |   |                              |   |   |   |
| Common                  stock issued and                  outstanding:                          |   |                               |        |   |                              |   |   |   |
| 60,287,476                  common (2006 –                  54,063,660)                   |   |                               | 15,012,210  |   |                              |   | 14,189,969 |   |
| Additional                  paid-in                  capital                                    |   |                               | 670,723     |   |                              |   | 494,442 |   |
| Deficit                  accumulated prior to the exploration stage                             |   |                               | (12,564,287 | )      |                              |   | (12,564,287 | ) |
| Deficit                  accumulated during                  exploration stage                  |   |                               | (2,865,967  | )      |                              |   | (2,149,595 | ) |
| Total                  stockholders’ equity                  (deficiency)                 |   |                               | 252,679     |   |                              |   | (29,471 | ) |
| Total                  liabilities and                  stockholders’ equity (deficiency) |   |                               | 479,060     |   |                              |   | 223,598 |   |

----

**PIEDMONT        MINING COMPANY,        INC.**

**(An        Exploration Stage        Company)**

**CONSOLIDATED        STATEMENTS OF        LOSS**

**(unaudited)**

|                                                                                                |   | Three                  monthsEndedSeptember                  30, 2007 |       |   | Three                  months EndedSeptember                  30, 2006 |   |       | Nine                  months EndedSeptember                  30, 2007 |   |   | Nine                  monthsEndedSeptember                  30, 2006 |   |   | For                  the Period from January 1, 2002 (Date of Inception                  of Exploration                  Stage) toSeptember                  30, 2007 |       |
|-----------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------|------------|--------|------------------------------------------------------------------------|--------|------------|-----------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|
|                                                                                                |   | $                                                                     |       |   | $                                                                      |   |       | $                                                                     |   |   | $                                                                    |   |   | $                                                                                                                                                                     |       |
|                                                                                                |   |                                                                  |       |   |                                                                   |   |       |                                                                  |   |   |                                                                 |   |   |                                                                                                                                                                  |       |   |   |   |   |   |
| **EXPENSES**                                                                                        |   |                                                                  |       |   |                                                                   |   |       |                                                                  |   |   |                                                                 |   |   |                                                                                                                                                                  |       |   |   |   |   |   |
| Exploration                  costs and property research and development                            |   |                                                                  | 70,346     |   |                                                                   |   | 164,074    |                                                                  |   |   | 176,649                                                              |   |   |                                                                                                                                                                  | 545,116    |   |   |   | 1,063,603 |   |
| Management                  fees                                                                    |   |                                                                  | 76,489     |   |                                                                   |   | 24,000     |                                                                  |   |   | 258,000                                                              |   |   |                                                                                                                                                                  | 96,700     |   |   |   | 541,971 |   |
| Professional                  fees                                                                  |   |                                                                  | 58,525     |   |                                                                   |   | 63,346     |                                                                  |   |   | 172,405                                                              |   |   |                                                                                                                                                                  | 135,274    |   |   |   | 543,377 |   |
| General                  and administrative                                                         |   |                                                                  | 44,366     |   |                                                                   |   | 25,890     |                                                                  |   |   | 107,640                                                              |   |   |                                                                                                                                                                  | 72,180     |   |   |   | 492,834 |   |
|  Depreciation                  expense                                                         |   |                                                                  | 526        |   |                                                                   |   | 465        |                                                                  |   |   | 1,456                                                                |   |   |                                                                                                                                                                  | 965        |   |   |   | 145,023 |   |
|                                                                                                |   |                                                                  |       |   |                                                                   |   |       |                                                                  |   |   |                                                                 |   |   |                                                                                                                                                                  |       |   |   |   |   |   |
|                                                                                                |   |                                                                  |       |   |                                                                   |   |       |                                                                  |   |   |                                                                 |   |   |                                                                                                                                                                  |       |   |   |   |   |   |
|                                                                                                |   |                                                                  | 250,252    |   |                                                                   |   | 277,775    |                                                                  |   |   | 716,150                                                              |   |   |                                                                                                                                                                  | 850,235    |   |   |   | 2,786,808 |   |
|                                                                                                |   |                                                                  |       |   |                                                                   |   |       |                                                                  |   |   |                                                                 |   |   |                                                                                                                                                                  |       |   |   |   |   |   |
| **LOSS                  BEFORE OTHER ITEMS**                                                        |   |                                                                  | (250,252   | )      |                                                                   |   | (277,775   | )                                                                     |   |   | (716,150                                                             | )      |   |                                                                                                                                                                  | (850,235   | ) |   |   | (2,786,808 | ) |
|                                                                                                |   |                                                                  |       |   |                                                                   |   |       |                                                                  |   |   |                                                                 |   |   |                                                                                                                                                                  |       |   |   |   |   |   |
| **INTEREST                  INCOME**                                                                |   |                                                                  | 1,142      |   |                                                                   |   | 2,038      |                                                                  |   |   | 1,143                                                                |   |   |                                                                                                                                                                  | 5,587      |   |   |   | 7,054 |   |
| **INTEREST                  EXPENSE**                                                               |   |                                                                  | (232       | )      |                                                                   |   | (691       | )                                                                     |   |   | (1,366                                                               | )      |   |                                                                                                                                                                  | (3,184     | ) |   |   | (39,623 | ) |
| **LOSS                  ON OTHER NON-OPERATING ACTIVITIES**                                         |   |                                                                  | -          |   |                                                                   |   | -          |                                                                  |   |   | -                                                                    |   |   |                                                                                                                                                                  | -          |   |   |   | (46,590 | ) |
|                                                                                                |   |                                                                  |       |   |                                                                   |   |       |                                                                  |   |   |                                                                 |   |   |                                                                                                                                                                  |       |   |   |   |   |   |
|                                                                                                |   |                                                                  |       |   |                                                                   |   |       |                                                                  |   |   |                                                                 |   |   |                                                                                                                                                                  |       |   |   |   |   |   |
| **NET                  LOSS**                                                                       |   |                                                                  | (249,342   | )      |                                                                   |   | (276,428   | )                                                                     |   |   | (716,373                                                             | )      |   |                                                                                                                                                                  | (847,832   | ) |   |   | (2,865,967 | ) |
|                                                                                                |   |                                                                  |       |   |                                                                   |   |       |                                                                  |   |   |                                                                 |   |   |                                                                                                                                                                  |       |   |   |   |   |   |
| **BASIC                  AND DILUTED NET LOSS  PER SHARE**                                |   |                                                                  | (0.00      | )      |                                                                   |   | (0.01      | )                                                                     |   |   | (0.01                                                                | )      |   |                                                                                                                                                                  | (0.02      | ) |   |   |   |   |
|                                                                                                |   |                                                                  |       |   |                                                                   |   |       |                                                                  |   |   |                                                                 |   |   |                                                                                                                                                                  |       |   |   |   |   |   |
| **WEIGHTED                  AVERAGE COMMON SHARES OUTSTANDING, BASIC AND                  DILUTED** |   |                                                                  | 59,100,816 |   |                                                                   |   | 53,627,139 |                                                                  |   |   | 56,346,937                                                           |   |   |                                                                                                                                                                  | 50,181,418 |   |   |   |   |   |

----

**PIEDMONT        MINING COMPANY, INC.**

**(An        Exploration Stage Company)**

**CONSOLIDATED        STATEMENTS OF CASH FLOWS**

**(unaudited)**

|                                                                                                                                |   | Nine                  Months EndedSeptember                  30, |     |   | For                  the Period from January 1, 2002 (Date of Inception of Exploration                  Stage)                  to September 30, |   |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------|----------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                |   | 2007                                                             |     |   | 2006                                                                                                                                             |   |   | 2007 |   |
|                                                                                                                                |   | $                                                                |     |   | $                                                                                                                                                |   |   | $ |   |
|                                                                                                                                |   |                                                             |     |   |                                                                                                                                             |   |   |   |   |   |   |   |
| **CASH                  FLOWS FROM OPERATING ACTIVITIES**                                                                           |   |                                                             |     |   |                                                                                                                                             |   |   |   |   |   |   |   |
|                                                                                                                                |   |                                                             |     |   |                                                                                                                                             |   |   |   |   |   |   |   |
| Net                  loss                                                                                                           |   |                                                             | (716,373 | )      |                                                                                                                                             |   | (847,832 | ) |   |   | (2,865,967 | ) |
| Adjustments                  to reconcile net loss to net cash from operating                  activities:                          |   |                                                             |     |   |                                                                                                                                             |   |   |   |   |   |   |   |
| Stock                  based compensation                                                                                           |   |                                                             | 176,300  |   |                                                                                                                                             |   | 24,700 |   |   |   | 299,667 |   |
| Depreciation                                                                                                                        |   |                                                             | 1,456    |   |                                                                                                                                             |   | 965 |   |   |   | 145,024 |   |
| Loss                  on other non-operating activities                                                                             |   |                                                             | -        |   |                                                                                                                                             |   | - |   |   |   | (21,000 | ) |
| Changes                  in operating assets and liabilities:                                                                       |   |                                                             |     |   |                                                                                                                                             |   |   |   |   |   |   |   |
| Prepaid                  expenses and other                                                                                         |   |                                                             | (37,086  | )      |                                                                                                                                             |   | (11,383 | ) |   |   | (61,819 | ) |
| Accounts                  payable and accrued liabilities                                                                           |   |                                                             | (17,910  | )      |                                                                                                                                             |   | (17,168 | ) |   |   | 195,701 |   |
| Due                  to related parties                                                                                             |   |                                                             | (8,776   | )      |                                                                                                                                             |   | (257,513 | ) |   |   | (22,781 | ) |
| **NET                  CASH FLOWS USED IN OPERATING ACTIVITIES**                                                                    |   |                                                             | (602,389 | )      |                                                                                                                                             |   | (1,108,231 | ) |   |   | (2,331,175 | ) |
|                                                                                                                                |   |                                                             |     |   |                                                                                                                                             |   |   |   |   |   |   |   |
| **CASH                  FLOWS FROM FINANCING ACTIVITIES**                                                                           |   |                                                             |     |   |                                                                                                                                             |   |   |   |   |   |   |   |
| Issuance                  of shares for cash, net of issuance costs                                                                 |   |                                                             | 807,222  |   |                                                                                                                                             |   | 1,345,998 |   |   |   | 2,311,220 |   |
| Convertible                  notes                                                                                                  |   |                                                             | -        |   |                                                                                                                                             |   | (27,000 | ) |   |   | 291,145 |   |
| **NET                  CASH FLOWS FROM FINANCING ACTIVITIES**                                                                       |   |                                                             | 807,222  |   |                                                                                                                                             |   | 1,318,998 |   |   |   | 2,602,365 |   |
|                                                                                                                                |   |                                                             |     |   |                                                                                                                                             |   |   |   |   |   |   |   |
| **CASH                  FLOWS FROM INVESTING ACTIVITIES**                                                                           |   |                                                             |     |   |                                                                                                                                             |   |   |   |   |   |   |   |
| Purchase                  of property and equipment                                                                                 |   |                                                             | (1,289   | )      |                                                                                                                                             |   | (1,290 | ) |   |   | (5,579 | ) |
| Proceeds                  from non-operating activities                                                                             |   |                                                             | -        |   |                                                                                                                                             |   | - |   |   |   | 97,125 |   |
| Payments                  made on exploration projects                                                                              |   |                                                             | (68,333  | )      |                                                                                                                                             |   | (86,667 | ) |   |   | (211,000 | ) |
| **NET                  CASH FLOWS USED IN INVESTING ACTIVITIES**                                                                    |   |                                                             | (69,622  | )      |                                                                                                                                             |   | (87,957 | ) |   |   | (119,454 | ) |
|                                                                                                                                |   |                                                             |     |   |                                                                                                                                             |   |   |   |   |   |   |   |
| **INCREASE                  (DECREASE) IN CASH AND CASH EQUIVALENTS**                                                               |   |                                                             | 135,211  |   |                                                                                                                                             |   | 122,810 |   |   |   | 151,736 |   |
| **CASH                  AND CASH EQUIVALENTS, BEGINNING**                                                                           |   |                                                             | 17,222   |   |                                                                                                                                             |   | 400 |   |   |   | 697 |   |
|                                                                                                                                |   |                                                             |     |   |                                                                                                                                             |   |   |   |   |   |   |   |
| **CASH****AND CASH EQUIVALENTS**,                  **ENDING**                                                                       |   |                                                             | 152,433  |   |                                                                                                                                             |   | 123,210 |   |   |   | 152,433 |   |
|                                                                                                                                |   |                                                             |     |   |                                                                                                                                             |   |   |   |   |   |   |   |
|                                                                                                                                |   |                                                             |     |   |                                                                                                                                             |   |   |   |   |   |   |   |
| **SUPPLEMENTAL                  CASH FLOW INFORMATION AND****NON-CASH                  INVESTING AND FINANCING ACTIVITIES**(Note 9) |   |                                                             |     |   |                                                                                                                                             |   |   |   |   |   |   |   |

----

**PIEDMONT        MINING COMPANY, INC.**

**(An        Exploration Stage Company)**

**NOTES        TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER        30, 2007**

**(unaudited)          **

----

| **NOTE                    1:** | **NATURE                    OF OPERATIONS** |
|--------------------------------|---------------------------------------------|

----

*Accounting and Reporting by Development Stage        Enterprises,*

**Going        Concern**

----

**PIEDMONT        MINING COMPANY, INC.**

**(An        Exploration Stage Company)**

**NOTES        TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER        30, 2007**

**(unaudited)          **

----

| **NOTE                    1:** | **NATURE                    OF OPERATIONS                    (continued)** |
|--------------------------------|----------------------------------------------------------------------------|

----

**Unaudited        Interim Financial Statements**

| **NOTE                    2:** | **SUMMARY                    OF SIGNIFICANT ACCOUNTING                    POLICIES** |
|--------------------------------|--------------------------------------------------------------------------------------|

----

**Basis        of  Presentation**

**Basis        of Consolidation**

**Cash        and Cash Equivalents**

**Comparative        Figures**

**Use        of Estimates**

----

**PIEDMONT        MINING COMPANY, INC.**

**(An        Exploration Stage Company)**

**NOTES        TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER        30, 2007**

**(unaudited)          **

----

| **NOTE                    2:** | **SUMMARY                    OF SIGNIFICANT ACCOUNTING POLICIES                    (continued)** |
|--------------------------------|--------------------------------------------------------------------------------------------------|

----

**Mineral        Property Costs**

**Asset        Retirement Obligations**

**Impairment        of Long-Lived Assets**

----

**PIEDMONT        MINING COMPANY, INC.**

**(An        Exploration Stage Company)**

**NOTES        TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER        30, 2007**

**(unaudited)          **

----

| **NOTE                    2:** | **SUMMARY                    OF SIGNIFICANT ACCOUNTING POLICIES                    (continued)** |
|--------------------------------|--------------------------------------------------------------------------------------------------|

----

**Financial        Instruments**

**Loss        per Common Share**

**Foreign        Currency Translation**

**Income        Taxes**

----

**PIEDMONT        MINING COMPANY, INC.**

**(An        Exploration Stage Company)**

**NOTES        TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER        30, 2007**

**(unaudited)          **

----

| **NOTE                    2:** | **SUMMARY                    OF SIGNIFICANT ACCOUNTING POLICIES                    (continued)** |
|--------------------------------|--------------------------------------------------------------------------------------------------|

----

**Stock-Based        Compensation**

**Property        and Equipment**

**Recent        Accounting Pronouncements**

----

**PIEDMONT        MINING COMPANY, INC.**

**(An        Exploration Stage Company)**

**NOTES        TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER        30, 2007**

**(unaudited)          **

----

| **NOTE                    3:** | **MINERAL                    PROPERTIES** |
|--------------------------------|-------------------------------------------|

----

| **A.** | **Antelope                  Ridge Project** |
|--------|---------------------------------------------|

| 1. | Lease                  and option payments required: |
|----|------------------------------------------------------|

| 2. | The                  Company must expend the following sums on exploration and maintenance                  of                  the property during the first three years of the                  Agreement: |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | The                  Company has the right to purchase the property for the sum of $1,000,000.                  All payments made to the owners pursuant to clause 1. above shall                  be                  applied to the purchase price.  The purchase option must be                  exercised prior to the commencement of production from the                  property. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | The                  property is subject to a 3% net smelter returns royalty (“NSR”) on                  production. |
|----|----------------------------------------------------------------------------------------------------------------------------------|

| 5. | The                  Company may purchase (a) one-third of the reserved royalty (i.e.                  1% NSR)                  for $1,000,000; and (b) a second one-third of the reserved royalty                  (i.e.                  1% NSR) for an additional                  $4,000,000. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | The                  Company may terminate this Agreement at any time on 60 days                  notice. |
|----|-----------------------------------------------------------------------------------------------------------|

| **B.** | **Bullion                  Mountain Project** |
|--------|-----------------------------------------------|

| 1. | Lease                  payments required: |
|----|-------------------------------------------|

|   | a)         On                  signing: | $5,000                  plus $2,274 for claims fees reimbursement was                  paid |
|--------|--------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|

|  | b)         First                  anniversary: | $5,000                  was paid |
|--|---------------------------------------------------------------------------------------------|----------------------------------|

|  | c)         Second                  anniversary: | $10,000 |
|--|----------------------------------------------------------------------------------------------|---------|

|  |   | d)         Third                  anniversary and each anniversary                  thereafter:   $15,000 |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | The                  Company must expend the following additional amounts in exploration                  and                  maintenance of the property during the first two years of the                  agreement: |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | a)         By                  November 2006: | $20,000                  (incurred) |
|--|--------------------------------------------------------------------------------------------|-------------------------------------|

|  | b)         By                  November 2007: | $50,000 |
|--|--------------------------------------------------------------------------------------------|---------|

| 3. | The                  Company has the option to purchase this property at any time for                  $500,000,                  which must be exercised before production can commence. All lease,                  work                  requirement and property maintenance payments made up to this point                  would                  be deducted from the purchase                  price. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | Upon                  exercise of the purchase option, the Company would be required                  to pay a 3%                  net smelter returns royalty on production from the                  property. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**PIEDMONT        MINING COMPANY, INC.**

**(An        Exploration Stage Company)**

**NOTES        TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER        30, 2007**

**(unaudited)          **

----

| **NOTE                    3:** | **MINERAL                    PROPERTIES                    (continued)** |
|--------------------------------|--------------------------------------------------------------------------|

----

| **B.** | **Bullion                  Mountain Project                  (continued)** |
|--------|----------------------------------------------------------------------------|

| 5. | The                  Company has the right to terminate this agreement at any time by                  giving 60                  days prior written notice. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **C.** | **Dome-Hi-Ho                  Project** |
|--------|-----------------------------------------|

| 1. | Lease                  and option payments: |
|----|---------------------------------------------|

|  | a)         On                  signing Letter of Intent April 2005: | $10,000                  was paid in cash |
|--|------------------------------------------------------------------------------------------------------------------|-------------------------------------------|

|  | b)         On                  signing the Agreement August 2005: | $21,000                  was paid in cash, and |
|--|----------------------------------------------------------------------------------------------------------------|------------------------------------------------|

|  | c)         Lease                  payment August 2005: | $5,000                  was paid in cash |
|--|-----------------------------------------------------------------------------------------------------|------------------------------------------|

|  | d)         Lease                  payment March 16, 2006: | $10,000                  was paid in cash |
|--|--------------------------------------------------------------------------------------------------------|-------------------------------------------|

|   | e)         Lease                  payment July 2006: | $6,667                  was paid in cash |
|--------|---------------------------------------------------------------------------------------------------|------------------------------------------|

|  | f) | Lease                  payment March 2007 and each year thereafter:   $10,000                  in cash until the Company has either earned a 51% interest in the                  project                  or terminated the Agreement. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Required                  expenditures for exploration and property                  maintenance: |
|----|---------------------------------------------------------------------------------------------------|

|   | a)         First                  lease year: | $180,000 |
|--------|--------------------------------------------------------------------------------------------|----------|

|  | b)         Second                  lease year: | $180,000 |
|--|---------------------------------------------------------------------------------------------|----------|

|  | c)         Third                  lease year: | $400,000 |
|--|--------------------------------------------------------------------------------------------|----------|

|  | d)         Fourth                  lease year: | $500,000 |
|--|---------------------------------------------------------------------------------------------|----------|

|  | e)         Fifth                  lease year: | $540,000 |
|--|--------------------------------------------------------------------------------------------|----------|

| 3. | Upon                  completing the above work requirements, the Company will have earned                  a 51%                  interest in the property and the project, at which point a joint                  venture                  will be formed with the Company as the                  operator. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | The                  underlying purchase option on 20 of the claims was renegotiated                  in                  2006.  Accordingly, payments now required on the underlying                  purchase option are as follows: |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | a)         On                  signing the option amendment in April 2006: | $10,000                  (paid) |
|--|-------------------------------------------------------------------------------------------------------------------------|---------------------------------|

|  | b)         On                  first anniversary of amendment in April 2007: | $10,000                  (paid) |
|--|---------------------------------------------------------------------------------------------------------------------------|---------------------------------|

|  | c)         On                  second anniversary of amendment in April 2008: | $20,000 |
|--|----------------------------------------------------------------------------------------------------------------------------|---------|

|  | d)         Option                  exercise price by April 2009: | $200,000,                  less above payments. |
|--|---------------------------------------------------------------------------------------------------------------|-------------------------------------------------|

| 5. | In                      addition, the Company is obligated to pay the underlying claims                      maintenance and property holding costs as well as annual rental                      payments                      under a pre-existing lease agreement with a third party. The                      term of this                      lease is twenty years, beginning July 21, 2003. The Company                      will therefore                      be required to pay the following lease                      amounts: |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a) | 2007       $8,333                  (paid) |
|--------|----|------------------------------------------------------------------------------|

|   | b) | After                  the 2007 anniversary date, the annual rental amount will be increased                  based on the Consumer Price Index. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | The                  Company would be required to pay royalties based on a graduated                  scale,                  ranging from 3.0% to 4.0% should production occur on the                  property. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**PIEDMONT        MINING COMPANY, INC.**

**(An        Exploration Stage Company)**

**NOTES        TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER        30, 2007**

**(unaudited)          **

----

| **NOTE                    3:** | **MINERAL                    PROPERTIES                    (continued)** |
|--------------------------------|--------------------------------------------------------------------------|

----

**Dome-Hi-Ho        Project (continued)**

| **D.** | **Trinity                  Silver Project** |
|--------|---------------------------------------------|

| 1. | Lease                  and option payments required: |
|----|------------------------------------------------------|

|  | a)         On                  signing: | $10,000                  was paid. |
|--|--------------------------------------------------------------------------------------|------------------------------------|

| 2. | Required                  expenditures for exploration and property                  maintenance: |
|----|---------------------------------------------------------------------------------------------------|

|   | a)         In                  year 1: | $75,000                  (completed). |
|--------|-------------------------------------------------------------------------------------|---------------------------------------|

|   | b)                          In year 2: | $125,000                  (completed). |
|--------|--------------------------------------------------------------------------------|----------------------------------------|

|   | c) | Prior                  to September 15, 2008: a total of $1,000,000 in order to earn an                  initial                  25% interest in the TSP. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d) | Prior                  to September 15, 2010: an additional $1,000,000, in order to earn                  an                  additional 26% interest (51% in total) in the                  TSP. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e) | Prior                  to September 15, 2013: an additional $2,000,000 in order to earn                  an                  additional 9% interest (for a total of 60%) in the                  TSP. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Upon                  achieving its 51% or its 60% interest, the Company may then elect                  to form                  a joint venture, and the Company would be the operator of the joint                  venture. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | The                  Company may terminate this agreement at any time upon 30 days written                  notice. |
|----|---------------------------------------------------------------------------------------------------------------------|

| **E.** | **Pasco                  Canyon Project** |
|--------|-------------------------------------------|

| 1. | Option                  payment required: On signing: $10,000                  (paid). |
|----|----------------------------------------------------------------------------------------|

|   | Year                  1 | $  50,000 |
|--------|-------------------------|---------------------|

|   | Year                  2 | $100,000 |
|--------|-------------------------|----------|

|   | Year                  3 | $200,000 |
|--------|-------------------------|----------|

|   | Year                  4 | $200,000 |
|--------|-------------------------|----------|

|   | Year                  5 | $450,000 |
|--------|-------------------------|----------|

| 3. | Upon                  completion of the required expenditures, the Company will have                  acquired a                  60% undivided interest in the property. At that point, a formal                  joint                  venture agreement will be entered into by the Company with the                  Company                  being the operator of the joint                  venture. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | The                  Company has the right to terminate this agreement at any time,                  subsequent                  to the first year’s expenditure requirement of $50,000, upon 30 days prior                  written notice. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**PIEDMONT        MINING COMPANY, INC.**

**(An        Exploration Stage Company)**

**NOTES        TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER        30, 2007**

**(unaudited)          **

----

| **NOTE                    3:** | **MINERAL                    PROPERTIES                    (continued)** |
|--------------------------------|--------------------------------------------------------------------------|

----

| **E.** | **Pasco                  Canyon Project (continued)** |
|--------|-------------------------------------------------------|

| **F.** | **Dutch                  Flat Gold Project** |
|--------|----------------------------------------------|

| 1. | Payment                  upon                  signing:    $35,000 |
|----|----------------------------------------------------------------------------------------|

| 2. | The                  Company shall expend the following sums on exploration and maintenance                  of                  the property during the first 5 years of the                  Agreement: |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Year                  1 | $200,000 |
|--------|-------------------------|----------|

|   | Year                  2 | $300,000 |
|--------|-------------------------|----------|

|   | Year                  3 | $500,000 |
|--------|-------------------------|----------|

|   | Year                  4 | $500,000 |
|--------|-------------------------|----------|

|   | Year                  5 | $500,000 |
|--------|-------------------------|----------|

| 3. | Upon                  completion of the $2,000,000 in exploration expenditures over the                  5-year                  period, the Company shall have earned a 51% interest in the property                  and                  can then elect to either 1) form a joint venture at that point                  whereby the                  Company would own 51%, or 2) earn an additional 19% interest in                  property                  by funding a positive feasibility study and then form a joint                  venture.  The Company would be the operator of the joint                  venture. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | Six                  of these claims are subject to a 1.5% net smelter returns                  royalty.  Another company, in which one of the Company’s                  Directors has an interest, holds a 1% net smelter returns royalty                  on                  another sixteen of these claims. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | The                  Company may terminate this Agreement at any time after the first                  year on                  30 days notice. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------|

| **G.** | **PPM                  Gold Project** |
|--------|---------------------------------------|

|   | (i) | paying  $25,000                  to Miranda within 30 days of the effective date of the Exploration                  Agreement (paid); |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | incurring                  at least $175,000 in exploration work during the first year of                  the                  Exploration Agreement; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | incurring                  an additional $200,000 in exploration work during the second                  year; |
|--------|-------|----------------------------------------------------------------------------------------------------------------|

|   | (iv) | incurring                  an additional $300,000 in exploration work during the third                  year; |
|--------|------|---------------------------------------------------------------------------------------------------------------|

|   | (v) | incurring                  an additional $425,000 in exploration work during the fourth year;                  and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------|

|   | (vi) | incurring                  an additional $650,000 in exploration work during the fifth                  year. |
|--------|------|---------------------------------------------------------------------------------------------------------------|

----

**PIEDMONT        MINING COMPANY, INC.**

**(An        Exploration Stage Company)**

**NOTES        TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER        30, 2007**

**(unaudited)          **

----

| **NOTE                    3:** | **MINERAL                    PROPERTIES                    (continued)** |
|--------------------------------|--------------------------------------------------------------------------|

----

| **G.** | **PPM                  Gold Project (continued)** |
|--------|---------------------------------------------------|

|                              |   | Balance                  as at December 31, 2006 |    |   | Incurred                  during the period |   |   | Balance                  as at September 30, 2007 |   |
|-----------------------------------|--------|--------------------------------------------------|---------|--------|---------------------------------------------|--------|--------|---------------------------------------------------|--------|
|                              |   | $                                                |    |   | $                                           |   |   | $                                                 |   |
| Antelope                  Ridge   |   |                                             | 38,500  |   |                                        |   | 30,000 |                                              |   |   | 68,500 |   |
| Bullion                  Mountain |   |                                             | 10,000  |   |                                        |   | -      |                                              |   |   | 10,000 |   |
| Dome                  Hi-Ho       |   |                                             | 73,667  |   |                                        |   | 28,333 |                                              |   |   | 102,000 |   |
| Dutch                  Flat       |   |                                             | 35,000  |   |                                        |   | -      |                                              |   |   | 35,000 |   |
| Pasco                  Canyon     |   |                                             | 10,000  |   |                                        |   | -      |                                              |   |   | 10,000 |   |
| Trinity                  Silver   |   |                                             | 10,000  |   |                                        |   | -      |                                              |   |   | 10,000 |   |
| PPM                  Gold         |   |                                             | -       |   |                                        |   | 25,000 |                                              |   |   | 25,000 |   |
|                              |   |                                             | 177,167 |   |                                        |   | 83,333 |                                              |   |   | 260,500 |   |

| **NOTE                    4:** | **PROPERTY                    AND EQUIPMENT** |
|--------------------------------|-----------------------------------------------|

----

|                                            |   | September                  30,2007 |   |   | December                  31,2006 |   |
|-------------------------------------------------|--------|------------------------------------|--------|--------|-----------------------------------|--------|
|                                            |   |                               |   |   |                              |   |
| Computer                  Equipment             |   | $                                  | 5,578  |   |                              | $      | 4,290 |   |
| Less:                  accumulated depreciation |   |                               | (4,218 | )      |                              |   | (2,763 | ) |
|                                            |   | $                                  | 1,360  |   |                              | $      | 1,527 |   |

----

**PIEDMONT        MINING COMPANY, INC.**

**(An        Exploration Stage Company)**

**NOTES        TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER        30, 2007**

**(unaudited)          **

----

| **NOTE                  5:** | **DUE                  TO RELATED PARTIES AND RELATED PARTY                  TRANSACTIONS** |
|------------------------------|---------------------------------------------------------------------------------------------|

----

** **

| **NOTE                    6:** | **CAPITAL                    STOCK** |
|--------------------------------|--------------------------------------|

----

**Share        Capital**

**Common        Share Transactions**

| (a) | Issued                  425,000 common shares upon the exercise of warrants at an exercise                  price                  of $0.15 per share, 125,000 common shares upon the exercise of                  warrants at                  an exercise price of $0.16 per share and 1,818,182 common shares                  upon the                  exercise of warrants at an exercise price of $0.08 per share, for                  net                  proceeds of  $229,205;                  and |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | issued                  3,750,000 units at $0.16 consisting of one common share and one                  half                  common share purchase warrant at $0.20 per unit for proceeds of                  $578,018,                  net of commissions of $21,982. The 2,812,500 common stock purchase                  warrants issued entitle the owner to purchase a common share of                  the                  Company at a price of $0.20 per share for a period of two                  years. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**PIEDMONT        MINING COMPANY, INC.**

**(An        Exploration Stage Company)**

**NOTES        TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER        30, 2007**

**(unaudited)          **

----

| **NOTE                    6:** | **CAPITAL                    STOCK (continued)** |
|--------------------------------|--------------------------------------------------|

----

| (c) | issued                  105,634 shares of common stock at a fair value of $15,000 under                  the terms                  of certain mineral property                  option  agreements. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | During                  the year ended December 31, 2006 the                  Company: |
|----|----------------------------------------------------------------------------------------|

| (a) | issued                  357,143 common shares upon the exercise of warrants at an exercise                  price                  of $0.095 and 100,000 common shares upon the exercise of warrants                  at an                  exercise price of $0.13 per share   for net proceeds of                  $46,928; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | issued                  2,226,665 units consisting of one common share and one common share                  purchase warrant to accredited investors.  The common stock                  purchase warrants entitle the owners to purchase an equal number                  of shares                  at an exercise price range of $0.15 to $0.20 within one year. The                  units                  were sold at a range of $0.12 to $0.15 per unit, for net proceeds                  of                  $289,750; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | issued                  7,378,333 units consisting of one common share and one half common                  share                  purchase warrant at $0.15 per unit for proceeds of $1,022,310,                  net                  of  commissions of $88,540 and legal fees of $17,736. The                  3,689,167 common stock purchase warrants issued entitle the holder                  to                  purchase a common share of the Company at a price of $0.26 per                  share for a                  period of two years. In lieu of an additional cash fee for this                  private                  placement, the Company issued a total of 737,834 broker warrants                  with the                  same terms; and |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | issued                  43,478 shares of common stock at a fair value of $10,000 under                  the terms                  of its mineral property option                  agreements. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Stock-Based        Compensation and Other Equity Transactions**

|                                                                  |   | Nine                  months endedSeptember                  30, 2007 |   | Nine                  months endedSeptember                  30, 2006 |
|-----------------------------------------------------------------------|--------|-----------------------------------------------------------------------|--------|-----------------------------------------------------------------------|
| Risk-free                  interest rates                             |   | 3.76%                  to 5.02%                                       |   | 4.43%                  TO 4.79%                                       |
| Volatility                  factor                                    |   | 109%                                                                  |   | 100%                                                                  |
| Estimated                  life of options, in years                  |   | 3                  to 5                                               |   | 3                  to 5                                               |
| Service                  period in years                              |   | 1                  to 3                                               |   | 1                  to 3                                               |
| Weighted                  average calculated value of options granted |   | $0.023                                                                |   | $0.032                                                                |

----

**PIEDMONT        MINING COMPANY, INC.**

**(An        Exploration Stage Company)**

**NOTES        TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER        30, 2007**

**(unaudited)          **

----

| **NOTE                    6:** | **CAPITAL                    STOCK (continued)** |
|--------------------------------|--------------------------------------------------|

----

**Stock-Based        Compensation and Other Equity Transactions (continued)**

|                                                  |   | Number                  of  |      |   |                            |   |
|-------------------------------------------------------|--------|-----------------------------|-----------|--------|---------------------------------|--------|
|                                                  |   | Shares                      |      |   | Weighted                        |   |
|                                                  |   | Subject                  to |      |   | Average                         |   |
|                                                  |   | Options                     |      |   | Exercise                  Price |   |
|                                                  |   |                        |      |   | $                               |   |
| Outstanding,                  December 31, 2005       |   |                        | 3,425,000 |   |                            |   | 0.236 |   |
| Granted,                  February  8, 2006 |   |                        | 1,200,000 |   |                            |   | 0.230 |   |
| Expired,                  April 13, 2006              |   |                        | (500,000  | )      |                            |   | 0.300 |   |
| Granted,                  June 16, 2006               |   |                        | 1,150,000 |   |                            |   | 0.250 |   |
| Granted,                  December 28, 2006           |   |                        | 250,000   |   |                            |   | 0.270 |   |
| Outstanding,                  December 31, 2006       |   |                        | 5,525,000 |   |                            |   | 0.233 |   |
|                                                  |   |                        |      |   |                            |   |   |   |
| Granted                  March 29, 2007               |   |                        | 250,000   |   |                            |   | 0.250 |   |
| Granted                  July 3, 2007                 |   |                        | 200,000   |   |                            |   | 0.250 |   |
| Outstanding,                  September 30, 2007      |   |                        | 5,975,000 |   |                            |   | 0.227 |   |

|                                                             |   |      |       |   | Weighted                    |   |
|------------------------------------------------------------------|--------|-----------|------------|--------|-----------------------------|--------|
|                                                             |   | Nonvested |       |   | Average                     |   |
|                                                             |   | Options   |       |   | Fair                  Value |   |
| **Nonvested                  Options**                           |   |      |       |   | $                           |   |
| Nonvested                  options, December 31, 2005            |   |      | 1,683,333  |   |                        |   | - |   |
| Granted,                  February 8, 2006                       |   |      | 1,200,000  |   |                        |   | 0.037 |   |
| Granted,                  June 16, 2006                          |   |      | 1,150,000  |   |                        |   | 0.027 |   |
| Granted,                  December 28, 2006                      |   |      | 250,000    |   |                        |   | 0.023 |   |
| Vested                                                           |   |      | (1,691,666 | )      |                        |   | 0.011 |   |
| Nonvested                  options, December 31, 2006            |   |      | 2,591,667  |   |                        |   | 0.020 |   |
| Granted                  March 29, 2007                          |   |      | 250,000    |   |                        |   | 0.011 |   |
| Granted                  July 2, 2007                            |   |      | 200,000    |   |                        |   | 0.010 |   |
| Vested                                                           |   |      | (1,808,334 | )      |                        |   | 0.013 |   |
| Nonvested                  options September  30, 2007 |   |      | 1,233,333  |   |                        |   | 0.190 |   |

----

**PIEDMONT        MINING COMPANY, INC.**

**(An        Exploration Stage Company)**

**NOTES        TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER        30, 2007**

**(unaudited)          **

----

| **NOTE                    6:** | **CAPITAL                    STOCK (continued)** |
|--------------------------------|--------------------------------------------------|

----

**Stock-Based        Compensation and Other Equity Transactions (continued)**

| Options                  Outstanding at December 31, 2006 |   | Options                  Exercisable at December 31, 2006 |
|-----------------------------------------------------------|--------|-----------------------------------------------------------|
|                                                      |   |                                                      |   | Weighted |   |   |   |   |   | Weighted |   |   |
|                                                      |   |                                                      |   | Average |   |   |   |   |   | Average |   |   |
| Range                  of                                 |   |                                                      |   | Remaining |   | Weighted |   |   |   | Remaining |   | Weighted |
| Exercise                                                  |   | Number                                                    |   | Contractual |   | Average |   | Number |   | Contractual |   | Average |
| Prices                                                    |   | of                  Shares                                |   | Life                  (in years) |   | Exercise                  Price |   | of                  Shares |   | Life                  (in years) |   | Exercise                  Price |
| $                  0.20 – 0.27                      |   | 5,525,000                                                 |   | 3.99 |   | $      0.234 |   | 2,591,667 |   | 4.13 |   | $     0.251 |

| Options                  Outstanding at September 30, 2007 |   | Options                  Exercisable at September 30, 2007 |
|------------------------------------------------------------|--------|------------------------------------------------------------|
|                                                       |   |                                                       |   | Weighted |   |   |   |   |   | Weighted |   |   |
|                                                       |   |                                                       |   | Average |   |   |   |   |   | Average |   |   |
| Range                  of                                  |   |                                                       |   | Remaining |   | Weighted |   |   |   | Remaining |   | Weighted |
| Exercise                                                   |   | Number                                                     |   | Contractual |   | Average |   | Number |   | Contractual |   | Average |
| Prices                                                     |   | of                  Shares                                 |   | Life                  (in years) |   | Exercise                  Price |   | of                  Shares |   | Life                  (in years) |   | Exercise                  Price |
| $                  0.20 – 0.27                       |   | 5,975,000                                                  |   | 3.40 |   | $      0.227 |   | 4,741,667 |   | 3.4 |   | $     0.232 |

**Common        Stock Purchase Warrants**

----

**PIEDMONT        MINING COMPANY, INC.**

**(An        Exploration Stage Company)**

**NOTES        TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER        30, 2007**

**(unaudited)          **

----

| **NOTE                    6:** | **CAPITAL                    STOCK (continued)** |
|--------------------------------|--------------------------------------------------|

----

**Common        Stock Purchase Warrants (continued)**

|                                         |   | Number                  ofWarrants |       |    | Weighted                  averageexercise                  price |   |   | Weighted                  averageremaining                  life (years) |   |
|----------------------------------------------|--------|------------------------------------|------------|---------|------------------------------------------------------------------|--------|--------|--------------------------------------------------------------------------|--------|
|                                         |   |                               |       | $  |                                                             |   |   |                                                                     |   |
| Balance,                  December 31, 2005  |   |                               | 3,098,290  |    |                                                             |   | 0.09   |                                                                     |   |   | 1.30 |   |
| Issued                                       |   |                               | 6,653,666  |    |                                                             |   | 0.22   |                                                                     |   |   | - |   |
| Exercised                                    |   |                               | (457,143   | )       |                                                             |   | 0.10   |                                                                     |   |   | - |   |
| Expired                                      |   |                               | (166,667   | )       |                                                             |   | -      |                                                                     |   |   | - |   |
| Balance,                  December 31, 2006  |   |                               | 9,128,146  |    |                                                             |   | 0.18   |                                                                     |   |   | 0.84 |   |
| Exercised                                    |   |                               | (2,368,182 | )       |                                                             |   | 015    |                                                                     |   |   | - |   |
| Expired                                      |   |                               | (1,676,666 | )       |                                                             |   | -      |                                                                     |   |   | - |   |
| Issued                                       |   |                               | 4,150,000  |    |                                                             |   | 0.23   |                                                                     |   |   | 2.18 |   |
| Balance,                  September 30, 2007 |   |                               | 9,233,298  |    |                                                             |   | 0.23   |                                                                     |   |   | 1.62 |   |

| **NOTE                    7:** | **INCOME                    TAXES** |
|--------------------------------|-------------------------------------|

|                                                                                                                                                          |   | September                  30,2007 |       |   | December                  31,2006 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------|------------|--------|-----------------------------------|--------|
| Deferred                  tax assets:                                                                                                                         |   |                               |       |   |                              |   |
| Federal                   35%                                  |   | $                                  | 4,853,513  |   |                              | $      | 4,664,861 |   |
| State                         7% |   |                               | 970,703    |   |                              |   | 932,972 |   |
| Total                  deferred tax asset                                                                                                                     |   |                               | 5,824,216  |   |                              |   | 5,597,833 |   |
| Less                  valuation allowance                                                                                                                     |   |                               | (5,824,216 | )      |                              |   | (5,597,833 | ) |
| Net                  deferred tax asset                                                                                                                       |   | $                                  | -          |   |                              | $      |  - |   |

|                                                                    |   | September                  30,2007 |     |   | December                  31,2006 |   |
|-------------------------------------------------------------------------|--------|------------------------------------|----------|--------|-----------------------------------|--------|
| Net                  loss before taxes                                  |   | $                                  | (716,373 | )      |                              | $      | (1,140,612 | ) |
| Federal                  and State Statutory rate                       |   |                               | 42%      |   |                              |   | 42% |   |
| Expected                  tax recovery                                  |   |                               | (300,877 | )      |                              |   | (479,057 | ) |
| (Decrease)                  increase in taxes resulting from:           |   |                               |     |   |                              |   |   |   |
| Permanent                  differences                                  |   |                               | 323      |   |                              |   | 173 |   |
| Non-deductible                  stock based compensation                |   |                               | 74,046   |   |                              |   | 51,814 |   |
| Increase                  in valuation allowance                        |   |                               | 226,508  |   |                              |   | 427,070 |   |
| Income                  tax expense(benefit) from continuing operations |   | $                                  | -        |   |                              | $      | - |   |
| Effective                  income tax rate                              |   |                               | 0%       |   |                              |   | 0% |   |

----

**PIEDMONT        MINING COMPANY, INC.**

**(An        Exploration Stage Company)**

**NOTES        TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER        30, 2007**

**(unaudited)          **

----

| **NOTE                    7:** | **INCOME                    TAXES (continued)** |
|--------------------------------|-------------------------------------------------|

----

|                    Expiration |   | Net                  OperatingLoss |       |
|------------------------------------|--------|------------------------------------|------------|
| 2009                               |   | $                                  | 2,126,000  |   |
| 2010                               |   |                               | 1,695,000  |   |
| 2011                               |   |                               | 2,958,000  |   |
| 2012                               |   |                               | 1,300,000  |   |
| 2017                               |   |                               | 778,000    |   |
| 2018                               |   |                               | 573,000    |   |
| 2019                               |   |                               | 336,000    |   |
| 2020                               |   |                               | 1,368,000  |   |
| 2021                               |   |                               | 202,000    |   |
| 2022                               |   |                               | 179,000    |   |
| 2023                               |   |                               | 171,545    |   |
| 2024                               |   |                               | 161,755    |   |
| 2025                               |   |                               | 462,759    |   |
| 2026                               |   |                               | 1,017,115  |   |
| 2027                               |   |                               | 539,007    |   |
|                               |   | $                                  | 13,867,181 |   |

| **NOTE                    8:** | **SUPPLEMENTAL                    CASH FLOW INFORMATION AND NONCASH INVESTING AND FINANCING                    ACTIVITIES** |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------|

----

|                                                                      |   | Nine                  monthsendedSeptember                  30, 2007 |   |   | Nine                  monthsendedSeptember                  30, 2006 |   |
|---------------------------------------------------------------------------|--------|----------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------|--------|
|                                                                      |   | $                                                                    |   |   | $                                                                    |   |
| Interest                  paid                                            |   |                                                                 | -      |   |                                                                 |   | - |   |
| Income                  taxes paid                                        |   |                                                                 | -      |   |                                                                 |   | - |   |
| Common                  stock issued under the terms of option agreements |   |                                                                 | 15,000 |   |                                                                 |   | 10,000 |   |

----

**Item        2. Management’s Discussion And Analysis Or Plan Of        Operation**

***Forward-Looking        Statements        and Associated Risks.***
* *

**Overview        of Business**

**Going        Concern**

----

**Critical        Accounting Policies**

**Results        of Operations**

***Discussion        of Revenues***

|   | · | locate                  one or more economic mineral deposits which could then be put into                  production, from which we would then be able to extract gold or                  silver at                  a profit; or |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | enter                  into a joint venture arrangement on one or more of our leased properties;                  or |
|--------|--------|----------------------------------------------------------------------------------------------------------------------|

|   | · | consummate                  a merger or acquisition with an operating                  company. |
|--------|--------|-------------------------------------------------------------------------------------------------|

----

***Expenses        for the Nine Month Period        ending September 30, 2007 vs. September 30,        2006  and    the Three Month Period ending        September 30, 2007 vs. September 30, 2006***

**Liquidity        and Financial Condition **

***Cash        and Working Capital***

----

*   **Internal        and External Sources of Liquidity***

***Contractual        Obligations***

----

**Bullion        Mountain Project:**

|   | · | Required                  work expenditure by 9/30/07; $20,000 of which $34,458 has already                  been                  expended; In September, 2007, this agreement was amended and the                  time for                  completing the remaining work obligation was extended                  indefinitely. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Current                  claims maintenance: $2,808 has been                  paid. |
|--------|--------|-------------------------------------------------------------------------------------|

|   | · | Annual                  payment:  $10,000 due in November,                  2007. |
|--------|--------|---------------------------------------------------------------------------------------------|

**Antelope        Ridge:**

|   | · | Required                  work expenditure by 9/30/07: $120,000, of which $144,732 has already                  been                  expended; a $100,000 drill program commenced in October                  2007. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Current                  claims maintenance: $6,824 has been                  paid. |
|--------|--------|-------------------------------------------------------------------------------------|

|   | · | Annual                  payments: $15,000 in cash and $15,000 in Common Stock; were made                  in April,                  2007. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------|

**Dome        HiHo Project:**

|   | · | Required                  work expenditure by 9/30/07: $360,000, of which $384,155 has already                  been                  expended; another drill program was conducted in October, 2007                  and is                  expected to have cost an additional                  $100,000. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Current                  claims maintenance:  $6,297 has been paid. |
|--------|--------|-------------------------------------------------------------------------------|

|   | · | Annual                  payments:  $28,333, which have been                  paid. |
|--------|--------|----------------------------------------------------------------------------------------------|

**Trinity        Silver        Project**

|   | · | Required                  work expenditure: $75,000, of which $396,881 has already been expended.                  The second drill program was completed in October, 2007 and is                  expected to                  have cost approximately $215,000. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Current                  claims maintenance:  $9,443 has been                  paid. |
|--------|--------|------------------------------------------------------------------------------------------------|

|   | · | Annual                  payments:  $0. |
|--------|--------|--------------------------------------------------|

**Pasco        Canyon Gold Project:**

|   | · | Required                  work expenditure by 9/30/07; $50,000, of which $44,802 has already                  been                  completed. Further work postponed pending receipt of drill permit                  from                  U.S. Forest Service. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Current                  claims maintenance: $3,000 has been                  paid. |
|--------|--------|-------------------------------------------------------------------------------------|

|   | · | Annual                  payments; $0. |
|--------|--------|---------------------------------------|

**Dutch        Flat Gold Project:**

|   | · | Required                  work expenditure of $200,000 required by July, 2007, of which $194,609                  was                  expended at September 30, 2007 and $46,000 on October 2,                  2007. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Current                  claims maintenance; $24,139 has been                  paid. |
|--------|--------|--------------------------------------------------------------------------------------|

|   | · | Annual                  payments;  $0. |
|--------|--------|--------------------------------------------------|

** PPM        Miranda Gold Project:**

|   | · | Required                  work expenditure for first year; $175,000, of which $60,082 has                  already                  been expended. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Current                  claims maintenance:  $5,878 has been                  paid. |
|--------|--------|------------------------------------------------------------------------------------------------|

|   | · | Annual                  payments;  $0. |
|--------|--------|--------------------------------------------------|

----

**Off-Balance        Sheet Arrangements**

**Item        3. Controls And Procedures**

| (A) | Evaluation                  of Disclosure Controls                  and Procedures |
|-----|------------------------------------------------------------------------------------|

| (B) | Changes                  in Internal                  Controls |
|-----|----------------------------------------------------------------|

***PART        II – OTHER INFORMATION***

**Item        1. Legal Proceedings**

**Item        2. Unregistered Sales of Equity Securities and Use of        Proceeds**

----

**Item        3. Defaults Upon Senior Securities**

**Item        4. Submission Of Matters To A Vote Of Security Holders**

**Item        5. Other Information**

----

**Item        6. Exhibits**

| **Exhibit                  No.** |   | **Description**                                                   |   | **Location**                       |
|----------------------------------|--------|-------------------------------------------------------------------|--------|------------------------------------|
|                             |   |                                                              |   |                               |
| 31.1                             |   | Certification                  Pursuant to Section 302            |   | Provided                  herewith |
|                             |   |                                                              |   |                               |
| 31.2                             |   | Certification                  Pursuant to Section 302            |   | Provided                  herewith |
|                             |   |                                                              |   |                               |
| 32.1                             |   | Certification                  Pursuant to 18 U.S.C. Section 1350 |   | Provided                  herewith |
|                             |   |                                                              |   |                               |
| 32.2                             |   | Certification                  Pursuant to 18 U.S.C. Section 1350 |   | Provided                  herewith |

----

**SIGNATURES**

|                                     | **PIEDMONT                    MINING COMPANY, INC.,**a                    North Carolina Corporation                                                                                                                                                                                            |
|------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Dated                  November 13, 2007 | /s/                    Robert M. Shields, Jr.                                                                                                                                                                                                                                                             |
|                                     | By:  Robert                  M. Shields, Jr.Its:  Chief                  Executive Officer (Principal Executive                  Officer)and                  Chief Financial Officer (Principal Financial Officerand                  Principal Accounting                  Officer) |

----