----

----

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

| Large accelerated filer             |  ̈       | Accelerated filer                                 |  ̈  |
|-----------------------------------------------|--------------|---------------------------------------------------|---------|
|  Non-accelerated filer                   |   ̈ |  Smaller reporting company    |  x |
| (Do not check if a smaller reporting company) |

----

|                                                                                       | PageNumber |
|--------------------------------------------------------------------------------------------|------------|
|                                                                                       |       |
| PART I – FINANCIAL INFORMATION                                                       |       |
|    Item 1. Financial Statements                                             |       |
| Consolidated Balance Sheets                                                                | 3          |
| Consolidated Statements of Loss                                                            | 4          |
| Consolidated Statements of Cash Flows                                                      | 5          |
| Notes to Consolidated Financial Statements                                                 | 6          |
|    Item 2. Management’s Discussion and Analysis or Plan of Operations | 12         |
|    Item 3. Quantitative and Qualitative Disclosures About Market Risks      | 16         |
|    Item 4T. Controls and Procedures                                         |  16   |
|  PART II – OTHER INFORMATION                                                    |       |
|    Item 1. Legal Proceedings                                                | 16         |
|    Item 1A. Risk Factors.                                                   | 16         |
|    Item 2. Unregistered Sales of Equity Securities and Use of Proceeds      | 16         |
|    Item 3. Defaults Upon Senior Securities                                  | 17         |
|    Item 4. [Removed and Reserved]                                           | 17         |
|    Item 5. Other Information                                                | 17         |
|    Item 6. Exhibits                                                         | 17         |
|    Signature Page                                                           | 18         |

----

|                                                                                                                                                                             |   | June 30,2010 |        |   | December 31, 2009 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|-------------|--------|-------------------|--------|
|                                                                                                                                                                             |   | (unaudited)  |        |   |              |   |
|                                                                                                                                                                             |   |         |        |   |              |   |
| ASSETS                                                                                                                                                                           |   |
|                                                                                                                                                                             |   |         |        |   |              |   |
| CURRENT ASSETS                                                                                                                                                                   |   |         |        |   |              |   |
| Cash                                                                                                                                                                             |   | $            | -           |   |              | $      | 16,466 |   |
|                                                                                                                                                                             |   |         |        |   |              |   |   |   |
| RECLAMATION BOND (Note 2)                                                                                                                                                        |   |         | 11,565      |   |              |   | 11,565 |   |
| MINERAL PROPERTIES (Note 2)                                                                                                                                                      |   |         | 2           |   |              |   | 2 |   |
| INTEREST IN OIL LEASES (Note 2)                                                                                                                                                  |   |         | 2           |   |              |   | 2 |   |
|                                                                                                                                                                             |   |         |        |   |              |   |   |   |
|                                                                                                                                                                             |   | $            | 11,569      |   |              | $      | 28,035 |   |
|                                                                                                                                                                             |   |         |        |   |              |   |   |   |
|                                                                                                                                                                             |   |         |        |   |              |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ DEFICIT                                                                                                                                      |   |
|                                                                                                                                                                             |   |         |        |   |              |   |   |   |
| CURRENT LIABILITIES                                                                                                                                                              |   |         |        |   |              |   |   |   |
| Accounts payable                                                                                                                                                                 |   | $            | 234,166     |   |              | $      | 401,014 |   |
| Due to related parties (Note 3)                                                                                                                                                  |   |         | 649,911     |   |              |   | 538,724 |   |
|                                                                                                                                                                             |   |         | 884,077     |   |              |   | 939,738 |   |
|                                                                                                                                                                             |   |         |        |   |              |   |   |   |
| CAPITAL STOCK (Note 4)                                                                                                                                                           |   |         |        |   |              |   |   |   |
| Authorized:50,000,000 Preferred stock $1.00 par value200,000,000 Common stock no par valueCommon stock issued and outstanding:  78,376,025 shares (2009 – 70,123,643) |   |         | 16,825,810  |   |              |   | 16,550,144 |   |
| ADDITIONAL PAID IN CAPITAL                                                                                                                                                       |   |         | 872,644     |   |              |   | 872,644 |   |
| SHARE SUBSCRIPTIONS RECEIVED                                                                                                                                                     |   |         | -           |   |              |   | 16,000 |   |
| ACCUMULATED DEFICIT                                                                                                                                                              |   |         | (12,564,287 | )      |              |   | (12,564,287 | ) |
| DEFICIT ACCUMULATED DURING THE EXPLORATION STAGE                                                                                                                                 |   |         | (6,006,675  | )      |              |   | (5,786,204 | ) |
|                                                                                                                                                                             |   |         |        |   |              |   |   |   |
| STOCKHOLDERS’ DEFICIT                                                                                                                                                      |   |         | (872,508    | )      |              |   | (911,703 | ) |
|                                                                                                                                                                             |   |         |        |   |              |   |   |   |
|                                                                                                                                                                             |   | $            | 11,569      |   |              | $      | 28,035 |   |

----

|                                                                                          |   | Three months endedJune 30,2010 |       |    | Three months endedJune 30,2009 |   |       | Six months endedJune 30, 2010 |   |   | Six months endedJune 30, 2009 |    |   | For the Period from January 1, 2002 (Date of Inception of Exploration Stage) toJune 30, 2010 |       |
|-----------------------------------------------------------------------------------------------|--------|--------------------------------|------------|---------|--------------------------------|--------|------------|-------------------------------|--------|--------|------------------------------------|---------|--------|----------------------------------------------------------------------------------------------|------------|
| REVENUES                                                                                      |   |                           |       |    |                           |   |       |                          |   |   |                               |    |   |                                                                                         |       |
| Oil revenues                                                                                  |   | $                              | -          |    |                           | $      | -          |                          |   | $      | -                                  |    |   | $                                                                                            | -          |   |   | $ | 3,233 |   |
|                                                                                          |   |                           |       |    |                           |   |       |                          |   |   |                               |    |   |                                                                                         |       |   |   |   |   |   |
| EXPENSES                                                                                      |   |                           |       |    |                           |   |       |                          |   |   |                               |    |   |                                                                                         |       |   |   |   |   |   |
| Depreciation                                                                                  |   |                           | -          |    |                           |   | -          |                          |   |   | -                                  |    |   |                                                                                         | 65         |   |   |   | 146,383 |   |
| Exploration, geological and geophysical costs (Note 2)                                        |   |                           | 25,000     |    |                           |   | 1,449      |                          |   |   | 25,577                             |    |   |                                                                                         | 29,645     |   |   |   | 2,345,087 |   |
| Finance fees                                                                                  |   |                           | -          |    |                           |   | -          |                          |   |   | -                                  |    |   |                                                                                         | -          |   |   |   | 191,200 |   |
| General and administrative                                                                    |   |                           | 33,922     |    |                           |   | 15,197     |                          |   |   | 46,241                             |    |   |                                                                                         | 72,461     |   |   |   | 944,813 |   |
| Impairment of mineral properties (Note 3)                                                     |   |                           | -          |    |                           |   | -          |                          |   |   | -                                  |    |   |                                                                                         |       |   |   |   | 341,974 |   |
| Management fees                                                                               |   |                           | 42,000     |    |                           |   | 51,350     |                          |   |   | 84,000                             |    |   |                                                                                         | 100,484    |   |   |   | 1,098,872 |   |
| Professional fees                                                                             |   |                           | 33,206     |    |                           |   | 12,992     |                          |   |   | 64,653                             |    |   |                                                                                         | 55,072     |   |   |   | 927,314 |   |
|                                                                                          |   |                           | 134,128    |    |                           |   | 80,988     |                          |   |   | 220,471                            |    |   |                                                                                         | 257,727    |   |   |   | 5,995,643 |   |
|                                                                                          |   |                           |       |    |                           |   |       |                          |   |   |                               |    |   |                                                                                         |       |   |   |   |   |   |
| LOSS BEFORE OTHER ITEMS                                                                       |   | $                              | (134,128   | )       |                           |   | (80,988    | )                             |   |   | (220,471                           | )       |   |                                                                                         | (257,727   | ) |   |   | (5,992,410 | ) |
|                                                                                          |   |                           |       |    |                           |   |       |                          |   |   |                               |    |   |                                                                                         |       |   |   |   |   |   |
| OTHER ITEMS                                                                                   |   |                           |       |    |                           |   |       |                          |   |   |                               |    |   |                                                                                         |       |   |   |   |   |   |
| Interest income                                                                               |   |                           | -          |    |                           |   | -          |                          |   |   | -                                  |    |   |                                                                                         | -          |   |   |   | 32,325 |   |
| Other non-operating losses                                                                    |   |                           | -          |    |                           |   | 19,700     |                          |   |   | -                                  |    |   |                                                                                         | 19,700     |   |   |   | (46,590 | ) |
|                                                                                          |   |                           |       |    |                           |   |       |                          |   |   |                               |    |   |                                                                                         |       |   |   |   |   |   |
| NET LOSS FOR THE PERIOD                                                                       |   | $                              | (134,128   | )  |                           | $      | (61,288    | )                        |   | $      | (220,471                           | )  |   | $                                                                                            | (238,027   | )  |   | $ |            (6,006,675 | )  |
|                                                                                          |   |                           |       |    |                           |   |       |                          |   |   |                               |    |   |                                                                                         |       |   |   |   |   |   |
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING BASIC AND DILUTED    |   |                           | 72,145,802 |    |                           |   | 69,765,585 |                          |   |   | 70,899,312                         |    |   |                                                                                         | 69,305,640 |   |   |   |   |   |
|                                                                                          |   |                           |       |    |                           |   |       |                          |   |   |                               |    |   |                                                                                         |       |   |   |   |   |   |
| BASIC AND DILUTED LOSS PER SHARE                                               |   | $                              | (0.00      | )  |                           | $      | (0.00      | )                        |   | $      | (0.00                              | )  |   | $                                                                                            | (0.00      | ) |   |   |   |   |

----

|                                                                    |   | Six months endedJune 30,2010 |     |   | Six months endedJune 30,2009 |   |     | For the Period from January 1, 2002 (Date of Inception of Exploration Stage) toJune 30, 2010 |   |
|-------------------------------------------------------------------------|--------|------------------------------|----------|--------|------------------------------|--------|----------|----------------------------------------------------------------------------------------------|--------|
|                                                                    |   |                         |     |   |                         |   |     |                                                                                         |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                    |   |                         |     |   |                         |   |     |                                                                                         |   |
| Net loss for the period                                                 |   | $                            | (220,471 | )      |                         | $      | (238,027 | )                                                                                            |   | $ | (6,006,675 | ) |
| Adjustments to reconcile net loss to net cash from operating activities |   |                         |     |   |                         |   |     |                                                                                         |   |   |   |   |
| - depreciation                                                          |   |                         | -        |   |                         |   |     |                                                                                         |   |   | 146,383 |   |
| - impairment of mineral properties                                      |   |                         | -        |   |                         |   | 65       |                                                                                         |   |   | 341,974 |   |
| - stock based compensation                                              |   |                         | -        |   |                         |   | 16,484   |                                                                                         |   |   | 409,468 |   |
| - warrants issued as finance fee                                        |   |                         | -        |   |                         |   | -        |                                                                                         |   |   | 92,100 |   |
| - stock issued as finance fee                                           |   |                         | -        |   |                         |   | -        |                                                                                         |   |   | 100,000 |   |
| - other income                                                          |   |                         | -        |   |                         |   | -        |                                                                                         |   |   | 21,100 |   |
| - loss on other non-operating activities                                |   |                         | -        |   |                         |   | -        |                                                                                         |   |   | (21,000 | ) |
| Changes in operating assets and liabilities:                            |   |                         |     |   |                         |   |     |                                                                                         |   |   |   |   |
| - prepaid expenses and other                                            |   |                         | -        |   |                         |   | 28,007   |                                                                                         |   |   | 949 |   |
| - due to related parties                                                |   |                         | 111,187  |   |                         |   | 119,892  |                                                                                         |   |   | 554,703 |   |
| - accounts payable and accrued liabilities                              |   |                         | 70,318   |   |                         |   | 38,976   |                                                                                         |   |   | 524,183 |   |
|                                                                    |   |                         |     |   |                         |   |     |                                                                                         |   |   |   |   |
| NET CASH USED IN OPERATING ACTIVITIES                                   |   |                         | (38,966  | )      |                         |   | (34,603  | )                                                                                            |   |   | (3,836,815 | ) |
|                                                                    |   |                         |     |   |                         |   |     |                                                                                         |   |   |   |   |
| CASH FLOWS USED IN INVESTING ACTIVITIES                                 |   |                         |     |   |                         |   |     |                                                                                         |   |   |   |   |
| Refund of reclamation bond                                              |   |                         | -        |   |                         |   | 1,797    |                                                                                         |   |   | 1,797 |   |
| Purchase of equipment                                                   |   |                         | -        |   |                         |   | -        |                                                                                         |   |   | (5,579 | ) |
| Purchase of oil and gas interests                                       |   |                         | -        |   |                         |   | -        |                                                                                         |   |   | (2 | ) |
| Mineral property costs                                                  |   |                         | -        |   |                         |   | (2,500   | )                                                                                            |   |   | (296,042 | ) |
| Proceeds from non-operating activities                                  |   |                         | -        |   |                         |   | -        |                                                                                         |   |   | 97,125 |   |
|                                                                    |   |                         |     |   |                         |   |     |                                                                                         |   |   |   |   |
| NET CASH USED IN INVESTING ACTIVITIES                                   |   |                         | -        |   |                         |   | (703     | )                                                                                            |   |   | (202,701 | ) |
|                                                                    |   |                         |     |   |                         |   |     |                                                                                         |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                    |   |                         |     |   |                         |   |     |                                                                                         |   |   |   |   |
| Issuance of shares for cash, net of issuance costs                      |   |                         | 22,500   |   |                         |   | 35,000   |                                                                                         |   |   | 3,747,674 |   |
| Convertible notes                                                       |   |                         | -        |   |                         |   | -        |                                                                                         |   |   | 291,145 |   |
|                                                                    |   |                         |     |   |                         |   |     |                                                                                         |   |   |   |   |
| NET CASH FROM FINANCING ACTIVITIES                                      |   |                         | 22,500   |   |                         |   | 35,000   |                                                                                         |   |   | 4,038,819 |   |
|                                                                    |   |                         |     |   |                         |   |     |                                                                                         |   |   |   |   |
| DECREASE IN CASH                                                        |   |                         | (16,466  | )      |                         |   | (306)    |                                                                                         |   |   | (697) |   |
|                                                                    |   |                         |     |   |                         |   |     |                                                                                         |   |   |   |   |
| CASH, BEGINNING                                                         |   |                         | 16,466   |   |                         |   | 582      |                                                                                         |   |   | 697 |   |
|                                                                    |   |                         |     |   |                         |   |     |                                                                                         |   |   |   |   |
| CASH, ENDING                                                            |   | $                            | -        |   |                         | $      | 276      |                                                                                         |   | $ | - |   |

----

|              |   | Balance as at December 31, 2009 |   |
|-------------------|--------|---------------------------------|--------|
|              |   | and June 30, 2010               |   |
|              |   |                            |   |
| Dutch Flat        |   | $                               | 1      |   |
| PPM Gold          |   |                            | 1      |   |
|              |   | $                               | 2      |   |
|              |   |                            |   |   |
| Reclamation Bonds |   |                            |   |   |
| PPM Gold          |   | $                               | 11,565 |   |

----

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

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

| 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 the 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. |
|----|----------------------------------------------------------------------------------------------|

----

|   | - | Make payments for staking and registration of initial claims (paid)                                  |
|--------|---|------------------------------------------------------------------------------------------------------|
|   | - | Commencing with the 2008-2009 assessment year, make all required maintenance payments (paid to 2009) |

|   | - | Make a payment of $20,000 upon release of the properties into “multiple use” classification                                                                                                                                                |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | - | Upon release of the properties into “multiple use”, a five year option and earn in agreement would be signed and a work program totaling $750,000 over a five year period would commence from the date of signing of the formal agreement. |

----

|                                    |   |      |       |   | Weighted       |   |
|-----------------------------------------|--------|-----------|------------|--------|----------------|--------|
|                                    |   | Number of |       |   | Average        |   |
|                                    |   | Options   |       |   | Exercise Price |   |
| Total Options:                          |   |      |       |   |           |   |
| Outstanding, December 31, 2009          |   |      | 5,475,000  |   |           | $      | 0.24 |   |
|    Expired June 30, 2010 |   |      | (1,025,000 | )      |           |   | 0.20 |   |
|                                    |   |      |       |   |           |   |   |   |
| Outstanding, June 30, 2010              |   |      | 4,450,000  |   |           | $      | 0.24 |   |

----

|                                     |      | Weighted                                 |                                       |   |      | Weighted        |                                 |   |
|------------------------------------------|-----------|------------------------------------------|--------------------------------------------|--------|-----------|-----------------|--------------------------------------|--------|
|                                     |      | Average                                  |                                       |   |      | Average         |                                 |   |
|                                     |      | Remaining                                | Weighted                                   |   |      | Remaining       | Weighted                             |   |
| Range of                                 | Number    | Contractual                              | Average                                    |   | Number    | Contractual     | Average                              |   |
| Exercise Prices                          | of Shares | Life (in years)                          | Exercise Price                             |   | of Shares | Life (in years) | Exercise Price                       |   |
|                                     |      |                                     |                                       |   |      |            |                                 |   |
| Options outstanding a June 30, 2010      |      | Options exercisable at June 30, 2010     |
| $ 0.23 – 0.28                      | 4,450,000 | 1.08                                     | $      0.246 |   | 4,450,000 | 1.08            | $     0.246 |   |
|                                     |      |                                     |                                       |   |      |            |                                 |   |
| Options outstanding at December 31, 2009 |      | Options exercisable at December 31, 2009 |
| $ 0.20 – 0.28                      | 5,475,000 | 1.30                                     | $      0.237 |   | 5,475,000 | 1.30            | $     0.237 |   |

|                       |   | Number ofWarrants |       |   | Weighted averageexercise price |   |   | Weighted averageremaining life (years) |   |
|----------------------------|--------|-------------------|------------|--------|--------------------------------|--------|--------|----------------------------------------|--------|
| Balance, December 31, 2009 |   |              | 6,454,868  |   |                           |   | 0.24   |                                   |   |   | 0.69 |   |
| Issued                     |   |              | 1,966,667  |   |                           |   | 0.035  |                                   |   |   | 2.56 |   |
| Exercised                  |   |              | -          |   |                           |   |   |                                   |   |   | - |   |
| Expired                    |   |              | (4,050,702 | )      |                           |   | 0.269  |                                   |   |   | - |   |
| Balance, June 30, 2010     |   |              | 4,370,833  |   |                           |   | 0.124  |                                   |   |   | 0.45 |   |

----

| Other information          |   | Six months endedJune 30, 2010 |   |   | Six months endedJune 30, 2009 |   |
|----------------------------|--------|-------------------------------|--------|--------|-------------------------------|--------|
| Cash paid for interest     |   | $                             | -      |   |                          | $      | - |   |
| Cash paid for income taxes |   | $                             | -      |   |                          | $      | - |   |

----

----

|   | · | 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. |
|--------|--------|---------------------------------------------------------------------------------|

----

----

|    | · | Required work expenditure: $500,000 by July, 2010, of which $550,677 was expended as of June 30, 2010. Further work will depend upon the timing and receipt of additional funds.  Both parties have recently been meeting to plan and prepare for the next drill program for the property. |
|--------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Claims maintenance fees have been paid through August 31, 2010. |
|--------|--------|-----------------------------------------------------------------|

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

|    | · | Required work expenditure to April 2008: $175,000, of which $126,027 has been expended; to April 2009 $200,000; to April 2010 $300,000.  The timing and amount of additional work will depend upon the timing and amount of funding received.  Both parties wish to continue with the planned exploration program for the property once adequate funding can be obtained to conduct further exploration on the property. |
|--------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Claims maintenance fees have been paid through August 31, 2010.  |
|--------|--------|-----------------------------------------------------------------------|
|   | · | Annual payments; $0.                                                  |

|   | · | On May 20, 2008, a Letter of Intent was signed on the Morgan Pass Project.  The option and earn in agreement will not be prepared and signed until the property is released into ‘multiple use’ classification by the Bureau of Land Management. Funds of $17,666 have been expended to date.   Claims maintenance fees have been paid through August 31, 2010. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Exhibit No.      | Description                                                                                               |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  1010.131.1 |  Settlement Agreement with Columbus Gold Corporation*Certification Pursuant to Section 302*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 32.1             | Certification Pursuant to 18 U.S.C. Section 1350*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

----

|                   | PIEDMONT MINING COMPANY, INC.,                                                                                                                                                                      |
|------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                   | a North Carolina Corporation                                                                                                                                                                        |
|                   |                                                                                                                                                                                                |
|                   |                                                                                                                                                                                                |
|                   |                                                                                                                                                                                                |
| Dated: August 23, 2010 |   /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) |

----