----

----

**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-QSB**

| x | QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934 |
|---|--------------------------------------------------------------------------------------------------------------------------------------|

|  ̈ | TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934 |
|--------|---------------------------------------------------------------------------------------------------------------------------------------|

**PIEDMONT      MINING COMPANY, INC.**

| **North                Carolina**(State                or Other Jurisdiction Of                Incorporation or Organization)           |                               | **56-1378516**(I.R.S.                Employer Identification Number) |
|-----------------------------------------------------------------------------------------------------------------------------------------|------------------------------------|----------------------------------------------------------------------|
|                                                                                                                                    |                               |
| **18124                Wedge Parkway, Suite 214****Reno,                Nevada**(Address                of Principal Executive Offices) | **89511**(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 March 31, 2007 (unaudited) and December 31,                2006                                                                                      | 3                          |
| Consolidated                Statements of Loss for the Three Months Ended March 31, 2007 and                2006                (unaudited)                                                           | 4                          |
| Consolidated                Statements of Stockholders’ Deficiency For the Three Months Ended March                31, 2007 (unaudited) and For the Year Ended December 31,                2006 | 5                          |
| Consolidated                Statements of Cash Flows for the Three Months Ended March 31, 2007                and                2006(unaudited)                                                      | 6                          |
| Notes                to Consolidated Financial Statements                                                                                                                                             | 7                          |
|    Item                2. Management’s Discussion and Analysis or Plan of                Operation                                                                               | 20                         |
|    Item                3. Controls and Procedures                                                                                                                                      | 24                         |
|                                                                                                                                                                                                  |                       |
| **PART                II - OTHER INFORMATION**                                                                                                                                                        |                       |
|    Item                1. Legal Proceedings                                                                                                                                            | 25                         |
|    Item                2. Unregistered Sales of Equity Securities and Use of                Proceeds                                                                                   | 25                         |
|    Item                3. Defaults Upon Senior Securities                                                                                                                              | 25                         |
|    Item                4. Submission of Matters to a Vote of Security Holders                                                                                                          | 25                         |
|    Item                5. Other Information                                                                                                                                            | 25                         |
|    Item                6. Exhibits                                                                                                                                                     | 26                         |
|    Signature                Page                                                                                                                                                       | 27                         |

----

**PART      I - FINANCIAL INFORMATION**

**Item      1. Financial Statements**

**PIEDMONT        MINING COMPANY, INC.**

**(An        Exploration Stage Company)**

**CONSOLIDATED        BALANCE SHEETS**

|                                                                                                                                                                                                                           |   | **March                  31,** |        | **December                  31,** |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|-------------|-----------------------------------|--------|
|                                                                                                                                                                                                                           |   | **2007**                       |        | **2006**                          |   |
|                                                                                                                                                                                                                           |   | **(unaudited)**                |        |                              |   |
|                                                                                                                                                                                                                           |   | $                              |        | $                                 |   |
| **CURRENT                  ASSETS**                                                                                                                                                                                            |   |                                |        |                              |   |
| Cash                  and cash equivalents                                                                                                                                                                                     |   |                           | 1,696       |                              |   | 17,222 |   |
| Prepaid                  expenses and other                                                                                                                                                                                    |   |                           | 13,423      |                              |   | 27,682 |   |
|                                                                                                                                                                                                                           |   |                           |        |                              |   |   |   |
| Total                  current assets                                                                                                                                                                      |   |                           | 15,119      |                              |   | 44,904 |   |
|                                                                                                                                                                                                                           |   |                           |        |                              |   |   |   |
| **MINERAL                  PROPERTIES (Note 3)**                                                                                                                                                                               |   |                           | 177,167     |                              |   | 177,167 |   |
| **PROPERTY                  AND EQUIPMENT (Note 4)**                                                                                                                                                                           |   |                           | 1,061       |                              |   | 1,527 |   |
|                                                                                                                                                                                                                           |   |                           |        |                              |   |   |   |
| Total                  Assets                                                                                                                                                                                                  |   |                           | 193,347     |                              |   | 223,598 |   |
|                                                                                                                                                                                                                           |   |                           |        |                              |   |   |   |
| **CURRENT                  LIABILITIES**                                                                                                                                                                                       |   |                           |        |                              |   |   |   |
| Accounts                  payable and accrued liabilities                                                                                                                                                                      |   |                           | 157,528     |                              |   | 116,341 |   |
| Due                  to related parties (Note 5)                                                                                                                                                                               |   |                           | 190,600     |                              |   | 136,728 |   |
|  Total                  current liabilities                                                                                                                                                                     |   |                           | 348,128     |                              |   | 253,069 |   |
|                                                                                                                                                                                                                           |   |                           |        |                              |   |   |   |
| **STOCKHOLDERS’                  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:54,613,660 common (2006 -                  54,063,660) |   |                           | 14,273,719  |                              |   | 14,189,969 |   |
| Additional                  paid-in capital                                                                                                                                                                                    |   |                           | 579,807     |                              |   | 494,442 |   |
| Accumulated                  deficit                                                                                                                                                                                           |   |                           | (12,564,287 | )                                 |   | (12,564,287 | ) |
| Deficit                  accumulated during exploration stage                                                                                                                                                                  |   |                           | (2,444,020  | )                                 |   | (2,149,595 | ) |
| Total                  stockholders’ deficiency                                                                                                                                                                          |   |                           | (154,781    | )                                 |   | (29,471 | ) |
| Total                  liabilities and stockholders’ deficiency                                                                                                                                                          |   |                           | 193,347     |                              |   | 223,598 |   |

----

**PIEDMONT      MINING COMPANY, INC.**

**(An      Exploration Stage Company)**

**CONSOLIDATED      STATEMENTS OF LOSS**

**(unaudited)**

|                                                                                                                  |   | **Three                  Months Ended March 31,** |       | **For                  the Period from January 1, 2002****(inception)                  to****March                  31,** |   |
|-----------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------|------------|---------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                  |   | **2007**                                          |       | **2006**                                                                                                                  |   | **2007** |   |
|                                                                                                                  |   | $                                            |       |  $                                                                                                                   |   |  $ |   |
| **EXPENSES**                                                                                                          |   |                                                   |       |                                                                                                                      |   |   |   |
| Exploration,                  geological and geophysical costs and property research and                  development |   |                                              | 83,469     |                                                                                                                      |   | 23,205 |   |   | 970,423 |   |
| Management                  fees                                                                                      |   |                                              | 115,365    |                                                                                                                      |   | 32,300 |   |   | 403,536 |   |
| Professional                  fees                                                                                    |   |                                              | 60,232     |                                                                                                                      |   | 9,693 |   |   | 431,204 |   |
| General                  and administrative                                                                           |   |                                              | 34,156     |                                                                                                                      |   | 19,454 |   |   | 415,150 |   |
| Depreciation                  expense                                                                                 |   |                                              | 465        |                                                                                                                      |   | 250 |   |   | 144,032 |   |
|                                                                                                                  |   |                                              |       |                                                                                                                      |   |   |   |   |   |   |
| **LOSS                  BEFORE OTHER ITEMS**                                                                          |   |                                              | (293,687   | )                                                                                                                         |   | (84,902 | ) |   | (2,364,345 | ) |
|                                                                                                                  |   |                                              |       |                                                                                                                      |   |   |   |   |   |   |
| INTEREST                  INCOME                                                                                      |   |                                              | 1          |                                                                                                                      |   | - |   |   | 5,912 |   |
| INTEREST                  EXPENSE                                                                                     |   |                                              | (739       | )                                                                                                                         |   | (771 | ) |   | (38,997 | ) |
| LOSS                  ON OTHER NON-OPERATING ACTIVITIES                                                               |   |                                              | -          |                                                                                                                      |   | - |   |   | (46,590 | ) |
|                                                                                                                  |   |                                              | (738       | )                                                                                                                         |   | (771 | ) |   | (79,675 | ) |
|                                                                                                                  |   |                                              |       |                                                                                                                      |   |   |   |   |   |   |
| **NET                  LOSS**                                                                                         |   |                                              | (294,425   | )                                                                                                                         |   | (85,673 | ) |   | (2,444,020 | ) |
|                                                                                                                  |   |                                              |       |                                                                                                                      |   |   |   |   |   |   |
| **BASIC                  AND DILUTED NET LOSS PER SHARE**                                                             |   |                                              | (0.006     | )                                                                                                                         |   | (0.002 | ) |   |   |   |
| WEIGHTED                  AVERAGE NUMBER OF COMMON SHARES OUTSTANDING, BASIC AND DILUTED** **                    |   |                                              | 51,607,068 |                                                                                                                      |   | 45,902,852 |   |   |   |   |

----

**PIEDMONT      MINING COMPANY, INC.**

**(An      Exploration Stage Company)**

**CONSOLIDATED      STATEMENT OF STOCKHOLDERS’ DEFICIENCY **

**(unaudited)**

|                                                                                                  |   | **Common                  Stock** |       | **Additional****Paid-in** |   | **Accumulated** |   | **Deficit                  Accumulated During Exploration** |    | **Total                  Stockholders’** |   |
|-------------------------------------------------------------------------------------------------------|--------|-----------------------------------|------------|---------------------------|--------|-----------------|--------|-------------------------------------------------------------|---------|------------------------------------------------|--------|
|                                                                                                  |   | **Shares**                        |       | **Amount**                |   | **Capital**     |   | **Deficit**                                                 |    | **Stage**                                      |   | **Deficit** |   |
|                                                                                                  |   |                              |       |                      |   |            |   |                                                        |    |                                           |   |   |   |
|                                                                                                  |   |                              |       |  $                   |   | $               |   |  $                                                     |    | $                                              |   | $ |   |
| Balance,                  December 31, 2005                                                           |   |                              | 43,958,041 |                      |   | 12,820,971      |   |                                                        | 371,075 |                                           |   | (12,564,287 | ) |   | (1,008,983 | ) |   | (381,224 | ) |
|                                                                                                  |   |                              |       |                      |   |            |   |                                                        |    |                                           |   |   |   |   |   |   |   |   |   |
| Sales                  of common stock, net of issuance costs                                         |   |                              | 10,062,141 |                      |   | 1,358,998       |   |                                                        | -       |                                           |   | - |   |   | - |   |   | 1,358,998 |   |
|                                                                                                  |   |                              |       |                      |   |            |   |                                                        |    |                                           |   |   |   |   |   |   |   |   |   |
| Common                  shares issued pursuant to mineral property option                  agreements |   |                              | 43,478     |                      |   | 10,000          |   |                                                        | -       |                                           |   | - |   |   | - |   |   | 10,000 |   |
|                                                                                                  |   |                              |       |                      |   |            |   |                                                        |    |                                           |   |   |   |   |   |   |   |   |   |
| Stock-based                  management fees                                                          |   |                              | -          |                      |   | -               |   |                                                        | 123,367 |                                           |   | - |   |   | - |   |   | 123,367 |   |
|                                                                                                  |   |                              |       |                      |   |            |   |                                                        |    |                                           |   |   |   |   |   |   |   |   |   |
| Net                  loss                                                                             |   |                              | -          |                      |   | -               |   |                                                        | -       |                                           |   | - |   |   | (1,140,612 | ) |   | (1,140,612 |   |
|                                                                                                  |   |                              |       |                      |   |            |   |                                                        |    |                                           |   |   |   |   |   |   |   |   |   |
| Balance,                  December 31, 2006                                                           |   |                              | 54,063,660 |                      |   | 14,189,969      |   |                                                        | 494,442 |                                           |   | (12,564,287 | ) |   | (2,149,595 | ) |   | (29,471 | ) |
|                                                                                                  |   |                              |       |                      |   |            |   |                                                        |    |                                           |   |   |   |   |   |   |   |   |   |
| Sales                  of common stock                                                                |   |                              | 550,000    |                      |   | 83,750          |   |                                                        | -       |                                           |   | - |   |   | - |   |   | 83,750 |   |
|                                                                                                  |   |                              |       |                      |   |            |   |                                                        |    |                                           |   |   |   |   |   |   |   |   |   |
| Stock-based                  management fees                                                          |   |                              | -          |                      |   | -               |   |                                                        | 85,365  |                                           |   | - |   |   | - |   |   | 85,365 |   |
|                                                                                                  |   |                              |       |                      |   |            |   |                                                        |    |                                           |   |   |   |   |   |   |   |   |   |
| Net                  loss                                                                             |   |                              | -          |                      |   | -               |   |                                                        | -       |                                           |   | - |   |   | (294,425 | ) |   | (294,425 | ) |
|                                                                                                  |   |                              |       |                      |   |            |   |                                                        |    |                                           |   |   |   |   |   |   |   |   |   |
| Balance,                  March 31, 2007                                                              |   |                              | 54,613,660 |                      |   | 14,273,719      |   |                                                        | 579,807 |                                           |   | (12,564,287 | ) |   | (2,444,020 | ) |   | (154,781 | ) |

----

**PIEDMONT      MINING COMPANY, INC.**

**(An      Exploration Stage Company)**

**CONSOLIDATED      STATEMENTS OF CASH FLOWS**

**(unaudited)**

|                                                                                                                                         |   | Three                MonthsEnded                March 31, |     | For                  the Period from January 1, 2002(inception)                  toMarch 31, |   |
|----------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------|----------|----------------------------------------------------------------------------------------------|--------|
|                                                                                                                                         |   | 2007                                                      |     | 2006                                                                                         |   |  2007 |   |
|                                                                                                                                         |   |  $                                                   |     | $                                                                                            |   | $ |   |
|                                                                                                                                         |   |                                                      |     |                                                                                         |   |   |   |
| **CASH                FLOWS FROM OPERATING ACTIVITIES**                                                                                      |   |                                                      |     |                                                                                         |   |   |   |
| Net                loss                                                                                                                      |   |                                                      | (294,425 | )                                                                                            |   | (85,673 | ) |   | (2,444,020 | ) |
| Adjustments                to reconcile net loss to net cash from operating                activities:                                       |   |                                                      |     |                                                                                         |   |   |   |   |   |   |
| Stock                based compensation                                                                                                      |   |                                                      | 84,365   |                                                                                         |   | 14,800 |   |   | 208,732 |   |
| Depreciation                                                                                                                                 |   |                                                      | 465      |                                                                                         |   | 250 |   |   | 144,032 |   |
| Gain                (loss) on other non-operating activities                                                                                 |   |                                                      | -        |                                                                                         |   | - |   |   | (21,000 | ) |
| Changes                in operating assets and liabilities:                                                                                  |   |                                                      |     |                                                                                         |   |   |   |   |   |   |
| Prepaid                expenses and other                                                                                                    |   |                                                      | (14,260  | )                                                                                            |   | 7,954 |   |   | (10,473 | ) |
| Accounts                payable and accrued liabilities                                                                                      |   |                                                      | 86,059   |                                                                                         |   | (112,524 | ) |   | 299,672 |   |
| **NET                CASH FLOWS USED IN OPERATING ACTIVITIES**                                                                               |   |                                                      | (108,276 | )                                                                                            |   | (175,193 | ) |   | (1,823,057 | ) |
|                                                                                                                                         |   |                                                      |     |                                                                                         |   |   |   |   |   |   |
| **CASH                FLOWS FROM FINANCING ACTIVITIES**                                                                                      |   |                                                      |     |                                                                                         |   |   |   |   |   |   |
| Issuance                of shares for cash, net of issuance costs                                                                            |   |                                                      | 83,750   |                                                                                         |   | 289,750 |   |   | 1,587,748 |   |
| Convertible                notes                                                                                                             |   |                                                      | -        |                                                                                         |   | (27,000 | ) |   | 291,145 |   |
| Related                party advances (repayments)                                                                                           |   |                                                      | 9,000    |                                                                                         |   | (9,950 | ) |   | (5,005 | ) |
| **NET                CASH FLOWS FROM FINANCING ACTIVITIES**                                                                                  |   |                                                      | 92,750   |                                                                                         |   | 252,800 |   |   | 1,873,888 |   |
|                                                                                                                                         |   |                                                      |     |                                                                                         |   |   |   |   |   |   |
| **CASH                FLOWS FROM INVESTING ACTIVITIES**                                                                                      |   |                                                      |     |                                                                                         |   |   |   |   |   |   |
| Purchase                of property and equipment                                                                                            |   |                                                      | -        |                                                                                         |   | - |   |   | (4,290 | ) |
| Proceeds                from non-operating activities                                                                                        |   |                                                      | -        |                                                                                         |   | - |   |   | 97,125 |   |
| Payments                made on exploration projects                                                                                         |   |                                                      | -        |                                                                                         |   | (25,000 | ) |   | (142,667 | ) |
| **NET                CASH FLOWS USED IN INVESTING ACTIVITIES**                                                                               |   |                                                      | -        |                                                                                         |   | (25,000 | ) |   | (49,832 | ) |
|                                                                                                                                         |   |                                                      |     |                                                                                         |   |   |   |   |   |   |
| **INCREASE                (DECREASE) IN CASH AND CASH EQUIVALENTS**                                                                          |   |                                                      | (15,526  | )                                                                                            |   | 52,607 |   |   | 999 |   |
| **CASH                AND CASH EQUIVALENTS, BEGINNING**                                                                                      |   |                                                      | 17,222   |                                                                                         |   | 400 |   |   | 697 |   |
|                                                                                                                                         |   |                                                      |     |                                                                                         |   |   |   |   |   |   |
| **CASH** **AND                CASH EQUIVALENTS**,                **END**                                                                |   |                                                      | 1,696    |                                                                                         |   | 53,007 |   |   | 1,696 |   |
|                                                                                                                                         |
| **SUPPLEMENTAL                CASH FLOW INFORMATION AND NON-CASH INVESTING AND FINANCING                ACTIVITIES**                (Note 9) |

----

**PIEDMONT      MINING COMPANY, INC.**

**(An      Exploration Stage Company)**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**MARCH      31, 2007(unaudited) **

----

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

----

*Accounting      and Reporting by Development Stage Enterprises,*

**Going      Concern**

**Unaudited      Interim Financial Statements**

----

**PIEDMONT      MINING COMPANY, INC.**

**(An      Exploration Stage Company)**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**MARCH      31, 2007(unaudited) **

----

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

----

**Basis      of Presentation**

**Basis      of Consolidation**

**Cash      and Cash Equivalents**

**Comparative      figures**

**Use      of Estimates**

**Mineral      Property Costs**

----

**PIEDMONT      MINING COMPANY, INC.**

**(An      Exploration Stage Company)**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**MARCH      31, 2007(unaudited) **

----

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

----

**Mineral      Property Costs (continued)**

**Asset      Retirement Obligations**

**Impairment      of Long-Lived Assets**

**Financial      Instruments**

**Loss      per Common Share**

**Foreign      Currency Translation**

----

**PIEDMONT      MINING COMPANY, INC.**

**(An      Exploration Stage Company)**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**MARCH      31, 2007(unaudited) **

----

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

----

**Income      Taxes**

**Stock-Based      Compensation**

**Property      and Equipment**

**Recent      Accounting Pronouncements**

----

**PIEDMONT      MINING COMPANY, INC.**

**(An      Exploration Stage Company)**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**MARCH      31, 2007(unaudited) **

----

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

----

**Recent      Accounting Pronouncements (continued)**

| **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: |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | Year                one - $20,000; (ii) Year two - $100,000; and (iii) Year three - $100,000. |
|--------|-----|-----------------------------------------------------------------------------------------------|

| 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 have been                paid |
|--|------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------|

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

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

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

----

**PIEDMONT      MINING COMPANY, INC.**

**(An      Exploration Stage Company)**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**MARCH      31, 2007(unaudited) **

----

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

----

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

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

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

| **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 |
|--|-------------------------------------------------------------------------------------------------|----------------------------------------------|

|  |   | $16,000                in 200,000 shares of common stock |
|--|--------|----------------------------------------------------------|

|  | 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 |
|--|------------------------------------------------------------------------------|----------------------------------------|

| 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 |
|--|----------------------------------------------------------------------------|----------|

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

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

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

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

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

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

----

**PIEDMONT      MINING COMPANY, INC.**

**(An      Exploration Stage Company)**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**MARCH      31, 2007(unaudited)**

----

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

----

| **C.** | **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. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **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 |
|--------|-----------------------|----------|

----

**PIEDMONT      MINING COMPANY, INC.**

**(An      Exploration Stage Company)**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**MARCH      31, 2007(unaudited) **

----

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

----

** **

**F.   **
**Dutch      Flat Gold Project**

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

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

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

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

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

|                            |   | Balance                as atDecember                31, 2004 |   | OptionPayments |   | **Balance                as at****December                31, 2005** |   | Option                Payments |       | **Balance                as at December 31, 2006 and****March                31, 2007** |   |
|---------------------------------|--------|--------------------------------------------------------------|--------|----------------|--------|----------------------------------------------------------------------|--------|--------------------------------|------------|-----------------------------------------------------------------------------------------|--------|
|                            |   |  $                                                      |   | $              |   |  **$**                                                          |   | $                              |       | **$**                                                                                   |   |
| Antelope                Ridge   |   |                                                         | -      |           |   | 18,500                                                               |   |                           | **18,500** |                                                                                    |   | 20,000 |   |   | **38,500** |   |
| Bullion                Mountain |   |                                                         | -      |           |   | -                                                                    |   |                           | **-**      |                                                                                    |   | 10,000 |   |   | **10,000** |   |
| Dome                Hi-Ho       |   |                                                         | -      |           |   | 47,000                                                               |   |                           | **47,000** |                                                                                    |   | 26,667 |   |   | **73,667** |   |
| Dutch                Flat       |   |                                                         | -      |           |   | -                                                                    |   |                           | **-**      |                                                                                    |   | 35,000 |   |   | **35,000** |   |
| Pasco                Canyon     |   |                                                         | -      |           |   | -                                                                    |   |                           | **-**      |                                                                                    |   | 10,000 |   |   | **10,000** |   |
| Trinity                Silver   |   |                                                         | -      |           |   | 10,000                                                               |   |                           | **10,000** |                                                                                    |   | - |   |   | **10,000** |   |
|                            |   |                                                         |   |           |   |                                                                 |   |                           |       |                                                                                    |   |   |   |   |   |   |
| -                          |   |                                                         |   |           |   | 28,500                                                               |   |                           | **75,500** |                                                                                    |   | 101,667 |   |   | **177,167** |   |

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

----

** **

|                                          |   |  March                31, 2007 |   | December                31, 2006 |   |
|-----------------------------------------------|--------|-------------------------------------|--------|----------------------------------|--------|
|                                          |   |                                |   |                             |   |
| Computer                Equipment             |   | $                                   | 4,290  |                             | $      | 4,290 |   |
| Less:                accumulated depreciation |   |                                | (3,228 | )                                |   | (2,763 | ) |
|                                          |   | $                                   | 1,062  |                             | $      | 1,527 |   |

----

**PIEDMONT      MINING COMPANY, INC.**

**(An      Exploration Stage Company)**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**MARCH      31, 2007(unaudited)**

----

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

----

** **

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

----

** **

**Share      Capital**

**Common      share transactions**

| 1. | During                the three months ended March 31, 2007 the                Company: |
|----|-----------------------------------------------------------------------------------------|

| (a) | Issued                425,000 common shares upon the exercise of warrants at an exercise                price                of $0.15 and 125,000 common shares upon the exercise of warrants                at an                exercise price of $0.16 per share for net proceeds of $83,750.;                and |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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 ;                and |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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                subscribed to at a range of $0.12 to $0.15 per unit, for net proceeds                of                $289,750. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**PIEDMONT      MINING COMPANY, INC.**

**(An      Exploration Stage Company)**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**MARCH      31, 2007(unaudited)**

----

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

----

** **

**Common      share transactions (continued)**

| (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 owner 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. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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**

|                                                                |   | Three                months ended March                31, 2007 |   | Year                endedDecember                31, 2006 |
|---------------------------------------------------------------------|--------|-----------------------------------------------------------------|--------|-----------------------------------------------------------|
| Risk-free                interest rates                             |   | 3.76%                to 5.02%                                   |   | 3.76%                to 5.02%                             |
| Volatility                factor                                    |   | 100%                                                            |   | 100%                                                      |
| Contractual                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 |   | $0.020                                                          |   | $0.030                                                    |

----

**PIEDMONT      MINING COMPANY, INC.**

**(An      Exploration Stage Company)**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**MARCH      31, 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 |   |
| Outstanding,                March 31, 2007    |   |                      | 5,775,000 |                          |   | 0.234 |   |

|                                                |   |      |       | 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 |   |
| Vested                                              |   |      | (1,825,000 | )                         |   | - |   |
| Nonvested                options March 31, 2007     |   |      | 1,016,667  |                      |   | 0.012 |   |

| Options                Outstanding at December 31, 2006 |                     | Options                Exercisable at December 31, 2006 |
|---------------------------------------------------------|--------------------------|---------------------------------------------------------|
|                                                    |                     | 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 |
| $                0.20 - 0.27                            | 5,525,000                | 3.99                                                    | $                      0.234 |   | 2,591,667 | 4.13 | $                      0.251 |

----

**PIEDMONT      MINING COMPANY, INC.**

**(An      Exploration Stage Company)**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**MARCH      31, 2007(unaudited) **

----

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

----

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

| Options                Outstanding at March 31, 2007 |                     | Options                Exercisable at March 31, 2007 |
|------------------------------------------------------|--------------------------|------------------------------------------------------|
|                                                 |                     | 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 |
| $                0.20 - 0.27                         | 5,775,000                | 4.16                                                 | $                     0.234 |   | 4,258,333 | 3.88 | $                     0.230 |

**Common      stock purchase warrants**

|                                      |   | Number                ofWarrants |             | Weighted                averageexercise                price |   | Weighted                averageremaining                life (years) |   |
|-------------------------------------------|--------|----------------------------------|------------------|--------------------------------------------------------------|--------|----------------------------------------------------------------------|--------|
|                                      |   |                             |             | $                                                            |   |                                                                 |   |
| Balance,                December 31, 2004 |   |                             | -                |                                                         |   | -                                                                    |   |   | - |   |
| Issued                                    |   |                             | 3,098,290        |                                                         |   | 0.09                                                                 |   |   | 1.30 |   |
| Exercised                                 |   |                             | -                |                                                         |   | -                                                                    |   |   | - |   |
| Balance,                December 31, 2005 |   |                             | 3,098,290        |                                                         |   | 0.09                                                                 |   |   | 1.30 |   |
| Issued                                    |   |                             | 6,653,666        |                                                         |   | 0.22                                                                 |   |   | - |   |
| ExercisedExpired                          |   |                             | (457,143(166,667 | ))                                                           |   | 0.10-                                                                |   |   | -                - |   |
| Balance,                December 31, 2006 |   |                             | 9,128,146        |                                                         |   | 0.18                                                                 |   |   | 0.84 |   |
| Exercised                                 |   |                             | (550,000         | )                                                            |   | 015                                                                  |   |   | - |   |
| Expired                                   |   |                             | (1,676,666       | )                                                            |   | -                                                                    |   |   | - |   |
| Balance,                March 31, 2007    |   |                             | 6,901,480        |                                                         |   | 0.18                                                                 |   |   | 0.94 |   |

----

**PIEDMONT      MINING COMPANY, INC.**

**(An      Exploration Stage Company)**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**MARCH      31, 2007(unaudited) **

----

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

----

|                                                                                             |   |  March                31, 2007 |       | December                31, 2006 |   |
|--------------------------------------------------------------------------------------------------|--------|-------------------------------------|------------|----------------------------------|--------|
|                                                                                             |   |                                |       |                             |   |
| Deferred:                                                                                        |   |                                |       |                             |   |   |   |
| Federal                       35%                             |   | $                                   | 4,737,887  |                             | $      | 4,664,861 |   |
| State                             7% |   |                                | 947,577    |                             |   | 932,972 |   |
| Total                deferred                                                                    |   |                                | 5,685,465  |                             |   | 5,597,833 |   |
| Less                valuation allowance                                                          |   |                                | (5,685,465 | )                                |   | (5,597,833 | ) |
| Net                deferred tax asset                                                            |   | $                                   | -          |                             | $      | - |   |

|                                                                  |   |                          |     |
|-----------------------------------------------------------------------|--------|-------------------------------|----------|
|                                                                  |   | March                31, 2007 |     | December                31, 2006 |   |
|                                                                  |   |                          |     |   |   |
| Net                loss before taxes                                  |   | $                             | (294,425 | ) | $ | (1,140,612 | ) |
| Federal                and State Statutory rate                       |   |                          | 42%      |   |   | 42% |   |
| Expected                tax recovery                                  |   |                          | (123,659 | ) |   | (479,057 | ) |
| (Decrease)                increase in taxes resulting from:           |   |                          |     |   |   |   |   |
| Temporary                differences                                  |   |                          | 49       |   |   | 173 |   |
| Non-deductible                stock based compensation                |   |                          | 35,853   |   |   | 51.814 |   |
| Increase                in valuation allowance                        |   |                          | 87,757   |   |   | 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 CONSOLIDATED FINANCIAL STATEMENTS**

**MARCH      31, 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       |   |                             | 208,647    |   |
|       |   | $                                | 13,536,821 |   |

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

----

|                                                                    |   |                                                           |   |
|-------------------------------------------------------------------------|--------|----------------------------------------------------------------|--------|
|                                                                    |   | Three                months endedMarch                31, 2007 |   | Three                months endedMarch                31, 2006 |   |
|                                                                    |   | $                                                              |   | $ |   |
| Interest                paid                                            |   |                                                           | -      |   |   | - |   |
| Income                taxes paid                                        |   |                                                           | -      |   |   | - |   |
| Common                stock issued under the terms of option agreements |   |                                                           | -      |   |   | 10,000 |   |

| **NOTE                9:** | **SUBSEQUENT                EVENTS** |
|----------------------------|--------------------------------------|

----

|   | (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 CONSOLIDATED FINANCIAL STATEMENTS**

**MARCH      31, 2007(unaudited) **

----

| **NOTE              9:** | **SUBSEQUENT                EVENTS (continued)** |
|--------------------------|--------------------------------------------------|

----

----

**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 another                company. |
|--------|--------|----------------------------------------------------------------------------------------|

***Expenses      for the Three Month Period ending March 31, 2007 vs March 31,      2006***

----

|                                                                                                              |   | **For                the three months ended** |   |
|-------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------|--------|
|                                                                                                              |   | **March                31**                   |   |
|                                                                                                              |   | **2007**                                      |   | **2006** |   |
| **REVENUE**                                                                                                       |   | Nil                                           |   | Nil |   |
| **EXPENSES**                                                                                                      |   |                                          |   |   |   |
| Exploration,                geological and geophysical costs and property research and                development |   | 28.35%                                        |   | 27.09% |   |
| Management                fees                                                                                    |   | 39.18%                                        |   | 37.70% |   |
| Professional                fees                                                                                  |   | 20.46%                                        |   | 11.31% |   |
| General                and administrative                                                                         |   | 11.60%                                        |   | 22.71% |   |
| Depreciation                                                                                                      |   | 0.16%                                         |   | 0.29% |   |
| **TOTAL                EXPENSES**                                                                                 |   | 99.75%                                        |   | 99.10% |   |
| **LOSS                BEFORE OTHER ITEM**                                                                         |   | 99.75%                                        |   | 99.10% |   |
| Other                expense                                                                                      |   | 0.25%                                         |   | 0.90% |   |
|                                                                                                              |   |                                          |   |   |   |
| **LOSS                BEFORE INCOME TAXES**                                                                       |   | 100.0%                                        |   | 100.0% |   |
| Income                tax benefit (expense)                                                                       |   | 0%                                            |   | 0% |   |
| **NET                LOSS**                                                                                       |   |  100.0%                                  |   | 100.0% |   |

**Liquidity      and Capital Resources **

***Cash      and Working Capital***

----

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

***Contractual      Obligations***

**Bullion      Mountain Project: **

|   | · | Required                work expenditure by 3/31/07; $20,000 of which $21,200 has already                been                completed; a work plan for the remainder of 2007 has not yet been                formulated. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Claims                maintenance: $2,273; |
|--------|--------|--------------------------------------------|

|   | · | Annual                payment: $5,000 due November, 2007; |
|--------|--------|-----------------------------------------------------------|

**Antelope      Ridge:**

|   | · | Required                work expenditure by 3/31/07: $120,000, of which $67,370 has already                been                completed; drilling awaits availability of a drill rig; a $50,000                to                $100,000 drill program is anticipated for this summer or                fall. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Claims                maintenance: $6,679; |
|--------|--------|--------------------------------------------|

|   | · | Annual                payments: $15,000 cash and $15,000 in Common Stock; due April, 2007                have                been made; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

**Dome      HiHo Project:**

|   | · | Required                work expenditure by 3/31/07: $360,000, of which $274,052 has already                been                completed; completion of this second drill program sometime this                summer or                fall awaits the availability of a drill rig and is expected to cost                $25,000 to $50,000. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Claims                maintenance: $5,878; |
|--------|--------|--------------------------------------------|

|   | · | Annual                payments: $28,333, of which $20,000 was paid, $8,333 will be paid                in July,                2007. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------|

----

**Trinity      Silver Project**

|   | · | Required                work expenditure: $75,000, of which $331,048 has already been completed,                which more than completes our work requirement for the first two                years;                further work has not yet been planned to                date. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Claims                maintenance: $5,478; |
|--------|--------|--------------------------------------------|

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

**Pasco      Canyon Gold Project:**

|   | · | Required                work expenditure by 3/31/07; $50,000, of which $30,617 has already                been                completed, a drill program awaits the receipt of a drill permit from                U.S.                Forest Service; the timing of which cannot be predicted at this                time. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

**Dutch      Flat Gold Project:**

|   | · | Required                work expenditure by 3/31/07; $0; $200,000 required by July, 2007,                of which                $124,459 has already been completed and the remainder is expected                to be                funded in June from the proceeds of the sale of common stock and                warrants. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

**Off-Balance      Sheet Arrangements**

**we**

**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 |
|------|-----------------------------------------------------------------------|------------------------------------|

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**SIGNATURES**

|                              | **PIEDMONT                MINING COMPANY, INC.,**a                North Carolina Corporation                                                                                                                                                                                                                                            |
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| Dated                May 16, 2007 | /s/  Robert              M. Shields,              Jr.                                             |
|                              | By:                Robert M. Shields, Jr.Its:                Chief Executive Officer (PrincipalExecutive                Officer) and Chief Financial Officer(Principal                Financial Officer and PrincipalAccounting                Officer)                                                                                 |

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