Clifton Mining Shareholder letter

(OTC : CFTN)

ALPINE, UT, March 9 /PRNewswire/ -                                                                                             

Mill Operations

Clifton Mining Company's (Clifton) (OTC : CFTN) joint venture partner Desert Hawk Gold Corp. (Desert Hawk), completed the overhaul and renovation of the Gold Hill mill in September of 2010.  Preliminary mill operations started in October, with fine tuning of the mill over the past several months. New crushing and grinding circuits have been put in place as well as additional banks of float cells and new gravity separation tables, upgrading capacity and recoveries.  A new automated crusher has been placed at the mine site so that ore can be crushed before being shipped to the mill for processing.

Phase One: Initial Production

Initial production has started at a mine site identified as the Yellow Hammer Mine.  Current production includes the recovery of copper, gold, silver and tungsten.  The average ore being processed by Desert Hawk is running 4-6% copper with gold, silver, and tungsten by-products.  High grade zones have exceeded 17% copper.  The first copper, gold, and silver concentrate has been shipped to the smelter and the first payment is expected in April.  Several other known copper/gold deposits located within the area will be used for additional mill feed.

Phase Two:

Phase two involves the construction of a copper heap leach at the mill site to extract the oxide copper.  The recovered copper will boost revenues and royalties.  Government filings have been submitted, and the venture is currently awaiting approval.

Phase Three:

Filings have been made with government agencies to construct a large heap leach pad near the Kiewit properties.  This pad is being engineered to accommodate not only the gold resources from the Kiewit properties, but also silver and gold material from surrounding mine sites.  It is anticipated that the government approval will be granted later this year and that construction will begin thereafter.  We expect this to be the largest and most profitable project for the Company.

Technology:

Rustum Roy, one of the premiere solid state physicists, and William Moeller have developed a potentially important process and assigned the corresponding US Patent (7,850,759) to the Company.  There was a error in the filing of the assignment but it has since been corrected.  The patent involves the use of microwave technology, and particular frequencies, to treat certain types of refractory ore.  Preliminary testing at the Department of Metallurgy of the University of Utah has shown this technology to increase precious metals recoveries by as much as ten-fold.  Clifton will continue testing this process with the intent of using it in the mill process and potentially licensing the technology to other mining companies.

Lawsuits:

The two lawsuits the Company was previously named in have both been amicably settled.

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

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

SOURCE Clifton Mining Company



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