Project Update At South Mountain Mine Joint Venture

BOISE, ID - Thunder Mountain Gold, Inc. reported an update for its South Mountain Project Joint Venture in Owyhee County, Idaho.

Underground miners, Widman Contractors, Inc., of Baker City, Oregon mobilized late in 2012 and commenced site work on the upper Laxey and lower Sonneman Levels. Widman's nine-man crew completed construction of the steel portal sets and commenced expanding the size of the drift for future production, with the main Sonneman Level being enlarged to 12 ft X 12 ft. The expanded size accommodates mining with diesel rubber tired equipment. As of mid April, mining had advanced 300 feet on the Laxey Level, and 400 feet in the Sonneman Level. During the expansion on the Laxey Level, an extensive zone of polymetallic mineralization was intercepted, exposing a larger halo of potentially economic mineralization surrounding the historic ore zone that was mined from the 800-foot deep Laxey Shaft during World War II.

In addition to the increased size of the historic Laxey ore zone, a new metal-rich mineralized zone was encountered in the Laxey at a distance of 231 to 241 feet. Approximately 50 tons of material was mined and stockpiled, and assays are pending. It is expected that this newly-encountered mineralized zone can be utilized for metallurgical testing for mill design.

The Company expects to reach the first ore zone on the Sonneman Level this month at about the 900 foot mark. This is where the first underground drill station will be developed as this historic ore zone is mined and stockpiled for additional metallurgical testing and processing later.