Josephine Mining Corp.
TSX VENTURE : JMC

Josephine Mining Corp.

August 30, 2011 18:01 ET

Josephine Mining Corp. Announces a Drilling Update and the Filing of Second Quarter 2011 Interim Consolidated Financial Statements (Unaudited) and MD&A

SPOKANE, WASHINGTON--(Marketwire - Aug. 30, 2011) - Josephine Mining Corp. ("JMC" or the "Company") (TSX VENTURE:JMC) is pleased to announce a drilling update on the Turner Gold Project. The Company began its drilling campaign on May 28, 2011, see press release dated May 10, 2011. To date, JMC has completed a total of 9,565 feet through the drilling of eight (8) out of twelve (12) originally planned diamond drill core holes over the course of the summer. All of these eight drill holes have intercepted regions of mineralization. As discussed in the NI 43-101 report titled "Turner Gold Resource and Preliminary Economic Assessment", the proposed drilling program "…will add confidence, and potentially add tonnage to the Turner Gold Deposit. These holes will provide information for a broad range of topics at Turner in addition to geology and assay information." The information from the drill holes is being used to support the ongoing work for the permitting process. JMC's environmental contractor JBR Environmental Consultants, Inc., continues to make positive progress on permitting issues. JMC's geology team in Oregon has logged, split, sampled and sent off significant portions of this new core for assay and continually processes newly drilled core. JMC expects assay results in the near term, and will report results in future news releases on a rolling basis as those full assay data sets are received. For further information about the Company and its current drill program, please refer to the Company's filings on SEDAR (www.sedar.com).

The Company is also pleased to announce it has filed the following disclosure documents with securities regulators:

  1. Condensed Interim Consolidated Financial Statements (unaudited) for the six months ended June 30, 2011 with accompanying notes;
  2. Management's Discussion and Analysis for the six months ended June 30, 2011; and
  3. Officers' Certifications of Interim Filings.

For the three months ended June 30, 2011 the Company generated a total comprehensive loss attributable to stockholders of $771,092 or $0.03 per share. For the six months ended June 30, 2011 the total comprehensive loss attributable to stockholders is $1,431,067 or $0.08 per share. These losses are made up of corporate related charges. The Company capitalizes all exploration, development and overhead costs associated with the development of the Turner Gold Project.

The Company's investment in Turner Gold increased by $1 million in the three months ended June 30, 2011 and $3.3 million for the six months ended in the same period. Major expenditures include Turner Gold property related acquisition, drilling, core logging and corporate overhead costs. At June 30, 2011 the Company had cash and cash equivalents of $4.5 million on hand.

ABOUT THE TURNER GOLD PROJECT- as reported in the 43-101 dated November 16, 2009 and revised May 17, 2010

The Turner Gold Project is located approximately 40 miles southwest of Grants Pass, Oregon, USA. The deposit is a massive sulfide deposit that can be potentially exploited by underground mining methods to produce economic concentrations of gold, copper, zinc, silver, and potentially cobalt. Most of the mineralization is amenable to flotation to produce copper, zinc, and gold concentrates. The Turner Gold Project deposit is contained within three patented mining claims which total about 60 acres.

The deposit can be classified as a volcanogenic massive sulfide deposit of the "Cyprus" model. The Turner deposit is ophiolite hosted and is associated with sea floor volcanism and extensional tectonics. There are three zones of mineralization: UHZ, MUZ, and MLZ that appear as semi-tabular bodies that strike 130 degrees (southeast) and dip 35 degrees to the northeast. The mine plan does not currently plan for production from the UHZ so within this text the terms MUZ and MLZ are often referred to as Upper and Lower zones respectively. The strike length of the mineralization as it is currently understood is about 1000 to 1500 feet with a down dip extent of about 800 to 1000 feet.

In keeping with management's historic and continued commitment to maximize shareholder return on investment, Josephine is aggressively continuing its fast track to production at Turner Gold as well as continuing to evaluate potential acquisition properties.

NATIONAL INSTRUMENT 43-101 COMPLIANCE

Mr. James J. Moore, P.E., a qualified person under NI 43-101, has reviewed the contents of this press release.

A NI 43-101 compliant technical report entitled "Turner Gold Resource and Preliminary Economic Assessment" dated November 16, 2009 and revised May 17, 2010 and prepared by John M. Marek P.E. with Independent Mining Consultants, Inc., Brian W. Buck, P.G., with JBR Environmental Consultants, Inc., Michael D. Strickler, R.P.G., with Lithologic Resources LLC, Strikant Annavarapu P.E., with Master Geotech Services, LLC, and James J. Moore, P.E., has been prepared for Green Park Capital Corp. and is filed on www.sedar.com.

Disclaimer for Forward-Looking Information

This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events, such as the statements regarding mineralization and assay results. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them.

These forward-looking statements reflect management's current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements such as the current economic conditions and the state of mineral exploration and mineral prices in general. These risks and uncertainties could cause actual results and the Company's plans and objectives to differ materially from those expressed in the forward-looking information. The Company can offer no guarantee that its goals and objectives detailed above will be accomplished, in part or at all.

These forward-looking statements are made as of the date of this news release and, except as required by law, the Company assumes no obligation to update these forward-looking statements, or to update the reasons why actual results differed from those projected in the forward-looking statements. Additional information about these and other assumptions, risks and uncertainties are set out in the "Risks Factors" section in the Filing Statement of the Company dated October 10, 2010 and available on www.sedar.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information