AZCO Mining Issues Special Letter to Shareholders.

Business Editors

GLENDALE, Ariz.--(BUSINESS WIRE)--June 17, 2002

AZCO Mining, Inc. (AMEX: AZC), a rapidly growing industrial minerals, mining and metals enterprise, today announced that it has issued a Special Letter to Shareholders to update existing AZCO investors on the current status of AZCO Mining, and more importantly, its future growth outlook. Text from the letter is as follows:

Dear AZCO Shareholder,

I'm writing this letter to tell you about an exciting new stage in the growth of our company.

Over the past three years, AZCO has been making the transition from a junior exploration company to a vertically integrated producer of processed minerals. Along the way we have invested some $15 million in developing our Black Canyon Mica Project, which is now ready to generate substantial revenue through production of high-quality muscovite mica and a key byproduct, feldspathic sand.

The next stage is this: In the coming months, we expect AZCO to increase its production with the objective of paying our way -- that is, covering operating expenses with internally generated funds through the sale of feldspathic sand. In fact, we have ramped up our production facilities for feldspathic sand sales and already have begun the crushing and separating activities for this product.

The market for feldspathic sand, used in golf course bunkers and stucco, is large, fast growing and close by. Maricopa County, which includes Phoenix and its suburbs, is the fastest growing among America's 10 largest counties, adding more than 120,000 residents a year. That growth translates into a booming market for new-home construction and, of course, for stucco. The Phoenix area also has plenty of golf courses -- 207 by our count -- and these require lots of bunker-quality sand. The special characteristics of feldspathic sand, such as its bright color and freedom from impurities such as iron, make it ideal for this use as well as for stucco. We are also developing a fertilizer product using this mineral-rich sand in combination with iron, sulfur and other nutrients.

High-margin mica products remain our main engine for long-range growth. We're continuing to penetrate the cosmetic and personal care product markets with our wet-ground muscovite mica. We see opportunities on the horizon in mica-reinforced plastics, a market that keeps growing as automakers look for ways to make stronger bumpers and other components. And we have plenty of mica available to mine and process -- An estimated 20-year ore reserve has been delineated at the Black Canyon mine.

In the near term, however, our focus will be on building sales of feldspathic sand. Once we are generating sufficient revenue from sand to cover our costs, the bottom-line impact of mica sales will be all the more impressive.

If all goes well, we hope to be operating at least one shift a day into August, and then two shifts a day from September until late in the year. Three-shift, 24/7 operation could come as early as late this year.

Recently, Phelps Dodge Mexico sold its 70% operating interest in Cobre del Mayo S.A. de C.V. to a Canadian privately held company, Frontera Copper Corporation. AZCO currently owns 30% of Cobre del Mayo. Frontera plans to secure necessary financing for the Piedras Verdes Project, held by Cobre del Mayo, and to advance it to a bankable feasibility stage as soon as possible.

Finally, I would like to thank you, as an AZCO shareholder, for your interest in and commitment to this company. Our mission as managers is to create value for you, and we believe that we are on track to do exactly that.

As part of that effort, I am also pleased to announce we have retained the investor relations services of Investor Relations International (IRI) to help us increase our exposure to the investment community. I encourage you to contact our representative, Haris Tajyar, of IRI to further discuss the AZCO story and our bright outlook. Over the past 8 years, Mr. Tajyar has represented a number of early stage companies that have grown exponentially with the help of his award-winning investor relations programs. These companies have included, but are not limited to, Starwood Hotels, ValueVision Intl. and Taro Pharmaceuticals. Mr. Tajyar represented these and other companies from their sub-$5 micro-cap levels through their growth into large-cap multi-billion organizations. Mr. Tajyar can be reached at 818-981-5300, or on his mobile phone at 818-427-2110.

We are looking forward to a new era of growth and expansion for AZCO Mining in 2002 and we are looking forward to updating you on our progress.

Sincerely,

Lawrence G. Olson

Chairman of the Board, Chief Executive Officer and President

Text of the letter is also available for viewing on the Company's Web site at www.azco.com. Existing shareholders will be receiving a printed version of the letter via U.S. Mail.

To be added to AZCO Mining's investor e-mail and fax lists, please contact Mark Daugherty of Investor Relations International at [e-mail].

About AZCO Mining, Inc.

AZCO Mining is a U.S. mining company engaged in mining exploration and development with a general business strategy to acquire and develop mineral properties amenable to low-cost production. The Company is focused on producing Muscovite Mica from its 100 percent-owned Black Canyon Mica project located in Arizona. Construction has been completed on the mica project and limited production is underway. Marketing efforts are concentrated on the sale of mica-filled plastic pellets, developed by AZCO, to be used in the production of reinforced plastics. Feldspathic sand, produced as a by-product of mica production, is being marketed for use in high-end stucco production, golf courses, and agricultural products. Over 20 cosmetic manufacturers are testing AZCO's mica; three major cosmetics companies have approved AZCO mica for use in their products; and, the Company has fulfilled one initial order.

The information contained herein regarding risks and uncertainties, which may differ materially from those set forth in these statements in addition to the economic, competitive, governmental, technological and other factors, constitutes a "forward looking statement" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, the Private Securities Litigation Reform Act of 1995 and is subject to the safe harbors created thereby. While the Company believes that the assumptions underlying such forward-looking information are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the forward-looking information will prove to be accurate. Accordingly, there may be differences between the actual results and the predicted results, and actual results may be materially higher or lower than those indicated in the forward-looking information contained herein. Further, the Company assumes no obligation to update or otherwise publicly revise the forward-looking information disclosed herein to reflect circumstances existing after the date hereof.