Atlas Mining Begins Ground Preparation at Dragon Mine; KDS Processing Equipment Scheduled to Ship on March 31st.

Business Editors

OSBURN, Idaho--(BUSINESS WIRE)--March 23, 2004

Atlas Mining Company (OTCBB:ALMI), a natural resource and mining company, announced today it is sending company resources to begin snow removal and ground preparation at Dragon Mine. Additionally, company personnel will meet with various county government agencies to ensure regulatory, zoning, licensing, and building permit compliance.

Atlas Mining President and CEO William Jacobson said, "Ron Short, our operations manager, and I will be at the mine this week. Ron will oversee the preliminary ground preparation while I attend to all of our regulatory and permit needs. This is all a necessary formality and I foresee no problems complying with various state and county rules, regulations, and paperwork."

The company has already acquired the proper mining permit through the State of Utah Department of Natural Resources. The company will keep them updated on its progress to insure all mining operations stay within the scope of the permit.

In anticipation of the arrival of the KDS processing equipment, clear access to the mine needs to be assured. The access roads are in good shape, but preliminary reports indicate a certain amount of snow removal will take place. "We expect this early preparation to go off without a hitch," said Short, "and foresee no problems in preparing for the delivery of the processing plant."

The Dragon Mine is a rich cache of the mineral "halloysite." Historically, halloysite has been used in the manufacturing of bone china, fine china, and porcelain products. However, internal and other chemists and scientists have discovered new uses for the processed mineral. The Dragon Mine halloysite also has a unique tubular quality, not unlike a grain of rice, only considerably smaller and hollow. The halloysite microtubules can act as a time-release capsule, dissolving over time, and can be filled with such things as antifouling paint, antiscalants, herbicides, pest repellents, and other agents which could benefit from a controlled release.

About Atlas Mining Company: Atlas Mining Company is a diversified natural resource company with its primary focus on the development of the Dragon Mine in Juab County, Utah, the only known commercial source of halloysite clay outside of New Zealand. The unique purity and quality of the Dragon mine halloysite is unmatched anywhere in the world and has spawned considerable research into new and exciting applications for this product. Atlas also holds mining and timber interests in Northern Idaho, and operates an underground mining contracting business. Atlas stock trades on the OTC Bulletin Board under the symbol "ALMI." More information about Atlas Mining Company can be found at www.atlasmining.com.

Safe Harbor Statement: Except for the historical statements made herein, the statements made in this release are forward-looking statements. Risk factors that could cause actual results to differ materially from those projected in forward-looking statements include, but are not limited to, general business conditions, managing growth, and political and other business risks. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risks and other factors detailed in the Company's reports filed with the Securities and Exchange Commission. Atlas Mining undertakes no duty to update these forward-looking statements.