Atlas Mining Begins Portal Excavation; Company Updates its Shareholders on Mining Operations.

Business Editors

OSBURN, Idaho--(BUSINESS WIRE)--April 14, 2004

Atlas Mining Company (OTCBB:ALMI), a natural resource and mining company, announced today it has excavated for the mine portal, has purchased three additional pieces of mining equipment, and has exposed approximately 100 tons of halloysite clay in the pit wall.

Atlas Mining President and CEO William Jacobson said, "We have excavated the area that will be the opening to the mine. The site we've chosen for our portal is very advantageous. We only have to drift down to the 120-foot level, at a 15-degree decline, to be at the bottom of a rather sizable bed of clay. We'll be able to conduct our first several years of mining operations at these levels, but will look to concurrently set up other extraction stopes in beds near this area as demand for our clay increases." The total length of the tunnel is anticipated to be around 250 feet, and the company expects to be able to reach the underground bed of halloysite clay within 30 days.

The company also purchased three additional pieces of mining equipment. "We purchased two underground loaders and a single-boom jumbo drill to supplement our existing equipment." The company intends to mine the clay with an Alpine Miner roadheader, which will be brought into service as soon as the access drifts are completed.

"This equipment, along with the KDS Processing Plant, will get our mining operations underway," Jacobson said. "The portal into the mine will be approximately a 10-foot-by-10-foot tunnel. The underground loaders are low-profile, rubber-tired vehicles specially designed for this type of portal and mining operation.

Company personnel have also exposed an approximate 100-ton surface bed of clay in the pit wall of the mine. "The advantage for us in this particular bed of clay is that we don't have to go underground to extract it. It's on the surface, which means we'll be able to fill the 50-ton order from our overseas buyer more quickly than if we had to go underground."

Ground leveling and other pre-mining operations continue on schedule. "We've signed the purchase order to begin construction of the Mill Site, and expect that to get underway next week. Everything is on schedule with our partners, with our suppliers, as well as regulatory with the State of Utah," Jacobson concluded.

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.