Atlas Mining Company Announces Funding Commitment of $2 Million Dollars.

Business Editors

OSBURN, Idaho--(BUSINESS WIRE)--Feb. 18, 2003

Atlas Mining Company (OTCBB:ALMI) is pleased to announce that it has secured a $2.0 million funding commitment from an institutional investor, IGI Capital Management, LLC, of Stamford, CT.

The investment will allow the Company to begin production and sales of halloysite clay from its Dragon Mine operation.

The total funding package comes to $2 million and has two components. The first $1 million was provided through the sale of 10 million shares of common stock governed under rule 144. The second $1million will come from a convertible two-year promissory note with a one percent annual interest rate. The note is convertible to common stock at the end of two years at the rate of five common shares for each dollar owed. The first $250,000 of the $2 million commitment has already been disbursed. The remaining amount will be provided after completion of the due diligence process.

William Jacobson, president of Atlas Mining Company, stated: "This investment satisfies our needs for capital and will allow us to bring our halloysite clay property into production in the very near future. We believe that our ability to attract an equity investment on such good terms is a strong statement regarding our excellent prospects for success." Jacobson went on to say, "We considered several term sheets. However, our first priority was to find a partner and investor who can help us reach our goals with minimal dilution to our current shareholders. This transaction gives us the best possible upside with the least amount of dilution."

In order to meet the initial demand identified by our product distributors Atlas will begin work immediately to develop the halloysite deposit in Juab County, Utah.

Dimitri Hotimski, fund manager for IGI Capital Management, added: "We believe that Atlas Mining has all the right ingredients for success: an absolutely unique product and effective management that can produce that product. We are very pleased to be a part of the Atlas team and look forward to helping the company realize its growth potential."

About Atlas Mining Company

Atlas Mining Company is an exploration stage natural resource and mining company. The company's main interest is the halloysite clay property in Juab County, Utah. However, it also has mining and timber properties located in Shoshone County, Idaho, as well as an underground mining contracting business. This notice does not constitute an offer of any securities for sale.

Safe Harbor Statement -- As a cautionary note to investors, certain matters discussed in this press release may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such matters involve risks and uncertainties that may cause actual results to differ materially, including the following: changes in economic conditions; general competitive factors; the Company's ability to execute its business model and strategic plans; and the risks described from time to time in the Company's SEC filings.