Atlas Mining Company Announces Results of First Three Months of Operations in 1998.

OSBURN, Idaho--(BUSINESS WIRE)--May 7, 1998--Atlas Mining Company (OTC BB:ALSM) announced the results of the first three months of operations in 1998.

Sales in the underground contracting business amounted to $414,600.00 with a year to date gross margin of 19.75% before administrative expenses. In preparation of moving Atlas Mining Company into a more aggressive market the company experienced additional costs in the first period of 1998. The company finalized the 1997 year-end audit which included completely revising and establishing a controllable inventory system. The company also has been in pursuit of property and corporate acquisitions during the first quarter that will enhance the company's financial position and reserve basis.

Plans for the remainder of the year call for continued growth in the contracting sector. Timber harvesting plans for this year are being reviewed because of softer prices in the timber industry. The company policy is not to pursue logging unless it is justified by the timber prices or unless the timber is in danger of deteriorating due to disease. In the areas of property acquisitions, Atlas will continue to pursue viable mergers and acquisitions that will enhance the value to the company and its shareholders. Acquisitions also are planned with the goal to move Atlas Mining Company into the position of an operator or joint venture partner.

Atlas Mining Company is a mining company with an underground mining contracting business and has silver properties located in the Silver Valley of North Idaho. Information about the company can be obtained on page 8,155 of Standard & Poor's Corporation Records or by contacting William T. Jacobson, president, at 208/556-1181.

CONTACT: Atlas Mining Company

William T. Jacobson, 208/556-1181