Atlas Mining Company Buys Processing Equipment and Signs Memorandum of Cooperation.

Business Editors

OSBURN, Idaho--(BUSINESS WIRE)--Feb. 24, 2004

Atlas Mining Company (OTCBB:ALMI) announced today that they signed a purchase agreement for the acquisition of a KDS Micronex System, which will be used for the processing of halloysite clay at their Dragon mine site in Juab County Utah, from First American Scientific Corp (OTCBB:FASC). Along with the sale of the equipment the companies have formed a strategic alliance. FASC will provide technical support and advice to assist Atlas in developing the most viable method of processing its clay, and Atlas has designated FASC as its core supplier of grinding and drying equipment for its mining operations.

Successful test processing of Atlas' halloysite clay with the KDS Micronex has resulted in positive feedback from potential end users. With the strategic alliance between Atlas and FASC, Atlas can be assured of controls needed to provide the best product to its customers. Stated William Jacobson, Atlas president, "We feel that the people at First American are not only interested in selling us a piece of equipment, but also in seeing that our project is successful. One of the key components to the success of this project will be the ability to provide quality product to our customers. This purchase and the strategic alliance will bring us that much closer to the reality of production and sales of Dragon Mine halloysite, and let the shareholders maintain the full interest in the project." Mr. Jacobson went on to say, "During the past few months my team and I have evaluated several Joint venture candidates. While these groups bring plenty to the table we, in the end, felt giving up a major piece of the revenue in a joint venture for the support of an outside group did not make the best business sense, because these joint ventures were going to be built on the back of what we have already built by way of customer contacts, processing, potential sales, and new technologies. This step is a major milestone for our company. We have come a long way, and it is very comforting to know where your sales are coming from, and now knowing how we can deliver product." He concluded, "This is not only a great purchase for Atlas and its shareholders, this is a great step in the further development of a very unique Halloysite Clay deposit."

This year Atlas intends to begin mining operations at the Dragon mine in Juab County, Utah. The company also will further its position in the Micro Tubular sector with its Dragon halloysite. Positive results from manufacturers of medicine, skin care, household products, paint, insecticides and fungicides, and other potential applications have proven the unique qualities of the Dragon halloysite. The company is encouraged by the development of these and other nano applications being pursued. Atlas has also been invited to speak at the Industrial Minerals Conference in Barcelona. According to Jacobson, "We have asked Dr. Ron Price to present on Atlas' behalf. Dr. Price is the co-patent holder of micro tubular technology and a member of the Atlas Mining Advisory Board. We feel that Dr. Price and his developments will dramatically affect the way our Dragon mine halloysite is used as his patents have opened up many markets for us outside of the fine china market. There has never been a more exciting time for Atlas Mining than today!"

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 applications for this unique 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".

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.