Atlas Mining Company Reports on Findings at Dragon Mine.

Business Editors

OSBURN, Idaho--(BUSINESS WIRE)--July 25, 2001

Atlas Mining Company (Pink Sheets:ALSM) has received reports from The Phlogiston Company of Macon, Georgia on analyzed samples from the Dragon Mine in Juab County, Utah.

According to The Phlogiston Company report, "the quality of the halloysite deposit eclipses anything ever discovered in the global industry, including the Matura Bay deposits of New Zealand China Clays. This judgment is not made lightly. It is based on the three most important inherent properties of the crude. They are brightness, particle size distribution, and purity. The Dragon deposits in Utah have three unprecedented crude ore properties; a brightness in excess of 96 on the G.E. scale; a particle fineness of 97.5% < 2 microns; and a grit content so low that silica levels are virtually undetectable."

Processed samples have been submitted to several potential buyers, and positive responses have been received. Additional processed samples are being prepared for those buyers who have expressed an interest in further testing.

The Phlogiston Company is helping to design a processing plant, and Atlas is investigating methods to mine the property. Initial testing has determined that some of the clay can be prepared with a dry process, greatly reducing capital and operating cost. Atlas will target these clays first. Lower grade clays on the property that require a wet process will be considered once a cash flow has been established. A short drilling program is being considered to aid in mine design. Current estimates for development expenditures and plant construction are currently less than $3 million.

Meanwhile, the company has made estimates of the potential production and related operating costs. Initially, Atlas intends to move into production at a small scale to insure that it produces only the quantities that are sold. Initial production targets are for 7,500 tons the first year with the goals to achieve up to 30,000 tons per year by the fifth year with a revenue of $10.5 million and a operating margin of $6.5 million. Based on the current shares outstanding the earnings per share after year five could be increase substantially.

The Dragon Mine was operated from 1950 to 1973. Previous operators were Filtrol Corp. a subsidiary of Anaconda. Atlas Mining Company is a 1924 Idaho corporation with timber and mineral properties in north Idaho and a silver property in Zacatecas, Mexico. The stock is currently traded on the OTC pink sheets under the symbol ALSM. For more information about the company contact William Jacobson, president, at 800/356-6463, or visit the company web site at www.atlasmining.com.

The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company's expectations. Certain risk factors may also affect the actual results.