Atlas Mining Company Starts Drilling Program at Dragon Mine.

OSBURN, Idaho -- Atlas Mining Company (OTCBB:ALMI) announced today that it has started a drilling program from the new 15 degree decline tunnel at the Dragon Mine and will drill additional holes from the surface. The drilling program is designed to explore new and previously discovered areas near the main bed and to ascertain the extent of the structure to help in directing the route of the decline as it advances toward lower levels of the mine. The drilling program, conducted by Kettle Drilling, will also include surface holes near a newly discovered outcrop of halloysite on the north side of the pit wall. Geologists have located additional outcrops of halloysite near the area of the decline, which could expand into additional mineable material in that area. The tonnage in the additional areas is unknown at this point but will add to the approx. 300,000 tons already known to exist. Geologists have also been reviewing underground maps to determine the most advantageous routes for access to the halloysite beds at lower levels. According to William Jacobson, President and CEO, "It's a matter of which is the best way to access the main deposit so we can get the most out of it, and at the same time develop additional deposits." Geologists have determined that the majority of the higher grade material lies at the 300 foot level or lower. The decline has been advanced to about the 250 foot level, and the Manhattan tunnel to the south is being opened at the 300 foot level, making it possible for the two tunnels to intersect. This action will open a sizeable amount of area for future development and mining.

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 in the nanotechnology fields and has created exciting new 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 Safe Harbor Statement and the risks and other factors detailed in the Company's reports filed with the Securities and Exchange Commission. Atlas Mining Company undertakes no duty to update these forward-looking statements.