Atlas Mining Continues Discussions to Operate Costa Rican Gold Mine.

Business Editors

OSBURN, Idaho--(BUSINESS WIRE)--Aug. 5, 2003

Atlas Mining Company (OTCBB:ALMI) is pleased to announce that it is continuing its discussions with Cia Minera Mimosa S.A. de C.V. of Costa Rica (CMM) to provide assistance with the planning, development and operation of their La Union Gold Mine in Costa Rica.

Atlas and CMM have agreed to extend the terms of the previously announced letter of intent to allow both companies to continue their due diligence.

Under the revised terms, Atlas will perform a thorough on-site assessment of the La Union Mine by the end of the quarter. If the evaluation proves satisfactory, then Atlas and CMM will finalize terms regarding project operation and a possible joint-venture partnership. Since the initial announcement of negotiations in May, CMM has completed a modest initial financing and will pursue full production financing after the completion of a definitive agreement with Atlas.

Historical data indicates past production of nearly 500,000 ounces of gold at La Union from operations through the 1950s. Geological reports indicate strong exploration potential on the property, along with between 35,000 and 85,000 ounces of identified, recoverable gold.

CMM President-elect, John Nakao stated, "We have a valuable asset in the La Union Gold Mine and we intend to realize its value by bringing it back into production as quickly as possible. Atlas has an outstanding reputation in the mining industry and we believe that their underground, narrow-vein expertise makes them an excellent fit for our project."

Please visit the Atlas website at www.atlasmining.com for more information about the projects and activities of Atlas Mining Company.

Atlas Mining Company is a diversified natural resources 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 purity and quality of halloysite from the Dragon Mine 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.