Atlas Mining Receives Halloysite Clay Order from U.S. Naval Research Laboratory.

Business Editors

OSBURN, Idaho--(BUSINESS WIRE)--July 17, 2003

Atlas Mining Company (OTCBB:ALMI), is pleased to announce that it has received an order for its halloysite clay from the United States Naval Research Laboratory in Washington, D.C. Following successful preliminary test results on Atlas halloysite samples from the Dragon Mine, Naval researchers have selected the product for additional testing in anti-barnacle paint applications.

Limited halloysite mining is now underway, to be followed by a trial run of an experimental off-site milling process. If the trial milling proves successful, it may preclude the need to raise additional capital for an in-house facility and allow regular production operations to commence quickly at the Dragon Mine.

Preliminary testing on halloysite clay from the Dragon Mine was conducted by the Naval Research Laboratory, whose scientists have patented a method for the controlled release of chemical agents from the microtubules found in halloysite. Their primary interest is in protecting ship hulls from barnacles through the controlled release of an anti-fouling agent, but research has demonstrated that variations of this process have many other commercially-viable uses, ranging from agricultural chemicals to household products. The U S Department of Defense has engaged The Montana State University TechLink Center to identify potential markets for these new applications and Atlas is working closely with TechLink personnel, providing halloysite samples and related analytical data to support their efforts.

Atlas President Bill Jacobson commented, "We are pleased to see research efforts with our high-grade halloysite clay advancing to the next level. The uniqueness and scarcity of our product, coupled with exciting new discoveries for its usage, could ultimately have tremendous financial implications for our Company. We will continue to work closely with our technical advisors and future distributors to assist in cultivating and expanding the market for our halloysite clay."

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.