Atlas Mining to Improve its Processing System at the Dragon Mine.

OSBURN, Idaho -- Atlas Mining Company (OTCBB:ALMI) announced today that it has contracted with Ginn Minerals Laboratory of Sandersville, GA to assist them in finding a processing method to clean the iron stained halloysite material at the Dragon Mine in Juab County, Utah. "Although our geologists have indicated a large amount of pure white halloysite in the bed (approximately 300,000 tons), we have encountered several hundred thousand tons of iron stained product. Our current processing system will process our product in a good manner, however it does not separate the iron from the halloysite as well as we would like. We know we will eventually have a market for the iron stained product, but also know that if we clean it up, that it will command a higher value." As Jacobson explained, an iron cap surrounds the bed of halloysite and the outside perimeter of the bed is iron stained by seepage into the bed from the iron. This "halo" is anywhere from ten to 30 feet in thickness, and contains many tons of good halloysite microtubules. "As we move from iron stain to white to iron stain, we find it hard to keep the various grades of material separated. Rather than waste any of it, we have come across a method to clean and use it all. This will also bring us more available material in our reserves as our original reserves are based on estimates of the pure white product available." Sources have indicated that the mine reserves could be increased by a factor of as much as two, by utilizing this new processing method.

Atlas had contracted with Ginn Minerals Laboratory of Sandersville, GA to assist them in finding a method of processing the dirtier halloysite materials. Phase one of this process has been completed and the results have produced a very high quality halloysite. The brightness factor is the mid 90's and the microtubules have not been affected by the processing, according to lab personnel conducting the work. The next phase will be the development of plans for a plant on site. Meanwhile, mine production continues which includes separating the halloysite prior to processing. Other areas of improvement at the mine will be the establishment of a lab to test the materials in order to assist in quality and grade control.

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, leased from Chester Mining and 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 and exciting 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 Cautionary Statement and the risks and other factors detailed in the Company's reports filed with the Securities and Exchange Commission. Atlas Mining undertakes no duty to update these forward-looking statements.