Atlas Reports Progress On Dragon Mine.

Business Editors

OSBURN, Idaho--(BUSINESS WIRE)--Oct. 1, 2002

Atlas Mining Company (OTCBB:ALMI), an established mining and resource company since 1924 is pleased to report the following update on its Dragon Mine halloysite project in Juab County, Utah.

A sizable sample of halloysite clay from the Dragon Mine was processed under methods similar to those anticipated once the project is operational. Atlas' industrial minerals marketing distributor, Lintech International, has submitted bulk samples of halloysite clay product known as Phlo-Site HP, to potential buyers in the United States, Europe and Asia, and the results were encouraging.

A report from Lintech states "It is negotiating the terms of commitments from buyers that would create an immediate initial market of about 2,000 tons annually" (or over $900,000 in revenue). Lintech further states "Potentially there is a 5,000 to 10,000 ton (or $2,000,000 to $4,000,000) annual market that Lintech is confident of obtaining after plant start-up."

Halloysite is a high unit value specialty clay that sells for more than $400 per ton. Preliminary cash costs analysis indicates that the company will experience a positive cash flow from sales. Negotiations are ongoing with buyers to obtain letters of intent to purchase this product.

Scanning electron microscope photos and chemical analysis shows that the raw material is nearly pure halloysite. Average grain size is less than one micron, making the clay material a candidate for nano-applications. According to clay specialist Paul Adler, of Phlogiston Company, "The grain size and lack of significant impurity make Dragon Mine halloysite superior to products currently on the market."

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.