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Atlas Mining Company Acquires Gold Property in Newfoundland

Posted on: Monday, 10 April 2006, 06:00 CDT

Atlas Mining Company (OTCBB:ALMI) is pleased to announce today that the Company recently signed an agreement giving it the right to acquire the Handcamp Gold Property in Newfoundland Canada. The agreement was made through the Company's partner Kat Exploration.

The agreement allows the Atlas / KAT partnership to buy 100% of the Handcamp property over the next four years for a total of cdn $138,000 in cash and stock and a 2% net smelter royalty. The agreement allows Atlas to further explore the potential of the property, to develop, bulk sample or mine as it sees fit.

"As I mentioned before, we think that Newfoundland will be the next major mineral play in Canada. The Handcamp property is a prime example of an excellent mineralization that has great possibilities." Stated William Jacobson, President and CEO. "This agreement gives us the ability to find the best potential for this property and to bring our Company another great project. This is exactly the type of opportunity we are looking for."

The Handcamp property lies within the Roberts Arm Belt approximately 10 km. Northeast of the old Gullbridge Mine, operated in the past by Noranda. The Newfoundland Government drilled on the Handcamp several years ago and drilled one hole that showed an intersection with approximately 7 ft. of 5 oz. gold. Another Government hole farther to the south recovered an area of 3 oz. Au, and the owners drilled one hole less than 50m which found .39 ounces over 7 feet. The drill logs also noted visible gold throughout the core. Subsequent grab samples from the surface were taken over a distance of 1200 feet. Twenty-two assay results showed mineable numbers. One particular area of that length was trenched uncovering a dome like structure 60 foot in diameter on strike with the sampled areas. Six assay results from this area were: 82.8 g/t, 1 g/t, 8.3 g/t, 100.8 g/t, 9.2 g/t and 9.6 g/t. au. Other areas assays along the sampled area recorded results of 20.9 g/ton to as high as 158 g/t au.

About Atlas Mining Company: Atlas Mining Company is a diversified natural resource company with 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.

An online investor kit including press releases, stock charts, current price quotes, and other valuable information may be found at http://www.foothillsgroup.com.

Source: Business Wire

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