Atalaya Mining Regulatory News (ATYM)

AIM: EMED

TSX: EMD 28 December 2011

NOT TO BE DISTRIBUTED TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATED IN THE UNITED STATES

Conversion of secured loan facility

EMED Mining Public Limited ("EMED Mining" or the "Company"), the Europe-based minerals development and exploration company, is pleased to announce that it has received conversion notices from each of Resource Capital Fund IV L.P ("RCF") and RMB Australia Holdings Limited ("RMB") pursuant to which RCF and RMB have elected to convert the amounts owed to them under the secured convertible loan agreement dated 4 March 2009 (the "Loan Agreement") into new ordinary shares of 0.25 pence each in the capital of the Company ("Ordinary Shares"). Accordingly, the outstanding principal amount owing under the Loan Agreement of US$8.5 million will be satisfied in full by the issue of 145,504,458 Ordinary Shares at a price of 4.13 pence per share. Of this amount, 111,267,170 Ordinary Shares will be issued to RCF and 34,237,288 Ordinary Shares will be issued to RMB.

EMED Mining also announces that the quarterly interest payable to RCF and RMB under the Loan Agreement for the period ended 30 September 2011 will be satisfied by the issue of a further 1,473,466 Ordinary Shares at a price of 7.6891 pence per share. Of this amount, 1,120,580 Ordinary Shares will be issued to RCF and 352,886 Ordinary Shares will be issued to RMB.

Application has been made to the London Stock Exchange for the new Ordinary Shares to be issued to RCF and RMB to be admitted to trading on AIM and such admission is expected to become effective on 6 January 2012.

Following completion of the issue of shares to RCF and RMB, EMED Mining will have 856,451,826 Ordinary Shares in issue. RCF will hold 164,997,104 Ordinary shares (equating to 19% and 17% respectively of the issued share capital and fully diluted capital of the Company) and RMB will hold 51,826,550 Ordinary Shares (equating to 6% and 5% respectively of the issued share capital and fully-diluted capital of the Company).

The Company's Chairman Mr Ronnie Beevor said,

"RCF and RMB are global leaders in the financing of development in the mining sector, which is one of the strongest sectors in the international economy. Today's transaction reiterates the long term commitment of our shareholders to EMED Mining and our plan for the start-up the Rio Tinto Copper Mine as our base for long term operations in Southern Spain and future expansion within the region.

The Ordinary Shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any U.S. state securities laws and may not be offered or sold in the United States absent registration or an available exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. No securities commission has approved or disapproved the contents of this press release.

Enquiries

For further information on the Company's activities, visit www.emed-mining.com or www.emed.tv