Atalaya Mining Regulatory News (ATYM)

AIM: EMED, TSX: EMD 5 December 2011

Andalucian Government directs EMED Mining to introduce integrated environmental management on all project lands at Rio Tinto Mine

EMED Mining Public Limited (AIM: EMED, TSX: EMD) ("EMED Mining" or "the Company"), the Europe-based minerals development and exploration company, is pleased to report that the Junta de Andalucia (the "Andalucian Government") has advised that EMED Mining should introduce environmental management and restoration programs on all Rio Tinto Copper Mine lands that are not already owned by the Company. This was communicated to the Company by the Department of Environment to ensure a comprehensive environmental management approach will be applied to the whole project footprint, both ahead of the project restart and during proposed operations.

The Company welcomes the opportunity to extend proper environmental management programs on these sites which are not currently owned by EMED Mining that have been left unattended since the suspension of operations in 2001 and the subsequent partitioning in 2004 of project lands between different private owners. Importantly, this will encompass large areas of tailings dams and waste dumps that sit on lands that are not owned by the Company. EMED Mining intends to implement a long term environmental management and rehabilitation program that is integrated with the operating and economic aspects of project restart and operations, in accordance with European Union Best Available Techniques and to start improving the effected lands immediately once it is provided land occupancy.

The right of occupation for key project lands is one of the pre-requisites for restarting the project, the other pre-requisites being full permitting, preparations of personnel & site and project finance. Some limited land access has already been provided by the Government but this latest advice from the Andalucian Government is vitally important. It not only facilitates the environmental clean-up of project lands, it also assists the timely restart of the project by allowing pre-operational environmental infrastructure works to be engineered and installed. A key next step is for the land occupation procedures to be effectively implemented by the Government and its agencies.

Another key next step is to agree with the Department of Environment regarding administrative and rehabilitation preferences taking account of the physical characteristics of this particular site and project, so that the project can start in accordance with the Government's stated timetable for both environmental upgrading and operational requirements. EMED Mining will continue to work with the relevant Andalucian Government departments, notably the Departments of Environment, Culture and Industry, to refine the restart plans and permitting conditions with a view to expediting the issuance of permits, notably Administrative Standing (the formal approval of the administrative transmission of the Company's mineral rights acquired in 2007). This will include the agreement of modified environmental management plan documentation which would see the Company assuming the environmental responsibility for project lands not already owned at the same time as the project start-up is fully permitted.

Harry Anagnostaras Adams, Managing Director of EMED Mining, commented:

"The Company is pleased that the regulatory spotlight has now turned onto actual implementation of environmental management plans as well as the facilitation of the production restart. We all now recognise the need to re-assemble the complete project land package by reversing the recent slicing off and partitioning of waste management and storage zones.

"The Andalucian Government has indicated that it wants to have approved by Q3-2012 the full project including the overall project plan, the administrative approval of the Company's mineral rights ("Administrative Standing") and the Unified Environmental Authorisation for the whole land footprint. The Company also needs land access; and the proposals of the Department of Environment provide a basis for taking concrete steps on the ground while we sort out final permitting conditions as an overall integrated package.

"It is notable that all major political parties have recently visited the Company's site to announce their support for the project.

"As we move forward, we will continue to provide progress reports to shareholders as regards the resolution of outstanding issues and developments in respect of land access."

-ENDS-

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