Atalaya Mining Regulatory News (ATYM)

AIM: EMED 17 May 2010

IMPROVEMENTS IDENTIFIED FOR THE RIO TINTO MINE

EMED Mining Public Limited ("EMED Mining" or "the Company"), the AIM quoted mining exploration and development company, is pleased to provide an update on the progress of reports relating to the permitting of the Rio Tinto Mine ("Proyecto Rio Tinto" or "PRT") that are being submitted to the relevant regulatory authorities of the Junta de (Government of) Andalucía.

These submissions are being finalised in line with the schedule outlined in the permitting roadmap announced by the Company in December 2009. This work has involved regular consultation and interaction between the EMED Mining team, its technical consultants and the authorities where appropriate. The combined efforts of those various experts have led to many improvements being designed into EMED Mining's plans for restarting PRT. The restart submissions will now be based on an extended mine life of 14 years along with commitments to exploration drilling to be carried out in the first three years. This exploration is targeted at doubling the current ore reserves.

These improvements over previous operating practices will make PRT a safer and more efficient mining operation. Summarised below are the improvements that have been identified for each operational area of PRT.

Mining

Compared with mine designs generated during the 1990's, planning software now facilitates better optimisation of the open-pit mine design.

The latest optimisation tools will enable:

·; more of the in-situ copper to be recovered, thus reducing the waste/ore ratio, reducing costs and extending the life of the mine;

·; better monitoring of rock blasting and loading of haul trucks; and

·; a much improved dispatching system that will allow dynamic allocation of mining equipment and the trucking fleet in real time via GPS.

The utilisation of new drilling and explosive technologies are planned for rock blasting. Those blasting practices should enable better separation of ore and waste as well as optimising the fragmentation of ore, thus reducing the energy required for processing. This also has material environmental benefits.

Processing

The plant will be updated with modern instrumentation and automation to work in-tandem with the existing infrastructure, enabling lower energy consumption and increased copper recovery.

The following advances in processing technology will be installed:

·; a Distributed Control System (DCS) for monitoring and controlling individual areas of this large processing plant;

·; several larger flotation cells to increase the processing capacity and improve copper recovery;

·; press filters to reduce moisture in the concentrate produced and thus reduce energy consumption in the concentrate dryers; and

·; gas-fired concentrate driers to reduce energy consumption and emissions.

The process circuit is that of conventional flotation and concentration, as suitable for this type of ore and as used in over 70% of the world's copper mines. The aforementioned improvements serve to ensure compliance with the latest international standards.

Environment

Environmental management systems will be developed to the International Standards of ISO 14001.

The following practices will enable improved mining operations and better protection of the environment:

·; systematic management of the tailings dams, the structural integrity of which have now been confirmed by geotechnical drilling and analysis;

·; mitigation of the acidified material in the waste dumps by capping with low acid-generating material;

·; systems for identification, management and the recycling of waste;

·; management of water on the site during and after operations;

·; systems for noise and vibration control; and

·; rehabilitation of disturbed areas during and after operations.

EMED Mining has also placed a great deal of emphasis on planning for the protection of historical and cultural heritage in consultation with the local communities and the Department of Culture and Heritage.

Occupational Health and Safety

EMED Mining plans to implement the OHSAS 18001 system, an international occupational health and safety management systemthat through training, assessing and auditing will install a culture of excellence with regards to health and safety to serve a "Zero Accidents Policy".

Social Responsibility

EMED Mining plans to give preference to local employees and suppliers for PRT's planned operating expenditure - approximately €75 million per annum.

Our dedication to creating sustainable enterprises is demonstrated in the commitments already made by the Company in relation to PRT.

Following extensive consultation, the Company has committed to the implementation of the following projects aimed at encouraging local economic diversification:

·; To develop an international laboratory service, operated by a global leader in such activities;

·; To preserve and open for tourism various sites of interest in the vicinity of the project;

·; To transfer surplus rehabilitated land to alternative uses in collaboration with the Government;

·; To establish a cultural exchange program with the town of Broken Hill in New South Wales, Australia; and

·; To provide €300,000 per annum from operating profits to a social assistance fund which will support community aid programs and seed new small enterprises. This fund is to be administered transparently by a Board of Advisers comprising appropriate local community and business leaders.

The aim is to create enterprises that will continue long after the Rio Tinto orebody is mined out more than 20 years from now.

EMED Mining Managing Director, Mr Harry Anagnostaras-Adams commented,

"The numerous improvements planned for Proyecto Rio Tinto will bring this mining operation up to the standards appropriate for the 21st Century. All these improvements are under review by leading consulting firms SADIM, EPTISA, EYGEMA, APPLUS, CGS, SUBTERRA, HIDROGEST and AMC.

"EMED Mining has already adjusted its regulatory submissions to extend the planned mine life of PRT to 14 years. We intend to invest in ongoing research and development which should further add to the mine life and optimise extraction of this very large copper deposit."