Atalaya Mining Regulatory News (ATYM)

AIM: EMED 18 August 2010

PRT Permitting Progress

EMED Mining Receives Regulatory Clarifications for Tailings Dams

EMED Mining Public Limited ("EMED Mining" or "the Company"),the AIM-quoted mining exploration and development company, is pleased to announce that its wholly-owned subsidiary EMED Tartessus S.L. ("EMED Tartessus") has received formal clarification from Consejería de Economía, Innovación y Ciencia ("Department of Industry") of certain regulatory administrative matters which were reported as outstanding in the Company's June 2010 Quarterly Report released on 30 July 2010.

Various requirements relating to the tailings dams have been stipulated by the Department of Industry, specifically the insurance requirements have now been set and the joint responsibilities of all relevant landholders have now been confirmed. The relevant landholders are EMED Tartessus, Rumbo 50 and Zeitung.

Details of the key clarifications received were as follows:

Insurance

The regulatory authorities have advised that the public risk insurance coverage for the tailings dams should be for an amount totalling €180 million and be arranged by each landowner proportionately to their ownership. The estimated annual insurance cost is included in the projected cash flows previously announced by EMED Mining.

Rehabilitation Commitments and Bonding

The regulatory authorities have now confirmed that all landowners need to provide environmental rehabilitation plans and undertake to provide the requisite bonding, as has been done by EMED Tartessus.

Care and Maintenance of Facilities

The authorities have now formally advised all landholders of their care and maintenance obligations in relation to the tailings dams, which continue to be complied with by EMED Tartessus.

Rights to Occupy and Use of Adjoining Lands

EMED Mining is seeking a negotiated agreement with the two other part-owners of the tailings dams. Spanish law facilitates compulsory acquisition of the subject lands as a last resort and the relevant independent valuations for such acquisition have been carried out to provide further clarification.

Mr. Harry Anagnostaras-Adams, Managing Director of EMED Mining, commented:"These regulatory confirmations are another step forward in setting up the arrangements between all stakeholders for the restart of the Rio Tinto Mine and we appreciate the clarifications made by the Andalucian authorities."

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