Atalaya Mining Regulatory News (ATYM)

EMED Mining Public Limited

("EMED" or the "Company")

Quarterly Financial Report

EMED Mining Public Limited (AIM: EMED, TSX: EMD) ("EMED Mining" or "the Company"), the Europe-based minerals development and exploration company, announces its unaudited interim results for the three and nine months ended 30 September 2014.

The full, unaudited Quarterly Report (as required by Toronto Stock Exchange reporting standards), including unaudited, consolidated Financial Statements and the Management Discussion and Analysis relating to the Company, which appear below, are also available under the Company's profile on SEDAR at www.sedar.com and on the Company's website at www.emed-mining.com.

Operational Highlights

· Over 220 people mobilized and fully working on site including EMED personnel and local contractors.

· Drilling started at Proyecto Riotinto and two drilling contractors and three drill rigs are on site.

· 720m were drilled for metallurgical testing purposes, while a 7,500m resource infill program is in progress with approximately 1,050m already drilled by the end of the third quarter of 2014.

· Mining contractor appointed and mining fleet pre-ordered.

Capital Expenditure

· Potential start-up capital expenditure savings for Phase 1 in the order of US$50M identified.

· Phase 1 throughput rate will be 5Mtpa and management is assessing a range of options for the development of Phase 2 to increase throughput up to 15Mt of ore per year.

· Phase 1 is now progressing well into full implementation.

Permitting Highlights

· Final Restoration Plan officially submitted following completion of the public consultation process. Approval of the Final Restoration Plan is expected before the end of the year.

· Application for the Mining Permit was completed by EMED during the third quarter of 2014. The Mining Permit is expected before year end at which point the Company will be fully permitted to enable full scale mining operations to recommence.

· Junta de Andalucía granted a self-imposed three month regulatory extension to approve the Mining Permit for the Rio Tinto Copper Project to allow for additional time to complete the complex administrative process related to the final permits. As confirmed by the Junta de Andalucía in its release, this does not affect the latest schedule for the project and the Company confirmed that it still expected to receive the final permitting before the end of the year

Financing Highlights

· Successful completion of a £13.1 million subscription with two existing cornerstone investors, Orion Mine Finance Fund I LP ("Orion") and Yanggu Xiangguang Copper Co. Ltd ("XGC") - enabling the continuation of activities on site to the end of the year.

· The Company is finalising plans for the financing of Phase 1 of the Proyecto Riotinto redevelopment.

Corporate Highlights

· Notification received that Trafigura Beheer B.V. had, through its wholly owned indirect subsidiary Urion Holdings (Malta) Limited, acquired 19,565,000 ordinary shares of the Company on 3 November 2014. Trafigura currently exercises control or direction over an aggregate of 278,594,997 ordinary shares, representing approximately 19.35% of the outstanding ordinary shares.

· Requisition received from Urion Holdings (Malta) Ltd (the "Proposing Shareholder"), a wholly owned subsidiary of Trafigura Beheer B.V., requiring the Company to call an Extraordinary General Meeting ("EGM"). The Company is currently in discussions with the Proposing Shareholder and other key stakeholders about the requisition and the proposed timings for any EGM to be convened at the present time.

· The Company continues to review its options, which include the sale and/or joint venture of its interests in Slovakia and is currently in discussions with interested parties.

· The Company is in joint venture discussions with parties interested in the Company's Cypriot assets.

Isaac Querub, CEO of EMED Mining said: "The Company continues to work towards receiving final permitting before the year-end, ahead of Q3 2015 restart. We have been extremely busy on the ground and continue to rapidly expand operations during this exciting phase of development. With over 220 people working onsite and drilling and refurbishment ongoing this is an incredibly exciting time at Proyecto Riotinto. We look forward to scaling up further in the coming months as we build on the great momentum achieved to date."

Enquiries

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

EMED Mining Public Limited

(All amounts in Euro thousands unless otherwise stated)

Condensed interim consolidated income statements

(unaudited)

Condensed interim consolidated statements of financial position

(unaudited)

.

 Condensed interim consolidated statements of changes in equity

(unaudited)

 Condensed interim consolidated statements of cash flows

(unaudited)

Notes to the condensed interim consolidated financial statements

For the nine months to 30 September 2014 and 2013 - (Unaudited)

1. General information

Country of incorporation

EMED Mining Public Limited (the "Company") was incorporated in Cyprus on 17 September 2004 as a private limited liability company in accordance with the provisions of the Cyprus Companies Law, Cap. 113 and was converted to a public limited liability company on 26 January 2005. Its registered office is at 1, Lampousas Street, Nicosia, Cyprus. The Company was listed on AIM of the London Stock Exchange in May 2005 and TSX on 20 December 2010.

Principal activities

The principal activity of the Company and its subsidiaries (together, "the Group") is committed to the development of metals production operations in Europe, with an initial focus on copper. The strategy is to evaluate and prioritise metal production opportunities in several jurisdictions throughout the well-known belts of base and precious metal mineralisation in the European region.

2. Basis of preparation and accounting policies

Basis of preparation

The condensed interim consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) including International Accounting Standard 34 "Interim Financial Reporting" and IFRIC interpretations as adopted by the European Union (EU), using the historical cost convention.

These condensed interim consolidated financial statements ('the statements") are unaudited and include the financial statements of the Company and its subsidiary undertakings. They have been prepared using accounting bases and policies consistent with those used in the preparation of the consolidated financial statements of the Company and the Group for the year ended 31 December 2013. These condensed interim consolidated financial statements do not include all of the disclosures required for annual financial statements, and accordingly, should be read in conjunction with the consolidated financial statements and other information set out in the Company's 31 December 2013 Annual Report. The accounting policies are unchanged from those disclosed in the annual consolidated financial statements.

The Directors have formed a judgment at the time of approving the financial statements that there is a reasonable expectation that the Company and the Group have adequate available resources to continue in operational existence for the foreseeable future.

The financial statements have been prepared on a going concern basis, the validity of which depends principally on the availability of subsequent funding to extract the resource or alternatively the availability of funding to extend the Company's exploration activities. The financial statements do not include any adjustment that would arise from a failure to complete any of the above. Changes in future conditions could require write downs of the carrying values of property, plant and equipment and/or intangible assets.

Use and revision of accounting estimates

The preparation of the condensed interim consolidated financial statements requires the making of estimations and assumptions that affect the recognised amounts of assets, liabilities, revenues and expenses and the disclosure of contingent liabilities. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

Adoption of new and revised International Financial Reporting Standards (IFRSs)

The Group has adopted all the new and revised IFRSs and International Accounting Standards (IAS) which are relevant to its operations and are effective for accounting periods commencing on 1 January 2014. The adoption of these Standards did not have a material effect on the condensed interim consolidated financial statements.

Critical accounting estimates and judgements

The fair values of the Groups' financial assets and liabilities approximate their carrying amounts at the reporting date. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are unchanged from those disclosed in the annual consolidated financial statements.

Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount can be made. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

3. Business and geographical segments

Business segments

The Group has only one distinct business segment, being that of mineral exploration and development.

Geographical segments

The Group's exploration and mining development activities are located in Cyprus and Spain and its administration is based in Cyprus.

4. Basic and fully diluted loss per share

The calculation of the basic and fully diluted loss per share attributable to the ordinary equity holders of the Company is based on the following data:

There are 7,552,476 warrants and 36,300,000 options which have been excluded when calculating the weighted average number of shares because they have an antidilutive effect.

5. Property, plant and equipment

The above fixed assets are located in Cyprus and Spain.

6. Intangible assets

The additions to the Permits of the Rio Tinto Copper Project at 30 September 2014 include the discounted amount of the Astor Management AG (Astor) deferred consideration of €37,706,605 (see Note 12). The final allocation of the Astor deferred consideration between intangible and tangible assets may subsequently be adjusted upon finalisation of a more detailed review being undertaken.

Carrying Value of Intangible Assets

The ultimate recoupment of balances carried forward in relation to areas of interest or all such assets including intangibles is dependent on successful development, and commercial exploitation, or alternatively sale of the respective areas. The Company conducts impairment testing on an annual basis unless indicators of impairment are present at the reporting date.

In considering the carrying value of the assets at the Rio Tinto Copper Project, including the intangible assets and any impairment thereof, the Company assessed the carrying values having regard to (a) the current recovery value (less costs to sell) and (b) the net present value of potential cash flows from operations. In both cases, the estimated net realisable values exceeded current carrying values and thus no impairment has been recognised.

7. Trade and other receivables

8. Share capital and share premium

Authorised capital

Under its Memorandum the Company fixed its share capital at 1,000 ordinary shares of nominal value of CY£1 each.

On 13 June 2013 shareholders approved an increase in the authorized share capital of the Company from £4,500,000 to £5,500,000 by the creation of 400,000,000 new ordinary shares of £0.0025 each in the capital of the Company ranking pari passu with the existing ordinary shares of £0.0025 each in the capital of the Company.

Issued capital

2014

a) On 20 August 2014, 181,200,000 shares at GBP 0.0025 were issued at a price of GBP 0.0725. Upon the issue an amount of €15,844,853 was credited to the Company's share premium reserve

b) On 5 September 2014, 4,000,000 shares at GBP 0.0025 were issued at a price of GBP 0.0025. Mr Isaac Querub (CEO) and Mr Alberto Lavandeira (COO) were each issued two million ordinary shares in the Company at par (0.25p per share). These shares will be held in escrow and released to Mr Querub and Mr Lavandeira once they have been employed by the Company for two years or if their service agreements are terminated for certain specified reasons.

Warrants

The Company has issued warrants to advisers to the Group. Warrants, noted below, expire five or one and a half years after the grant date and have exercise prices ranging from 8p to 11p.

2014

No warrants were issued in the period from 1 January 2014 to 30 September 2014.

Details of share warrants outstanding as at 30 September 2014:

9. Other reserves

Share options

2014

On 17 March2014, 6,000,000 options were issued to Mr I. Querub (CEO) and 6,000,000 options were issued to Mr A. Lavandeira (COO). These options are exercisable at 12p, expire 5 years after the date of issue and vest in three equal instalments from the date of grant.

On 1 June 2014, Julian Sanchez (management) was granted options to subscribe for an aggregate total of 3,000,000 Ordinary Shares at an exercise price per Ordinary Share of 9 pence. These options expire five years after the date of issue and have a vesting of one third at the end of twelve months from the date of issue, one third at the end of twenty four months from the date of issue and the balance at the end of thirty six months from the date of issue.

10. Convertible note

On 12 July 2013 the Company issued Convertible Notes (the "Notes") in the amount of £9,582,000 of which £7,026,800 was subscribed by Yanggu Xiangguang Copper Co. Ltd ("XGC") and £2,555,200 was subscribed by Orion Resource Partners ("Orion") (formerly RK Mine Finance (Master) Fund II LP ("Red Kite")). The Notes have a term of 18 months to 12 January 2015 (the "Maturity Date") and can be repaid at the election of the Note holder or converted into new ordinary shares of 0.25 pence each in the Company ("Ordinary Shares") at a conversion price of 9 pence per share (the "Conversion Price"). The Notes carry a coupon of 9% per annum in the first 12 months and 11% thereafter.

All outstanding principal and accrued interest of the Notes will automatically convert into new Ordinary Shares at the Conversion Price at the time the Company (or any of its subsidiaries) makes its first drawdown (the "Drawdown Date") from the facility to be made available by senior financial institutions for the restart of operations at the Company's Rio Tinto Copper Project in Andalucía, Spain. If the Notes have not already been converted at 9p and on the Drawdown Date, the volume weighted average price of the Ordinary Shares on AIM over the period of 20 consecutive trading days immediately prior to the Drawdown Date (the "Market Price") is less than the Conversion Price, the Conversion Price will be the Market Price. The Notes are also convertible into Ordinary Shares or redeemable prior to the Maturity Date in other limited circumstances, including a change of control of the Company.

EMED may elect to redeem for cash the principal and accrued interest of the Notes at any time between 12 July 2014 (first anniversary of the date of issue) and the first to occur of the Drawdown Date or Maturity Date upon giving the holders of the Notes not less than 15 business days' notice. A Note holder may choose to convert their Notes into Ordinary Shares rather than have them redeemed but if they do so it will be at a price of 9 pence per share and is not conditional on the Drawdown Date occurring. The Notes benefit from security interests granted by EMED Mining over the share capital of EMED Holdings (UK) Limited and EMED Marketing Limited as well as certain intra-group debts owing to EMED Mining. In addition, EMED Mining and certain of its subsidiaries have undertaken not to further encumber their assets or share capital, save in certain circumstances, including in connection with the proposed senior debt facility required in order to restart operations at the Rio Tinto Copper Project.

The Notes are subject to certain standard events of default following which Note holders may elect to immediately redeem their Notes and accrued interest. Assuming that the Notes convert in full at the conversion price (including the conversion of 18 months' accrued interest) the Note Holders would receive 122,865,679 shares. The Company paid intermediary fees of £192,000 on the issuance of these notes. The Notes are considered hybrid financial instruments comprising a note liability and a conversion feature for Ordinary Shares ("the Conversion Feature"). As the conversion price (9 pence) is denominated in a currency other than the Company's functional currency, the Conversion Feature is considered to be a derivative financial instrument and is measured at fair value through profit or loss.

On 30 September 2014, the fair value of the Conversion Feature was estimated to be €293,000 using the Black Scholes option pricing model; the inputs into the model were as follows:

11. Trade and other payables

The fair values of trade and other payables due within one year approximate to their carrying amounts as presented above.

* Social Security: On 25 May 2010 EMED Tartessus S.L recognized a debt with the Social Security's General Treasury in Spain amounting to €16.9 million that was incurred by a previous owner in order to stop the execution process by Public Auction of the land over which Social Security had a lien. €8.5 million has been repaid to date. Originally payable over 5 years, the repayment schedule was subsequently extended until June 2017.

** Other payables relate to future land option payments and promissory notes to Rumbo and Inland.

12. Provisions for other liabilities and charges

Deferred consideration liability

Following the transfer of the Mining Rights for the Rio Tinto Copper Project, the Group recognised the deferred consideration to Astor Management AG on 11 April 2014. The amount recognised for the deferred consideration was €37,707,000 (€53m before discounting), after taking into consideration a discount rate of 9.67% which is the average rate of the borrowings of the Group. At the same time, an amount €37,707,000 was also recognised as an intangible asset. During the period 11 April 2014 to 30 September 2014, an amount of €1,686,000 was recognised in the Consolidated Income Statement as accrued interest. The Astor deferred consideration as at 30 September 2014 was €39,393,000.

History

In September 2008, the Group moved to 100% ownership of EMED Tartessus (and thus full ownership of the Rio Tinto Copper Project) by acquiring the remaining 49% of the issued capital of EMED Tartessus. The cost of the acquisition was satisfied by issuing 39,140,000 Ordinary Shares to MRI Trading AG ("MRI") at an issue price of 21p per Ordinary Share and a deferred cash settlement of €52,999,999 (including loans of €9,116,617 owed to companies related to MRI incurred in relation to the operation of the Rio Tinto Copper Project) to be paid by the Group over six or seven years (at the option of the Company). This consideration is payable once the authorisation from the Junta de Andalucía to restart mining activities in the Rio Tinto Copper Project has been granted and the Group has secured project finance facilities and is able to draw down funds under such facilities. In consideration for agreeing to pay the deferred cash settlement over six or seven years and for MRI's consent to the arrangements that were entered into in connection with the convertible loan facility (now repaid), the Company agreed to potentially pay further deferred consideration of up to €15,900,000 in regular instalments over the deferred consideration payment period depending upon the price of copper. Any such additional payment will only be made if, during the relevant period, the average price of copper per tonne is US$6,614 or more (US$3.00/lb). On 11 November 2011 MRI novated its right to be paid the deferred consideration to Astor.

As security for the obligation on EMED Tartessus to pay the deferred consideration to Astor, EMED Holdings (UK) Limited has granted a pledge to MRI Resources AG over the issued capital of EMED Tartessus and the Company has provided a parent company guarantee. The funds required to make these payments, when EMED proceeds with the restart of the Rio Tinto Project, will be sourced from senior project debt, equity and from project cash flow as may be appropriate. The restart of mining operations remains subject to the following conditions:

· Remaining regulatory approvals and authorisations by the Junta de Andalucía and departmental ministries will be obtained following the grant of Administrative Standing in April 2014, definitive documentation for project financing will be completed and regulatory and political views regarding the Rio Tinto Copper Project will remain positive and unchanged;

· Settlement satisfactory to EMED Mining of the Rio Tinto Project-vendor's liabilities, liens and contractual arrangements with a number of third parties. These various obligations arose over several years as a result of the funding of on-going care and maintenance, bankruptcy and litigation amongst some parties;

· Completion of technical due diligence for:

i. planning the restart of the mine, processing plant and product marketing operations;

ii. planning for a fast-track approach to site rehabilitation where reasonable to be undertaken concurrently with on-going long-term production; and

iii. completion of all due diligence to EMED Mining's satisfaction including environmental considerations and infrastructure needs.

Rehabilitation obligation

The Group anticipates that a rehabilitation liability will be recognised upon commencement of operations at the Rio Tinto Copper Project, the amount of which is not determinable at this time as it is subject to negotiation with the relevant authorities.

13. Acquisition of subsidiaries

There were no acquisitions in the nine months ended 30 September 2014.

14. Related party transactions

The following transactions were carried out with related parties:

14.1 Compensation of key management personnel

The total remuneration and fees of Directors (including Executive Directors) and other key management personnel was as follows: