Atalaya Mining Regulatory News (ATYM)

EMED MINING QUARTERLY OPERATIONAL UPDATE

EMED Mining is listed on AIM (Code: EMED) and the TSX (Code:EMD)

16 January 2013

EMED Mining Public Limited (AIM: EMED, TSX: EMD) ("EMED Mining" or "the Company"), the Europe-based minerals development and exploration company, announces today the following operational update for the period 1 October 2012 to 31 December 2012. The full Quarterly Report, including consolidated Financial Statements and the Management Discussion and Analysis, will be issued by 29 March 2013.

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

"During the December quarter we brought the Rio Tinto Copper Project to the threshold of commencing preparations for construction at its first and largest mine. We maintain our target of establishing an initial base case production rate of 37,000 tonnes per annum copper-in-concentrate at the end of 2015, based on our target of commencing production in 2014 with the start of plant construction in 2013. 

"Significant expansion plans are also being formulated as also an ambitious exploration program focused on re-establishing the Rio Tinto Copper Project as mining field with several mines operating around a central processing plant.

"As at 31 December 2012, we had provided all documents requested by the authorities for approval of key permits to proceed, we updated all capital and operating cost estimates for updating the NI-43-101 Technical Report, and we complemented our strong financial base by introducing Red Kite to our group of cornerstone customer/financiers which also includes Goldman Sachs and Xianguang.

"Since the end of the December quarter, we established the insurance for the tailings deposit after agreement with the regulators and we established the Social Licence Agreement with all seven local municipalities. Currently, we await regulatory approvals required for triggering the project resulting from a lengthy permitting process, the work for which is largely completed. We are focused on commencing construction in H2-2013, by having attained requisite permits in the recently agreed sequence during the first two quarters of 2013."

Key Points

Spain-Rio Tinto Copper Project

·; Our work schedule maintains the target date of end-2015 for establishing initial base case production of 37,000 tonnes per annum, with construction starting in H2-2013 and production in 2014. This relies primarily on the achievement of the updated target timing for regulatory permitting as set out below. This is currently being addressed in earnest with the authorities.

·; Andalucian Government approvals required for the project restart are being progressed as follows:

o Administrative Standing (administrative recognition of the historical transfer of Mineral Rights):

§ This approval requires the regulatory clearance of economic, technical and legal "capacities". Legal capacity was cleared in March 2011. All documents in respect of legal, technical and economic capacities were updated in September 2012, as requested by the regulatory authority, and lodged for final clearance.

o Environmental Plans:

§ The period for public comment closed at the end of July 2012. In October 2012, we received from, and responded to, the regulatory authority as regards the comments made by the public. We also provided in December formal responses to other regulatory requests received in Q4-12.

§ The Department of Environment has indicated that it will, during Q1-2013, issue the final version of plans for comment by any relevant 3rd parties and resolve its approval.

o Final Restoration Plan:

§ Upon approval of the Environmental Plans, the Company will update the Restoration Plan so that it can proceed to public viewing to be followed by its final approval.

o Project Approval (Exploitation Rights)

§ The independent review of the project as a whole was completed by the Central Government's technical review agency IGME (Instituto Geológico y Minero de España) and its supportive report has been received and noted.

§ The independent review of the tailings deposit for geotechnical safety was completed by the Central Government's technical review agency CEDEX (Centro de Estudios y Experimentación de Obras Públicas). Its initial report with supportive conclusions now stands pending completion in Q2-2013 of due diligence on sections of the tailings dam acquired in August 2012. This will facilitate approval of final refinements to the system for management of the tailings deposit to ensure safety margins with respect to Best Available Techniques based on environmental, economic and other relevant criteria.

o Bonding for environmental commitments and protection of personnel entitlements:

§ The Company has started to engage on this matter which can only be resolved by the authorities after approval of the Final Restoration Plan.

§ In the meantime, we have implemented civil liability insurance on the tailings deposit on a basis pre-agreed with the regulators.

·; The Social Licence Agreement has been established with the seven municipalities of the Mining District of Riotinto (Cuenca Minera de Riotinto) setting out relevant policies including those for local employment, preferential local procurement and the objectives of the planned EMED Foundation for Economic Diversification of the Mining District of Riotinto. This demonstrates across-the-board agreement with every major political party in Andalucia.

·; Product marketing arrangements are being discussed with appropriate third parties, to complement those already in place with Goldman Sachs, Xiangguang and Red Kite.

Other Projects

·; In Slovakia, the Detva Gold Project focuses on community consultation as part of the processing of its application for the regulatory approval of its Mining Lease Area, which has already been approved at the District Level and will now be referred the national regulator.

·; In Andalucia, Spain, regulatory approval is also advancing for the Company's plans to test the recoverability of significant precious metals mineralisation contained in waste material on the Rio Tinto property. This sub-project is in joint venture with Andalucian investment group, Rumbo 5 Cero, which is also a substantial shareholder of EMED Mining. Initial plans will be soon issued for public comment. 

Corporate

·; The General Meeting of shareholders on 19 December 2012 approved all resolutions, including the completion of transactions with Red Kite, the Company's new cornerstone customer. The Meeting was held in Minas de Rio Tinto and was attended by some Andalucia-based shareholders who, in aggregate, now own over 10% of the Company's shares.

·; An updated NI-43-101 Technical Report will be released this quarter to update shareholders as regards estimates of capital and operating costs and project schedules.

·; Project financing documentation is being readied for triggering of formal approval processes to support drawdown in H2-2013, subject to EMED Mining satisfying conditions precedent emerging from the regulatory permitting process.

·; A shareholder briefing will be held in London on 17 January 2013 with a live webcast for shareholders unable to attend (see announcement dated 09 January 2013).

·; It is now clear that Andalucia's new pro mine-development policies are beginning to have a beneficial effect with over 60 minerals projects in the region. Combined with the recent mine start-ups and the expected imminent restart of the Rio Tinto Copper Project, it seems likely that the Iberian Pyrite Belt will now re-emerge as a globally significant minerals province.

Enquiries:

Investors/Media: Harry Anagnostaras-Adams +357 9945 7843.

In North America : Andreas Curkovic +1 416-577-9927

General: Email: info@emed-mining.com