Atalaya Mining Regulatory News (ATYM)

AIM: EMED

TSX: EMD 16 April 2013

EMED Mining Public Limited

("EMED Mining" or the "Company")

Andalucian Government closes public comment period for Tailings Project

EMED Mining, the Europe-based minerals development and exploration company, is pleased to report to shareholders that the Andalucian Government has conducted the public comment period for the proposed recognition of Class B Resources at the Rio Tinto Copper Project. Class B Resources pertain to the potentially recoverable metal content of waste materials resulting from previous operations when over 1.7million tonnes of copper, 3.4 million ounces of gold and 57 million ounces of silver were recovered. Of particular interest to the Company is to commence the feasibility for the recovery of silver and gold from a section of the tailings deposit (the "Gossan Dam") in joint venture with Andalucian investment group Rumbo 5.Cero.

The public comment period yielded only one negative comment, which raised nothing of a material nature that had not already been taken into account in the Company's plans.

Harry Anagnostaras-Adams, Managing Director and CEO of EMED Mining, commented:

"The tailings recycling joint venture is an important project not only for its potential economic value but also because it can play an important role in the environmental management of the tailings deposit and in maximising its holding capacity.

 "Whilst our immediate focus is on the restart of the Cerro Colorado Open Pit, our plan is to extend project life and annual production by targeting to expand the open pit, restart the underground mines, recycle precious metal in the tailings deposit and explore our ancillary tenements."

"The various elements of our plans are now starting to fall into place in a complementary pattern after extensive consultation with the authorities."

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Background Notes:

Tailings Reprocessing (Source: Independent NI-43101 Technical Report February 2013)

Production of precious metals (Au and Ag) from the Gossan plant occurred from 1970 through to 2001. In that time a total of 93.6 Mt of gossan (oxide) material was processed producing 3.4 million ounces of gold and 55.8 million ounces of silver at an average recovered grade of 1.1 g/t Au and 18.5 g/t Ag. Recoveries were 84% for gold and 34% for silver. This made Rio Tinto the biggest precious metal producer in Europe since the Middle Ages.

Tailings from the gossan treatment plant were deposited from 1971 to 1987 in the Gossan dam (31.6 Mt) and from 1988 to 2001 was mixed with copper tailings in the Aguzadera dam (60.0 Mt). For this reason the Gossan dam has the better potential for retreatment of the precious metal tailings than the Aguzadera dam.

Retreatment of the Gossan tailings dam was investigated by RTMSA (previous operator) in 1992, by drilling 17 holes into the Gossan tailings dam that returned average grades (from 325 samples) of 0.3 g/t Au and 31.0 g/t Ag which supports the historical production data. Standard cyanide testing of the samples recovered 40% of the Au and 11% of the Ag. In view of the projected recoveries and the prevailing precious metal prices at that time (Au $364/oz and Ag $4.00/oz), re-treatment was not deemed to be economically viable. EMED Mining carried out documentation from archived material in the EMED Mining library covering the years 1971-1987 except 1971, 1972, 1973 1983 and 1984 confirming about 24.2 Mt of the 31.6 Mt deposited in the Gossan dam.

At current (2012) precious metal prices the tailings in the Gossan dam constitute a potential mineral resource and EMED Mining intends to continue evaluation of the tailings in the Gossan dam with the objective of establishing an NI-43-101 compliant mineral resource.

Based on records held by the Riotinto Fundación and historical production reports held by EMED Mining, the Gossan tailings dam contains an Exploration Target of about 31 Mt at an average grade of 0.3 g/t Au and 31 g/t Ag. This data is considered to be reliable.

The terminology used is not compliant with the JORC Code or CIM definitions and therefore is not NI 43-101 compliant. These estimates are not considered to be current mineral resources or mineral reserves and further exploration work by a qualified person is required to define these mineral resources and mineral reserves in compliance with the JORC Code and NI 43-101. It is uncertain if further exploration will define additional mineral resources.

Qualified Persons Statement

Information in this report that relates to geological assessments is based on information compiled by a team reporting to Mr. Ron Cunneen, BSc (Geology), Head of Exploration for EMED Mining and a full-time employee of that company. He is a Member of The Australian Institute of Geoscientists and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activities which they are undertaking to qualify as "Competent Persons" as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" ("JORC Code") and "Qualified Persons" as defined in the "National Instrument 43-101 of the Canadian Securities Administrators" ("NI 43-101") and "CIM Definition Standards For Mineral Resources and Mineral Reserves" of December 2005 as prepared by the CIM Standing Committee on Reserve Definitions of the Canadian Institute of Mining.

Mr. Cunneen consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.

Cautionary Notes

This announcement contains "forward looking information" within the meaning applicable Canadian securities legislation. "Forward looking information" may also include statements with respect to the future financial or operating performance of the Company, its subsidiaries and its projects, the future price of metals, the estimation of ore reserves and resources, the conversion of estimated resources into reserves, the realisation of ore reserve estimates, the timing and amount of estimated future production, costs of production, capital, operating and exploration expenditures, costs and timing of the development of new deposits, costs and timing of future exploration, requirements for additional capital, government regulation of mining operations, environmental risks, reclamation expenses, title disputes or claims, limitations of insurance coverage and the timing and possible outcome of pending litigation and regulatory matters. Often, but not always, forward looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Accordingly, readers should not place undue reliance on forward looking statements.

Forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements. Such factors include, among others, general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; actual results of reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of metals; the future costs of capital to the Company; possible variations of ore grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; political instability, terrorist attacks, insurrection or war; delays in obtaining governmental approvals or financing or in the completion of development or construction activities, as well as those factors discussed in the section entitled "Risk Factors" in the Company's annual information form.

Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward looking statements contained herein are made as of the date of this announcement and the Company disclaims any obligation to update any forward looking statements, whether as a result of new information, future events or results or otherwise. There can be no assurance that forward looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking statements.