Atalaya Mining Regulatory News (ATYM)

14 July 2016

Atalaya Mining plc ("Atalaya" or the "Company")

(AIM: ATYM, TSX: AYM)

Updated Reserves and Resources Statement

Atalaya, the European mining and development company, announces an updated Mineral Reserves and Resources estimate for the Riotinto Copper Project ("Proyecto Riotinto") as at 30 June 2016. These estimates, outlined below, have been compiled in accordance with the guidelines set out in Canadian National Instrument 43-101. 

Highlights

· Total open pit Mineral Reserves estimate of 153 million tonnes averaging 0.45% Cu using variable, declining cut-off grades for 681,000 tonnes of contained Cu metal, (previous total 606,000 tonnes), representing over a 12% increase. 

· Total open pit Measured and Indicated Mineral Resources estimate of 193 million tonnes averaging 0.43% Cu and an additional Inferred open pit Mineral Resource estimate of 23 million tonnes averaging 0.48% , both calculated using a 0.20% Cu cut-off grade.

Total Mineral Reserves for Proyecto Riotinto

Totals may not equal the sum of the components due to rounding adjustments

· Reserve estimates are based on the mined surface of the open pit as at 30 April 2016 and a deposit model dated 3 May 2016;

· The pit design and internal cut-off grade are based on a long term copper price of US$2.60/lb.;

· Declining cut-off grades were applied to estimate Mineral Reserves. Cut-off grades are initially 0.25% Cu, declining to an internal cut-off of 0.16% Cu after 14 years, and remaining at 0.16% Cu until completion of open pit mining. The mine life is presently estimated at 16.5 years;

· Mineral Reserves are included in the estimates of Mineral Resources;

· Long term US$/Euro exchange rate of 1.12;

· Ultimate open pit design has a waste to ore ratio of 1.9:1;

· Underground orebodies do not form part of the open pit reserves estimate.

Total Mineral Resources for Proyecto Riotinto at variable cut-off grades

Totals may not equal the sum of the components due to rounding adjustments

· The effective date of the mineral resource model is 03 May 2016. The Mineral Resource estimate is summarised using the mined surface of the open pit as at 30 April 2016;

· The Mineral Resource estimate uses all available assays through the end of March 2016 and includes 171,987 metres of historical and new drilling with 86,052 sample intervals;

· Mineral Resources are reported inclusive of Mineral Reserves;

· The resources are estimates of recoverable tonnes and grades using Inverse Distance to various Power factors;

· Resources are pit-constrained at US$3.20/lb Cu;

· The resource model extends from 4174900mN to 4176500mN, 711900mE to 714750mE and to a maximum depth of 0mRL.

Alberto Lavandeira, CEO commented:

"We have completed our infill drilling programme, assays and updating of the block model. These results have provided us with greatly improved confidence in the overall distribution of mineralization and a much better understanding of the potential impurity levels which will enhance the efficiency of our mine planning."

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.

Contacts:

QUALIFIED PERSON AND QUALITY CONTROL

Information of a scientific or technical nature in this document was prepared under the supervision of Alan C. Noble P.E., an independent Qualified Person under the Canadian National Instrument 43-101. 

The open pit mineral resource was prepared by Alan C. Noble, P.E. The open pit mineral reserve was prepared by William L. Rose, P.E., an independent Qualified Person working under the direction of Mr. Noble.

Mr. Noble has verified the data disclosed, including sampling, analytical, and test data underlying the information or opinions contained in this announcement in accordance with standards appropriate to their qualifications.

An updated NI 43-101 resource and reserve report will be completed and filed in due course on SEDAR at www.sedar.com and on the Company's website.

In relation to historical resources and reserves, refer to the technical report entitled "NI 43-101 Technical Report on EMED's Rio Tinto Copper Project, Huelva Province, Spain " dated February 2013 and filed on SEDAR at www.sedar.com, for further discussion of the extent to which the estimate of mineral resources/reserves may be materially affected by any known environmental, permitting, legal, title, taxation, socio-political, or other relevant issues.

GLOSSARY of TECHNICAL TERMS

 The above definitions of "Mineral Resource", "Inferred Mineral Resource", "Indicated Mineral Resource", and "Measured Mineral Resource" conform to CIM Definition Standards - For Mineral Resources and Mineral Reserves, as prepared by the CIM Standing Committee on Reserve Definitions, and adopted by CIM Council on 10 May 2014, and as required by NI 43-101, Standards of Disclosure for Mineral Projects, of the Canadian Securities Administrators.