Atlas Mining Company Receives Major Purchase Order From NanoDynamics

Leading Nanotechnology Company Places Orders for up to 5,000 Tons of

Halloysite Clay

Feb 09, 2005, 00:00 ET from Atlas Mining Company

    OSBURN, Idaho, Feb. 9 /Xinhua-PRNewswire/ -- Atlas Mining Company (OTC
 Bulletin Board: ALMI), announced today that it has received a purchase order
 for up to 5,000 tons of its processed halloysite clay from NanoDynamics at a
 price of $500 per ton. NanoDynamics has already remitted a purchase of 500
 tons against this purchase order.
     William Jacobson, CEO of Atlas Mining said, "It's clear to see why we are
 excited about our relationship with NanoDynamics. They have taken a serious
 interest in our halloysite microtubules and obviously feel they have a market
 for this product in the nanotechnology sector. Although the purchase order is
 open ended and does not require full purchase, we feel we will be supplying
 them product in 2005."
     The company's Dragon Mine halloysite clay contains naturally occurring
 halloysite nanotubes, which formed in the earth from hydrothermal alteration
 and surface weathering of aluminosilicate minerals. Like carbon nanotubes,
 halloysite nanotubes are long, hollow tubes, allowing them to store and
 deliver a variety of materials. Unlike carbon nanotubes, the naturally
 occurring halloysite nanotubes are inexpensive, readily available in quantity,
 environmentally benign, safe and easy to process.
     A strategic and collaborative relationship between the two companies was
 previously announced. Under that agreement Atlas agreed to issue a one-year
 warrant to NanoDynamics to purchase up to 1 million shares of Atlas common
 stock.  Both companies will work toward the advancement and commercialization
 of halloysite tubules in nanotechnology applications.
     According to Keith Blakely, NanoDynamics CEO, "We hope to develop several
 significant applications for the microtubules in the near term and expect to
 take delivery of a significant quantity of halloysite clay this year.  We
 anticipate that the volumes of product used in these emerging applications
 will take some time to develop, but our hope is that the demand will increase
 as product testing, customer validations, and qualifications are completed
 throughout the year.  We have dedicated the right people to this process and
 anticipate a positive result."
     About Atlas Mining Company
     Atlas Mining Company is a diversified natural resource company with its
 primary focus on the development of the Dragon Mine in Juab County, Utah, the
 only known commercial source of Halloysite clay outside of New Zealand. The
 unique purity and quality of the Dragon mine Halloysite is unmatched anywhere
 in the world and has spawned considerable research into new and exciting
 applications for this product. Atlas also holds mining and timber interests in
 Northern Idaho, and operates an underground mining contracting business. Atlas
 stock trades on the OTC Bulletin Board under the symbol "ALMI." More
 information about Atlas Mining Company can be found at
     About NanoDynamics, Inc.:
     NanoDynamics, Inc. is a leading company in the field of nanotechnology and
 manufacturer of superior nanomaterials that will dramatically improve the
 form, function and performance of a wide range of both industrial and consumer
 products. The Company is uniquely positioned, utilizing proprietary and
 protected technologies, to commercially manufacture economical, high quality
 nanomaterials that will enable revolutionary advancements in industries
 including electronics, semiconductors, consumer products, fuel cells,
 transportation, energy and biotechnology. For further information, please
 visit the Company's website at
     Safe Harbor Statement:
     As a cautionary note to investors, certain matters discussed in this press
 release may be forward-looking statements within the meaning of the Private
 Securities Litigation Reform Act of 1995. Such matters involve risks and
 uncertainties that may cause actual results to differ materially, including
 the following: changes in economic conditions; general competitive factors;
 the Company's ability to execute its business model and strategic plans; and
 the risks described from time to time in the Company's SEC filings.
     Contact Information:
     John Roskelley, President, First Global Media, 480.902.3110

SOURCE Atlas Mining Company