NICOSIA - Atalaya Mining Plc. ('Atalaya' or the 'Company') (AIM: ATYM) (TSX: AYM) is pleased to announce the results of five additional drill holes from its ongoing resource definition drilling programme at Proyecto Masa Valverde ('PMV').

PMV is located in southern Spain approximately 28 km to the south of Atalaya's 15Mtpa mill at Proyecto Riotinto.

Highlights

New drill results include best continuous copper intercept at PMV to date: 125 metres at 1.19% Cu, including high grade intervals of 12m at 2.29% Cu, 19m at 2.56% Cu and 15m at 2.27% Cu.

Results are expected to increase the copper grade in the upcoming NI 43-101 resource estimate for PMV, which is planned for release by the end of March 2022.

Higher grade material from PMV has the potential to displace ore from the Cerro Colorado pit, allowing the Company to increase its copper production while maintaining current processing rates.

Intersected mineralisation is mostly stockwork-type with minor massive sulphides, which is expected to have positive metallurgical implications.

Three rigs continue to drill at PMV, as part of the Company's EUR10 million exploration programme for 2022.

The objective of the ongoing drilling programme at PMV is to confirm, improve and expand the historical NI 43-101 compliant inferred resource of 66Mt at 0.67% Cu, 1.92% Zn, 0.90% Pb, 0.63 g/t Au and 34 g/t Ag. In addition to the Masa Valverde deposit, PMV also includes Majadales, which was discovered in 2019 and was not included in any previous resource estimates, as well as several geophysical and geochemical drill-ready targets.

Drilling Results Overview

The five holes included in this release are infill holes drilled within the existing historical resource estimate of the Masa Valverde deposit. Each of these holes encountered broad intervals of massive, semi-massive and stockwork-type sulphide mineralisation at anticipated target depths.

More importantly, two of them (MJ-43 and MJ-45) returned the deposit's best continuous copper intercepts to date in terms of grade / thickness factor: 125 metres at 1.19% Cu (or 1.56% CuEq) and 179 metres at 0.87% Cu (or 1.72% CuEq) respectively. Atalaya expects these intercepts will contribute to an increase in the average copper grade of the upcoming NI 43-101 resource estimate, which is planned for release by the end of March 2022.

Sourcing higher grade material from within the Riotinto District is central to Atalaya's strategy to grow its copper production. Ore from deposits such as PMV has the potential to displace feed from the Cerro Colorado pit, allowing the Company to increase production while maintaining its current processing rates.

Other highlights include the high gold grades encountered in many of the intercepts, including 25 metres at 2.09 g/t Au in hole MJ-42 and 43 metres at 1.42 g/t Au in hole MJ-44.

Drilling is currently continuing at PMV with three rigs. Two rigs are conducting infill and step out drilling at Majadales while the third is drill testing one of the recently defined fixed loop electromagnetic (FLEM) anomalies located west of the Masa Valverde deposit.

Alberto Lavandeira, CEO, commented: 'These new drill results have exceeded our expectations in many ways, most notably in terms of the copper and gold grades, confirming our belief that Proyecto Masa Valverde is one of the best undeveloped polymetallic projects in the Iberian Pyrite Belt and also in Europe.

'High copper grades over significant true thicknesses bodes well for the NI 43-101 compliant resource statement scheduled for late Q1 2022 and also opens the possibility to consider large scale underground mining scenarios for future project development. The high gold grades encountered are particularly notable now that Atalaya has approved construction of an industrial-scale E-LIX plant, which has the potential to extract economically many key metals from polymetallic deposits, including copper, zinc and gold.

'Finally, we have increased Atalaya's exploration budget to EUR10 million for 2022 will allow the Company to continue to advance PMV together with initial exploration works at Proyecto Riotinto East and the recently acquired Proyecto Ossa Morena.'

Contact:

Tel: 44 20 3757 6882

About Atalaya Mining Plc

Atalaya is an AIM and TSX-listed mining and development group which produces copper concentrates and silver by-product at its wholly owned Proyecto Riotinto site in southwest Spain. Atalaya's current operations include the Cerro Colorado open pit mine and a modern 15 Mtpa processing plant, which has the potential to become a centralised processing hub for ore sourced from its wholly owned regional projects around Riotinto that include Proyecto Masa Valverde and Proyecto Riotinto East. In addition, the Group has a phased, earn-in agreement for up to 80% ownership of Proyecto Touro, a brownfield copper project in the northwest of Spain.

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