Atalaya Mining plc (AIM: ATYM, TSX: AYM) is pleased to announce that it has established a significant presence, covering approximately 1,114 sq km, in the Ossa Morena Metallogenic Belt, in southwest Spain.

The Ossa-Morena Metallogenic Belt has strong exploration potential for a range of base and precious metals and is north of the Iberian Pyrite Belt where Atalaya operates its flagship Proyecto Riotinto mine.

This has been achieved through the execution of a definitive purchase agreement (the 'Transaction') with Grupo Sacyr S.A. (the 'Vendor'), which includes the following: The acquisition of a 51% interest in Rio Narcea Nickel, S.L. ('RNN'), which owns 17 investigation permits.

The acquisition of a 100% interest in three investigation permits that are also located along the Ossa-Morena Metallogenic Belt.

This group of 20 permits will be known collectively as Proyecto Ossa Morena ('POM') and are strategically distributed along prospective zones of the Ossa Morena Metallogenic Belt, and in particular, along the southern flank of the major Olivenza-Monesterio Antiform ('OMA').

In addition to the POM permits, Atalaya is also acquiring from the Vendor a 51% interest in four investigation permits in the Sevilla province and a 100% interest in two investigation permits in the Almeria province, both in the south of Spain.

Atalaya will pay a total of EUR2.5 million in cash in three instalments, and grant a 1% net smelter return ('NSR') royalty over all acquired permits. The first payment of EUR0.5 million will be made following execution of the purchase agreement. The second and third instalments of EUR1 million each will be made once the environmental impact statement ('EIS') and the final mining permits for any project within any of the investigation permits acquired under the Transaction are secured.

Alberto Lavandeira, CEO, commented: 'With this acquisition, Atalaya has secured a prominent land position in one of the most prospective and underexplored metallogenic belts in Western Europe. Its location, close to the Iberian Pyrite belt where our Riotinto copper mine and other exploration projects are currently advancing, will allow us to carry out aggressive exploration programmes in a cost and time efficient manner. Priority will be given to advance the Alconchel copper-gold-iron project because of its excellent exploration potential which underpins our geologists' belief that the current known resources can be increased significantly. For example, the Pallares Cu-Au discovery, located 3.5km east of Alconchel and not included in the current resources, supports this thesis. This is an exciting time for Atalaya as it seeks new growth opportunities to build on its success at Riotinto and beyond.'

Contact:

Tom Carnegie

Tel: + 44 20 3757 6880

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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