Atalaya Provides Update on Operations and Commercial Production

Atalaya Mining plc, the European mining and development company, is pleased to announce that after successfully completing commissioning and ramp-up of Phase I of the Riotinto Project, the mine will enter into commercial production on 01 February 2016.

The Company, following industry standards, considers that its production phase begins when the mine is in the condition necessary for it to be capable of operating in the manner intended by management. In this regard, plant performance tests have reported over 85% of planned throughput capacity while maintaining copper recoveries of above 80% and concentrate grades of approximately 20% copper. Consequently, the Company will, as part of its Q1 2016 quarterly report, commence disclosure of operating costs as of 01 February 2016.

Operational Highlights

• The teams on site will continue to focus on the optimisation of operating results whilst the expansion projects are under construction.
• In an effort to maximize synergies between the Phase I expansion project to 7.5 Mtpa and Phase II expansion project to 9.5 Mtpa, the Company has decided to consolidate both expansion projects into a single project ("the Expansion Project"). Consequently, the Company expects to report further capital savings and shorter delivery schedules which will dictate the additional funding needs, if applicable, that are being evaluated by the Company on an ongoing basis.
• On an overall basis, engineering of the Expansion Project is 100% complete and procurement is 92% complete. All efforts are now concentrated on site construction activities that are 42% complete.
• Commissioning and ramp-up schedules of the Expansion Project have accordingly been re-evaluated. The Company expects to start commissioning ahead of the original plan of mid-2016.