27 August 2015 Manila, Philippines

Atlas Consolidated Mining and Development Corporation (“Atlas Mining”) posted a stronger second quarter performance that contained its net loss for the first half at Php611 million compared to the
Php637 million net loss for the first quarter. For the first half of 2014, Atlas Mining registered a net income of Php989 million. The decrease in net income was due mainly to the 39% decline in revenues as lower metal prices and volume were realized in 2015.

Although copper prices improved during the second quarter, the average realized copper price of $2.67/lb was still 15% lower than the $3.15/lb realized in the first half 2014. Similarly, the average
realized gold price dropped 7% to $1,201/oz from $1,295/oz the previous year.

Copper production of Atlas Mining’s wholly-owned subsidiary Carmen Copper Corporation (“Carmen Copper”) slowed by 13% to 46.4 million pounds of copper metal in concentrate in the first six months of the year due to unusually heavy rainfall, pit slope ground movement and necessary maintenance activities in the expanded processing plant. Correspondingly, total volume of copper concentrate shipments dropped 13% to 77,500 dry metric tons (dmt) during the January-June period. Copper metal content fell by 14% to 45.2 million pounds of copper metal in concentrate, while gold content increased by 9% to 12,043 ounces.

Production volumes improved in the second quarter as a result of ongoing work to improve key operations and complete maintenance activities. Copper metal in concentrates rose by 1.6 million pounds to 24.0 million pounds, boosted by higher head grade, higher milling tonnage and better copper recovery. The realized copper grade improved to 0.299% versus 0.285% in the first quarter, as mining operations reverted back to the higher-grade benches. Milling tonnage tracked 4% higher to 4.3 million tons buoyed by better average daily throughput in the expanded processing plant. Average daily throughput increased to 54,000 tonnes per day (tpd) in the month of June, lifting the second quarter average to 47,227 tpd from 46,000 tpd the previous quarter.

Spurred by encouraging production volumes in 2Q and favorable realized metal prices in April and May, revenues grew 6% quarter-on-quarter to Php2.8 billion. This growth in revenue, coupled with robust equity earnings from Berong Nickel (Php182 million), assisted the company to post a net income of Php26 million in the second quarter, compared to a net loss of Php637million in the first quarter.

Meanwhile, total operating cash costs contracted by 20% to Php4.5 billion in the first semester attributed mainly to lower volume shipped. However, average cash cost per pound of copper remained stable yearon-year at US$1.84/lb from US$1.86/lb. Total cost, on the other hand, increased by 6% from US$2.65/lb to US$2.81/lb due to higher depreciation from new assets and higher financing charges.

According to Atlas Mining President, Mr. Adrian Ramos, “We are making significant progress towards addressing all of the issues that hampered production during the first half of 2015. We will continue to address those issues in order to maximize production and be competitive in the current difficult environment, and we are optimistic that we will be able to make up for the shortfall in production in the second half of the year.”