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Applied Minerals Provides Updated Resource Statement Of Its Dragon Mine Property

Measured Resource of 552,000 tons of halloysitic clay from the Dragon Pit area:

          Area   Acres   Resource   Clay   Av Thickness   % Average Clay Content
        Status   Tonnage   (feet)   Halloysite   Kaolinite   Illite-Smectite   Total
Dragon Pit   4.95   Measured   552,500   40   64.8   18   10.6   93.4
  • Western Area - 6.33 acres.

The Western area drilled from 2003 to 2006 includes 44 boreholes totalling 9,448ft and covers an area of 6.33 acres. Of 216 samples collected, 185 were tested for their mineralogy (XRD) and 131 for their chemistry (XRF). This area is dominantly altered Monzonite with some veins and fissures of whitish clay with kaolinite, halloysite and alunite. One area covering 0.8 acres shows an average value of 25.6% halloysite. Within the altered monzonite visible pyrite is observed.

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