Applied Minerals, Inc. (OTCBB:AMNL), a leading global producer of Halloysite Clay from its Dragon Mine property in Utah, is pleased to announce the release of the following statement from its consulting geologist, Dr. Ian Wilson, regarding the results of certain drilling activities:

UPDATE ON HALLOYSITE RESOURCES AT DRAGON MINE, UTAH

Twenty-six boreholes totalling 4,770ft have been drilled at Dragon Mine in an area that was not previously mined or explored by the company. The core has been taken and characterised for its mineralogical, chemical and physical properties. The detailed drilling, with average spacing of 45 ft from one borehole to another, covering an area of 3.40 acres, contains a Measured Resource of 415,000 tons upon processing. Average clay content from the area is 84% with 61% Halloysite, 17% Kaolinite and 6% illite-smectite. Some of the Halloysite values are as high as 100%. The Company has commenced mining to an area 40ft from the surface that contains over 2,000 tons of 93% Halloysite. This clay will be mined and processed to generate a higher value product grade for customers. It has been determined that the current dry milling plant on site can be utilized for the processing of this material due to its purity. Any material requiring wet processing will be carried out at KaMin LLC.'s processing facilities in Georgia.

A further one acre is being drilled and evaluated and to date contains an Inferred Resource of 150,000 tons with Halloysite values up to 57.6% and Kaolinite up to 58.9% with an average of 48.4% Halloysite and 51.6% Kaolinite. Further boreholes will be carried out in the near future.

To date, a Measured Resource of 415,000 tons and an Inferred Resource of 150,000 tons, totalling 565,000 tons, have been identified in this area. In light of these results, an additional 15 boreholes have been proposed, and are in progress in the immediate vicinity. Once all boreholes have been drilled and evaluated, an overall Measured Resource statement for the whole 4.4 acres will be prepared in accordance with JORC Code.

This statement is presented in accordance with the JORC Code.

Dr Ian Wilson

Consultant Geologist

BSc, MSc, PhD, MIMMM, C.Eng, C Geol, FGS, CSci
 

May 17 th 2010

About Applied Minerals, Inc.

Applied Minerals, Inc. is a leading global producer of Halloysite Clay from its wholly- owned Dragon Mine Property in Utah. Halloysite is an aluminosilicate clay that forms naturally occurring nanotubes. In addition to serving the traditional Halloysite markets for use in technical ceramics and catalytic applications, the Company has targeted niche applications that it feels will benefit from the tubular morphology of its Halloysite. These applications include, but are not limited to, carriers of active ingredients in paints, coatings and building materials, agricultural applications and high-performance fillers in plastic composites.

* This report has been prepared by the author in accordance with the Codes of Conduct (1990) of the Geological Society (UK) and the Code of Professional Conduct of the European Federation of Geologists. Every effort has been made to ensure that the information is factually correct and of the highest professional standard. However, it must be appreciated that the information is derived from a wide variety of sources. Therefore, the author cannot take responsibility for any omissions or inaccuracies for which he is not aware of at the time of preparing the report, or for the result of any consequential action that may be made based on this information. The author is considered a “Competent Person” as being a member of the Institute of Materials, Minerals and Mining (Iom 3 ) and having 36 years experience in industry. The Australian Stock Exchange (ASX), acting on advice from the Australasian Joint Ore Reserves Committee (JORC) and its parent bodies (Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists, and the Minerals Council of Australia) has promulgated a list of Recognized Overseas Professional Organizations (ROPOs) to which Competent Person may belong for the purpose of preparing reports on exploration results, mineral resources and ore reserves for submission to the ASX. Iom 3 is included in the list of successful ROPOs.

Cautionary Note to Investors: The United States Securities and Exchange Commission permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. None of the information in this letter relates to such deposits and there is no assurance that the deposits will ever be economically and legally extractable or producible. This letter also refers to a resource statement that will be prepared after conclusion of the geological survey. The SEC guidelines strictly prohibit us from including information about a resource statement in our filings with the SEC unless such information is contained in a final feasibility study. U.S. investors are urged to consider closely the disclosure in our 10Q’s and Form 10-K. You can review and obtain copies of these filings from the SEC's website at http://www.sec.gov/edgar.shtml.

Copyright Business Wire 2010