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| A.   | Dumont executed an Employment Agreement dated July 9, 2007 (“Employment Agreement”) (a copy of which is attached hereto as Exhibit A), which provided that he would serve as President, Chief Executive Officer, and a director of Atlas.   Dumontbegan such employment with Atlas. |
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| B.   | Dumont resigned from that employment and as a director with Atlas on or about November 27, 2007 and asserted that his resignation was justified because he was wrongfully induced to accept employment with Atlas by misrepresentations made to him by Atlas and its representatives.  Dumont also asserts that shortly after executing the Employment Agreement,through no fault of his own and in spite of discharging his duties on behalf of Atlas in good faith, he was named as a defendant in several lawsuits claiming violations of the federal securities laws arising out of the conduct of others predating Dumont’s employment at Atlas.  Dumont claims that he was entitled to rescind the Employment Agreement and to recover monetary damages resulting from the alleged misrepresentations of Atlas and its representatives.  Atlas denies the underlyingfactual claims made by Dumont, and the monetary relief he claims, but agrees, for separate reasons, that the Parties previously intended that the Employment Agreement be rescinded.  It has been and remains Atlas’s position that Dumont’s resignation was a breach of the Employment Agreement, and that such breach was also a breach of the implied covenant of good faith and fair dealing, and that such conduct relieved and excused Atlas of performance under the Employment Agreement, including,without limitation, relieving Atlas of obligations set forth in Paragraph 4 of the Employment Agreement.  As a result of both Parties’ positions, the Parties agree that, other than with respect to wages, compensation and other benefits already physically tendered, transferred and paid to Dumont by Atlas with respect to the period of his active employment, and other than various indemnification issues relating to such employment as expressly described herein, the Employment Agreement has been,and remains, rescinded nunc pro tunc by the parties. |
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| C.   | Atlas, Dumont and others were sued or otherwise involved in various matters described below, giving rise to various claims of indemnification by Dumont against Atlas and/or claims for coverage by Dumont and Atlas against their insurers. |
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| D.   |  Dumont and Atlas desire to resolve controversies existing between them and to facilitate the final resolution of the Atlas Litigation upon the terms and conditions set forth in this Agreement. |
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| E.   | The Parties have entered into this Agreement to avoid the expense, inconvenience, and uncertainty of litigation.  By making the payments pursuant to this Agreement, neither Atlas nor any Released Parties admits that such sums were owed to Dumont, or that Dumont was entitled to such sums, but rather makes such payments solely in order to settleand resolve the claims Released herein. |
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|   | (a)  has carefully read this Agreement and finds that it is written in a manner that is understandable; |
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|   | (b)  knows the contents of this Agreement; |
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|   | (c)  has been advised to consult with an attorney before signing this Agreement and has done so or has knowingly and voluntarily waived the right to do so; |
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|   | (d)   did not rely upon any representation or statement concerning the subject matter of this Agreement, except as expressly stated in the Agreement; |
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|   | (e) | understands that, among other things, by signing this Agreement, Dumont is waiving any potential claims under discrimination statutes; |
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|   |  (g) understands the Agreement’s final and binding effect; and |
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|   |  (h)  has signed the Agreement as a free and voluntary act. |
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|          | Atlas Mining Company                                                        |
|---------------|-----------------------------------------------------------------------------|
| Robert Dumont | By:  ________________________                                     |
|          |         Its Chief Executive Officer |

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