Mr. Clive Newall reports

FIRST QUANTUM MINERALS REPORTS SECOND QUARTER 2014 RESULTS

First Quantum Minerals Ltd. had comparative net earnings of $133.6-million or 23 cents per share for the three months ended June 30, 2014, inclusive of $19.5-million or four cents per share of unfavourable, recurring, acquisition-related adjustments. All figures are in U.S. dollars unless otherwise stated.

Second quarter 2014 highlights (1):

• Higher production in main metals:
  • Copper up 4 per cent to 107,808 tonnes;
  • Nickel up 12 per cent to 12,223 tonnes;
• Significantly increased copper sales:
  • Revenues up 11 per cent to $685.1-million despite lower market price;
  • Overall sales volume up 20 per cent to 114,449 tonnes;
  • Kansanshi sales volume up 26 per cent over second quarter 2013 and first quarter 2014;
• 14-per-cent higher nickel revenues to $147.7-million despite 11-per-cent lower sales volume;
• Low cash cost of production maintained:
  • Copper up 8 per cent to $1.45 per pound;
  • Nickel down 24 per cent to $4.16 per pound;
• Growth projects supported by strong cash flow from operations and enhanced financing:
  • $388.6-million of cash flow generated by operations (2);
  • $769.4-million cash balance including restricted cash at June 30, 2014;
  • Further enhanced financial flexibility with issuance of $850-million of senior notes;
• $618.6-million invested in the expansion of the production base:
  • Sentinel advanced to 94-per-cent overall completion;
  • Phase I copper smelter advanced to 78-per-cent overall completion;
  • Initial commissioning started in July;
  • Enterprise nickel advanced;
  • Proposed acquisition of Lumina Copper Corp. expected to close on or before Aug. 30, 2014.

(1) Results are compared with the second quarter of 2013, unless noted otherwise.

(2) Cash flow from operations before changes in working capital and tax paid.

Chief executive officer's comments

"Continued solid operations and the benefits of our cost control drive underlie the results for the quarter. The operational flexibility that has been built into Kansanshi was particularly evident as good headway was made on reducing concentrate inventory by utilizing as much of its recently expanded oxide circuit as economically feasible. Both our nickel operations had good quarters with Kevitsa turning in one of its best performances since start-up," noted Philip Pascall, First Quantum's CEO and chairman.

"The second half of 2014 is an important one for First Quantum. Both the phase I copper smelter and Trident project are tracking well for staged commissioning during this period toward commercial operations in 2015. These are significant components in the company's growth, and when in operation, they are expected to employ an additional 2,400 people, add up to 300,000 tonnes of new copper production capacity and enhance the overall unit operating cost.

"Our balance sheet remains strong. With the addition of extra financing flexibility during the quarter, funding for our growth projects is well provided for and we were able to take the opportunity to supplement our growth pipeline with our proposed acquisition of Lumina Copper. This underscores our belief in the fundamentals of copper, and is another step in our long-stated objective of geographical diversification through the acquisition of world-class, early stage copper assets. The Taca Taca project is at the stage where we can apply our resources and development expertise to realize its full potential, and further add to our copper production profile," Mr. Pascall concluded.

                      FINANCIAL HIGHLIGHTS
      (in millions of dollars except where noted otherwise)

                                  Three months ended        Six months ended       
                                             June 30,                June 30,
                                    2014        2013        2014      2013(1)

Sales revenues                    $945.1      $869.3    $1,835.6    $1,770.5
Gross profit                       292.6       201.1       574.2       511.3
EBITDA(2)                          381.5       284.2       745.1       594.6
Net earnings attributable to                                                
shareholders of the company (3)    133.6        71.9       260.4       184.3
Earnings per share                 $0.23       $0.12       $0.44       $0.35
Diluted earnings per share         $0.23       $0.12       $0.44       $0.34
Comparative earnings(3)            133.6       103.6       260.4       257.4
Comparative earnings per                                       
share(3)                           $0.23       $0.18       $0.44       $0.48
Cash flow from operations,                                                  
before changes in working                                                  
capital and tax paid               388.6       281.6       758.7       606.3

Notes:
(1) Financial results for the six months ended June 30, 2013, include the
results of the Las Cruces mine (100 per cent), the Cayeli mine (100 per cent) 
and the Pyhasalmi mine (100 per cent) from March 22, 2013, the date of acquisition. 
(2) Earnings before interest, tax, depreciation and amortization are not
recognized under IFRS.
(3) Net earnings attributable to shareholders of the company have been adjusted
to remove the effect of unusual items to arrive at comparative earnings.
Comparative earnings and comparative earnings per share are not measures recognized
under IFRS, and do not have a standardized meaning prescribed by IFRS.
The company has disclosed these measures to assist with the understanding
of results and to provide further financial information about the results to investors.

   
                        OPERATING HIGHLIGHTS 

                                  Three months ended       Six months ended      
                                             June 30,               June 30,
                                    2014        2013        2014     2013(1)

Copper production (tonnes)       107,808     103,694     220,926     183,002
Copper sales (tonnes)            114,449      95,491     217,235     184,600
Cash cost of copper                                                         
production(2) (per lb)             $1.45       $1.34       $1.41       $1.43
Realized copper price (per lb)     $2.97       $3.10       $3.03       $3.29
Nickel production                                               
contained tonnes)                 12,223      10,875      24,061      21,947
Nickel sales 
contained tonnes)                 10,651      11,927      24,748      22,975
Cash cost of nickel                                                         
production(2) (per lb)             $4.16       $5.45       $4.30       $5.38
Realized nickel price                                                   
per payable lb                     $8.45       $6.82       $7.38       $7.29
Gold production (ounces)          60,723      63,567     120,887     119,511
Gold sales (ounces)               60,135      59,381     113,261     118,172

Notes:
(1) Operating results for the six months ended June 30, 2013, include those
of the Las Cruces mine (100 per cent), the Cayeli mine (100 per cent) and
the Pyhasalmi mine (100 per cent) from March 22, 2013, the date of acquisition.
(2) Cash costs are not recognized under IFRS. 

Updated full year 2014 guidance:

• Total production:
  • Copper between 418,000 and 444,000 tonnes;
  • Nickel between 45,000 and 48,000 tonnes;
  • Gold between 221,000 and 242,000 ounces;
  • Zinc between 55,000 and 60,000 tonnes;
  • Palladium between 22,000 and 24,000 ounces;
  • Platinum between 26,000 and 29,000 ounces;
• Cash cost of production:
  • Copper between $1.32 and $1.48 per pound;
  • Nickel between $4.40 and $4.90 per pound;
• Capital expenditures of between $2.2-billion and $2.4-billion, excluding capitalization of any precommercial production costs and capitalized interest.

Conference call and webcast

The company will host a conference call and webcast to discuss the results on Thursday, July 31, 2014.

Conference call and webcast details are as provided.

Date:  July 31, 2014

Time:  9 a.m. Eastern Time/2 p.m. British Summer Time/6 a.m. Pacific Time

Webcast:  On the company website

Dial in:  North America -- 800-709-0218 (toll-free); international and North America -- 1-647-722-6851; United Kingdom -- 0800-496-0830 (toll-free) or 44-207-855-8971

Replay:  Canada and international -- 1-416-626-4100, or toll-free North America -- 800-558-5253

Passcode:  21724489

The conference call replay will be available from 11 a.m. ET on July 31, 2014, until 11:59 p.m. ET on Aug. 7, 2014.

Complete financial statements, and management's discussion and analysis

The complete unaudited condensed interim consolidated financial statements, and management discussion and analysis for the three and six months ended June 30, 2014, are available on the company website and should be read in conjunction with this news release.

Basis of presentation

This news release and the company's financial statements have been prepared in accordance with IFRS and are presented in U.S. dollars, except where noted. Changes in accounting policies have been applied consistently to comparative periods unless otherwise noted.

We seek Safe Harbor.