Mr. Ezequiel Sirotinsky reports

PETAQUILLA MINERALS LTD. ANNOUNCES INCREASE IN REVENUE AND REDUCTION IN CASH COST FOR ITS FISCAL 2013

Petaquilla Minerals Ltd. has released its fourth quarter and annual operational and financial results. Currency is reported in U.S. dollars unless otherwise indicated.

                                         
                                           Fourth quarter                   
                                                FY 2013(1)         FY 2013(1)

Gold production                             11,912 ounces      67,493 ounces
Gold-equivalent production                  12,191 ounces      69,181 ounces
Cash cost                                  $          540     $          569
Total revenue                              $ 24.1-million     $110.7-million
Revenue from gold                          $ 20.4-million     $ 95.9-million
Revenue from aggregates and construction                                    
Services                                   $  3.7-million     $ 14.8-million
Operating profit                           $  0.5-million     $ 36.0-million
EBITDA                                     $ (4.4-million)    $ 23.1-million
Adjusted EBITDA                            $          nil     $ 35.0-million
Average spot gold price                    $        1,473     $        1,601

(1) On Aug. 19, 2013, the company announced a change of its fiscal year-end 
    from May 31 to June 30, and, consequently, the fourth quarter of fiscal 
    year 2013 and the whole fiscal year 2013 include operations for a      
    period of four months and 13 months, respectively. The British Columbia   
    Securities Commission, the company's home-country securities regulator,
    has accepted and approved the presentation of a 13-month period ended  
    June 30, 2013.                                                         

In fiscal 2013, compared with fiscal 2012, the company saw increases in revenues, operating margin, adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) and reduction in cash costs. This has been substantially due to the economic benefits derived from a new and promising cash flow stream generated by the aggregates business of the company, compensating for the reduction in gold prices during the last quarter of fiscal 2013. Although maintaining its plans for the future spinout of Panamanian Development of Infrastructures SA (PDI), the company will assess all alternatives to best allocate its capital taking into account the short- to medium-term volatility of gold prices and the potential for the company of PDI's new aggregates business with First Quantum Minerals (FQM). The spinout of PDI can only be executed upon the repayment of all the outstanding Deutsche Bank debt, and the company is currently negotiating several financing alternatives toward this objective.

The aggregates business -- in particular, the initial deliveries during the last quarter of fiscal 2013 in execution of the aggregates contract between PDI and FQM worth up to $100-million -- made it possible to compensate for the decrease in gold production and significantly contributed to a cash cost of $540, below the average of the previous three quarters of fiscal 2013. For fiscal 2014, the company expects its cash cost to be within a range of $550 to $600. Revenue from aggregates represent for the company a material recovery of its mining costs at Molejon mine, helping not only to compensate for the decrease in gold prices during the last quarter of fiscal 2013 but also after year-end. For fiscal 2014, the company expects a volume of 1.8 million cubic metres for its aggregates business, representing revenue of approximately $40-million. The acquisition of Inmet Mining Corp. by FQM has opened a very material opportunity for the company, through PDI, to develop an alternative cash flow stream by selling aggregates and other mining services to FQM.

The transition from a business model with one source of revenue to one with multiple sources of revenues has challenged the production at Molejon mine during the second half of fiscal 2013. Despite a significant ramp-up of throughput to the mill plant since the commissioning of the fourth ball mill and the other auxiliary equipments associated with the expansion of the production capacity (an increase of 30 per cent in processed ore has been achieved during the last quarter of fiscal 2013, compared with previous quarters), the recent requirement of sharing mining and crushing equipment between gold and aggregates production, resulted in a decrease in gold production during the last quarter of fiscal 2013. These events contributed to the company having some overdue deliveries to Deutsche Bank during the second half of fiscal 2013, which have been settled in cash. Management and Deutsche Bank have been jointly working on this matter in order to take all the required remediation actions.

Total ounces of gold stockpiled for future heap-leaching production as of the end of fiscal 2013 was at 143,000 ounces. As part of the company's plans to increase gold production at its Molejon gold mine, these stockpiles of ore will be processed through on/off leach pad methodology, combined with a commercial heap-leaching stage, expected to be commissioned during calendar year 2014.

We seek Safe Harbor.