Mr. Guillermo Cruz reports

GOLD DRAGON CAPITAL MANAGEMENT LTD. (GOLD DRAGON) RELEASES COMMENTS ON PETAQUILLA MINERALS LTD. (PTQ.TO) PRESS RELEASE ON ITS NI 43-101 FOR THE PALMILLA DEPOSIT DATED 2013-10-09

Please be advised that Gold Dragon Capital Management Ltd. holds 100 per cent of the contractual rights of the Belencillo property concessions, including the Palmilla deposit (known as File 99-50 at the Mineral Resources Department of Panama). Petaquilla Minerals Ltd. has contractual rights to 17 per cent to 20 per cent of Gold Dragon's stock by the way of an option/joint venture agreement dated May 6, 2005, signed with PTQ.TO. This can be verified by reading various annual reports from PTQ filed in EDGAR and SEDAR.

Gold Dragon advises that it does not agree to any contractual pledging, hypothecating or sale of any rights of the Belencillo property concessions, including the Palmilla deposit or the Rio Petaquilla property concessions (File 2003-31). PTQ.TO has been notified that any financings are precluded from use of these concessions without the written consent of Gold Dragon.