Mr. Rodrigo Esquivel reports

PETAQUILLA MINERALS LTD. AND FQM (AKUBRA) INC. (FORMERLY KNOWN AS INMET MINING CORPORATION) EXECUTE A FIRST AMENDMENT TO THE COMMERCIAL ARRANGEMENT TERM SHEET

On Feb. 24, 2013, Petaquilla Minerals Ltd. and certain of its wholly owned subsidiaries entered into a binding commercial arrangement term sheet with Inmet Mining Corp. (now known as FQM (Akubra) Inc.) and its subsidiary, Minera Panama S.A., relating to commercial arrangements (aggregate procurement, land access and use, settlement of certain claims, waiver of royalties to be received by Inmet, and camp site procurement) valued at up to $150-million (U.S.).

Subsequent to the acquisition of Inmet by First Quantum Minerals Ltd., Petaquilla's wholly owned infrastructure subsidiary Panama Desarrollo de Infraestructras S.A. and MPSA in accordance with the term sheet have executed an aggregates and screened rock purchase subcontract for MPSA's purchase of materials valued at a minimum of $75-million (U.S.), provided that PDI meets with the supply requirements and complies with other obligations, with an option to purchase up to $100-million (U.S.) worth of aggregates and screened rock.

On May 23, 2013, the said term sheet was amended by the parties to reach additional commitments, thus maintaining the previously acquired commitments related to land access and use, and settlement of certain commercial claims, among others. This first amendment to the term sheet contemplates scenarios in which joint developments shall be conducted as agreed to in a joint venture agreement yet to be negotiated and executed by the parties.

Finally, pursuant to the commitments contained in the term sheet, MPSA and Petaquilla have jointly filed before the National Land Authority of Panama and the Directorate of Mineral Resources notifications and petitions whereby both parties obligate themselves to withdraw objections and to not oppose certain land and concession applications to resolve the administrative proceedings satisfactorily related to the lease and purchase of surface rights for the Cobre Panama project and Petaquilla mining concessions.