Mr. Joao Manuel reports

PETAQUILLA MINERALS LTD. ANNOUNCES LIFTING OF ENCUMBRANCES AND PRODUCTION PROFILE

Further to its news release of May 12, 2014, Petaquilla Minerals Ltd. has executed the early payout of the existing gold and silver prepayment agreements, as well as the convertible loan previously negotiated with Deutsche Bank AG, and consequently has obtained the full release of all existing encumbrances on the company's assets. In addition, the company has also reduced a significant portion of its short-term liabilities and reaffirms its commitment to a policy of balance sheet strengthening by further pursuing opportunities for the reduction of other current liabilities.

In Panama, Petaquilla plans to ramp up gold production through plant and leaching operations at its Molejon gold mine to 4,000 ounces per month with an expected cash cost of $850 per gold ounce and to be cash flow positive in the second quarter of fiscal year 2015. The company has sufficient reserves at its Molejon gold deposit to continue production at that rate for a further five years. In addition, 152,000 gold ounces slated for leaching are presently stockpiled at Molejon. A plan to reduce general and administrative costs and to align general compensation with the company's new goals will be implemented immediately, with further cost-cutting measures to be introduced at the beginning of the new fiscal year.

Concurrently, Petaquilla is positioning itself for growth and production in the Iberian peninsula, focusing in the near term on mineral resource expansion and the development of its Iberian properties. The company is targeting production in both Spain and Portugal in the early part of next year and increasing and sustaining growth thereafter.

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