Ms. Bonita To reports

FIRST QUANTUM PROVIDES UPDATE ON PANAMA

First Quantum Minerals Ltd. has provided an update. During the week commencing Oct. 30, 2023, the National Assembly of Panama held ordinary and extraordinary sessions concerning Bill 1109 and Bill 1110. Bill 1109 relates to the initially proposed popular consultation regarding Law 406. Law 406, enacted on Oct. 20, 2023, by the National Assembly of Panama, approved the revised contract for the Cobre Panama mine agreed between the company's Panamanian subsidiary, Minera Panama SA (MPSA), and the government of Panama. Bill 1110 originally proposed a moratorium on the granting of new concession contracts related to mining in Panama.

With respect to Bill 1109, following the first of three required debates that took place during the final ordinary session of the National Assembly on Oct. 31, 2023, no further debates took place during the extraordinary sessions on Nov. 2 and Nov. 3, 2023. It is the company's understanding that no further debates of Bill 1109 are currently scheduled.

Bill 1110 progressed through two debates of the National Assembly, during which an amendment was made to the bill proposing the repeal of Law 406. During the third debate concerning Bill 1110 on Nov. 2, 2023, the National Assembly resolved to send the bill back to the second debate and removed the amendment proposing the repeal of Law 406. An extraordinary session has been called for Nov. 3, 2023.

The company notes that a number of lawsuits challenging the constitutionality of Law 406 have been submitted to the Supreme Court of Justice, of which at least four have been admitted. First Quantum continues to monitor the situation and is confident with respect to its legal position and that of MPSA, in respect of all matters and developments referenced herein and reserves all of its and MPSA's rights in Panama and internationally.

Production at the Cobre Panama mine remains uninterrupted at this time; however, like many businesses across Panama, protests, including blockades of key roads, have caused disruptions on site as well as shortages in certain supplies.

First Quantum is proud of its contribution to Panama. The Cobre Panama mine plays an important role in Panama's economic development. Approximately 90 per cent of the work force at Cobre Panama is Panamanian and it is estimated that approximately one in 50 people from Panama's working population is employed, directly or indirectly, by the mine. With Cobre Panama, the country will play a key role in the green energy transition by delivering the copper required for renewable power and electric vehicles. The copper produced by Cobre Panama in 2022 would be enough for more than six million electric cars.

First Quantum is a responsible miner and takes its obligations in this regard very seriously. The company respects its legal obligations, both local and international, and conforms to high standards of ethical behaviour in its business conduct. The company is also committed to the principles of integrity and transparency in its dealings with governments around the world. The government of Panama approved MPSA's comprehensive environmental and social impact assessment (ESIA) comprising over 14,000 pages and which serves as the foundation for close to 400 continuing commitments. The company's ESIA compliance is subject to regular audits by the government as well as independent third parties and is managed by a dedicated team of more than 200 people.

The company's current solid liquidity position remains consistent with the $2.3-billion at the end of the third quarter, with first senior notes not due until April, 2025.

We seek Safe Harbor.