Mr. James Devas reports

FIRST QUANTUM MINERALS ANNOUNCES SALE OF COBRE LAS CRUCES

First Quantum Minerals Ltd.'s wholly owned subsidiary, Cobre Las Cruces SAU, has entered into a binding agreement to sell the Las Cruces mine in Spain for consideration of up to $190-million plus a profitability-linked earnout provision to Global Panduro SLU, a company controlled by funds managed by Resource Capital Funds (in U.S. dollars, except where noted otherwise). The transaction paves the way for Global Panduro to develop the Las Cruces polymetallic primary sulphide project.

Transaction summary

Under the terms of the transaction, Global Panduro will acquire Las Cruces for a consideration comprising $45-million in cash at closing, issue of an approximately $65-million loan note to the seller (subject to certain working capital adjustments), up to $80-million in deferred payments tied to certain project development milestones, and a further contingent deferred earnout payment or payments tied to exit and liquidity events of 10 per cent of the proceeds over and above an agreed internal-rate-of-return threshold.

The transaction is subject to certain customary conditions and regulatory approvals and is expected to close during the first half of 2026.

About Las Cruces

The Las Cruces site is located approximately 20 kilometres northwest of Seville. The mine produced copper cathodes from 2009 to 2021 and completed tailings reprocessing from 2021 to 2023. In February, 2024, First Quantum published an updated National Instrument 43-101 technical report setting out plans for a next-phase redevelopment on the existing mine site through a new underground mine feeding a polymetallic refinery to produce copper, zinc, lead and silver.

Advisers

BMO Capital Markets served as financial adviser and Simmons & Simmons served as legal adviser to the company for the purpose of the transaction. Norton Rose Fulbright served as legal adviser to RCF.

We seek Safe Harbor.