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Petaquilla Minerals Ltd
Symbol PTQ
Shares Issued 125,281,951
Close 2010-08-06 C$ 0.42
Market Cap C$ 52,618,419
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Petaquilla drills 11.25 g/t Au over 0.69 m at Tucan

2010-08-09 11:28 ET - News Release

Mr. Richard Fifer reports

PETAQUILLA EXPLORATION DRILLING UPDATE; DISCOVERY OF NEW EPITHERMAL GOLD VEIN SYSTEMS AT THE ORO DEL NORTE CONCESSION

Petaquilla Minerals Ltd. has released positive drill and trench results from the Tucan project on its Oro Del Norte exploration concession located in central Panama. The Tucan project is approximately 20 kilometres northeast of the company's Molejon mine site, within trucking distance of the mill if a commercially viable deposit is discovered. Petaquilla has also identified five other prospective gold- and copper-bearing targets in other areas of its concession.

As previously announced March 4, 2010, the company has been aggressively exploring the concession and has defined an area known as the Tucan project containing significant surface rock-chip samples with dimensions of approximately two kilometres by 1.5 kilometres. The Tucan project contains numerous drill-ready targets.

Diamond drilling program

During the second calendar quarter of 2010, the company commenced phase 1 of its planned 5,000-metre diamond drilling program on the first of the identified drill targets. The below results are the first to be released from this drilling program on the Oro Del Norte concession where three drill rigs are currently turning.

To date, 17 diamond drill holes for a total of 2,741 metres have been completed on the initial four target areas within the Tucan project testing the mineralized structures identified by surface mapping and trenching.

Results for the first 15 drill holes have been received.

Drill result highlights.


Hole ID       From (metres)   To (metres) Intercept length      Au  (g/t)
                                                  (metres)
TCDH-001              15.46         22.35             6.89           1.89
includes              15.46         16.15             0.69          11.25
TCDH-002              63.00         64.00             1.00           2.47
TCDH-002              81.30         94.70            13.40           1.47
includes              91.30         94.70             3.40           3.48
TCDH-003              41.00         43.00             2.00           3.39
TCDH-005              24.30         32.05             7.75           0.99
includes              26.30         27.35             1.05           2.51
TCDH-007              57.45         59.50             2.05           1.38
includes              57.45         58.00             0.55           3.59
TCDH-007              97.00         98.00             1.00           1.48
TCDH-011               0.00          1.50             1.50           3.06
TCDH-011              34.50         35.40             0.90           1.32
TCDH-011              60.55         61.70             1.15           2.42
TCDH-011              96.70         98.00             1.30           1.50
TCDH-012              90.50         92.00             1.50           2.33
includes              90.50         91.25             0.75           3.06
TCDH-014              55.80         59.00             3.20           2.32
includes              55.80         58.00             2.20           2.77
TCDH-014              59.75         64.00             4.25           1.45
includes              59.75         61.55             1.80           2.54
TCDH-015             171.25        175.00             3.75           0.70
TCDH-015             178.00        180.00             2.00           1.48
includes             179.00        180.00             1.00           2.28
TCDH-015             183.00        184.00             1.00           1.04

Notes:
1. Assay results for drill holes TCDH-001 to TCDH-010 have been analyzed 
   by ALS Chemex in North Vancouver, B.C., Canada.
2. Assay results for drill holes TCDH-011 to 015 have been analyzed by
   Petaquilla's on-site analytical laboratory, which is not a certified
   independent laboratory, located at the company's Molejon gold project.
   Duplicate samples have been collected and sent to ALS Chemex in North
   Vancouver for verification and the company is awaiting the results of
   independent analysis. The company utilizes the service of its in-house
   laboratory as it is able to provide a 24-hour turnaround for assay
   results and, thus, enable the company to quickly verify its exploration 
   strategy on the ground.
3. Drill intersections tabulated under "intercept length" are reported as
   drilled thicknesses.  Based on core axis to structure angles, true
   widths are estimated to be 70 per cent to 90 per cent of the interval 
   lengths.

These initial drill holes were completed on the first four drill targets to determine both the style and grade of mineralization in addition to the attitude of the mineralization in this structurally controlled environment. This drilling has achieved these objectives. The mineralized structures tested to date are both steeply southwest and northeast dipping and have a northwest to southeast strike. Additional data obtained from oriented drill core samples have identified the mineralization to be predominantly structurally controlled, having multiple phases of mineralization and containing postmineralization crosscutting structures which offset the main mineralized body.

This drilling has identified numerous gold intercepts in three subparallel epithermal vein systems over an area of 1.3 kilometres by 0.4 kilometre.

All three veins' systems are open along strike and will continue to be the focus of the drilling effort during this next phase of the drilling program which will now progressively step out toward the southeast of the project area to evaluate their strike extent.

In addition to the above, numerous drill-ready targets identified during the late 2009 and early 2010 exploration work remain untested and will be drilled during this second phase.

Trenching program

In conjunction with the diamond-drilling program now underway, the company has completed 243 trenches for a total of 3,972 metres.

The trenching program has resulted in the discovery of two additional subparallel gold-mineralized structures located 170 metres north and 80 metres south, respectively, to the principle structure which was identified by detailed mapping and sampling completed in the first quarter of 2010.

Results for the first 227 trenches totalling 3,636 metres have been received. Highlights of the trenching results are listed below.

Trench result highlights.

                                

Trench ID    From (metres)   To (metres) Intercept Length  Au (g/t)
                                                 (metres)
ONT-16-6              9.00         13.00             4.00      2.21
includes             12.00         13.00             1.00      5.68
ONT-16-11             4.00          8.00             4.00      1.22
includes              5.00          6.00             1.00      4.59
ONT-16-13             8.00         17.00             9.00      0.60
includes             11.00         12.00             1.00      2.84
ONT-16-14            14.00         17.00             3.00      0.89
ONT-16-14            19.00         20.00             1.00      8.68
ONT-16-19             3.00          7.00             4.00      0.80
includes              4.00          5.00             1.00      2.19
ONT-17-28            19.00         20.00             1.00      3.99
ONT-17-29             1.00          5.00             4.00      0.95
includes              4.00          5.00             1.00      2.16
ONT-17-31            11.00         14.00             3.00      0.96
ONT-17-35             8.00         17.00             9.00      0.79
includes             13.00         14.00             1.00      4.59
ONT-18-19             2.00          4.00             2.00      2.89
includes              2.00          3.00             1.00      5.43
ONT-18-24            19.00         21.00             2.00      0.92
ONT-18-38            16.00         29.00            13.00      1.02
includes             17.00         18.00             1.00     10.88
ONT-19-28             3.00          8.00             5.00      0.91
includes              7.00          8.00             1.00      3.59
ONT-21-9              0.00          8.00             8.00      1.86
includes              1.00          3.00             2.00      2.45
ONT-21-11            15.00         17.00             2.00      2.32
includes             15.00         16.00             1.00      3.03
ONT-21-16             1.00         15.00            14.00      0.54
includes             10.00         11.00             1.00      1.54

The trenching program will continue aggressively expanding into new areas on the concession which the company believes is prospective for intrusive, related-epithermal gold-bearing vein systems as evidenced by the discovery during this phase of work.

The company is encouraged by the positive results achieved by the first phase of exploration trenching and drilling on the Oro Del Norte concession. Interpretation of both the drill and trench data collected to date confirms the company's geological and exploration models for the property.

Petaquilla believes that its 100-per-cent-owned concessions surrounding its Molejon Gold project are prospective for intrusive, related-epithermal gold-vein systems and porphyry copper-gold-molybdenum deposits.

Petaquilla is solely funding exploration on its 100-per-cent-owned concessions.

John Kapetas, PGeo, a qualified person as defined by National Instrument 43-101 and the company's vice-president exploration and resources development, has been overseeing the exploration field program. Mr. Kapetas is ensuring that the appropriate quality assurance protocols are being followed and that the data are being qualified under strict quality controls. He has reviewed and verified the technical mining information contained in this news release.

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