Name and Location
Cobre Panama copper project, Panama.

Client
First Quantum Minerals.

Project Description
The Cobre Panama project, which First Quantum acquired in March 2013 from Inmet Mining Corporation, has been reviewed.

The review used measured and indicated resources of 3.271-billion tonnes inclusive of reserves.

The revised project will have an installed capacity of about 70-million tonnes a year for the first ten years.

This is 17% higher than the Inmet plan. Further expansion of up to 100-million tonnes a year is being considered.

Based on the current resource estimate and the planned installed capacity of 70-million tonnes a year, the project will produce an average of about 320 000 t/y of copper on a life-of-mine basis, which is about 20% higher than the Inmet plan.

Average yearly life-of-mine by-product production is estimated at 100 000 oz of gold, 1.8-million ounces of silver and 3 500 t of molybdenum.

Cobre Panama is expected to have a mine life of 34 years.

Value
The project is estimated at $6.425-billion.

Duration
The re-engineered and larger project is scheduled for construction completion and commissioning in the second half of 2017.

Latest Developments
According to First Quantum, the project has transformed from an outsourced approach to a complete in-house, self-perform arrangement, where third-party engineers and contractors are used only for identified specific tasks and work within the company’s preferred project execution model.

The earthworks and the methodology of subsequent excavation and construction have been critically reviewed.

The company has bought significant quantities of on-site equipment from contractors whose contracts have either been cancelled or modified.

This allows First Quantum to fully control all site-development activities, which provides for greater flexibility and significantly reduced risk.

Site accommodation, road access, communications and management are all fully functional, enabling the major activities to advance efficiently.

The locations of key site infrastructure, including the processing facilities, have been reviewed and an alternative, more practical plant site has been selected, which should be more cost effective to construct and allow for better access to the proposed in-pit crushing and conveyor systems for life-of-mine pits, and to the main access road.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
First Quantum Minerals director: investor relations Sharon Loung, tel +1 647 346 3934 or email sharon.loung@fqml.com.