First Quantum Minerals Announces US $224 Million Financing Package for Kansanshi.

Business Editors

VANCOUVER, British Columbia--(BUSINESS WIRE)--Feb. 11, 2004

(All figures expressed in US dollars)

First Quantum Minerals Ltd. (TSX:FM) (LSE:FQM) is pleased to announce the first signings of a financing debt package totaling $224 million for Phase One construction of First Quantum's 80% owned Kansanshi copper-gold project in Zambia. The financing package includes $163 million for project construction, $30 million for mining equipment purchases, a $25 million cost overrun facility and a $6 million capital contribution for power line infrastructure.

"We are very pleased with the financing package that we have established for the Kansanshi project. It has taken over twelve months of negotiation to pull together a unique funding package which provides maximum benefit from the Kansanshi project for existing shareholders by minimizing dilution without compromising financial prudence. To satisfy the requirements of the lending syndicate the funding package has been deliberately structured to exceed the forecast capital requirements borrowing costs, including interest and fees during the construction phase. While this excess funding including the cost overrun facility is available to the project, we expect to complete the project within 10% of the original GRD Minproc Definitive Feasibility Study estimates, before any scope changes." commented Martin Rowley, Chief Financial Officer.

Philip Pascall, Chairman and CEO commented, "The project financing syndicate that has been established is a strong testament to the high quality of the Kansanshi deposit. We are very pleased with the support that we have received from President Mwanawasa to date and we look forward to working with the Government of the Republic of Zambia in a joint effort to expedite the construction of Kansanshi. First Quantum Minerals is a committed long term investor in Zambia and we believe that the development of new low cost copper deposits will play an increasingly important role in the future of Zambia's copper industry."

The construction and procurement process began in earnest in September, 2003. Commitments for the direct capital cost of the process plant are approximately 75 % complete. Engineering and design aspects of the project are over 80% complete. Since September, construction and engineering contractors and consultants, including the Company's team of engineers have moved on site to start construction. Major bulk earthworks are generally complete, roads and drains have been established, concrete for all critical structures has commenced and steel and building erection has begun. Overall the project is currently approximately 25% complete.

The Kansanshi Project is situated approximately 15 kilometres to the northeast of the city of Solwezi in northwest Zambia. It is proposed that the Kansanshi project will be developed in two phases of which only Phase One is considered in detail in the Definitive Feasibility Study, which was conducted by GRD Minproc, in December 2002. Measured and indicated mineral resources for life of mine, at a 0.5% copper cut-off, total 302 million tonnes at 1.17% copper and 0.17 grams per tonne gold. Phase One proven and probable mining reserves are 142 million tonnes grading 1.43% copper and 0.22 grams per tonne gold. During the sixteen year Phase One mine life, it is expected that Kansanshi will produce 1.6 million tonnes of copper, approximately 44% as copper cathode and 56% as copper in concentrate. Peak production will be approximately 130,000 tonnes of copper and 35,000 ounces of gold per annum. It is expected that owner mining cash costs will average $0.38 per pound of copper over the sixteen year life of Phase One. It is anticipated that commissioning will begin in late 2004 with commercial production commencing in early 2005.

Financing Structure

On December 12, 2003 the Company, through its 80% owned subsidiary Kansanshi Mining, PLC ("KMP"), signed a secured $120 million senior facility agreement (the "Facility"), arranged and underwritten by Standard Bank Group and WestLB, with the participating banks being Standard Bank London Limited, Standard Bank of South Africa Limited, West LB AG, Standard Chartered Bank, Nederlandse Financierings - Maatschappij voor Ontwikkelingslanden N.V. (FMO), Societe de Promotion et de Participation pour le Cooperation Economique S.A. (Proparco) and Deutsche Investitions - und Entwicklungsgesellschaft MBH (DEG), to finance the design, construction, operation and maintenance of the Kansanshi Project. The Facility is comprised of two tranches, each in the amount of $60 million. The Facility is available for draw-down until July 31, 2005 and is thereafter repayable over a period of five and a half years. Tranche A is repayable in bi-annual installments commencing six months after project completion; Tranche B is repayable in quarterly payments. Interest on Tranche A is calculated at a fixed rate of 6%. Interest on Tranche B is calculated at LIBOR plus 3% during construction and LIBOR plus 2.5% during the repayment period.

The $120 million senior loan facility arranged by Standard bank Group and WestLB has been awarded the Project Finance Magazine "Mining Deal of 2003 - Africa".

In addition to the Facility, on December 11, 2003 the Company, through KMP, signed a secured subordinated facility agreement (the "Subordinated Facility") with European Investment Bank ("EIB"), for the amount of Euro 34 million ($43 million), also to finance the design, construction, operation and maintenance of the Kansanshi Project. This loan is for a 12 year term and is payable in nine equal annual payments commencing October 31, 2007. Interest will be 7.2% until April 30, 2005 and thereafter will be recalculated annually, within a range of 3.2% to 13.2%, based on the average LME cash copper price for the preceding calendar year.

The Facility has not been drawn down and is still subject to the fulfillment of a number of conditions precedent including execution of the final equipment and cost over-run facility documentation (as described below). The first draw-down notice under the EIB Subordinated Facility has been issued for funding on February 16, 2004.

On December 12, 2003 the Company, through KMP, signed a $6 million short term loan facility (the "Short Term Facility") with Standard Bank London, to finance KMP's capital contribution pursuant to a connection agreement (the "Connection Agreement") between KMP and ZESCO Limited (the Zambian power utility), which provides for the construction of a new power line to service the Kansanshi Project. The full $6 million was drawn down and paid to ZESCO on January 21, 2004. Interest on the Short Term Facility is calculated at LIBOR plus 3.5%. The full amount of the loan is repayable on the earlier of six months from the date of execution of the agreement or upon the first drawdown under the Facility. The loan is guaranteed by the Company under a Guarantee Agreement dated December 12, 2003. The loan includes the issuance of 250,000 warrants which provides Standard Bank the right to purchase 250,000 Common Shares at $11.00 per share for a period of two years. The Connection Agreement is dated November 4, 2003 and contemplates the construction and installation of a transmission line, new substation and supporting assets to connect the Kansanshi Project to the ZESCO power system, in consideration of the payment by KMP of the total sum of $10 million. The Connection Agreement provides for the initial payment of this $6 million with the balance payable in 19 semi-annual installments calculated to provide for amortization of the $4 million over 10 years at an interest rate of 6%.

Associated with the Kansanshi Project financing package are two facilities that are in the final stages of being negotiated; a $30 million facility with Banque Belgolaise SA to finance mining equipment purchases and a $25 million facility with a metal off-taker to provide for any unexpected cost overruns.

The total Kansanshi Project financing package, in respect of which facilities have either been completed, subject to satisfaction of various conditions precedent, or are under negotiation is, in United States dollar equivalents, $224 million.

About Standard Bank Group

Through an expanding international network Standard Bank Group Limited and its subsidiaries offer a range of specialist banking services and promotes trade, investment and business flows with an emerging market focus on a worldwide basis. Standard Bank London Limited, (SBL) the principal international investment banking subsidiary of Standard Bank Group Limited, is a leading participant in trade finance and project finance with a strong mining capability based in London. Utilizing its knowledge of Africa, North and South America, the Far East and Eastern Europe, SBL offers flexible pre and post export financing for commodities and capital goods. In addition, SBL trades in precious and base metals, provides a full range of Treasury products, and is active in mining finance and advisory services. SBL is involved in the sovereign debt market and in corporate debt trading on an international basis. The Banker magazine awarded "Bank of the Year 2002 - Africa" to the Standard Bank Group.

About WestLB AG

WestLB AG is a focused European wholesale bank operating on an international scale. With Group total assets of approximately EUR 405 billion, WestLB is Germany's 4th largest banking group. The bank offers a wide range of products tailored specifically to the needs of major corporate clients. WestLB has been recognized by Treasury Management International magazine as "Best Bank" in the Project Finance Category while Infrastructure Journal voted them "Arranger of the Year" in Europe, the Middle East and Africa.

About European Investment Bank ("EIB")

EIB's chief remit is the balanced development of the European Union ("EU"). On average, therefore, more than two thirds of EIB's individual loans help to finance a wide range of projects in regions lagging behind in their development or contending with structural problems. Since the 1960's, the EIB has been an active participant in the cooperation policies pursued by the EU in some 150 countries outside the EU, in particular in Africa in the framework of successive EU/ACP Lome Conventions and under the Cotonou Agreement which will enter into force in early 2003. The EIB is the leading non-sovereign AAA issuer worldwide. The EIB works in close cooperation with the banking sector, both with respect to its capital market operations and lending activity. In the Zambian mining sector, EIB has already provided a EUR 14 million, 6 year facility, for Bwana Mkubwa Mining Limited, First Quantum's wholly owned Zambian subsidiary company.

About Banque Belgolaise SA and Africa Merchant Bank

Banque Belgolaise SA, is a European bank with long-standing roots in Africa. In 1909, the Banque du Congo Belge was founded. It was mainly active in central Africa. In 1911, it became the Belgium Congo's official issuing bank, an honor it held for more than 40 years. Since 1965, the Bank has been known as Belgolaise and has developed a banking network across 15 African countries and, in 1997 created Africa Merchant Bank in order to provide its customers with a full range of merchant banking services. In the summer of 2000, Belgolaise became a wholly-owned subsidiary of Fortis Bank (part of the Fortis Group). With offices in Brussels, Paris and London, Belgolaise develops business links in around thirty countries in sub-Saharan Africa. In the Democratic Republic of Congo, Africa Merchant Bank has already provided a $6 million, three year secured lease debt facility, to First Quantum through International Quantum Resources Limited, the owner of 100% of the issued capital of La Compagnie Miniere de Skania sptl ("COMISA"). The facility was used to purchase mining equipment for COMISA's operations at the Lonshi copper mine.

On Behalf of the Board of Directors

of First Quantum Minerals Ltd.

G. Clive Newall, President

12g3-2b-82-4461

Listed in Standard and Poor's 

Sedar Profile #00006237

Certain of the information contained in this news release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, including but not limited to those with respect to the prices of gold, copper and sulphuric acid, estimated future production, estimated costs of future production, the Company's hedging policy and permitting time lines, involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the actual prices of copper, gold and sulphuric acid, the factual results of current exploration, development and mining activities, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's documents filed from time to time with the British Columbia Securities Commission and the United States Securities and Exchange Commission.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.