Petaquilla Resuming Work in Panama.

VANCOUVER, British Columbia -- Petaquilla Minerals Ltd. ("PTQ" or "the Company") (TSX:PTQ)(OTCBB:PTQMF) is pleased to announce that it is resuming exploration and development on identified gold targets within the Minera Petaquilla S.A. project.

Commencing January 2005, PTQ will undertake a series of exploration and development activities. The Molejon gold deposit will be surveyed and trenched to better understand gold metallurgy and potential open pit configurations. Additionally, a base camp will be built, so as to prepare for a 5,000 meter delineation drilling program to be carried out on the Molejon Gold Deposit from March to July of 2005. These initial steps are being implemented as part of PTQ corporate strategy of completing a feasibility study on the Molejon Gold Project by the end of 2005. Additional resource potential exists in the Botija-Abajo and Cuarto Crestas deposits as defined by the drilling carried out in 1996-97 by Teck Cominco and Inmet. These deposits will be further explored so as to potentially add resources to the Molejon Gold Project.

Based on a report by SRK Consultants of Vancouver, BC in 1995, the Molejon deposit contained probable resources of 5,032,870 tonnes at a grade of 2.81 g/t for 454,803 ounces of gold and possible resources of 956,300 tonnes at a grade of 3.72 g/t for 114,386 ounces of gold. These resources, if reported by today's standards, would be defined as an inferred resource. The Company confirms that all the historical data used for SRK report and estimate is available to the company.

The Minera Petaquilla project contains proven reserves of 1.115 billion tonnes grading 0.50% copper, 0.09 g/t gold, 0.015% molybdenum, as well as recoverable silver. The recoverable metal content contained in these reserves totals at least 9.4 billion pounds of copper, 1.37 million ounces of gold, 24.1 million ounces of silver, and 131.1 million pounds of molybdenum, based on a 1997 AMEC Engineering (formerly H.A. Simons) feasibility study completed for the JV partners under the direction of Teck. All data used to complete the study is available to the Company.

The Company also announces that Dale McClanaghan has resigned as a director and as CEO and President of the Company. The Board of Directors (the "Board") wishes to express its appreciation for the contributions which he has made to advance the Company's interests. He joined the company in these capacities in April 2004 and provided leadership during a transition period to a new management. During that period the Company concluded a letter of intent with its joint venture partners, Teck Cominco and Inmet Mining Corporation. The Board has begun a search to recruit a suitable replacement. In the interim, the CEO and President duties will be fulfilled by two directors of the Company, Richard Fifer and Michael Levy, respectively. Richard Fifer has also been designated as Chairman of the Board of Petaquilla Minerals Ltd.

On behalf of the Board of Directors of PETAQUILLA MINERALS LTD.

Richard Fifer, Chairman of the Board

No stock exchange has approved or disapproved the information contained herein.

Petaquilla Minerals Ltd. (TSX:PTQ) (OTC Bulletin Board:PTQMF)