Petaquilla Minerals Ltd.

COMPANY DATA | INTRODUCTION |  PROJECT IN HAND | MANAGEMENT
NEWS UPDATE | CHINESE

COMPANY DATA

INTRODUCTION

Petaquilla Minerals Ltd. is a gold producer operating its gold processing plant at its 100% owned Molejon Gold Project in Panama. Commercial production commenced January 8, 2010. Anticipated throughput for the project during the first year of commercial production is estimated to be 2,200 tonnes per day. Plans are in place to increase production to 5,000 tonnes per day.

The Molejon mine site is located in the south central area of the Company's 100% owned 842 square kilometre concession lands, a region known historically for gold content.

PROJECT IN HAND

Molejon Gold Project, Central Panama

The Company's 100%-owned Molejon gold project is located within the Petaquilla Mineral District in Central Panama. The Molejon mine site is located in the south central area of the Company's 100% owned 842-square kilometre mining concessions, including the Oro del Norte concession, a region known historically for gold content.

The project area is located in the District of Donoso, Province of Colon, approximately 100 kilometers west of the Panama Canal on the Caribbean Coast. Petaquilla's land holdings are situated in the perfect position to ship concentrate at low cost to Europe, Asia, and North America. 

After implementing changes in preventive maintenance and improvements in mining and process operations, production averaged 2,549 tonnes per day for the period September 8 to October 6, 2010, with gold pours totaling 6,120.5 ounces, equivalent to a daily average gold pouring rate of 212 ounces, or 6,300-6,500 ounces per month.

Petaquilla completed a Forward Gold Purchase Agreement with Deutsche Bank AG for the delivery of 66,650 ounces of gold over a five year period against an upfront payment of US$45,000,000, plus subsequent additional payments corresponding to certain gold price thresholds.

In October 2007, the Company announced the results of an updated NI 43-101 compliant gold resource estimate based on results obtained through September 2007. AAT Mining Services has estimated a total Measured resource of 532,801 ounces and an Indicated resource of 223,785 ounces at the Molejon gold deposit. Additionally, an Inferred resource of 342,111 ounces at an average grade of 0.872 g/t above a cutoff of 0.5 g/t was estimated. The 123,000 indicated resource ounces of gold delineated at the nearby Botija Abajo deposit through June 2007 increases the total gold resources at the global Molejon project by 40% since the last resource estimate announced in April 2007.

Oro del Norte Concession

The Company's 100%-owned Oro del Norte concession project is situated on a similar structure to the Molejon gold deposit, located 24 km south-southwest.

The Company has commenced its first diamond drilling program on the Tucan project located in the Oro del Norte concession. Concurrently, an extensive program of surface rock-chip sampling, trenching and detailed mapping continues across the concession.

During the first quarter of fiscal 2011, the Company continued its Oro del Norte exploration program investing US$2.3 million in various trenching, drilling, assaying and engineering activities.

During the third calendar quarter of 2010, the Company continued its diamond drilling program on numerous targets identified by surface geochemical sampling during 2009 and 2010. To date, 29 HQ3 diamond drill holes for a total of 5,310 metres have been completed.

During final calendar quarter of 2010, the Company will continue its aggressive trenching and drilling programs to expand existing areas of identified mineralization in addition to evaluating and defining other mineralization targets on the Oro del Norte concession.

The Company has also commenced its program of updating its global resources estimate. This updated estimate is planned to be released in the first calendar quarter of 2011

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

PTQ Value Drivers for Shareholders

• Panama Development of Infrastructure Ltd. (PDI) Spin-Out

• Commercial Production Approved by Panamanian Government

• Annual production estimated to be 100,000 ounces of gold

• PTQ will aggressively explore and drill the many known targets on the world class Petaquilla Mining Concession

• Phase 1 of 2,200 TPD now complete with possible expansion to 5,000 TPD from existing foundations already engineered

• Operation in USD based and politically stable Panama

MANAGEMENT

Directors and Officers

Richard Fifer, Director & Non Executive Chairman (Panama)
- Founder of the Petaquilla Project
- Former President of the Panamanian State mining company, CODEMIN
- Former Governor of the Province of Cocle, Panama

Raul Ferrer, Director (Panama)
- Business Financial Advisor
- Former Financial Investment Director with Wall Street Securities (Panama)

David Kaplan, Director (USA)
- President of Physical Commodity Merchants LLC
- Former Portfolio Manager at LIM Advisors LLC
- Former VP of Gerald Metals, Inc.
- Former Financial Analyst/Trader with Glencore Ltd.

David Levy, Director & Corporate Secretary (USA)
- Member of the Private Placement Group at Platinum Management (NY) LLC
- Specializes in structuring and negotiating financings at all levels of the capital structure

Joao Manuel, President & CEO (Portugal)
- Former COO of Petaquilla Minerals Ltd.
- Former CFO of Petaquilla Copper Ltd.
- Over 20 years management experience in large multinational corporations worldwide, including GE, ITT, Nokia.

Julie van Baarsen, CFO (Canada)
- Charted Accountant
- Experienced in both private and public company (TSX, TSX Venture, NASDAQ) sectors
- Former Audit Manager of Grant Thornton LLP


NEWS UPDATE

On October 25, 2010, Petaquilla Minerals Ltd. announced that it has received additional drilling, trenching and surface rock chip assay results from its Tucan Project and the newly identified San Lucas Project both located on its Oro del Norte concession in Central Panama.

The Company has commenced its first diamond drilling program on the Tucan Project located in the Oro del Norte Concession. Concurrently, an extensive program of surface rock-chip sampling, trenching and detailed mapping continues across the concession.

Highlights of additional drill results include Hole TCDH-012 returned 1.5 m of 3.14 g/t Au and TCDH-014 returned 3.2 m of 2.44 g/t Au.

Highlights of rock-chip sample result include Sample No. R032653 returned 7.12 g/t Au, R032655 returned 6.75 g/t Au and R034243 returned 16.1 g/t Au.

Trench result highlights include Hole ONT-SL-04 returned 4 m of 2.95 g/t Au, including 1 m of 11.05 g/t Au; ONT-SL-05-1 returned 8 m of 1.78 g/t Au, including 1 m of 9.52 g/t Au.

Richard Fifer, the Company's Executive Chairman remarks that, "The Company is enthusiastic about these results from our maiden drilling program in the Oro del Norte concession where results have returned numerous commercial grade gold intercepts. There is also no shortage of exploration targets as results from the reconnaissance work continue to identify new areas of gold mineralization".

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