First Quantum Minerals update on Cobre Panama  

Cobre Panama currently remains in a phase of P&SM with production halted. Approximately 1,400 workers remain on site to run the P&SM program. Further reductions to a headcount below 1,000 workers may follow depending on environmental stewardship programs. Previous illegal blockages around the mine have been cleared, allowing for the delivery by road and at port of necessary supplies to conduct the P&SM program.

In January, the Company and Panama’s Ministry of Commerce and Industries (“MICI”) had preliminary discussions related to the P&SM program and the associated funding of P&SM costs. These costs are expected to range from $15 – $20 million per month and further reductions could follow depending on environmental stewardship programs. On January 11, Cobre Panama hosted a large delegation, including the Ministers from MICI and the Ministry of the Environment, as well as other government departments and a broad range of civil society organizations, to demonstrate the measures that are being undertaken as part of the P&SM program. At the request of MICI, Cobre Panama will deliver a preliminary draft for the first phase of P&SM on January 16. This will be an initial plan that will require regular adjustments and updates to address additional subsequent project phases and steps as the planning and preparation requirements evolve.

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