First Quantum Minerals Provides Progress Report on Kevitsa Nickel-Copper-PGE Project, Finland

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 07/26/10 -- (All figures expressed in US dollars, unless otherwise noted) -

First Quantum Minerals Ltd. ('First Quantum' or the 'Company') (TSX: FM)(LSE: FQM) is pleased to provide a progress report on the Kevitsa nickel-copper-PGE project in Finland. The project was approved for development by the Company's Board of Directors in November 2009 and is expected to begin commercial production in mid 2012.

Highlights

--  BNP Paribas and Standard Bank of South Africa jointly mandated to
    arrange a debt facility

--  Government support agreed for several infrastructure projects

--  On-site construction activity commenced with approximately 75
    construction personnel currently on site

--  Ongoing drill program returns further positive results

Financing

BNP Paribas and Standard Bank of South Africa have been mandated as the lead arrangers for a debt facility of $250 million together with a EUR17 million stand-by letter of credit facility. Facility term is up to 7 years including 5 years repayment commencing September 30, 2012. The facility is expected to be available for first drawdown by no later than August 31, 2010.

Government Support

The excellent cooperation with the local, regional and Government authorities in Finland continues. An agreement has been reached with the Government to reimburse the Company for the cost of constructing the access road to the mine site. Construction of the road began in 2008 and is expected to be completed by the end of July, 2010. The Government has also committed to financially contribute to other infrastructure projects such as power and water services.

Engineering, Procurement and Construction

Basic engineering is nearing completion with Fluor in Australia, and detailed engineering design with Poyry, Finland is well underway. Essentially all long-lead equipment orders have been placed, with deliveries programmed to suit the construction schedule.

Major construction contracts have been awarded to Finnish contractors as follows:

--  Access road and bridge - Veljekset Karjalainen Oy (nearing completion)

--  Plant site earthworks and concrete works - Lemminkainen Oy (commenced)

--  Structural steelwork fabrication and erection - Naaraharju Oy

--  110 kV power line - Empower Oy

--  Plant site HV switchyard - Vaasa Engineering Oy

Currently there are approximately 75 construction personnel on site and this will increase as additional construction works contracts are awarded. The plant site earthworks commenced in early June and are currently in progress in many areas. The first structural concrete pours for the mill building foundations occurred on July 13, 2010. Steelwork details have been released to the fabrication contractor and steelwork erection is expected to commence in September, 2010.

Major equipment supplier, Outotec, is maintaining scheduled progress for the manufacture of the grinding mills, flotation cells, thickeners and concentrate filters.

The main access road to the site is in the process of being asphalted and the road sealing work is expected to be completed shortly.

Drill Program

The most recent mineral resource and mineral reserve estimates for Kevitsa were published on November 30, 2009. The drilling program has since continued to upgrade a portion of the inferred resource to indicated and measured and to identify the borders of the resource both laterally and along strike.

A summary of the program to date is as follows:

--  Over 15,000 metres of core drilling in 46 holes have been completed
    since November 2009.

--  Results have outlined a significant extension of mineralization to the
    south of the existing resource at relatively shallow depths.

--  Much of the mineralization lies either within or immediately adjacent to
    the current pit profile and is therefore expected to enhance the mineral
    reserve without compromising the anticipated strip ratio.

--  A new mineral resource model and reserve optimization is currently in
    progress and is expected to be finalized before year end 2010.

--  Several holes have been extended below the current open pit resource and
    demonstrate mineralization continuing at depths of over 900 metres
    encouraging the examination of potential options for bulk extraction
    from underground.

--  Drilling emphasis has now moved on to exploration for massive sulphide
    lenses on the northern and eastern contacts of the Kevitsa intrusion
    where recent geophysical surveys have defined several encouraging
    targets.

About the Kevitsa Nickel-Copper-PGE Project

The Kevitsa project is located approximately 142 kilometres north-northeast of Rovaniemi, the capital of Finnish Lapland. Measured and indicated resources, as at November, 2009, are estimated at 165 million tonnes grading 0.30% nickel; 0.27 nickel sulphide; 0.42% copper; using a nickel cut-off grade of 0.1%.The project has all material mining permits and was granted development approval by the Company's Board of Directors in November 2009.

The capital cost estimate, of $400 million, is based on the mining, processing and infrastructure requirements to treat five million tonnes per annum but also taking into account the possibility of further expansions should conditions allow. Kevitsa is expected to begin commercial production in mid 2012. The estimated mine life is over 20 years and the life-of-mine C1 cash operating cost is estimated at approximately $2.50 per pound nickel, net of by-product credits.

The open pit mine is planned to employ large-scale electrically-powered mining equipment to deliver ore to the primary gyratory crusher. After crushing the ore will be autogenously milled prior to the two-staged flotation process. Two concentrates will be produced - a copper/gold concentrate and a nickel concentrate that will contain the majority of the platinum group elements ('PGE's').

Off-take arrangements for the separate treatment of both concentrates will target international as well as local smelters.

On Behalf of the Board of Directors of First Quantum Minerals Ltd.

G. Clive Newall, President

Listed in Standard and Poor's

12g3-2b-82-4461

Certain statements and information herein, including all statements that are not historical facts, contain forward-looking statements and forward-looking information within the meaning of applicable U.S. and Canadian securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to future price of copper or gold, estimation of mineral reserves and mineral resources, our exploration and development program, estimated future expenses, exploration and development capital requirements, and our goals and strategies. Often, but not always, forward-looking statements or information can be identified by the use of words such as 'plans', 'expects' or 'does not expect', 'is expected', 'budget', 'scheduled', 'estimates', 'forecasts', 'intends', 'anticipates' or 'does not anticipate' or 'believes' or variations of such words and phrases or statements that certain actions, events or results 'may', 'could', 'would', 'might' or 'will' be taken, occur or be achieved.

With respect to forward-looking statements and information contained herein, we have made numerous assumptions including among other things, assumptions about the price of copper and gold, anticipated costs and expenditures and our ability to achieve our goals. Although our management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that a forward-looking statement or information herein will prove to be accurate. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information.

See our annual information form and our quarterly and annual management's discussion and analysis for additional information on risks, uncertainties and other factors relating to the forward-looking statements and information. Although we have attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in the forward-looking statements or information, there may be other factors that cause actual results, performances, achievements or events not to be anticipated, estimated or intended. Also, many of the factors are beyond our control. Accordingly, readers should not place undue reliance on forward-looking statements or information. We undertake no obligation to reissue or update forward-looking statements or information as a result of new information or events after the date hereof except as may be required by law. All forward-looking statements and information made herein, are qualified by this cautionary statement.

Contacts:

First Quantum Minerals Ltd.

Sharon Loung

North American contact

(647) 346-3934 or Toll Free: 1 (888) 688-6577

(604) 688-3818 (FAX)
sharon.loung@fqml.com


First Quantum Minerals Ltd.

Clive Newall, President

United Kingdom contact

+44 140 327 3484

+44 140 327 3494 (FAX)
clive.newall@fqml.com
www.first-quantum.com


Hogarth Partnership Ltd.

Simon Hockridge

+44 (0) 20 7357 9477