First Quantum Minerals Provides Update on KMT Legal Proceedings in the Democratic Republic of Congo

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/04/10 -- (All figures expressed in US dollars, unless otherwise noted)

First Quantum Minerals Ltd. ('First Quantum' or the 'Company') (TSX: FM)(LSE: FQM) wishes to provide an update on legal developments in the Democratic Republic of Congo ('RDC') involving the Kolwezi tailings project (the 'Kolwezi Project').

On August 2, 2010 Kingamyambo Musonoi Tailings SARL ('KMT'), the Congolese company which was developing the Kolwezi Project until the site was sealed by the RDC authorities, received notice of a judgement of the Appeal Court of Kinshasa ('Appeal Court') rendered on July 27, 2010. The judgement was requested by La Generale des Carrieres et des Mines ('Gecamines'), the Mining Registry ('CAMI') and the RDC, and follows a previous judgement of the Appeal Court of March 10, 2010 pursuant to which each of Congo Mineral Developments Ltd. ('CMD') and KMT were ordered to pay damages totalling more than US$12 billion to Gecamines, CAMI and the RDC.

This dispute is also currently the subject of international arbitration before the International Chamber of Commerce ('ICC') involving the Company, the IFC (International Finance Corporation) and the Industrial Development Corporation of South Africa ('IDC') as Claimants and the RDC and Gecamines as Defendants.

According to the notice received by KMT on August 2, 2010 the Appeal Court decided that KMT is in the process of being liquidated and appointed a Congolese liquidator in order, notably, to (translation):

'value the needs and debts of the company K.M.T. being liquidated; and carry out liquidation transactions including: .... to pay the debts; .... and to transform the assets into cash, to transfer them to third parties either by selling them or off-setting them against the company's debts.'

The Company believes that this judgement is yet a further step taken by the RDC and Gecamines to transfer the assets of the Kolwezi Project to a third party notwithstanding and without regard to the on-going international arbitration before the ICC. A Tribunal for the international arbitration has been constituted.

The Company notes that summons for these proceedings were served on KMT with five days notice and neither CMD nor KMT were given the opportunity to submit any written submission. KMT's lawyer appeared before the Appeal Court, but withdrew after the Appeal Court refused to grant any further time period for the parties to exchange written submission in accordance with Congolese rules of civil procedure. CMD, KMT's majority shareholder, was never notified of these proceedings or of the judgement of the Appeal Court and was not represented in the proceedings.

The Company is considering all available means of recourse and is in the process of filing for immediate relief from the ICC Tribunal by way of interim measures protection pending the outcome of the international arbitration. While the Company regrets the continuation of legal attacks brought by the RDC against the Company, the Company remains open to seeking a negotiated solution to the Kolwezi Project dispute.

The Company will provide further updates as warranted.

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

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