Petaquilla Minerals Ltd. Provides Update on Acquisition of Iberian Resources Corp.

VANCOUVER, BC -- (Marketwire) -- 08/10/11 -- Petaquilla Minerals Ltd. (TSX: PTQ)
(OTCBB: PTQMF) (FRANKFURT: P7Z) ('Petaquilla' or the 'Company') would like to
remind all shareholders of the special meeting (the 'Meeting') of the
holders of common shares of Petaquilla (the 'Shareholders') to be held at
the Fairmont Waterfront Hotel, Nootka Room, 900 Canada Place Way,
Vancouver, B.C., Canada, on August 31, 2011, at 10 a.m. (Vancouver time).

At the Meeting, Shareholders will be asked to consider and, if thought fit,
to approve an ordinary resolution authorizing the issuance by the Company
of up to 50,000,000 common shares of the Company, representing
approximately 28.3% of the issued and outstanding number of Petaquilla
shares as at July 27, 2011, including approximately 44,635,255 shares to be
issued as consideration for all of the issued and outstanding common shares
of Iberian Resources Corp. ('Iberian').

An information circular containing details of the proposed acquisition will
be mailed to Shareholders on August 10, 2011. This information circular
will also be available at www.sedar.com.

Iberian

Iberian is a private British Columbia company that owns 100% of the Lomero-
Poyatos project through its wholly-owned Spanish affiliate, Corporacion de
Recursos Iberia S.L. ('CRI'). Lomero Poyatos is located about 85
kilometres west of Seville, in the north-east part of the
Spanish/Portuguese (Iberian) Pyrite Belt. Iberian also owns several other
exploration licenses in Iberia through its wholly-owned Spanish and
Portuguese affiliates.

An updated National Instrument 43-101 ('NI 43-101') compliant Technical
Report in respect of the Lomero-Poyatos mine in Andalusia, Spain, has been
completed and is available under the Company's profile on both the SEDAR
and EDGAR filing systems.

Lomero-Poyatos Valuation and Transaction Value

The updated Technical Report by Behre Dolbear International Limited ('Behre
Dolbear') titled, 'NI43-101 Technical Report on the Lomero-Poyatos Au-Cu-
Pb-Zn Mine in Andalusia, Spain' and dated July 29, 2011, incorporates a
valuation report.

Behre Dolbear carried out a preliminary valuation of the Lomero-Poyatos
deposit based on published average global stock market valuations per ounce
of in-situ gold resources and value from a comparable acquisition
transaction. Taking the average of these two estimates, assuming equal
weightings for each, Behre Dolbear concluded that an appropriate current
value for the Lomero-Poyatos project is US$53.5 million.

Based on the Company's Volume Weighted Average Price of CAD$0.69 for the 30
trading days preceding August 9, 2011, and the issuance of approximately
44,635,255 common shares of the Company, if approved by Shareholders, the
cost to acquire Iberian would be approximately CAD$30,800,000, or
approximately 40% below Behre Dolbear's valuation of the Lomero-Poyatos
deposit.

Mineral Resource Estimate

The mineral resource estimate contained in the updated Technical Report is
unchanged from the previous Technical Report dated July 11, 2011, a summary
of which can be viewed in the Company's news release of July 11, 2011.

About Petaquilla Minerals Ltd. Petaquilla is a gold producer operating its
gold processing plant at its 100% owned Molejon Gold Project in Panama. 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.

Disclaimer. This press release includes forward-looking statements. All
statements, other than statements of historical fact, contained in this
news release, including, but not limited to, statements regarding the
Acquisition, the estimation of mineral resource estimate and the
realization of mineral resource estimate, constitute forward-looking
statements. Such forward-looking statements involve known and unknown
risks, uncertainties and other important factors beyond Petaquilla's
control that would cause the actual results, performance or achievements of
Petaquilla to be materially different from future results, performance or
achievements expressed or implied by such forward-looking statements
including that the Acquisition may not be completed for any reason. Such
forward-looking statements are based on numerous assumptions regarding
successful completion of the Acquisition, Petaquilla's present and future
business strategies and the environment in which Petaquilla will operate in
the future. Any forward-looking statements speak only as at the date of
this document. Petaquilla expressly disclaims any obligation or
undertaking to disseminate any updates or revisions to any forward-looking
statements contained herein to reflect any change in Petaquilla's
expectations with regard thereto or any change in events, conditions or
circumstances on which any such statements are based, except to the extent
required by applicable law. As a result of these factors, the events
described in the forward-looking statements in this press release may not
occur either partially or at all.

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

Richard Fifer, Executive Chairman

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

FOR FURTHER INFORMATION PLEASE CONTACT:


Petaquilla Minerals Ltd.

Richard Fifer

Executive Chairman

Phone: (604) 694-0021 or Toll Free: 1-877-694-0021

(604) 694-0063 (FAX)
www.petaquilla.com