Petaquilla Copper Ltd is a Vancouver based emerging copper producer presently developing its world-class copper deposit in the Republic of Panama, encompassing most of the mining district of Donoso in the Province of Cocle. The project area covers 795 km² and contains a massive porphyry deposit, which hosts 1.461 billion tonnes of mineralization grading 0.493% copper, 0.015% molybdenite, and 0.11 g/t gold. The resources occur in three project areas: Botija, Petaquilla, and Valle Grande. See Resource Estimates

The minimum recoverable contained metal reserves (non NI-43-101 compliant) are: 9.4 billion lbs of copper, 1.37 million oz of gold, 24.1 million oz of silver, and 131.1 million lbs of molybdenum. Fluor Daniel Wright performed the first of two feasibility studies in 1997-8 before the enactment of NI 43-101.

In a recent and exciting development, a copper oxide cap has been discovered in Botija Abajo. The area is characterized by a sulfide-enriched, granodioritic intrusion that appears to be capped by an extensive oxide zone of copper mineralization. The prior, widely spaced, drilling program at Botija Abajo intercepted significant amounts of pyrite and chalcopyrite, with minor gold indicating the outer zone of copper-gold porphyry. Recent drilling, however, intercepted significant chalcocite (oxide copper) beneath epithermal gold mineralization.

Petaquilla Copper controls 52% of the project while Inmet Mining Corp retains the remaining 48%. Teck Cominco has an option to earn 50% of PTC's interest providing Teck funds all of Petaquilla's share of the cost of bringing the project to production. Teck Cominco must make its election by March 31, 2008.

In 1996, CRU International published their next generation Copper Mines Report ranking the Petaquilla Copper deposit one of the top five undeveloped copper projects in the world. Petaquilla Copper has established resources and an existing feasibility study that only requires updating in order to be NI-43-101 compliant. The Panamanian government has granted the Company a 20 year tenure on the project area with options for two 20 year extensions for a total of 60 years. This is in accordance with Contract Law No. 9, also called "Ley Petaquilla", February 26, 1997. The project has newly constructed road and power infrastructure. The concession is located 100 kms from the Panama Canal.

Petaquilla Copper enjoys the full support of the Panamanian Government. The Government considers the Petaquilla Copper Project to be second only to the Panama Canal expansion in economic importance to the country.


Corporate History

Petaquilla Copper Ltd was incorporated under the Business Corporations Act (British Columbia) on March 15th, 2006. The Company was created to develop the copper assets previously held by Petaquilla Minerals Ltd.

The Plan of Arrangement presented to Petaquilla Minerals shareholders at a Special General Meeting June 6, 2006 transferred Petaquilla Minerals' 52% interest in the project to Petaquilla Copper, which was duly ratified by the shareholders of Petaquilla Minerals Ltd. Petaquilla Minerals originally acquired the property from Minera Petaquilla SA, a company founded by Richard Fifer. Mr. Fifer is also co-president and director of Petaquilla Copper.


History of the Petaquilla Copper Joint Venture

A second feasibility study on the project was completed in January 1998 by H.A. Simons (now AMEC) on behalf of Teck Cominco.

On June 2, 2005, the Molejon Gold Project Agreement was signed by Teck Cominco Ltd, Inmet Mining Corp and Petaquilla Minerals Ltd. The partners agreed to transfer their interest in the Molejon gold deposit and 100% of any other primarilly gold deposits occurring on the partner's joint venture lands to Petaquilla Minerals Ltd. In exchange, Petaquilla Minerals would obtain government approval for a multi-phase Mine Development Plan (approved by the Panamanian government, September 2005).

In May 2006, Teck Cominco commissioned AMEC Americas Ltd to update the capital and operating cost estimates, as well as the financial analysis originally prepared by H.A. Simons in 1998. The updated cost review, released January 10, 2007, concluded: the Petaquilla Copper Project would have a capital cost of US $1.7 billion (including working capital) and cash operating costs in years 1 to 10 of US $0.76 per pound of copper produced. Inmet, Petaquilla and Teck Cominco regarded these results as encouraging. For more information, see Resource Estimates


Project Location and Access

The Petaquilla Joint Venture Property is comprised of a mineral exploration concession covering approximately 136 km² in north-central Panama within the total 795 km² concession area; located 75 miles west of Panama City, 100 miles west of the Panama Canal, and 6 miles from the Caribbean coast.

The project is accessed by the recently completed Llano Grande-Coclesito Road Improvement Project. The Cascajal Bridge has been completed and was officially opened January 16, 2007 by Panama's Minister of Public Works. In addition to providing access to the project, the 28 km Llano Grande-Coclesito section will also be part of a planned future expansion of the national road network connecting communities within the region.

Electrical power will be supplied by connection to the Colombia Power Grid through Petaquilla Power & Water, S.A., a wholly owned subsidiary of Petaquilla Minerals. The close proximity of the project to the Panama Canal, which has been approved for major expansion by a recent national referendum, will lower shipping costs to markets in both Europe and Asia.