TORONTO, ONTARIO--(Marketwired - July 27, 2016) -

(In United States dollars, except where noted otherwise)

First Quantum Minerals Ltd. ('First Quantum' or the 'Company') (TSX:FM) today announced comparative earnings of $38 million ($0.06 per share) and cash flows from continuing operating activities of $304 million ($0.44 per share) for the three months ended June 30, 2016.

SECOND QUARTER 2016 HIGHLIGHTS

CEO'S COMMENTS

'Strong performance by all parts of First Quantum continues, as focus on two of our most important priorities pay off,' noted Philip Pascall, Chairman and CEO.

'Firstly, all our Company's operations have shown improvements in costs and efficiency. The greatest impact was attributable to Kansanshi, and the operation of its smelter. This provides the mine with more acid than previously available, and at virtually no cost. The extra acid helps recovery of mixed and high acid consuming oxide ores. The combination of higher recoveries, negligible acid cost, and the lower smelting treatment costs, make a significant difference. Other aspects of Kansanshi, particularly mining, have also improved markedly, as they have across the Company.

'Secondly, successful completion of the sale of Kevitsa, and refinancing the senior debt facility have further strengthened the Company's financial position, and hence its ability to continue developing the Cobre Panama project, amid volatile market conditions and sustained lower commodity prices.

'Going forward, we are making progress with the complex process of arranging project financing for Cobre Panama. We will continue to be alert to any opportunities for further cost savings and improvements in profitability and cash flow.'

OPERATING HIGHLIGHTS - CONTINUING OPERATIONS

FINANCIAL HIGHLIGHTS

UPDATED GUIDANCE - CONTINUING OPERATIONS

Capital expenditure

• Guidance on total capital expenditure for 2016 to 2018 is unchanged.

• 2016 net capital expenditure, after contributions from third-parties, is expected to be approximately $710 million, inclusive of net capital expenditure of $390 million for the Cobre Panama project, $160 million for capitalized stripping and $160 million for other projects and sustaining capital. This excludes capitalization of any net pre-commercial production costs and capitalized interest but includes capital expenditure at Kevitsa to the date of sale.

• 2017 and 2018 net capital expenditure, after contributions from third-parties, is estimated at approximately $820 million per annum, with Cobre Panama net capital expenditure of approximately $480 million per annum, excluding capitalization of any net pre-commercial production costs and capitalized interest.

Cash cost and all-in sustaining cost

Both C1 and AISC for copper have been reduced from previous guidance to reflect embedded cost savings throughout the Company.

C1:

• Expected average cash cost of copper in 2016 (excluding Sentinel) reduced to approximately $1.05 to $1.15 per lb (including Sentinel reduced to approximately $1.15 to $1.30 per lb). Guidance is the same on a continuing operations or including discontinued operations basis.

• Expected average cash cost of copper in 2017 and 2018 remains at approximately $1.20 to $1.40 per lb, including Sentinel.

• Expected average cash cost of nickel on a continuing basis excluding Kevitsa is approximately $4.50 to $4.70 per lb for 2016, 2017 and 2018.

AISC:

• Expected average AISC of copper reduced to approximately $1.40 to $1.60 per lb for 2016 (excluding Sentinel) on a continuing basis, and reduced to approximately $1.55 to $1.75 per lb (including Sentinel) on a continuing basis. Guidance is the same on a continuing operations or including discontinued operations basis.

• Expected average AISC of copper of approximately $1.70 to $1.90 per lb for 2017 and 2018 (including Sentinel).

• Expected average AISC of nickel is approximately $5.00 to $5.30 per lb for 2016, 2017 and 2018.

Excludes the Kevitsa mine.

CONFERENCE CALL & WEBCAST

The Company will host a conference call and webcast to discuss the results on Thursday July 28, 2016.

The conference call replay will be available from noon (EDT) until 11:59 pm (EDT) on August 4, 2016.

COMPLETE FINANCIAL STATEMENTS AND MANAGEMENT'S DISCUSSION AND ANALYSIS

The complete unaudited consolidated financial statements and Management's Discussion and Analysis for the quarter ended June 30, 2016 are available at www.first-quantum.com and should be read in conjunction with this news release.

For further information visit our website at www.first-quantum.com.

Cautionary statement on forward-looking information

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 securities laws. These forward-looking statements are principally included in the Development activities section and are also disclosed in other sections of the document. The forward-looking statements include estimates, forecasts and statements as to the Company's expectations of production and sales volumes, commissioning and reaching commercial production at Sentinel and expected timing of completion of project development at Enterprise and Cobre Panama and are subject to the impact of ore grades on future production, the potential of production disruptions, capital expenditure and mine production costs, the outcome of mine permitting, the outcome of legal proceedings which involve the Company, information with respect to the future price of copper, gold, cobalt, nickel, zinc, pyrite, PGE, and sulphuric acid, estimated mineral reserves and mineral resources, First Quantum's exploration and development program, estimated future expenses, exploration and development capital requirements, the Company's hedging policy, and 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, the Company has made numerous assumptions including among other things, assumptions about continuing production at all operating facilities, the price of copper, gold, nickel, zinc, pyrite, PGE, cobalt and sulphuric acid, anticipated costs and expenditures and the ability to achieve the Company's goals. 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 the 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. These factors include, but are not limited to, future production volumes and costs, the temporary or permanent closure of uneconomic operations, costs for inputs such as oil, power and sulphur, political stability in Zambia, Peru, Mauritania, Finland, Spain, Turkey, Panama, Argentina and Australia, adverse weather conditions in Zambia, Finland, Spain, Turkey and Mauritania, labour disruptions, power supply, mechanical failures, water supply, procurement and delivery of parts and supplies to the operations, and the production of off-spec material.

See the Company's Annual Information Form for additional information on risks, uncertainties and other factors relating to the forward-looking statements and information. Although the Company has 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 these factors are beyond First Quantum's control. Accordingly, readers should not place undue reliance on forward-looking statements or information. The Company undertakes 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.