Inmet and Petaquilla Announce Commercial Agreement

Inmet and Petaquilla Announce Commercial Agreement 
TORONTO, ONTARIO and VANCOUVER, BRITISH COLUMBIA -- (Marketwire) --
02/25/13 -- Inmet Mining Corporation (TSX:IMN) ("Inmet") and its
wholly owned subsidiary, Minera Panama S.A. ("MPSA"), and Petaquilla
Minerals Ltd. (TSX:PTQ)(OTCBB:PTQMF)(FRANKFURT:P7Z) with certain of
its wholly owned subsidiaries (collectively, "Petaquilla") are
pleased to announce the signing of a binding term sheet outlining the
agreement of the companies relating to aggregate procurement, land
access and use, settlement of certain claims, waiver of royalties to
be received by Inmet, and camp site procurement for the mutual
benefit of MPSA's and Petaquilla's mining operations in the District
of Donoso, Panama.  
The agreements reflected in the term sheet will be incorporated into
a definitive agreement to be executed by the parties. The total value
of the arrangements agreed to by the parties is up to US$150 million.
Inmet will guarantee the obligations of MPSA under the term sheet and
the definitive agreement to be executed between the parties. 
The main commercial terms are as follows: 


 
--  MPSA will purchase, and Petaquilla's infrastructure division will
    supply, up to US$100 million (a minimum of US$75 million) of aggregates
    over a three year period for use in the Cobre Panama project; 
--  MPSA will lease from Petaquilla's mining division, for an annual rental
    of US$1.3 million, certain lands that will be used for temporary and
    permanent camp space for the Cobre Panama Project; and 
--  Petaquilla has applied for mineral exploration concessions which, if
    granted, could entitle it to mineral exploration rights on land where
    Cobre Panama project infrastructure will be built. If and when such
    concessions are granted, certain areas on which Cobre Panama
    infrastructure will be located shall be formally assigned to MPSA. MPSA
    shall also have an option to receive an assignment of certain areas of
    such concessions that are not required by MPSA under the current Cobre
    Panama project plans. 
--  The remaining value of the agreement is comprised of forgiveness of
    royalties and release of certain monetary claims by Inmet and MPSA.

 
The term sheet reflects both companies' co
mmitment to "promote the
sustainable development of the Donoso mining district in accordance
with the highest national and international social and environmental
norms," said Petaquilla President Rodrigo Esquivel. Steve Botts, CEO
and President of MPSA, commented, "I am very pleased we have reached
this agreement, which represents a new chapter of collaboration
between our companies and signals the continued development of a
model mining industry in Panama." 
Petaquilla and Inmet, former joint venture partners, have
successfully negotiated other arrangements in the past, namely the
2005 Molejon Gold Project Agreement, which led to Petaquilla's gold
mining operations at its Molejon gold deposit.  
About Inmet - Inmet is a Canadian-based global mining company that
produces copper and zinc. We have three wholly-owned mining
operations: Cayeli (Turkey), Las Cruces(Spain) and Pyhasalmi
(Finland). We have an 80 percent interest in Cobre Panama, a
development property in Panama, currently in construction. 
About Petaquilla - Petaquilla is a growing, diversified gold producer
committed to maximizing shareholder value through a strategy of
efficient production, targeted exploration and select acquisitions.
The Company operates a surface gold processing plant at its Molejon
Gold Project, located in the south central area of Panama and has
exploration operations at its wholly-owned Lomero-Poyatos project
located in the northeast part of the Spanish/Portuguese (Iberian)
Pyrite Belt and several other exploration licenses in Iberia. 
This press release is also available at www.inmetmining.com and
www.petaquilla.com.
Contacts:
Inmet Mining Corporation
Flora Wood
Director, Investor Relations
+1 416 361 4808
www.inmetmining.com
Contacts:
Petaquilla Minerals Ltd.
Nicolas Ricciardi
Vice President, Investor Relations
+1 604 694-0021 or +1 416-572-2411
1 877 694-0021
www.petaquilla.com