Equinox Minerals Limited
TSX : EQN
ASX : EQN

Equinox Minerals Limited

August 24, 2006 09:49 ET

Equinox Minerals Announces Cdn$84 Million Bought Deal

TORONTO, ONTARIO--(CCNMatthews - Aug. 24, 2006) -

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN

Equinox Minerals Limited (TSX:EQN)(ASX:EQN) (the "Corporation") is pleased to announce that the Corporation has entered into a bought deal agreement with a syndicate of underwriters co-led by Sprott Securities Inc., CIBC World Markets Inc. and GMP Securities L.P., and including Paradigm Capital Inc., Raymond James Ltd., and Dundee Securities Corporation (collectively, the "Underwriters"). Under the agreement, the syndicate will purchase from the Corporation 60 million common shares of the Corporation ("Shares") at a price of Cdn$1.40 per Share for gross proceeds of Cdn$84 million (the "Offering"). The Corporation will file a preliminary short form prospectus in all of the provinces of Canada for the purpose of qualifying the common shares for distribution to the public as soon as possible and the offering is scheduled to close on or about September 15, 2006. The offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange, Australian Stock Exchange and the securities regulatory authorities.

The Corporation anticipates that 35,000,000 Shares of this Offering will be resold to a strategic investor who has approached the Corporation with a view to acquiring an equity interest.

The net proceeds from the Offering will be used to fund continued construction development activities at Equinox's Lumwana Copper Project in Zambia and for general working capital purposes.

The common shares offered have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

On Behalf of the Board of Directors of Equinox:

Craig R. Williams - President & Chief Executive Officer

For information on Equinox and technical details on the Lumwana Project please refer to the company website at www.equinoxminerals.com.

Cautionary Language and Forward Looking Statements

This press release contains "forward-looking statements", which are subject to various risks and uncertainties that could cause actual results and future events to differ materially from those expressed or implied by such statements. Investors are cautioned that such statements are not guarantees of future performance and results. Risks and uncertainties about the Company's business are more fully discussed in the Company's disclosure documents filed from time to time with the Canadian and Australian securities authorities. The independent definitive feasibility study prepared by GRD Minproc Ltd, Golder Associates Pty Ltd, Investor Resources Ltd. and Knight Piesold Pty Ltd has been disclosed in the Amended Technical Report dated August 2006, and is compliant with the JORC Code and National Instrument 43-101. Unless otherwise indicated, technical information contained in this release which updates such information contained within the Amended Technical Report is based on information compiled by Ross Bertinshaw and John Battista (Golder) each of whom is a "Qualified Person" who is either a corporate member of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists or the CIM.

The economic analysis of Lumwana in the Amended Technical Report is based on a model which includes Inferred Resources that are considered not to be defined in sufficient detail to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. There is no certainty that the economic performance proposed in the economic analysis following depletion of the Mineral Reserves will be achieved. Exemptive relief has been granted by the applicable Canadian securities regulators for this analysis. See the Amended Technical Report for further details.

Readers are cautioned not to rely solely on the summary of such information contained in this release, but should read the Amended Technical Report which is posted on Equinox's website (www.equinoxminerals.com) and filed on SEDAR (www.sedar.com) and any future amendments to such report. Readers are also directed to the cautionary notices and disclaimers contained herein. All currency in this release is U.S. dollars unless otherwise stated.

ARBN 108 066 986

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