First Quantum Minerals Ltd.
LSE : FQM
TSX : FM

First Quantum Minerals Ltd.
Scandinavian Minerals Limited
TSX : SGL
FRANKFURT : W3M

Scandinavian Minerals Limited

June 18, 2008 13:15 ET

First Quantum Minerals Completes Acquisition of Scandinavian Minerals

VANCOUVER, BRITISH COLUMBIA and TORONTO, ONTARIO--(Marketwire - June 18, 2008) - First Quantum Minerals Ltd. ("First Quantum") (TSX:FM)(LSE:FQM) and Scandinavian Minerals Limited ("Scandinavian Minerals") (TSX:SGL)(FRANKFURT:W3M), today announced the closing of the previously announced plan of arrangement (the "Arrangement"), pursuant to which a wholly-owned subsidiary of First Quantum has acquired all of the outstanding common shares of Scandinavian Minerals in consideration of Cdn.$9.00 in cash plus 0.01 common shares of First Quantum for each Scandinavian Minerals common share.

The Arrangement was carried pursuant to the provisions of the Canada Business Corporations Act and was approved by the Ontario Superior Court of Justice and the affirmative vote of Scandinavian Minerals' shareholders at a special meeting of shareholders held on June 12, 2008. Pursuant to the Arrangement, First Quantum, through its wholly-owned subsidiary, acquired all 27,005,199 issued and outstanding common shares of Scandinavian Minerals in consideration of cash and the issuance of 284,491 common shares of First Quantum.

The Scandinavian Minerals common shares are now expected to be de-listed from the Toronto Stock Exchange at the close of trading on the third trading day following the date hereof.

Holders of Scandinavian Minerals common shares are reminded that, in order to receive the consideration to which they are entitled pursuant to the Arrangement, they should properly complete and execute, as soon as possible, the Letter of Transmittal delivered to them in connection with seeking the approval of the shareholders of Scandinavian Minerals for the Arrangement, and present and surrender the certificate(s) representing their common shares in accordance with the Letter of Transmittal, to Equity Transfer & Trust Company, the depositary for the Arrangement, at the address indicated in the Letter of Transmittal. Failure to present and surrender the certificate(s) representing such common shares on or before the sixth anniversary of closing will result in the termination of any entitlement of the holder of such common shares to receive the consideration otherwise payable to such holder under the Arrangement.

Scandinavian shareholders who have any questions or require more information with regard to the Arrangement, the payment of the cash consideration or the receipt of First Quantum common shares should contact:



Equity Transfer & Trust Company,
200 University Avenue, Suite 400,
Toronto, Ontario M5H 4H1
Tel (416) 361-0152 Fax (416) 361-0470
Inquiries Toll Free: 1-866-393-4891
E-mail: info@equitytransfer.com


About Scandinavian Minerals

Scandinavian Minerals is a Canadian public company listed on the Toronto Stock Exchange under the symbol "SGL" and on the Frankfurt Freiverkehr market under the symbol W3M. The Company's current focus is the development of its 100%-owned Kevitsa nickel-copper-PGE project in northern Finland.

Kevitsa, situated in northern Finland, is one of the world's major undeveloped sulphide nickel deposits and one of the largest mineral discoveries in Finland's history. The Kevitsa deposit is easily accessible by road. Water and hydroelectric power are available nearby.

In April 2007 Scandinavian Minerals commenced the Feasibility Study for the Kevitsa project. The Study is being coordinated by St Barbara LLP of London, UK. The metallurgical process has been developed by the Mineral Processing Laboratory of the Geological Survey of Finland. Plant engineering and design is being performed by Outotec Oyj. The Feasibility Study is based on an open pit operation mining approximately 5 million tons per year of ore, with production of nickel and copper concentrates for sale to local or overseas smelters and is expected to be completed in the third quarter of calendar 2008.

For further information, please visit www.scandinavianminerals.com.

About First Quantum

First Quantum is a mining and metals company whose principal activities include mineral exploration, development and mining. First Quantum produces LME grade "A" copper cathode, copper in concentrate, gold and sulphuric acid. First Quantum's operations in Zambia include the 100% owned Bwana Mkubwa SX/EW facility and sulphuric acid plants and the 80% owned Kansanshi open pit copper-gold deposit. In the Democratic Republic of Congo, First Quantum operates the 100% owned Lonshi open pit copper mine which provides oxide copper ore for processing at Bwana Mkubwa, a 100% interest in the newly discovered Frontier copper-cobalt deposit, and 11,000 sq/km of exploration rights. In Mauritania, First Quantum is developing the 80% owned Guelb Moghrein copper gold deposit.

On Behalf of the Board of Directors of First Quantum Minerals Ltd.

G. Clive Newall, President

12g3-2b-82-4461

Listed in Standard and Poor's

Certain information contained in this news release constitutes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and forward-looking information under applicable Canadian securities legislation. Such forward-looking statements or information, including but not limited to those with respect to the proposed transaction, the development of the Kevitsa project, the prices of nickel, gold, copper, cobalt and sulphuric acid, estimated future production, estimated costs of future production, the Company's hedging policy and permitting time lines, involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such factors include, among others, the ability of each of First Quantum and Scandinavian Minerals to satisfy all of the closing conditions to complete the transaction, the possibility that the shareholders of Scandinavian Minerals will not approve the transaction, the actual prices of copper, nickel, gold, cobalt and sulphuric acid, the factual results of current exploration, development and mining activities, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's documents filed from time to time with the Alberta, British Columbia, and Ontario Securities Commissions, the Autorite des marches financiers in Quebec, the United States Securities and Exchange Commission and the London Stock Exchange.

Contact Information

  • First Quantum Minerals Ltd.
    Clive Newall
    President
    +44 140 327 3484
    +44 140 327 3494 (FAX)
    Email: clive.newall@fqml.com
    Website: www.first-quantum.com
    or
    Hogarth Partnership Ltd.
    Harriet Pask or Sarah MacLeod
    +44 (0) 20 7357 9477