First Quantum Minerals Ltd.

First Quantum Minerals Ltd.

March 18, 2005 11:09 ET

First Quantum Minerals Reports Operational And Financial Results For Three Months And Year Ended December 31, 2004


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: FIRST QUANTUM MINERALS LTD.

TSX SYMBOL: FM
OTC Bulletin Board SYMBOL: FQVLF
LSE SYMBOL: FQM

MARCH 18, 2005 - 11:09 ET

First Quantum Minerals Reports Operational And
Financial Results For Three Months And Year Ended
December 31, 2004

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 18, 2005) - (All
figures expressed in US dollars)

First Quantum Minerals Ltd. (TSX:FM)(OTCBB:FQVLF)(LSE:FQM) is pleased to
announce results for the three months and year ended December 31, 2004.
The complete financial statements are available for review at
www.first-quantum.com.



Summary Table

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2004 2003
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Fourth Twelve Fourth Twelve
Quarter Months Quarter Months
Financial Data (millions) (Oct-Dec) (Jan-Dec) (Oct-Dec) (Jan-Dec)
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Revenues $30.7 $113.5 $19.9 $60.4

Cash flow, (before operating
working capital movements) $n9.8 $ 46.3 $ 8.4 $18.1
Cash flow, (after operating
working capital movements) $ 2.9 $ 30.7 $ 8.2 $16.9
Net earnings $ 9.3 $ 28.0 $ 1.4 $ 4.6

Weighted average shares
outstanding ('000) 60,942 60,123 55,984 50,668

Per Share Data

Cash flow, (before operating
working capital movements) $0.16 $ 0.77 $0.15 $0.36
Cash flow, (after operating
working capital movements) $0.05 $ 0.51 $0.15 $0.33
Net earnings $0.16 $ 0.47 $0.02 $0.09

Operating Data

Finished Copper
Production (tonnes) 10,942 41,546 9,558 29,513
Sulphuric Acid
Produced (tonnes) 35,671 140,200 33,035 132,951
Sulphuric Acid
Sold (tonnes) 9,664 66,460 15,689 75,228

Realized Copper
Price (US$/lb) $1.20 $ 1.13 $0.84 $0.75
Total Cost (C3)
Copper (US$/lb) $0.59 $ 0.62 $0.66 $0.62
Cash Cost (C1)
Copper (US$/lb) $0.48 $ 0.46 $0.47 $0.44

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Notable Events

- Kansanshi commissioning underway, ZESCO power line energized

- New copper discovery at Kashime in Zambia

Financial Results (see attached financial statements)

Fourth quarter revenues were $30.7 million (Q3: $31.2m; Q2: $26.3m; Q1:
$25.3m; Q4'03: $19.9m) which principally comprised copper revenues of
$29.2 million (Q3: $28.6m; Q2: $23.4m; Q1: $22.1m; Q4'03: $17.5m) and
acid revenues of $1.5 million (Q3: $2.6m; Q2: $2.9m; Q1: $3.2m; Q4'03:
$2.4m). Copper revenues were consistent with the third quarter as a
result of a 3% increase in the realized copper price which was offset by
slightly lower copper sales (2%). Acid revenues have fallen by
approximately $1.1 million on the lower acid available for sale at Bwana
Mkubwa. The availability of acid for sale was reduced as the gangue acid
consumption ratio (tonnes of acid consumed per tonne of copper produced)
increased to 2.3 (Q3: 1.7; Q2: 1.6; Q1: 1.4; Q4'03: 1.8) at Bwana Mkubwa.

Gross profit for the fourth quarter of 2004 was $16.2 million (Q3:
$17.1m; Q2: $13.2m; Q1: $13.2m; Q4'03: $7.0m) reflecting the increased
copper revenues from Bwana Mkubwa. The cash flow from operating
activities, after changes in working capital, was $2.9 million (Q3:
$10.4m; Q2: $10.8m; Q1: $6.6m; Q4'03: $8.2m) or $0.05 per share (Q3:
$0.17; Q2: $0.18; Q1: $0.11; Q4'03: $0.15). Cash flow from operations
was adversely impacted by movements in working capital of $7.0 million
for the quarter. The cash flow from operating activities, before changes
in non-cash working capital, was $9.8 million (Q3: $12.9m; Q2: $11.5m;
Q1: $12.1m; Q4'03: $8.4m) or $0.16 per share (Q3: $0.21; Q2: $0.19; Q1:
$0.21; Q4'03: $0.15). Net earnings for the fourth quarter were $9.3
million (Q3: $7.9m; Q2: $4.1m; Q1: $6.7m; Q4'03: $1.4m) or $0.16 per
share (Q3: $0.13; Q2: $0.07; Q1: $0.11; Q4'03: $0.02).

The realized copper price rose to $1.20 per pound (Q3: $1.16/lb; Q2:
$1.11/lb; Q1: $1.03/lb; Q4'03: $0.84/lb). The average LME price for the
fourth quarter was $1.31 per pound (Q3: $1.27/lb; Q2: $1.23/lb; Q1:
$1.23/lb; Q4'03: $0.89/lb). The difference between the LME price and the
realized price was due to realization charges and copper forward
contracts entered into in 2003. During the three months ended, December
31, 2004, the company delivered into 3,000 tonnes of copper forward
sales contracts at an average realized price of $0.88 per pound. As at
January 1, 2005, the company no longer has any forward copper sales
contracts in place at Bwana.

For 2004, revenues increased to $113.5 million (2003: $60.4m; 2002:
$51.1m) which comprised copper revenues of $103.3 million (2003: $49.4m;
2002: $17.0m) and acid revenues of $10.2 million (2003: $11.0m; 2002:
$12.8m). Revenues were up 88% on the comparative period due to improved
copper prices and a 40% increase in copper sales at Bwana Mkubwa. Acid
revenues have remained consistent with the comparative periods as
slightly higher acid prices and acid production has offset higher
internal consumption due to the increase in copper production at Bwana
Mkubwa.

Gross profit for 2004 was $59.7 million (2003: $19.1m; 2002: $4.0m)
reflecting the increased copper revenues from Bwana Mkubwa. The cash
flow from operating activities, after changes in working capital, was
$30.7 million (2003: $16.9m; 2002: ($4.1m)) or $0.51 per share (2003:
$0.33; 2002: ($0.09)). Cash flow from operating activities was impacted
by movements in operating working capital of $15.6 million for the year.
The cash inflow from operating activities, before changes in working
capital, was $46.3 million (2003: $18.1m; 2002: ($0.6m)) or $0.77 per
share (2003: $0.36; 2002: ($0.01)). Net earnings for 2004 increased to
$28.0 million (2003: $4.6m; 2002: ($3.8m)) or $0.47 per share (2003:
$0.09; 2002: ($0.09)).

The realized copper price rose to $1.13 per pound (2003: $0.75/lb; 2002:
$0.65/lb). The LME copper price remained strong for 2004 with LME copper
inventories falling and demand remaining strong from China. The average
LME price for 2004 was $1.23 per pound (2003: $0.81/lb; 2002: $0.71/lb).
The difference between the LME price and the realized price was due to
realization charges and hedging copper forward contracts entered into in
2003. During 2004, the company delivered into 12,000 tonnes of copper
forward sales contracts at an average realized price of $0.87 per pound.

Bwana Mkubwa SX/EW Facility, Zambia (100%)

During the fourth quarter 2004, copper production was 10,942 tonnes (Q3:
11,330t; Q2: 9,585t; Q1: 9,689t, Q4'03: 9,558t). The small decrease from
the third quarter can be attributed to the failure of a rectiformer and
an electrical short that occurred during the period in the
electrowinning plant at Bwana Mkubwa.

Cash costs (C1) were $0.48 per pound (Q3: $0.45/lb; Q2: $0.48/lb; Q1:
$0.39/lb, Q4'03: $0.47/lb) and total costs (C3) were $0.59 per pound
(Q3: $0.68/lb; Q2: $0.67/lb; Q1: $0.53/lb, Q4'03: $0.66/lb). The
increase in C1 costs can be attributed to the higher gangue acid
consumption which has impacted the cash costs in two distinct ways.
Firstly, the C1 costs are up $0.02 per pound due to the higher acid
consumption and secondly, the acid available for resale has been reduced
resulting in the acid credit falling by $0.03 per pound. The combined
$0.05 per pound increase has been partially offset by an improvement in
processing costs of $0.02 per pound on quarter three.

Acid production decreased slightly to 35,671 tonnes (Q3: 35,920t; Q2:
34,265t; Q1: 34,344t, Q4'03: 33,035t) of which 9,664 tonnes (Q3:
16,884t; Q2: 19,149t; Q1: 20,763t, Q4'03:15,689t) of surplus acid
production was sold. The decrease in surplus acid sold was as a result
of the higher gangue acid consumption at Bwana.

For the year ended December 31, 2004, copper production increased to
41,546 tonnes (2003: 29,513t; 2002: 11,878t). The 40% increase in
production has resulted from a steady state of production being reached
as well as Bwana Mkubwa realizing the benefits of the new ore-delivery
system and other processing initiatives. In addition, the electrical
current flow through the new tank house at Bwana Mkubwa has been
increased which has enabled more copper to be plated.

Cash costs (C1) for the year were $0.46 per pound (2003: $0.44/lb; 2002:
$0.27/lb) and total costs (C3) were $0.62 per pound (2003: $0.62/lb;
2002: $0.52/lb). Cash costs (C1) have risen from 2003 to 2004
principally due to the acid credit per pound of copper produced has
fallen from $0.08 to $0.06 per pound.

Acid production was 140,200 tonnes (2003: 132,951t; 2002: 140,263t), of
which 66,460 tonnes (2003: 75,228t; 2002: 88,198t) was surplus acid
production that was sold to external customers. The increase in acid
production was due to problems experienced in 2003 that were resolved by
the start of 2004. The maintenance programs undertaken in 2003 were also
more extensive in 2004.

Although the acid production has actually increased, the acid available
for resale has decreased due to the increased acid consumption through
the Bwana Mkubwa copper circuit. Acid consumption during 2004 was 73,298
tonnes (2003: 57,573t; 2002: 51,392t), which has meant that less acid
was available for resale. The increase of 27% in acid consumption has
been driven by a 41% increase in copper production less the effects of a
slightly improved acid consumption rate per tonne of copper produced of
1.8 (2003: 2.0; 2002: 4.3).

Lonshi Copper Mine, Democratic Republic of Congo (100%)

During the fourth quarter 2004, approximately 261,000 tonnes (Q3:
257,000t; Q2: 85,000t; Q1: 66,000t) of ore grading 6.4% (Q3: 4.7%; Q2:
5.2%; Q1: 5.4%) and approximately 2,926,000 tonnes (Q3: 4,213,000t; Q2:
2,854,000t; Q1: 1,036,000t) of waste were mined from Lonshi. The strip
ratio (ratio of waste to ore) for the quarter was approximately 11:1.
The total material mined was 3,187,000 tonnes (Q3: 4,470,000t; Q2:
2,939,000t; Q1: 1,102,000t). The 29% reduction in mined material was due
to constraints surrounding drilling capacity at Lonshi. During the
quarter, the push-backs to the east of pit encountered dolomitic rocks
which required drilling and blasting. Waste mining in the Southern
push-back has continued from the third quarter with the expectation that
the ore zone will be reached in the first quarter of 2005. The company
has also continued its efforts to improve the dewatering of the Lonshi
pit, with more in-pit pumps and bigger boreholes being used. These
initiatives will add to the company's ability to manage the water
ingress and continue to mine efficiently in the wet season.

In 2004, approximately 669,000 tonnes (2003: 711,000t; 2002: 1,195,000t)
of ore grading 5.5% (2003: 4.8%; 2002: 4.6%) and approximately
11,029,000 tonnes (2003: 4,487,000t; 2002: 4,156,000t) of waste were
mined in total. Due to the increased copper production at Bwana Mkubwa
and the need to re-establish a strategic stockpile, the size of the
mining fleet at Lonshi has increased significantly to cope with this
increased demand. The strip ratio for the year was 16:1 (2003: 6:1;
2002: 3:1). As a result, the Company has deferred costs of approximately
$3.4 million since December 31, 2003 associated with its mining program
at Lonshi. In 2003, the company had provided for an additional $2.7
million associated with the mining program at Lonshi.

On April 1, 2004 as a result of the on-going exploration program at
Lonshi, the mine reserve was increased to 225,000 tonnes of acid soluble
copper as at April 1, 2004. In the light of this reserve increase, and
the prevailing improvement in copper price, a new mine plan was
generated. The new mine plan has a life-of-mine stripping ratio of 12:1
compared to the previous plan of 8:1.

Kansanshi Copper-Gold Deposit, Zambia (80%)

At Kansanshi, construction was completed. Waste stripping and ore
stockpiling commenced. The new 330Kv ZESCO power line was energized and
commissioning began. Commissioning has been prioritized, with the staged
introduction of water and ore through the plant, commencing with the
sulphide circuit, and followed by the oxide circuit.

During fourth quarter 2004, approximately 1,346,000 tonnes (Q3: 0t) of
ore grading 2.4% and approximately 2,857,000 tonnes of waste (Q3:
1,175,000t) were mined. The strip ratio for the quarter was 2:1 which
was greater than the life of mine mine strip ratio. This resulted in
costs of approximately $0.4 million being deferred for the quarter. The
ore was comprised of 307,000 tonnes of sulphide ore and 1,039,000 tonnes
of oxide ore.

Mining has been concentrated in the Main pit as this is the principal
source of the sulphide ores. The phased start up at Kansanshi has meant
that the focus has been on providing sulphide ores as the sulphide
circuit was commissioned first. As expected with any commissioning, the
mining program at Solwezi has faced a number of challenges including
rain delays of up to 4 hours per day which have restricted access to the
pit, and reduced truck availability resulting from problems associated
with the supply of tyres, and spare parts, as well as fuel system
faults. Notwithstanding these challenges the company as at December 31,
2004 has still managed to stockpile 157,000 tonnes of sulphide ore and
1,039,000 tonnes of oxide ore for future processing.

In the fourth quarter, Kansanshi crushed 94,270 dry tonnes of ore and
milled 59,316 dry tonnes of ore. This in combination with the
commissioning at the sulphide circuit has meant that as at the end of
December 2004, Kansanshi had produced 441 tonnes of copper concentrate.

Frontier (formerly Lufua) Copper Deposit, Democratic Republic of Congo
(100%)

In May, First Quantum announced the results of an independent
copper-cobalt resource estimate completed at its wholly owned Frontier
Project located in Haut Katanga Province, Democratic Republic of Congo.
The 43-101 compliant resource, at a 0.5% cutoff, is 87.6 million tonnes
grading 1.17% copper or one million tonnes of contained copper. In
addition, drilling has outlined a discrete, high grade cobalt resource
of 5.6 million tonnes grading 0.169% cobalt that occurs within the
larger copper resource.

Frontier is located near the town of Sakania in the DRC, within 2 km of
the Zambian border, and the paved highway that parallels it, roughly
equidistant between the city of Ndola (35 kilometres) to the southeast
and the Mopani Copper Mines smelter at Mufulira (30 kilometres) to the
northwest. It is also approximately 45 kilometres from First Quantum's
Bwana Mkubwa SX/EW facility. The main railway from the Copperbelt in
Zambia to Lubumbashi in the DRC passes within 5 kilometres of the
property.

Mineralization at Frontier is hosted predominantly within altered and
veined Katangan metapelites, interpreted to be contained within a
shallow northwest plunging, north eastward dipping syncline, with the
thickest mineralization developed on the west limb of this fold.
Oxidation extends to variable depths across the deposit, and is strongly
influenced by post mineral faulting. The deposit is open along strike to
the northwest, and is open down dip to the northeast.

In-fill drilling to move the resource into the reserve category was
completed. Metallurgical testing and preliminary feasibility work
contuniue. Updated resource/reserve statements, as well as a Project
Engineering Report, are expected to be published in the first half of
2005.

Guelb Moghrein Copper-Gold Deposit, Mauritania (80%)

During the second quarter of 2004, First Quantum announced the purchase
an 80% interest in the Guelb Moghrein copper - gold project in
Mauritania. As at November 1, 2004, all agreements applying to the
acquisition had been finalized.

The Guelb Moghrein copper-gold deposit is located 250 kilometres
northeast of the nation's capital, Nouakchott, near the town of Akjoujt,
and is accessible by paved highway. It consists of an open pit mineable,
copper/gold deposit containing a measured and indicated resource of 23.7
million tonnes grading 1.88% total copper and 1.41 gram per tonne gold,
as estimated by Kilborn-SNC Lavalin Europe Limited, for a previous owner.

This resource was estimated in accordance with the Australasian Code for
Reporting of Identified Mineral Resources and Ore Reserves, July 1998,
and hence is believed to have been done to the industry standards then
pertaining. The resource, which First Quantum considers relevant, has
not been verified by a Qualified Person for First Quantum as required by
National Instrument 43-101. First Quantum is not treating the resource
as a National Instrument 43-101 defined resource and therefore it should
not be relied upon. First Quantum intends to establish a new resource
under National Instrument 43-101 guidelines in due course.

First Quantum intends to develop Guelb Moghrein with production expected
by the fourth quarter of 2005. Production will be initially targeted at
approximately 30,000 tonnes of copper and 50,000 ounces of gold per year
in the form of a copper-gold concentrate which will be trucked to the
port of Nouakchott and exported to International smelters.

Kashime Copper Prospect, Zambia (100%)

In December, First Quantum announced the results of a reverse
circulation drill program completed at the Kashime prospect (Kashime).
Kashime is located approximately 40 kilometres north of the town of
Mkushi, which has paved highway access to the Copperbelt, as well as
limited services. Kashime is approximately 140 kilometres by paved and
dirt road from First Quantum's Bwana Mkubwa SX/EW facility, near Ndola.

Mineralization at Kashime occurs as disseminated to semi massive bornite
and chalcopyrite, oxidized in part, and is hosted by an altered,
schistose, carbonaceous sandstone unit overlain by a barren hanging wall
dolomitic marble. The mineralized unit dips southwards at 10 - 20
degrees, and depth of oxidation is controlled by proximity to faulting.
The drill program tested the most anomalous 1000 metre long section of a
2000 metre long, +300 parts per million copper soil anomaly. Highlights
from the 13 hole drill program included 56 metres grading 2.08% copper;
55 metres grading 1.20% copper and 101 metres grading 0.92% copper.
Follow up drilling to further test the prospect is underway.

Investments -Carlisa

The Company holds an 18.8% interest in Carlisa Investment Corporation
(Carlisa), which holds a 90% interest in Mopani Copper Mines Plc
(Mopani). Mopani is a privately held company registered in Zambia. The
carrying value of this investment as at September 30, 2004 is $9.5
million (Dec 2003: $9.5m; Dec 2002: $9.5m). There were no movements in
this investment during the first nine months of 2004.

As the majority owner of Mopani is a private company, only limited
public information is available for dissemination. Notwithstanding, in a
recent article, Mopani Chief Executive Officer Tim Henderson told
Reuters copper production for 2004 was expected to increase 23 percent
to 165,000 tonnes, 5,000 tonnes higher than the initial budget, from
134,000 tonnes last year. In addition Mr. Henderson said an expansion
program at Mopani will boost finished copper output to 190,000 tonnes in
2005. Henderson said the Mufulira smelter, which currently has a
handling capacity of 420,000 tonnes of copper concentrate per year,
would eventually be expanded to handle 850,000 tonnes of copper
concentrate.

Outlook

The Bwana Mkubwa SX/EW processing facility is expected to produce
between 40,000 to 45,000 tonnes of copper cathode in 2005. C1 (cash)
costs are expected to range between $0.50 and $0.55 per pound of
finished copper as high gangue acid consuming ores are treated in 2005.
During the first two months of 2005 (February being a short month),
Bwana Mkubwa produced approximately 7,712 tonnes of copper cathode. All
production from Bwana Mkubwa is unhedged.

At Kansanshi in Zambia, commissioning of the new mine is well underway.
The sulphide circuit is operating at design throughputs with average
copper recoveries of approximately 88%. The first concentrate shipment
left the mine on February 8, 2005. Commissioning of the oxide circuit is
underway with build-up of in circuit inventory. First copper cathode is
expected to be produced in March 2005. Commercial production is expected
to begin in April of 2005.

The original GRD Minproc Definitive Feasibility Study (DFS) for
Kansanshi envisioned the treatment of 4 million tonnes of oxide ore and
2 million tonnes of sulphide ore to produce an average of 100,000 tonnes
of finished copper production per year. Capital additions carried out to
the sulphide milling circuit during initial construction at Kansanshi
will double design capacity throughput of sulphide ore to 4 million
tonnes per year. This will result in copper concentrate production
substantially outperforming the DFS forecasts in 2005 when an aggregate
production of 91,000 tonnes is planned at C1 (cash) costs of $0.45 per
pound of copper.

In addition, a $29 million capital program committed in 2005 will expand
the sulphide circuit again to eight million tonnes of treatment capacity
which will result in an average of 145,000 tonnes of finished copper
production per year during the period of 2006-2009.

Finally, an additional expansion of the sulphide circuit is under
consideration to increase the sulphide treatment capacity to 12 million
tonnes of sulphide ore to maintain annual finished copper production of
145,000 tonnes as oxide ore is depleted and sulphide ore grades begin to
fall.

With the growing concentrate production from the Kansanshi mine and the
potential future concentrate production from the Company's Frontier
deposit, there will be a need for additional smelter capacity in the
Copperbelt over the next several years. This additional smelter capacity
may result from the further expansion of the Mopani Mufulira smelter or
from the refurbishment of the Vedanta Nkana smelter. In an effort to
reduce its reliance upon Copperbelt smelter capacity, First Quantum has
investigated alternative processing routes for a portion of its future
copper concentrates. To this end, the Company has purchased a complete
"second-hand" pressure oxidation facility from Placer Dome's Turquoise
Ridge operations in Nevada, USA. The pressure oxidation facility is
currently being dismantled and over the next several months will be
transported to the Kansanshi mine site in Zambia. Once on site, the
pressure oxidation facility and ancillary equipment will be
reconstructed and commissioned for use. Additional information will be
published as the project progresses.

At the Frontier project in the DRC, in-fill drilling to expand the
resource and move the resource into the reserve category was completed
in 2004. Updated resource/reserve statements, as well as a Project
Engineering Report, are expected to be published in the second quarter
of 2005.

At Guelb Moghrein, in Mauritania, MDM Processing, an Australian
engineering company, has completed a Project Engineering Report (PER).
The results of the PER will be published in the second quarter of 2005.
The contracts for the plant engineering and construction have been
awarded. Construction activities are underway. Guelb Moghrein is
expected to be financed through a combination of cash on hand, project
debt and end user/supplier finance. An exploration drill program of
approximately 5,000 metres is underway on selected high priorities
targets within the 10,000 square kilometer Guelb Moghrein exploration
tenement.

At the newly discovered Kashime prospect exploration drilling
recommenced in February, 2005.

A substantial exploration program continues in the Zambia and the DRC
Pedicle region where First Quantum controls approximately 30,000 square
kilometers of prospective geology. A program of more than 10,000 metres
of reverse circulation and diamond core drilling is planned for 2005.
The drill program will focus on a number of attractive targets with
similar geochemical and geophysics signatures to those demonstrated by
Lonshi, Frontier and Kashime. Some of these new targets have had limited
preliminary drilling in 2004 leading to the more extensive drill
programs in 2005.

In February 2005, First Quantum's, wholly owned subsidiary company,
International Quantum Resources Limited, sold its equity ownership stake
in Anvil Mining Limited ("Anvil") (TSX-AVM and ASX-AVM). The sale
consisted of 4,029,617 Anvil common shares for net proceeds of US $22
million. First Quantum continues to hold 296,631 warrants to purchase
296,631 Anvil common shares at a price of US $0.92 per share. The
warrants, which have an expiry date of January 15, 2006, are held for
investment purposes and the shares issued on exercise may be sold in the
future. A gain on the sale of approximately US $16 million will be
booked in the first quarter of 2005.

In March, the Board of Directors established a dividend policy under
which First Quantum will pay an inaugural dividend of Canadian six cents
per share in respect of the year ended December 31, 2004. The dividend
will be paid on April 25, 2005 to shareholders of record on April 11,
2005.

The Board of Directors plans to implement a progressive dividend policy
with future payments established in line with annual results and net
cash generation. The Board of Directors expects First Quantum to pay two
dividends a year. It is intended that in any year an interim dividend
will declared upon announcement of the first six month results and a
final dividend will be declared upon announcement of the full year
results. It is proposed that the interim dividend will be set at
approximately one-third of the total dividends paid in the previous
financial year.

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

G. Clive Newall

12g3-2b-82-4461

Listed in Standard and Poor's

Sedar Profile #00006237

Certain of the information contained in this news release constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements, including but not limited to those with respect to the
prices of gold, copper 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. Such factors include, among others, the
actual prices of copper, gold 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 British Columbia Securities Commission and the United States
Securities and Exchange Commission. The preceding discussion and
analysis and financial review should be read in conjunction with
management's discussion of critical accounting policies, risk factors
and comments regarding forward looking statements contained in the
audited consolidated financial statements for the period ended December
31, 2002. The following discussion and analysis of the Company's results
of operations should also be read in conjunction with the unaudited
consolidated financial statements and related notes.



OPERATION STATISTICS by QUARTER - 2004

Bwana Mkubwa SX/ EW Facility, Zambia
Copper & Acid Production
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First Second Third Fourth Full
Quarter Quarter Quarter Quarter Year

Ore Processed - (tonnes) 208,667 236,887 278,392 256,066 980,012
Copper Grade - (acid
soluble %) 5.2 4.6 4.6 5.0 4.8
Contained Copper
- (tonnes) 10,904 10,813 12,908 12,824 47,449
Recovery - (%) 89 89 88 85 88

Finished Copper
Production (tonnes) 9,689 9,585 11,330 10,942 41,546
Total Cost (C3)
Copper ($/lb) 0.53 0.67 0.68 0.59 0.62
Cash Cost (C1)
Copper ($/lb) 0.39 0.48 0.45 0.48 0.46

Sulphuric Acid
Produced (tonnes) 34,344 34,265 35,920 35,671 140,200
Sulphuric Acid
Sold (tonnes) 20,763 19,149 16,884 9,664 66,460

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Notes:

C1 - costs are cash operating costs, including mining, processing,
site administration and refining; net of by product credits.

C3 - costs are total production costs, including mining, processing,
site administration and refining; depreciation and amortization
charges; royalties, related head office, interest costs and finance
charges; net of by product credits.



Consolidated Balance Sheets
As at December 31, 2004 and December 31, 2003
(expressed in thousands of US dollars)

2004 2003
$ $
(Restated)

Assets

Current assets
Cash and cash equivalents (note 19) 50,356 25,592
Restricted cash (note 9) 1,931 -
Accounts receivable and prepaid expenses 21,927 4,441
Inventory (note 4) 31,674 17,576
--------------------
105,888 47,609

Investments (note 5) 15,340 12,632
Exploration properties (note 6) 444 2,242
Property, plant and equipment (note 7) 319,222 96,603
Other assets and deferred charges (note 8) 32,167 3,049
--------------------
473,061 162,135
--------------------
--------------------

Liabilities

Current liabilities
Accounts payable and accrued liabilities 33,884 17,737
Current taxes payable (note 12) 3,248 -
Current portion of long-term debt (note 9) 22,865 12,993
Current portion of other liabilities (note 11) 12,012 3,333
--------------------
72,009 34,063

Long-term debt (note 9) 191,661 32,374
Asset retirement obligations (note 10) 3,762 4,182
Other liabilities (note 11) 33,286 3,114
Future income tax liability (note 12) 12,313 4,589
--------------------
313,031 78,322
Minority interests 2,190 2,190
--------------------
315,221 80,512
--------------------

Shareholders' Equity
Equity accounts (note 13) 161,776 113,102
Deficit (3,936) (31,479)
--------------------
157,840 81,623
--------------------
473,061 162,135
--------------------
--------------------

Commitments and contingencies (note 21)
Subsequent event (note 22)

Approved by the Board of Directors

R. Stuart. Angus, Director Robert A. Watts, Director

The notes are an integral part of these consolidated financial
statements.
For a copy of the notes visit our website at www.first-quantum.com



Consolidated Statements of Earnings and Deficit
For years ended December 31, 2004 and 2003
(expressed in thousands of US dollars)

2004 2003
$ $
(Restated)

Revenues
Copper 103,352 49,419
Acid 10,171 11,035
--------------------

113,523 60,454
--------------------

Costs and expenses
Cost of sales 53,770 41,299
Depletion and amortization 10,873 7,761
Exploration 3,063 620
Foreign exchange loss 260 969
General and administrative 6,171 2,852
Interest and financing fees on long-term debt 3,040 1,759
Other income (985) (419)
--------------------

76,192 54,841
--------------------

Earnings before income taxes and equity earnings 37,331 5,613

Income taxes (note 12) 11,006 1,397

Equity earnings (note 5) 1,685 366
--------------------

Net earnings for the year 28,010 4,582

Deficit - Beginning of year (note 2) (31,479) (36,061)

Prior period restatement (stock-based
compensation) (note 2) (467) -
--------------------

Deficit - End of year (3,936) (31,479)
--------------------
--------------------

Earnings per common share
Basic 0.47 0.09
Diluted 0.46 0.09

The notes are an integral part of these consolidated financial
statements.
For a copy of the notes visit our website at www.first-quantum.com



Consolidated Statements of Cash Flows
For years ended December 31, 2004 and 2003
(expressed in thousands of US dollars)

2004 2003
$ $
(Restated)

Cash flows from operating activities
Net earnings for the year 28,010 4,582
Items not affecting cash
Depletion and amortization 10,873 7,761
Accretion 416 702
Provision for deferred stripping - 2,718
Equity earnings (1,685) (366)
Unrealized foreign exchange (gain) loss (1,180) 1,253
Future income tax expense 7,724 1,386
Stock-based compensation expense 1,227 -
Other 878 16
--------------------

46,263 18,052
Change in non-cash operating working capital
Increase in accounts receivable and
prepaid expenses (9,455) (1,224)
Increase in inventory (14,514) (4,457)
Increase in accounts payable and
accrued liabilities 8,397 4,514
--------------------

30,691 16,885
--------------------

Cash flows from financing activities
Movement in restricted cash (1,931) -
Proceeds from long-term debt 179,455 47,283
Repayments of principal on long-term debt (17,401) (29,490)
Proceeds from issue of common
shares and warrants 46,983 24,164
Payment for deferred finance fees (7,635) (1,176)
--------------------

199,471 40,781
--------------------

Cash flows from investing activities
Net payments to acquire property,
plant and equipment (193,245) (39,158)
Payments for investments (1,023) -
Prepaid power payments (6,988) -
Payments for deferred exploration
and stripping costs (4,849) (1,248)
Proceeds on disposal of investments - 152
--------------------

(206,105) (40,254)
--------------------

Effect of exchange rate changes on cash 707 -
--------------------

Increase in cash and cash equivalents 24,764 17,412

Cash and cash equivalents - Beginning of year 25,592 8,180
--------------------

Cash and cash equivalents - End of year 50,356 25,592
--------------------
--------------------

The notes are an integral part of these consolidated financial
statements.
For a copy of the notes visit our website at www.first-quantum.com



Segmented Information
For the year ended December 31, 2004
(expressed in thousands of US dollars)

BLO KCP GMP CDA Total
$ $ $ $ $

External revenues 113,523 - - - 113,523

Costs and expenses
Cost of sales 53,770 - - - 53,770
Depletion and
amortization 9,552 - - 1,321 10,873
Exploration 1,975 - - 1,088 3,063
Foreign exchange
(gain) loss (153) - - 413 260
General and
administrative - - - 6,171 6,171
Interest and
financing fees 2,803 - - 237 3,040
Other income (77) - - (908) (985)
-------------------------------------------

Total costs and expenses 67,870 - - 8,322 76,192
-------------------------------------------

Segment profit (loss)
before the undernoted
items 45,653 - - (8,322) 37,331
Equity earnings - - - 1,685 1,685
Income tax 11,006 - - - 11,006
-------------------------------------------

Segment profit (loss) 34,647 - - (6,637) 28,010
-------------------------------------------
-------------------------------------------

Property, plant and
equipment additions 19,041 204,923 10,272 3,689 237,925
-------------------------------------------
-------------------------------------------

Total assets 154,132 304,284 10,475 180,317 649,208
Intercompany balances
included in total
assets (46,393) - - (129,754) (176,147)
-------------------------------------------

Total consolidated
assets 107,739 304,284 10,475 50,563 473,061
-------------------------------------------
-------------------------------------------

Definitions:
BLO - Combined operations of Bwana/Lonshi
KCP - Kansanshi Copper Project
GMP - Guelb Moghrein Project
CDA - Corporate Development and Administration, includes Frontier,
Connemara and Carlisa

The notes are an integral part of these consolidated financial
statements.
For a copy of the notes visit our website at www.first-quantum.com



Segmented Information
For the year ended December 31, 2003
(expressed in thousands of US dollars)

BLO KCP GMP CDA Total
$ $ $ $ $

External revenues 60,454 - - - 60,454

Costs and expenses
Cost of sales 41,250 - - 49 41,299
Depletion and
amortization 7,632 - - 129 7,761
Exploration - - - 620 620
Foreign exchange
loss (gain) 1,591 - - (622) 969
Gain on disposal (138) - - - (138)
General and
administrative - - - 2,852 2,852
Interest and
financing fees 1,713 - - 46 1,759
Other income (52) - - (229) (281)
-------------------------------------------

Total costs and
expenses 51,996 - - 2,845 54,841
-------------------------------------------

Segment profit (loss)
before the undernoted
items 8,458 - - (2,845) 5,613
Equity earnings - - - 366 366
Income tax 1,397 - - - 1,397
-------------------------------------------

Segment profit (loss) 7,061 - - (2,479) 4,582
-------------------------------------------
-------------------------------------------

Property, plant and
equipment additions 14,659 27,896 - 76 42,631
-------------------------------------------
-------------------------------------------

Total assets 84,545 44,731 - 130,798 260,074
Intercompany balances
included in total
assets (4,220) - - (93,719) (97,939)
-------------------------------------------

Total consolidated
assets 80,325 44,731 - 37,079 162,135
-------------------------------------------
-------------------------------------------

The notes are an integral part of these consolidated financial
statements.
For a copy of the notes visit our website at www.first-quantum.com



-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    First Quantum Minerals Ltd.
    Geoff Chater or Bill Iversen
    (604) 688-6577 or Toll Free: 1-888-688-6577
    (604) 688-3818 (FAX)
    info@first-quantum.com
    www.first-quantum.com
    The Toronto Stock Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.