Quadra Mining Ltd.

Quadra Mining Ltd.

March 31, 2005 09:00 ET

Quadra Obtains Working Capital Facility to Increase the Cash Liquidity of the Robinson Mine




MARCH 31, 2005 - 09:00 ET

Quadra Obtains Working Capital Facility to Increase
the Cash Liquidity of the Robinson Mine

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 31, 2005) - Quadra
Mining Ltd. (TSX:QUA) is pleased to announce that on March 30, 2005,
Robinson Nevada Mining Company ("RNMC"), a wholly-owned subsidiary of
Quadra Mining Ltd. ("the Company"), arranged a revolving working capital
facility and hedge line of credit facility with Macquarie Bank Ltd.
("Macquarie") pursuant to agreements between RNMC, the Company and
Macquarie. Proceeds from the working capital facility are available to
provide additional liquidity for the Robinson Mine between the
production and final sales of metal concentrate.

Macquarie has agreed to provide a revolving working capital facility of
up to U.S.$30,000,000 until August 1, 2005 and U.S.$20,000,000
thereafter until March 31, 2006. This will allow the Company to leverage
its inventory pipeline which normally consumes a significant amount of
working capital. Each drawdown under this facility will be no greater
than 90% of the net smelter return based on the hedged value of
concentrate shipments under current sales contracts. The metal prices
used in the estimated value will be based on the hedged prices entered
into by RNMC between each drawdown date and the first provisional
payment made by customers pursuant to the terms of their individual
sales contracts. The Company made an initial drawdown of U.S.$12,000,000
on March 30, 2005.

The security for the obligations under both facilities consists of: (i)
a security interest in all of the assets of RNMC; (ii) a limited
recourse guarantee of Robinson Holdings (USA) Ltd. ("RHUSA") and pledge
of all of RHUSA's shares in RNMC; and (iii) an unlimited and unsecured
guarantee of the Company and a subordination agreement whereby the
Company has agreed to subordinate all indebtedness of RNMC to the
Company to the indebtedness of RNMC to Macquarie.

In addition, to the working capital facility, Macquarie has agreed to
provide RNMC with an uncommitted hedge line of credit facility. The
current terms of this facility allow RNMC to hedge up to 25,000 tonnes
of copper metal and 60,000 oz of gold, free of margin calls.

Prior to future drawdowns under the working capital facility, RNMC must
meet a number of financial and other conditions. These conditions
include requirements that at the time of the drawdown the Robinson Mine
copper production shall be greater than specified levels of the budget
and operating and capital costs shall not exceed specified levels of the

Derek White, CFO stated, "The working capital facility provides a low
cost financing alternative for the Robinson Mine and increases its
flexibility during its initial year of the restart of operations. As
previously disclosed, the shortage of rail cars resulted in a build up
of concentrate inventory to 34,000 tonnes at year end, approximately
14,000 tonnes higher than would be expected in normal operations. With
the improved availability of cars and the use of unit trains which began
in March, we expect to move the excess inventory to market as budgeted,
by the end of the year."

About Quadra Mining Ltd. (TSX:QUA)

Quadra is a British Columbia corporation based in Vancouver and is a
mining company whose principal asset is the Robinson Mine in Nevada,
purchased from BHP Billiton in April, 2004. The Company has a goal of
becoming a mid-tier base metals development and operating company with
interests in a number of advanced exploration, development and producing

This press release may contain some forward-looking statements that are
subject to risks and uncertainties that may cause actual results to
differ from those expressed or implied by such statements. Statements
relating to revenues, growth, profits, production and operating expenses
depend on, among other things, future market conditions and risks,
including risks ordinarily associated with mining, and are considered
forward-looking thereby providing no guarantee that they will be
realized. Quadra disclaims any intent or obligation to update or revise
publicly any forward-looking statements, whether a result of new
information, future events or otherwise.


Contact Information

    Quadra Mining Ltd.
    Sophie Taylor
    Manager, Investor Relations
    (604) 689-8550