TSX: FM LSE: FQM. First Quantum to Acquire Antares Minerals. October 18, 2010

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1 Global Diversified TSX: FM LSE: FQM First Quantum to Acquire Antares Minerals October 18, 2010

2 Forward Looking Statement Some of the statements contained in the following material are forward looking statements and not statement of facts. Such statements are based on the current beliefs of management, as well as assumptions based on management information currently available. Forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results to differ materially from expected results. Readers must rely on their own evaluation of these uncertainties. None of the exploration properties in which Antares holds an interest host a known body of commercial ore and proposed programs on such properties are exploratory in nature. Development of these mineral properties is contingent upon obtaining satisfactory exploration results. Mineral exploration and development involves substantial expenses and a high degree of risk, which even a combination of experience, knowledge and careful evaluation may not be able to adequately mitigate. There is no assurance that commercial quantities of ore will be discovered on any of Antares' exploration properties. There is also no assurance that, even if commercial quantities of ore are discovered, a mineral property will be brought into commercial production. In accordance with applicable Canadian securities regulatory requirements, all mineral reserve and mineral resource estimates disclosed or incorporated by reference in this news release have been prepared in accordance with Canadian National Instrument Standards of Disclosure for Mineral Projects ("NI "), classified in accordance with Canadian Institute of Mining Metallurgy and Petroleum's "CIM Standards on Mineral Resources and Reserves Definitions and Guidelines" (the "CIM Guidelines"). The terms "mineral resources", "measured mineral resources", "indicated mineral resources" and "inferred mineral resources" are recognized by Canadian securities regulatory authorities, however, they are not recognized by the United States Securities and Exchange Commission the "SEC") and the SEC does not permit U.S. companies to disclose resources in their filings with the SEC. Pursuant to the CIM Guidelines, mineral resources have a higher degree of uncertainty than mineral reserves as to their existence as well as their economic and legal feasibility. Inferred mineral resources, when compared with measured or indicated mineral resources, have the least certainty as to their existence, and it cannot be assumed that all or any part of an inferred mineral resource will be upgraded to an indicated or measured mineral resource as a result of continued exploration. Pursuant to NI , inferred mineral resources may not form the basis of any economic analysis, including any feasibility study. Accordingly, readers are cautioned not to assume that all or any part of a mineral resource exists, will ever be converted into a mineral reserve, or is or will ever be economically or legally mineable or recovered. The Preliminary Economic Assessment ( PEA ) is preliminary in nature and includes the use of inferred resources which are considered too speculative to apply economic considerations that would enable them to be categorized as mineral reserves. Mineral resources do not have demonstrated economic viability and future in-fill drilling and scoping, pre-feasibility and feasibility studies will determine what percentage of the inferred resource can be placed into the mineable category. Thus, there is no certainty that the production profile concluded in the PEA will be realized. Actual results may vary, perhaps materially. Antares is not aware of any environmental, permitting, legal, title, taxation, socio-political, marketing or other issue which may materially affect this estimate of mineral resources. The projections, forecasts and estimates presented in the scoping study and PEA constitute forward-looking statements and readers are urged not to place undue reliance on such forward-looking statements. 1

3 Transaction Highlights First Quantum to acquire Antares for approximately C$460 million consisting of shares and/or cash Antares main project, Haquira, is a large scale copper project located in southern Peru Haquira has a compliant measured and indicated resource of 3.7 million tonnes of Cu EQ and an inferred resource of 2.4 million tonnes of Cu EQ The offer has the unanimous support of Antares Board of Directors Antares Board of Directors, management and major shareholder have signed lock-up agreements to accept the offer for their consolidated ~42% shareholding, subject to certain conditions 2

4 Summary of Transaction Terms Consideration Offered First Quantum shares or C$6.35 cash per Antares share or a combination at election of the shareholders subject to a maximum cash consideration of C$250 million 41% premium based on previous trading day closing price on October 15, % premium based on 20-day volume weighted average price Approximate total consideration of C$460 million Antares shareholders will also receive a pro-rata share of a newly formed company, which will be owned 90.1% by existing Antares shareholders in aggregate and 9.9% by First Quantum The newly formed company will hold Antares existing 50% operating interest in the Rio Grande project in Argentina and C$5 million in cash (1) (1) Structure Plan of Arrangement under section 193 of the Alberta Business Corporation Act Lock-Up agreement Antares Board of Directors, management team, and Farallon Capital Management have agreed to support First Quantum s offer, subject to certain conditions Represent in aggregate ~42% of fully diluted shares outstanding of Antares Other Terms Customary deal protection in favour of First Quantum including non-solicitation, right-to-match and break fee Conditions Affirmative votes by holders of at least 66 2 / 3 % of Antares shares voting at meeting and court approvals Indicative Timetable Antares Information Circular expected to be mailed in November 2010 Transaction expected to close in December Based on consideration of C$6.35 per Antares share 3

5 Benefits to Stakeholders First Quantum Shareholders Antares Shareholders Peru Significantly increases resource base and growth pipeline Provides significant presence in prolific copper producing region Potential for large-scale, lowcost copper production Further diversification of geopolitical risk profile Realize a significant premium to the current share price Potential upside participation through First Quantum shares Downside protection through cash election Haquira to realize its full potential under First Quantum First Quantum will continue to develop the project in collaboration with local communities First Quantum has a track record of successful project development, enhancing the ability to create job opportunities First Quantum takes a longterm view on the countries in which it operates 4

6 Haquira Project Highlights Large scale copper project located in southern Peru (100% owned by Antares) The project consists of a upper secondary Cu blanket, amenable to SX-EW processing and a highgrade, primary Cu-Mo-Au-Ag porphyry deposit compliant measured and indicated resource of 3.2 million tonnes Cu (3.7 million tonnes Cu EQ) compliant inferred resource of 2.1 million tonnes Cu (2.4 million tonnes Cu EQ) Preliminary economic assessment recently completed by Antares After-tax NPV of US$1.07bn (8%) 230kt Cu/yr for the first 10 yrs (193kt Cu/yr for 20 yr mine life) Contiguous with Las Bambas Project where Xstrata Copper has approved plans to invest US$4.2bn leading to production in 2014 Antares also has an option agreement with a wholly-owned subsidiary of Hochschild Mining plc to acquire up to a 60% interest in the Cristo de Los Andes Project (contiguous to the south of Haquira) Recent drilling has confirmed the presence of near-surface secondary copper mineralization and of underlying primary copper sulphide mineralization with elevated gold content Potential to provide additional copper ore within haulage distance of Haquira 5

7 Strategically Located Surrounded By Existing Infrastructure Contiguous with Xstrata s Las Bambas Abancay Cusco Las Bambas + Haquira District = 16.7mmt Cu EQ Nazca San Juan Los Chancas (SCC) Las Bambas (XTA) Haquira & Cristo de los Andes (Antares) Antapaccay (XTA) Sicuani Tintaya (XTA) Juliaca 10.7mmt Cu EQ Chalcobamba Ferrobamba Sulfubamba Charcas LAS BAMBAS Haquira West Haquira East N Imata 6mmt Cu EQ 0 5 km Emerging Copper Belt Road Rail New Rail Proposed Concentrate Pipeline Matarani Port Facility Mollendo Arequipa Cristo de los Andes HAQUIRA CDLA 6

8 Haquira Resources Summary Haquira Project Resources - All Zones Resource Tonnes Cu Eq. Cu Mo Au Ag Contained Cu Contained Cu Eq. Classification (mm) (%) (%) (%) (g/t) (g/t) (mmt) (mmt) Primary Copper Mineral Resources (Mill/Concentrate) - 0.3% Cu cut-off Measured % 0.64% 0.015% Indicated % 0.63% 0.014% Inferred % 0.54% 0.009% Secondary Copper Mineral Resources (leachable SX/EW) - 0.2% Cu cut-off Measured % 0.52% Indicated % 0.44% Inferred % 0.41% (1) Source: Antares Minerals February 26, 2010 Press Release 1. CuEq = Copper Equivalent is calculated for intervals dominated by primary mineralization using US$1.50/lb Cu, US$500/oz Au, US$10/oz Ag and US$10.00/lb Mo and is not adjusted for metallurgical recoveries as these remain uncertain. Metallurgical recoveries and net smelter returns are assumed to be 100%. The formula used is as follows: CuEQ = Cu% + (Au g/t x ) + (Mo% x 10.00/1.50) + (Ag g/t x ). Copper Equivalent contributions are only applied to primary sulphide mineralization. 7

9 Positive Preliminary Economic Assessment Favourable initial cash flow analysis (after tax NPV of 8% discount rate) Continued refinement of the mine plan could lead to substantially improved economics First Quantum has the technical ability to advance the project towards production Haquira Preliminary Economic Assessment ( PEA ) Haquira PEA Development Plan (1) Initial Capital Investment Mine Life Average Annual Production (Year 1-10) (2) Cash Costs (Year 1-10) After-Tax Project 8% Discount Rate Processing Rate Oxide Processing Rate Sulphide Copper Price Molybdenum Price Gold Price Silver Price Life of Mine Royalties (1%-3%) US$2,058mm 20 Years 230kt US$0.89/lb US$1,069mm 30,000 t/day 100,000 t/day US$2.25/lb US$13.00/lb US$908/oz US$14.85/oz US$517mm Estimated 2.5 year construction period 1. Includes working capital and a contingency of 20% 2. C1, includes transport and TCRC charges and is net of by-product credits 8

10 Lowering Political Risk Profile Country Ease of Doing Business Australia 9 Finland 16 Peru 56 Zambia 90 Mauritania 166 Source: World Bank Survey Doing Business 2010 The Doing Business project provides objective measures of business regulations and their enforcement across 183 economies and selected cities at the subnational and regional level. 9

11 Teck Resources Antofagasta FQM + Antares Inmet First Quantum Quadra-FNX HudBay Minerals Lundin Mining Equinox Sherritt OZ Minerals Acquisition Significantly Increases Resource Base In-Situ Value of Metals (US$bn) (1) $252 $239 27% Increase $141 $133 $111 $93 $72 $64 $35 $22 $19 Source: Company Filings Note: First Quantum s in-situ value does not include any resource estimate for Sentinel 1. Based on long term broker consensus pricing of; gold (US$915/oz), silver (US$15.00/oz), copper (US$2.25/lb), zinc (US$0.85/lb), lead (US$0.65/lb), nickel (US$7.26/lb), molybdenum (US$13.75/lb), cobalt (US$13.00/lb) and uranium (US$55/lb) Note: Teck Resources and Sherritt s in-situ value does not include coal or oil and gas 10

12 First Quantum Built on Discoveries and Acquisitions Discoveries Acquisitions Frontier Kansanshi Guelb Moghrein Ravensthorpe Bwana-Lonshi Mopani Copper Mines Kevitsa Sentinel Fishtie Kolwezi Haquira 11

13 Goal: A Globally Diversified Mining Company Technical strength at the core of growth strategy Existing operations provide a solid platform to support growth Strong financial position and cash flow Set to resume growth pattern: Two major projects scheduled to begin production in 2011 and 2012: Ravensthorpe and Kevitsa Promising exploration project shows potential for development soon after: Sentinel Haquira adds another medium-term development project to our growth pipeline Currently a meaningful copper producer Growth pipeline also has the potential to significantly increase copper production On track to become 6th largest nickel producer 12