First Quantum and RIO Tinto Announce Completion of the LA Granja Agreement

NEWS RELEASE

23-25

August 27, 2023

www.first-quantum.com

FIRST QUANTUM AND RIO TINTO ANNOUNCE

COMPLETION OF THE LA GRANJA AGREEMENT

Toronto, Ontario (August 27, 2023) - First Quantum Minerals Ltd. (“First Quantum” or “the Company”) (TSX: FM)

and Rio Tinto have completed the previously announced transaction to progress the next phase of the La Granja

project in Peru, one of the largest undeveloped copper deposits in the world.

“La Granja has the potential to be a large, long-life operation and supply the copper that will be needed as the world

transitions to the greener economy and where responsible mining will be the only acceptable way to produce metals.

Adding this major project to our portfolio will give First Quantum future optionality in the Company’s project pipeline

while we focus on strengthening the balance sheet in the interim. As operator, we will leverage our core strengths in

mine design, project development and community engagement and look forward to developing our partnership with

Rio Tinto ,” said Tristan Pascall, Chief Executive Officer of First Quantum. “W e appreciate the support from the

Government of Peru for the completion of this transaction.”

“Developing La Granja would provide a significant new supply of copper and further strengthen Rio Tinto’s portfolio

of materials needed for the energy transition. Our partnership with First Quantum will bring our combined

development capabilities and deep knowledge of La Granja to progress the project.” said Bold Baatar, Rio Tinto

Copper Chief Executive.

Following the completion of conditions including regulatory approvals from the Government of Peru, First Quantum

has acquired a 55% stake in the project for $105 million and becomes the operator of La Granja. The Company will

invest up to a further $546 million (the “initial funding”) in the Project. Part of the initial funding will be used to complete

a feasibility study over the next two to three years, after which the remaining balance of the initial funding is to be

spent on construction of the Project contingent on a positive investment decision. Upon completion of the initial

funding amount, all subsequent expenditures will be applied on a pro-rata basis according to the share ownership of

the Project.

Work over the initial years will continue to progress community engagement and the feasibility study. The feasibility

study will focus on developing an updated geological resource and reserve model, which will require additional infill

drilling to upgrade Inferred resources to Measured and Indicated categories. Additional metallurgical studies to

establish optimal processing configurations are expected to be carried out i n parallel, together with a high- level

project layout and configuration of associated infrastructure requirements and logistical routes.

With work on La Granja focused mainly at the studies level, there is no change to the Company’s three-year guidance

provided in January 2023 on capital expenditures.

About La Granja

La Granja is one of the largest undeveloped copper resources in the world with a published Inferred Mineral Resource

of 4.32 billion tonnes at 0.51% copper, and has potential for substantial expansion. La Granja is located in the district

of Querocoto in the northern region of Cajamarca, Peru, approximately 90 kilometres northeast of Chiclayo, at an

altitude of between 2,000 and 2,800 metres.

For further information, visit our website at www.first-quantum.com or contact:

Bonita To, Director, Investor Relations

(416) 361-6400 Toll-free: 1 (888) 688-6577

E-Mail: [email protected]

First Quantum Minerals Ltd. 23-25

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CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION

Certain statements and information herein, including all statements that are not historical facts, contain forward-looking

statements and forward-looking information within the meaning of applicable securities laws. The forward-looking statements in

this n ews release include statements regarding the work, including feasibility and metallurgical studies, to be completed to

progress the Project; the funding of expenditures related to the Project; the impact and expected benefits of the Acquisition and

the Company’s partnership with Rio Tinto on the Company’s business and operations; and expectations regarding the future

demand for copper. With respect to forward-looking statements and information contained herein, the Company has made

numerous assumptions, including as to Rio Tinto and the Company maintaining strong local support for the Project; the successful

completion of the feasibility and metallurgical studies required to progress the Project; and the ability of the Company to fund the

first $546 million in study and development work and subsequent expenditures related to the Project. Forward-looking statements

and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors

which may cause the actual results, performance or achievements to be materially different from any future results, performance

or achievements expressed or implied by such forward-looking statements or information. These factors include, but are not

limited to, political stab ility in Peru, joint venture risks, potential social and environmental challenges, and events generally

impacting global economic, political and social stability. There may also be other factors that cause actual results, perform ance,

achievements or events not as anticipated, estimated or intended, including the risks, uncertainties and other factors discussed

in the Company’s Annual Information Form. The Company undertakes no obligation to reissue or update forward-looking

statements or information as a result of new information or events after the date hereof except as may be required by law.