Petaquilla Minerals Ltd. Nears Closure on Material Transaction and Informs All Parties are Committed to Closing by the End of February 2014

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 17, 2014) - Petaquilla Minerals Ltd. ("Petaquilla" or the "Company") (TSX:PTQ)(OTCBB:PTQMF)(FRANKFURT: P7Z) confirms the Company is in the advanced stages of a negotiation process, the conclusion of which will result in a major material event for the Company and its shareholders. All parties involved expect the aforementioned negotiations to close by the end of February 2014.

The Company also announces its second quarter operating and financial results for its Molejon gold mine located in Panama. Currency is reported in United States dollars unless otherwise indicated.

Molejon Mine Operating and Financial Highlights for Second Quarter of Fiscal 2014

• Gold production at 3,028 ounces, a decrease of 67% and 85% compared to prior quarter and same quarter of fiscal 2013, respectively;
• Gold equivalent production at 3,120 ounces, a decrease of 67% and 85% compared to prior quarter and same quarter of fiscal 2013, respectively;
• Gold stockpiled at 151,592 ounces, an increase of 1% and 31% compared to prior quarter and same quarter of fiscal 2013, respectively;
• Revenue at $10.5 million, a decrease of 49% and 67% compared to prior quarter and same quarter of fiscal 2013, respectively;
• Cash cost per ounce of gold equivalent sold at $1,429, an increase of 90% and 171% compared to prior quarter and same quarter of fiscal 2013, respectively;
• Operating margin at $(13.0) million, compared to $2.5 million in prior quarter and $14.4 million in same quarter of fiscal 2013;
• Adjusted EBITDA at $(16.3) million, compared to $(0.9) million in prior quarter and $14.9 million in same quarter of fiscal 2013

During the second quarter of fiscal 2014 the Company announced National Instrument 43-101 compliant In Pit Whittle Constrained measured and indicated resources of 841,000 gold equivalent ounces (27,020 kt averaging 0.59 g/t of gold, 0.87 g/t of silver and 0.24% of copper) and inferred mineral resources of 269,000 gold equivalent ounces (11,060 kt averaging 0.40 g/t of gold, 0.67 g/t of silver and 0.22% of copper) for its Palmilla deposit, located on the Company's wholly-owned Belencillo concession and associated with its Molejon gold operations in the Donoso District, Colon Province, Republic of Panama. The Qualified Person who prepared this mineral resource estimate was Mr. Yann Camus, Eng., of SGS Canada, an independent consultant.