Petaquilla Minerals Ltd. Announces Lifting of Encumbrances and Production Profile

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 27, 2014) - Further to its news release of May 12, 2014, Petaquilla Minerals Ltd. (TSX:PTQ)(OTCBB:PTQMF)(FRANKFURT:P7Z) ("Petaquilla" or the "Company") announces that it has executed the early payout of the existing gold and silver prepayment agreements, as well as the convertible loan previously negotiated with Deutsche Bank AG and, consequently, has obtained the full release of all existing encumbrances on the Company's assets. In addition the Company has also reduced a significant portion of its short-term liabilities and re-affirms its commitment to a policy of balance sheet strengthening by further pursuing opportunities for the reduction of other current liabilities.

In Panama, Petaquilla plans to ramp up gold production through plant and leaching operations at its Molejon gold mine to 4,000 ounce per month with an expected cash cost of $850 per Au oz. and to be cash flow positive in the second quarter of FY 2015. The Company has sufficient reserves at its Molejon gold deposit to continue production at that rate for a further five years. In addition, 152,000 gold ounces slated for leaching are presently stockpiled at Molejon. A plan to reduce G&A costs and to align general compensation with the Company's new goals will be implemented immediately, with further cost-cutting measures to be introduced at the beginning of the new fiscal year.

Concurrently, Petaquilla is strategically positioning itself for growth and production in the Iberian Peninsula, focusing in the near-term on mineral resource expansion and the development of its Iberian properties. The Company is targeting production in both Spain and Portugal in the early part of next year and increasing and sustaining growth thereafter.

About Petaquilla Minerals Ltd. - Petaquilla is a growing, diversified gold producer committed to maximizing shareholder value through a strategy of efficient production, targeted exploration and select acquisitions. The Company operates a surface gold processing plant at its Molejon Gold Project, located in the south central area of Panama. In addition, the Company has exploration operations at its wholly-owned Lomero-Poyatos project located in the northeast part of the Spanish/Portuguese (Iberian) Pyrite Belt and several other exploration licenses in Iberia.