Petaquilla Minerals Ltd PTQMF

PTQ TO SPLIT INTO 2 COMPANY

[good2004]

Petaquilla Reorganization Will Create Two Companies 6/29/05 VANCOUVER, British Columbia, Jun 29, 2005 (BUSINESS WIRE) -- Petaquilla Minerals Ltd. (TSX:PTQ)(OTCBB:PTQMF) ("PTQ" or the "Company") is pleased to announce that the Company intends to submit a reorganization plan to shareholders at an extraordinary shareholder meeting to be held at a later date. The plan would separate PTQ's precious metals deposits and its exploration lands from its Minera Petaquilla S.A. porphyry copper deposits in north-central Panama. The precious metals deposits and exploration lands will be transferred to a new corporation in exchange for shares that are then intended for distribution to PTQ shareholders. Shareholders of PTQ as at the share distribution record date will receive a yet to be determined number of common shares in the new company for each share of Petaquilla Minerals Ltd. held on the record date. The reorganization will be subject to shareholders approving the transaction at an extraordinary special meeting and subject to the new company being accepted for listing on a stock exchange. The new company will have to comply with all requirements of the securities commissions involved. It is anticipated that the extraordinary meeting will be held in September, 2005. The Board of Directors of PTQ is of the view that the division of assets will benefit PTQ and its shareholders. This conclusion is based on the following primary considerations: 1. Petaquilla's primary focus is the development of its interest in the world-class Minera Petaquilla S.A. porphyry copper deposits. This focus would hamper the exploration and development of PTQ's advanced stage Molejon gold deposit and adjoining exploration lands. 2. The formation of a new company to hold the precious metal deposits and exploration lands will separate fund-raising and mining strategies that will be required to move these separate projects forward. 3. A separation of the projects to two companies will give the shareholders of Petaquilla an ownership interest in one of the largest undeveloped copper deposits in the world and a direct interest in a more aggressive exploration and development company that will focus primarily on precious metal deposits. 4. The separation in assets will allow analysts to more accurately value the companies on a stand-alone basis against similar mineral exploration companies and industry benchmarks, enhancing the likelihood that both companies will be more appropriately valued in the public market. There is no assurance that the reorganization will proceed as planed or at all. On behalf of the Board of Directors of PETAQUILLA MINERALS LTD. Kenneth W. Morgan, CFO and Director No stock exchange has approved or disapproved the information contained herein. Petaquilla Minerals Ltd. (TSX:PTQ) (OTC Bulletin Board:PTQMF) SOURCE: Petaquilla Minerals Ltd. Petaquilla Minerals Ltd. Kenneth W. Morgan CFO and Director [phone] Fax: [phone] www.petaquilla.com Copyright Business Wire 2005