AAA.L Regulatory News (AAA)

21 Mar 2006 07:02

Adastra Minerals Inc21 March 2006 NEWS RELEASE Adastra responds to First Quantum Minerals Final Offer Trading: TSX and AIM: AAA London, UK (March 20, 2006) Adastra Minerals Inc. ("Adastra" or the "Company")notes today's announcement by First Quantum Minerals Ltd of its increased and "final offer" for Adastra. The Special Committee is disappointed at the level of the revised offer, howeverit will work with its financial and legal advisors to review the revised offerand make its formal recommendation to shareholders as soon as possible. In themeantime, shareholders are urged to take no action with respect to the revisedoffer. A further announcement will be made soon. About Adastra Adastra is an international mining company listed on the Toronto Stock Exchangeand on AIM, in London, under the symbol "AAA". It is currently developingseveral mineral assets in Central Africa, including the Kolwezi Tailings Projectand the possible rehabilitation of the Kipushi zinc mine in the DemocraticRepublic of Congo. Adastra's growth strategy emphasizes the creation ofshareholder value through the development of world-class resources in stable orstabilizing political environments. Contact us: London AdastraTim Read, President and Chief Executive OfficerTel.: +44 (0)20 7257 2040 Parkgreen CommunicationsJustine Howarth / Cathy MalinsTel.: +44 (0)20 7493 3713 Toronto EquicomMartti KangasTel.: +1 (416) 815 0700 This news release contains forward-looking statements within the meaning of theUnited States Private Securities Litigation Reform Act of 1995 andforward-looking information within the meaning of the Securities Act (Ontario)(together, "forward-looking statements"). Such forward-looking statements,include but are not limited to the Company's plans for its Kolwezi Project inthe Democratic Republic of Congo ("DRC"), the Kolwezi Project's net presentvalue, its overall economic potential, the availability of project financing,the likelihood of completion of a transaction with Mitsubishi transaction andinvolve known and unknown risks, uncertainties and other factors which may causethe actual results, performance or achievements expressed or implied by suchforward-looking statements to be materially different. Such factors include,among others, risks and uncertainties relating to political risks involving theCompany's operations in the DRC and the policies of other nations andorganizations towards companies doing business in such jurisdictions, theinherent uncertainty of production and cost estimates and the potential forunexpected costs and expenses, fluctuations in the price of copper and cobalt,conclusions of economic evaluations, changes in project parameters as planscontinue to be refined, the inability or failure to obtain adequate financing orcomplete the proposed transaction with Mitsubishi Corporation on a timely basisand other risks and uncertainties, including those described in the Company'sAnnual Report on Form 20-F for the year ended October 31, 2005 and reports onForm 6-K filed with the Securities and Exchange Commission and the CanadianSecurities Administrators and available at www.sedar.com. This information is provided by RNS The company news service from the London Stock Exchange