FQM.L Regulatory News (FQM)

3 Feb 2006 14:41

Adastra Minerals Inc03 February 2006 . NEWS RELEASE Adastra Minerals Responds to First Quantum Minerals Ltd. Trading: TSX and AIM: AAA London, 03 February 2006 - Adastra Minerals Inc. ("Adastra" or the "Company")notes the announcement by First Quantum that it has filed its formal offer toacquire Adastra. As previously announced, the Board of Directors of Adastra and its financialadvisers believe that the offer significantly undervalues the Company. M&G Investment Management, Adastra's largest shareholder (14.8%), together withMr. Jean-Raymond Boulle, the founder of Adastra and its largestnon-institutional shareholder (beneficial shareholding 7.7%), Merrill LynchInvestment Managers (5.2%) and other major shareholders, who in aggregate holdmore than 50 per cent. of Adastra's issued share capital have advised the Boardthat they do not find First Quantum's offer attractive and would support theBoard in rejecting the offer. The formal recommendation of the Board and its reasons supporting suchrecommendation will be mailed to shareholders by no later than 17 February 2006. Contact us: AdastraTim Read, President and Chief Executive OfficerTel.: +44 (0)20 7257 2040 RothschildCharles Mercey / Stuart VincentTel.: +44 (0)20 7280 5000 Parkgreen CommunicationsJustine Howarth / Annabel LeatherTel.: +44 (0)20 7493 3713 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 concerning theCompany's plans for its principal properties in the Democratic Republic of Congo("DRC"). These forward-looking statements are subject to a variety of risks anduncertainties which could cause actual events or results to differ materiallyfrom those reflected in the forward-looking statements, including, withoutlimitation, 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, commodity price fluctuations, the inability orfailure to obtain adequate financing on a timely basis and other risks anduncertainties, including those described in the Company's Annual Report on Form20-F for the year ended October 31, 2004 and Reports on Form 6-K filed with theSecurities and Exchange Commission. N M Rothschild & Sons Limited ("Rothschild"), which is authorised and regulatedby the Financial Services Authority in the United Kingdom, is acting for Adastrain relation to the matters referred to in this announcement and no one else andwill not be responsible to anyone other than Adastra for providing theprotections offered to clients of Rothschild nor for providing advice inrelation to the matters referred to in this announcement. This information is provided by RNS The company news service from the London Stock Exchange