Equinox Announces Release of Results for Quarter Ended March 31, 2009



    TORONTO, May 6 /CNW/ - Equinox Minerals Limited (TSX and ASX symbol:
"EQN") ("Equinox" or the "Company") today released its results for the three
months ended March 31, 2009.

    
    All currency in this release is in U.S. dollars.

    HIGHLIGHTS

    -   23,966 tonnes of copper was sold during the quarter;

    -   The Company recorded a net loss for the quarter of $60.6 million or
        $0.10 per share, the loss primarily resulting from derivative
        instrument fair value losses;

    -   The Company reached an agreement with its debt financiers to
        restructure its senior debt repayment schedule reducing principle
        repayments from $224.9 million to $138.4 million for calendar 2009;
        and

    -   Subsequent to the quarter, Equinox completed an equity offering and
        issued a total of 102,235,000 common shares of the Company at a price
        of Cdn$1.80 per share for gross proceeds of Cdn$184,023,000.
    

    LUMWANA PROJECT

    Operations
    During the quarter, 2,877,141 dry metric tonnes of ore producing 57,085
dry metric tonnes of concentrate at an average copper grade of approximately
39% were produced at Lumwana.
    Concentrate deliveries of 63,063 dry metric tonnes were sold to local and
international off-takers containing a combined copper metal content of 23,966
tonnes.
    As anticipated, the Company has not yet reached "commercial production"
and as a result, all copper sales, revenue and operating costs have been
capitalized for the first quarter of 2009. Subject to final assessments, the
Company expects that the Lumwana mine will achieve commercial production from
the commencement of the second quarter of 2009.
    Along with normal commissioning issues, abnormally heavy rainfall in
March negatively impacted the Lumwana mine, causing the mining and processing
operations to be suspended on a number of occasions during the month. Within
one 24-hour period, an estimated 120 mm of rainfall fell, representing about
10% of the year's average rainfall with a total of 440mm falling within a 30
day period. This event equated to a greater than 1 in 100 year incident,
occurring within three months of starting the commissioning phase of the mine.
Overall, this wet season has been reported in Zambia as being the wettest in
40 years.
    As a consequence, the ramp up of both mine and process operations was
interrupted in March, but resumed by the end of the quarter. The Company
continues to have an objective of completing Lumwana ramp up to full
production by mid-2009.

    
    -------------------------------------------------------------------------
    LUMWANA MINE PRODUCTION STATISTICS

                                                                     Q1 2009
    Total mine material movement             Tonnes                8,882,640
    Ore mined - sulphide                     Tonnes                1,837,530
    Ore processed                            Tonnes                2,877,141
    Head grade                               Copper %                   0.93
    Copper recovery                          Copper %                   82.9
    Copper produced in concentrate           Tonnes                   22,263
    Copper produced in concentrate           Pounds               49,081,908
    Concentrate grade                        Copper %                   39.0
    Copper concentrate sales                 Tonnes                   63,063
    Copper sold                              Tonnes                   23,966
    Copper sold                              Pounds               52,836,496
    -------------------------------------------------------------------------
    

    With production ramp up activities resuming, the Company still estimates
2009 production will total approximately 170,000 tonnes (or 375 million
pounds) of copper metal in concentrates at the average (C1) operating cost of
US$1.15 per pound for the year. As can be expected, unit production costs are
anticipated to be higher in the early part of 2009 until steady state
production activities are reached.

    Off-take Update
    The Company is ramping up concentrate deliveries to its primary
off-taker, Chambishi Copper Smelter Limited ("CCS"), which has commissioned a
new copper smelter at Chambishi on the Zambian Copperbelt. Equinox is
supplying this new smelter with concentrate under a 5-year 'take or pay'
contract, with annual commitments to CCS of 100,000 tonnes of copper contained
in concentrates or approximately 230,000 tonnes of Lumwana concentrates per
year. During the first quarter of 2009, CCS produced its first copper blister
product (97% copper) destined for China.
    Scheduled tonnages of Lumwana concentrates presented to the Mufulira
Smelter of Mopani Copper Mines Plc ("Mopani") have been claimed by Mopani and
Glencore not to have met contract specifications. Equinox maintains that the
Lumwana concentrates are within the contract specifications and confirms that
shipments have been re-directed to international traders. Equinox is
considering what claims it may have against Mopani and Glencore. At this stage
it is unknown if this dispute will lead to legal proceedings.

    ZESCO Update
    The Company previously announced that it is in dispute with ZESCO Limited
("ZESCO"), Zambia's national power supply utility, over electricity charges
believed by ZESCO to be incurred by the Company since late 2007. ZESCO has
claimed invoice values totaling $9.0 million for the period up to December 31,
2008. However based on legal advice the Company has determined a value of $2.0
million is payable based on the terms of the contract. The Company disputes
ZESCO's claim, and has paid $2.0 million to ZESCO whilst conducting
negotiations in an effort to resolve the matter. The Protective Relief action
initiated by the Company in response to the Notice of Termination initiated by
ZESCO was heard in Lusaka High Court, Zambia on March 17, 2009 and again on
April 6, 2009 and has subsequently been adjourned by the Lusaka High Court
until May 27, 2009, to allow the parties further opportunity to conclude
negotiations. The ZESCO Notice of Termination has since been withdrawn and
management is confident that the matter can be resolved in a reasonable
manner.

    Establishment of Multi Facility Economic Zone at Lumwana
    The Government of the Republic of Zambia ("GRZ") through the enactment of
the Zambia Development Agency Act No. 11 (2006), amongst other initiatives,
sanctioned the establishment of Multi Facility Economic Zones ("MFEZs") in
Zambia with the objective of catalyzing industrial and economic development in
the manufacturing sector to enhance domestic and export oriented business.
This policy is designed to contribute positively to the growth of the
manufacturing sector in Zambia through the provision of competitive
environments that encourage investors to set up businesses within the borders
of Zambia with relative ease.
    Equinox has held discussions with the Zambia Development Agency ("ZDA"),
the GRZ authority administering all MFEZ legislation and reports that on April
14, 2009, a Special Board of the ZDA approved the Company's MFEZ application
to legislate and establish an MFEZ within the Lumwana Large Scale Mining
Licence ("LMFEZ").
    Together with ZDA approval, it is anticipated that the GRZ will undertake
to support the LMFEZ by giving explicit protection to Equinox's cornerstone
investments at Lumwana and will also undertake to promote and maintain new and
existing investment agreements for businesses within the LMFEZ.
    Equinox anticipates that the new LMFEZ will create an investment zone
that will attract both local and foreign business investment and provide
sustainable and integrated business opportunities and growth, with the Lumwana
mine acting as the cornerstone investor and catalyst for such growth.

    Town Development
    The Lumwana town development continues to advance with over 500 houses
completed to date. The commercial and retail developments are advancing and a
self-sustaining modern town environment is being developed.
    To support this unique development the Company has established the
Lumwana Property Development Company ("LPDC") to act as a special purpose
vehicle to own and manage the new Lumwana town. LPDC has secured a $25 million
debt facility with Nederlandse Financierings-Maatshappij voor
Ontwikkelingslanden N.V. ("FMO"), the Dutch Government development funding
institution, to cover some town infrastructure costs. Drawdown of this
facility can commence once Equinox meets a number of conditions precedent.

    CORPORATE ACTIVITIES

    On March 26, 2009, the Company reached an agreement with its debt
financiers to restructure its senior debt repayment schedule. The main terms
of the new agreement are intended to smooth the principal debt repayments more
evenly over the life of the loans without changing the tenor of the various
facilities. The effect is that Equinox's 2009 calendar year principal
repayments reduce from $224.9 million down to $138.4 million, the majority of
which ($105.2 million) falls due in September 2009. The Company's $45.0
million cost overrun facility still remains available and, in certain
circumstances, can also be utilized for debt repayment if needed. The cost
overrun facility expires on December 31, 2009 but may be extended for a
further three months for general corporate funding if required.
    On April 22, 2009, Equinox announced that it had closed its public
offering of common shares announced on April 7, 2009, including the exercise
of the over-allotment option, issuing a total of 102,235,000 common shares at
a price of Cdn$1.80 per share raising gross proceeds of Cdn$184,023,000 (the
"Offering"). The net proceeds from the Offering will be used for the
improvement of the Company's cash position, to evaluate and fund expansion
opportunities at the Lumwana Project, to purchase and extinguish an existing
net smelter return royalty in connection with the Lumwana Project, and for
general corporate purposes.

    EXPLORATION ACTIVITIES

    In 2008, drilling was undertaken at the Kanga Prospect that lies directly
on strike from the Malundwe open pit, where mining is currently taking place.
The results of the drilling program at Kanga have defined a mineral resource
compliant to the standards prescribed by Australian JORC and the Canadian
Securities Administrators' National Instrument 43-101 - Standards of
Disclosure for Mineral Projects ("NI 43-101") of additional inferred resources
of 78 million tonnes at 0.76% copper using a cut-off grade of 0.2% copper,
which is the same as that used for the current Malundwe resource. Additional
infill drilling is required to raise the level of the Kanga resource to
indicated status, however it is noted that the consistency of grade and the
continuity of mineralization is comparable to that within the current Malundwe
pit design.
    The data quality, verification and confidence, and parameters used to
estimate the Kanga resource are the same as those used in previous resource
estimates for the Malundwe deposit as detailed in the June 2008 Technical
Report (defined below). The Kanga copper resource has been prepared by Robert
Rigo, Vice President - Project Development of Equinox and John Cooke,
Exploration Manager of Equinox, each of whom is a "Qualified Person" as such
term is defined in NI 43-101 and is effective as of May 6, 2009. See
"Cautionary Note Regarding Technical Information".

    FINANCIAL RESULTS AND LIQUIDITY

    Equinox recorded a consolidated net loss for the three month period ended
March 31, 2009 of $60.6 million, or approximately $0.10 per share. This
compares to a consolidated net loss of $8.2 million, or approximately $0.01
per share, for the corresponding three month period ended March, 31, 2008. The
primary variances arose as a result of other income/(expense) which was higher
than the previous corresponding quarter mainly due to derivative instrument
fair value losses of $98.1 million (2008: $nil) as a result of the copper
price increasing to $1.83 per pound at March 31, 2009 offset by a future
income tax benefit of $42.7 million which was recognized for the quarter ended
March 31, 2009 (March 31, 2008: future income tax expense of $0.3 million)
primarily in response to the fair value derivative losses for the quarter.
Exploration expenditures were $1.1 million for the three month period ended
March 31, 2009 (March 31, 2008: $3.0 million) which was lower than the same
period in 2008 as a result of a reduced exploration program. General and
administration costs were $1.7 million for the three month period ended March
31, 2009 (March 31, 2008: $1.8 million), which is generally consistent with
the same period in 2008. Financing costs associated with the Lumwana Project
debt facilities, other than capitalized interest and commitment fees, were
$0.5 million for the quarter ended March 31, 2009 (March 31, 2008: $1.8
million).
    As at March 31, 2009, Equinox had cash resources of $44.2 million, an
undrawn Contingent Funding Facility totalling $45 million and an undrawn
Nederlandse Financierings-Maatshappij voor Ontwikkelingslanden N.V. ("FMO")
financing facility of $25 million (which remains subject to conditions
precedent). Project and fleet debt facilities outstanding total $642.7
million. On March 26, 2009 the Company reached agreement with its debt
financiers to restructure the debt repayment schedule. The main terms of the
agreements are intended to smooth the principal debt repayments more evenly
over the life of the loans without changing the tenor of the various
facilities. The effect is that the principal repayments over the next twelve
months are $189.9 million, with $105.2 million payable in September 2009.
    Subsequent to March 31, 2009, Equinox completed the Offering and has
issued a total of 102,235,000 common shares of the Company at a price of
Cdn$1.80 per share for gross proceeds of Cdn$184,023,000.

    OUTLOOK

    Equinox is focused on operating its 100% owned Lumwana copper mine in
Zambia. The Company expects that it will produce 170,000 tonnes (375 million
pounds) of copper metal in concentrates at the average (C1) operating cost of
$1.15 per pound for the year. As can be expected, unit production costs are
anticipated to be higher in the early part of 2009 until steady state
production activities are reached. The process plant is now operational and
continues to ramp up to its design capacity of 20 million tonnes per annum.
First concentrate production commenced in early December 2008. Full production
is expected to be reached in mid-2009 at which time Lumwana will be one of
Africa's largest copper mines.
    The Company believes that there are significant opportunities at the
Lumwana Project to expand and optimize the concentrator and mine throughput
rate, and to assess and evaluate the additional near mine deposits discovered
to date. Equinox has also completed the uranium feasibility study ("UFS")
investigating the onsite treatment of discrete and high grade uranium
mineralization contained within the Lumwana copper pitshells. The UFS has
confirmed the potential viability of onsite uranium treatment. Should Equinox
be successful in negotiating viable uranium off-take agreements and securing
the requisite project capital financing, the Company estimates plant
construction to take 18-24 months. The decision to proceed with development of
the Lumwana Uranium Project will depend, subject to board approval, on a
number of factors including improvements in the international project
financing climate, as well as market prices for uranium oxide. Equinox will
continue to review and assess opportunities for organic growth and expansion
as well as corporate opportunities to grow the Company.

    Q1-2009 CONFERENCE CALL AND WEBCAST

    The Company will host a conference call to discuss the Q1-2009 press
release. The call will be hosted by Equinox President & CEO, Craig R. Williams
with participation by Harry Michael, VP of Operations and COO and Michael
Klessens, VP Finance and CFO:

    
    Date:                   Wednesday May 6, 2009
    -----

    Time:                   18:00 HRS (Toronto time)
    -----                   18:00 HRS (New York time)
                            23:00 HRS (London time)
                            00:00 HRS (Lusaka time - Midnight Wed/Thurs)
                            06:00 HRS (Perth time - Thursday 7 May, 2009)
                            08:00 HRS (Sydney / Melbourne time -
                                       Thursday 7 May)

    Webcast:                The Company's website at www.equinoxminerals.com
    --------

    Dial-in International:  Toll-free +1 800 4626 6666 or +1 201 689 8054
    ----------------------

    Dial-in North America:  Toll-free +1 877 407 9205
    ----------------------

    Conference ID:          321712
    --------------
                            Please call in 10 minutes prior to the call and
                            stay on the line (an operator will be available
                            to assist you)

    Replay:                 A replay of the telephone conference will be
    -------                 available approximately one hour after the
                            completion of the conference and until 11:59 HRS
                            (Eastern Time) on June 6, 2009.

    Replay International:   +1-201-612-7415
    ---------------------

    Replay North America:   +1-877-660-6853
    ---------------------

                            To access the recording, please enter Conference
                            ID: 321712 followed by the
                            Replay pass code: 286

    An archived transcript of the call will also be available on the
    Company's website.

    ANNUAL GENERAL MEETING

    President and CEO, Craig Williams and Chairman Peter Tomsett are pleased
to invite you to attend the Annual General Meeting of the Company, following
which a reception with light refreshments will be available:

    Date:                   Thursday May 7, 2009
    -----

    Time:                   11:00 HRS (EST) (Toronto Time)
    -----

    Venue:                  The Toronto III Ballroom, Lower Level, Toronto
    ------                  Hilton Hotel, 145 Richmond Street West, Toronto,
                            Ontario, Canada.

    Webcast:                This AGM is being web cast by Precision IR and
    --------                can be accessed either:
                            -   By going to the EQN Website
                            -   Cut Paste link to web browser
    http://www.investorcalendar.com/IC/CEPage.asp?ID=144458
                            -   Or by going to InvestorCalendar.com

    AUSTRALIAN INVESTOR BRIEFINGS

    The Company will host a series of investor briefings in Australia with
President & CEO, Craig R. Williams for those unable to attend the AGM in
Toronto. All are welcome to the following presentations:

    Sydney - Monday May 11, 2009 at 11.00am
    ------             The Establishment
                       Room II, Level 3
                       252 George St, Sydney, NSW, 2000

    Melbourne - Tuesday May 12, 2009 at 11.00am
    ---------          The Westin Melbourne
                       Westin Room IV
                       205 Collins Street, Melbourne, VIC 3000

    Adelaide - Wednesday May 13, 2009 at 11.00am
    --------           Hilton Adelaide
                       Balcony 1
                       233 Victoria Square, Adelaide, SA 5000

    Perth - Friday May 15, 2009 at 11.00am
    -----              Parmelia Hilton Perth
                       Stirling Room
                       14 Mill Street, Perth, Australia 6000
    

    COMPANY OVERVIEW

    Equinox is an international mining and exploration company, dual listed
on the Toronto Stock Exchange (the "TSX") and the Australian Securities
Exchange (the "ASX") under the symbol "EQN".
    The Company is focused on operating the flagship, 100% owned Lumwana
copper mine in Zambia. The Lumwana copper mine is expected to produce an
average of 172,000 tonnes per year of copper metal contained in concentrates
for the first 6 years of its 37 year mine life.
    Copper sulphide concentrate production at Lumwana commenced in December
2008 from the 20 million tonnes per annum process plant and sales have
commenced to off-takers. Full production is expected to be reached in mid-2009
at which time management anticipates that Lumwana will be one of Africa's
largest copper mines with expected production in 2009 of 170,000 tonnes of
copper in concentrate, including this quarter's production, at the average
(C1) operating cost of $1.15 per pound of copper for the 2009 year.
    The Company believes that there are significant opportunities at the
Lumwana copper mine to expand and optimize the concentrator and mine
throughput rate, and to assess and evaluate the additional near mine deposits
discovered to date.
    Equinox will continue to review and assess opportunities for organic
growth and expansion and the Company believes that Lumwana represents the
cornerstone for its objective to build a new mining house.

    
    Craig R. Williams - President & Chief Executive Officer
    -------------------------------------------------------


    -------------------------------------------------------------------------

    Cautionary Language and Forward Looking Statements
    --------------------------------------------------
    This press release contains "forward-looking statements" and "forward-
    looking information", which may include, but is not limited to,
    statements with respect to the future financial or operating performances
    of Equinox, its subsidiaries and their respective projects, the future
    price of copper and uranium, the estimation of mineral reserves and
    resources, the realization of mineral reserve estimates, the timing and
    amount of estimated future production, estimated costs of future
    production, the sale of future production and the performance of off-
    takers, capital, operating and exploration expenditures, costs and timing
    of the development of the Lumwana Project, the costs of Equinox's hedging
    policy, costs and timing of future exploration, requirements for
    additional capital, government regulation of exploration, development and
    mining operations, environmental risks, reclamation and rehabilitation
    expenses, title disputes or claims, and limitations of insurance
    coverage. Often, but not always, forward-looking information can be
    identified by the use of words such as "plans", "expects", "is expected",
    "is expecting", "budget", "scheduled", "estimates", "forecasts",
    "intends", "anticipates", or "believes", or variations (including
    negative variations) of such words and phrases, or statements that
    certain actions, events or results "may", "could", "would", "might", or
    "will" be taken, occur or be achieved. The purpose of forward-looking
    information is to provide the reader with information about management's
    expectations and plans for 2009 and subsequent years. Readers are
    cautioned that forward-looking information involves known and unknown
    risks, uncertainties and other factors which may cause the actual
    results, performance or achievements of Equinox and/or its subsidiaries
    to be materially different from any future results, performance or
    achievements expressed or implied by the forward-looking information.
    Such factors include, among others, those factors discussed in the
    section entitled "Risk Factors" in the Company's Annual Information Form.
    Although Equinox has attempted to identify statements containing
    important factors that could cause actual actions, event or results to
    differ materially from those described in forward-looking information,
    there may be other factors that cause actions, events or results to
    differ from those anticipated, estimated or intended. Forward-looking
    information contained herein are made as of the date of this document
    based on the opinions and estimates of management on the date statements
    containing such forward looking information are made, and Equinox
    disclaims any obligation to update any forward-looking information,
    whether as a result of new information, estimates or opinions, future
    events or results or otherwise. There can be no assurance that forward-
    looking information will prove to be accurate, as actual results and
    future events could differ materially from those anticipated in such
    information. Accordingly, readers should not place undue reliance on
    forward looking information.

    The Company has included a non-GAAP performance measure in this news
    release: "cash (C1) operating cost". The Company believes that, in
    addition to conventional measures prepared in accordance with GAAP,
    certain investors use this information to evaluate the Company. It is
    intended to provide additional information and should not be considered
    in isolation or as a substitute for measures of performance prepared in
    accordance with GAAP. Cash (C1) operating cost is a common performance
    measure in the copper industry and is prepared and presented herein on a
    basis consistent with the industry standard Brook Hunt definitions. Cash
    (C1) operating costs includes direct cash costs, minesite and realization
    costs through to refined metal.

    Certain technical information in this release is summarized or extracted
    from the "Technical Report on the Lumwana Project, North Western
    Province, Republic of Zambia" dated June 2008 as re-filed in April 2009
    (the "Technical Report"), prepared by Ross Bertinshaw, Principal,
    Golder Associates Pty Ltd, Daniel Guibal, Corporate Consultant, SRK
    Consulting (Australasia) Pty Ltd, Andrew Daley, Director, Investor
    Resources Finance Pty Ltd, and Robert Rigo, Vice-President - Project
    Development, Equinox, each of whom is a "Qualified Person" in accordance
    with National Instrument 43-101 -Standards of Disclosure for Mineral
    Projects ("NI 43-101"). Information of a scientific or technical nature
    contained in this press release arising since the date of the Technical
    Report is provided by Equinox management and was prepared under the
    supervision of Robert Rigo, Vice-President - Project Development or John
    Cooke, Exploration Manager, each of whom is a "Qualified Person" in
    accordance with NI 43-101. Readers are cautioned not to rely solely on
    the summary of such information contained in this release, but should
    read the Technical Report which is posted on Equinox's website
    (www.equinoxminerals.com) and filed on SEDAR (www.sedar.com) and any
    future amendments to such report. Readers are also directed to the
    cautionary notices and disclaimers contained herein and therein.
    -------------------------------------------------------------------------



                          EQUINOX MINERALS LIMITED
                          Development Stage Company


                         CONSOLIDATED BALANCE SHEETS
                 As at March 31, 2009 and December 31, 2008
                                 (unaudited)

                                                      March 31    December 31
                                                        2009         2008
    ASSETS                                              $'000        $'000
                                                  ---------------------------
    Current assets
      Cash and cash equivalents                          44,174       51,327
      Accounts receivable                                46,041       35,409
      Inventories                                        34,766       27,473
      Current portion of derivative instruments          68,433      127,570
      Prepayments                                         9,947        6,471
                                                  ---------------------------
                                                        203,361      248,250
                                                  ---------------------------


    Restricted cash                                      26,054       26,076
    Property, plant and equipment                     1,087,275    1,067,290
    Derivative instruments                               55,907      129,109
    Other financial assets                                  510          406
                                                  ---------------------------
                                                      1,373,107    1,471,131
                                                  ---------------------------
    LIABILITIES
    Current liabilities
      Accounts payable and accrued liabilities           61,801       65,816
      Current income tax liability                       18,717        6,727
      Current portion of future income
       tax liability                                          -       13,875
      Current portion of long term debt                 189,926      138,367
      Current portion of finance leases                     714          923
                                                  ---------------------------
                                                        271,158      225,708

    Long term debt                                      428,824      475,040
    Finance lease                                         3,358        3,418
    Future income tax liabilities                         8,199       48,963
    Asset retirement obligation                           5,449        5,358
    Long term compensation                                  573          269
    Other provisions                                      5,013        2,167
                                                  ---------------------------
                                                        722,574      760,923
                                                  ---------------------------
    SHAREHOLDERS' EQUITY
    Share capital                                       581,477      581,477
    Retained earnings                                    47,752      108,343
    Contributed surplus                                  21,228       20,400
    Accumulated other comprehensive income/(loss)
     (net of tax)                                            76          (12)
                                                  ---------------------------
                                                        650,533      710,208
                                                  ---------------------------
                                                      1,373,107    1,471,131
                                                  ---------------------------



                      CONSOLIDATED STATEMENTS OF INCOME
             For the three months ended March 31, 2009 and 2008
                                 (unaudited)

                                                                  Cumulative
                                              Three months           from
                                                  ended          inception on
                                                March 31            June 29
                                            2009         2008         1993
                                     ----------------------------------------
                                           $'000        $'000        $'000

    Other (Expense)/Income                 (99,101)         709      186,860

    Expenditure
      Exploration                            1,065        3,034       32,527
      General and administration             1,676        1,790       34,090
      Financing costs                          533        1,835        6,788
      Incentive stock options expensed         828        1,813       36,915
      Share of loss of equity accounted
       investee                                  -            -        1,325
      Amortization of property,
       plant and equipment                      53           58        1,183
                                     ----------------------------------------
                                             4,155        8,530      112,828

                                     ----------------------------------------
    Loss/profit before income tax and
     non controlling interest             (103,256)      (7,821)      74,032

      Future income tax benefit/
       (expense)                            42,665         (338)     (52,570)
      Non controlling interest                   -            -          445

                                     ----------------------------------------
                                     ----------------------------------------
    Loss for the period                    (60,591)      (8,159)     (21,907)
                                     ----------------------------------------
                                     ----------------------------------------

    Basic loss per share                   $0.1015       $0.014

    Weighted average number of shares
     outstanding (000's)                   596,933      565,727



               CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
             For the three months ended March 31, 2009 and 2008
                                 (unaudited)

                                                          Three months
                                                              ended
                                                             March 31
                                                         2009         2008
                                                  ---------------------------
                                                        $'000        $'000

    Loss for the period                                 (60,591)      (8,159)
    Other comprehensive Income/(losses)
      Net unrealized gains/(losses) on
       available-for-sale securities (net of tax)            88         (518)
      Net unrealized derivative instrument losses
       (net of tax)                                           -     (103,735)
      Valuation Allowance on future tax asset
       relating to derivative instrument losses               -      (15,555)
                                                  ---------------------------
                                                  ---------------------------
    Total comprehensive loss                            (60,503)    (127,967)
                                                  ---------------------------
                                                  ---------------------------



         CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
             For the three months ended March 31, 2009 and 2008
                                 (unaudited)

                                                          Three months
                                                              ended
                                                             March 31
                                                         2009         2008
                                                  ---------------------------
                                                        $'000        $'000
    Share capital
      Balance at start of period                        581,477      499,715
      Issue of shares                                         -        4,314
      Conversion of stock options                             -          350
      Conversion of warrants                                  -          236
    -------------------------------------------------------------------------
      Balance at end of period                          581,477      504,615
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

      Balance at start of period                        108,343      (64,338)
      Loss for the period                               (60,591)      (8,159)
    -------------------------------------------------------------------------
      Balance at end of period                           47,752      (72,497)
    -------------------------------------------------------------------------

      Balance at start of period                         20,400       15,941
      Stock based compensation                              828        1,813
      Transferred to share capital on exercise
       of stock options                                       -         (123)
    -------------------------------------------------------------------------
      Balance at end of period                           21,228       17,631
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

      Balance at start of period                              -       12,122
      Transferred to share capital on conversion
       of warrants                                            -          (40)
    -------------------------------------------------------------------------
      Balance at end of period                                -       12,082
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Accumulated other comprehensive income/(loss)
      Balance at start of period                            (12)     (45,102)
      Net unrealized gain/(losses) on
       available-for-sale securities                         88         (518)
      Net unrealized derivative instrument losses
       (net of tax)                                           -     (103,735)
      Valuation allowance on future tax assets
       relating to derivative instruments losses              -      (15,555)
    -------------------------------------------------------------------------
      Balance at end of period                               76     (164,910)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



                    CONSOLIDATED STATEMENTS OF CASH FLOWS
             For the three months ended March 31, 2009 and 2008
                                 (unaudited)

                                                                  Cumulative
                                              Three months           from
                                                  ended          inception on
                                                March 31            June 29
                                            2009         2008         1993
                                     ----------------------------------------
                                           $'000        $'000        $'000
    Cash flows (used in)/provided by
     operating activities
      Loss for the period                  (60,591)      (8,159)      47,806
      Items not affecting cash:
        Amortization of property,
         plant and equipment                    53           58        1,183
        Unrealized foreign exchange loss       105          545          182
        Incentive stock option expense         828        1,813       36,915
        Share of loss of equity
         accounted investee                      -            -        1,325
        Current income tax expense               -            -        5,099
        Future income tax expense/
         (benefit)                         (42,665)         338       20,485
        Financing costs                    (19,704)         414      (59,864)
        Long term compensation expense         304           63          573
      Ineffective portion of changes
       in fair value of cash flow hedges         -            -
        Net loss from discontinued
         cash flow hedges                        -            -     (347,656)
        Gains and losses on derivatives
         designated as cash flow hedges
         transferred to net income               -            -       89,478
        Proceeds from settlement of
         derivative instruments             34,235            -       34,235
        Mark-to-market changes in
         derivative instruments             98,103            -       98,103
        Impairment loss on available-
         for-sale securities and other
         financial assets                        -            -        2,318
        Other                                    -            -       (3,497)
      Changes in non-cash working
       capital
        (Increase)/decrease in
         inventories                        (7,293)         773       (5,101)
        Increase/(decrease) in accounts
         payable, accrued liabilities
         and employee future benefits        2,442            -      (25,033)
        (Increase)/decrease in accounts
         receivable and prepayments        (14,108)       1,851      (43,607)
                                     ----------------------------------------
                                            (8,291)      (2,302)    (149,056)
                                     ----------------------------------------
    Cash flows (used in)/provided by
     financing activities
      Issue of share capital                     -          423      555,559
      Share issue costs                          -            -       24,996
      Issue of warrants                          -            -       12,147
      Proceeds from borrowings               4,044       89,518      723,861
      Repayment of borrowings                 (615)        (617)     (86,314)
      Prepaid financing fees and
       transaction costs                         -            -      (32,852)
      Finance lease principal
       repayments                             (269)           -         (334)
                                     ----------------------------------------
                                             3,160       89,324    1,147,071
                                     ----------------------------------------
    Cash flows (used in)/provided by
     investing activities
      Deferred Exploration and
       evaluation costs                          -            -      (37,903)
      Decrease/(increase) in
       restricted cash                          22           (2)     (26,097)
      Additions to for property,
       plant and equipment                  (1,454)    (103,566)    (890,699)
      Proceeds from sale of property,
       plant and equipment                       -            -           47
      Promissory note receipts                   -            -          375
                                     ----------------------------------------
                                            (1,432)    (103,568)    (957,141)
                                     ----------------------------------------
    Net (decrease)/increase in cash
     and cash equivalents                   (6,563)     (16,544)      41,857
    Cash and cash equivalents -
     start of period                        51,327       73,367            -
    Exchange rate changes on cash
     held in foreign currencies               (590)          31        2,317
                                     ----------------------------------------
    Cash and cash equivalents -
     end of period                          44,174       56,854       44,174
                                     ----------------------------------------
    




For further information:

For further information: Craig R. Williams, (President and Chief
Executive Officer); Michael Klessens, (V.P. Finance and CFO), Phone: +61 (0) 8
9322 3318, Email: equinox@equinoxminerals.com; Or Kevin van Niekerk, (V.P.
Investor Relations/Corporate Development), Phone: (416) 865-3393, Email:
kevin.van.niekerk@equinoxminerals.com For information on Equinox and technical
details on the Lumwana Project please refer to the company website at
www.equinoxminerals.com

Organization Profile

Equinox Minerals Limited

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