Equinox Extinguishes Phelps Dodge Mining (Zambia) Right to 1% Lumwana Royalty



    TORONTO, Sept. 1 /CNW/ - Equinox Minerals Limited (TSX and ASX symbol:
"EQN") ("Equinox" or the "Company") is pleased to report that its wholly owned
subsidiary, Lumwana Mining Company Limited ("LMC"), has exercised its option
to extinguish the right held by Phelps Dodge Mining (Zambia) Limited ("PD
Zambia") to receive a 1% Lumwana Project ("Lumwana") net smelter return
royalty under the purchase and sale agreement dated December 8, 2004 (the
"Purchase and Sale Agreement") between PD Zambia and the Company.
    Between August 1999 and June 2003, Equinox earned a 51% interest in
Lumwana as a result of funding a bankable feasibility study. Under the
Purchase and Sale Agreement, Equinox acquired the remaining 49% interest in
Lumwana.
    The Purchase and Sale Agreement provided that PD Zambia would retain the
right to a 1% Lumwana net smelter royalty which could be terminated by the
Company at its option under certain conditions. Exercising its option with a
payment of US$12.8 million to PD Zambia, LMC has met the required conditions
and extinguished the 1% Lumwana net smelter royalty thereby terminating all
remaining obligations and/or associations between Equinox and the former
holders.
    Commenting, Craig Williams, Equinox President and CEO said: "Given the
development and operating phase that Lumwana mine is now at, and looking at
the inherent value of these wholly owned mining assets judged today compared
to their value in 2004, we believe this is a very good deal for Equinox and
its stakeholders".

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

    For information on Equinox and technical details on the Lumwana Project
       please refer to the company website at www.equinoxminerals.com
    




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), Phone: (416) 865-3393, Email:
kevin.van.niekerk@equinoxminerals.com

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Equinox Minerals Limited

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