Equinox Releases Maiden Operating Profit Result for Q2 2009



    ARBN 108 066 986

    TORONTO, Aug. 6 /CNW/ - Equinox Minerals Limited (TSX and ASX symbol:
"EQN") ("Equinox" or the "Company") today released its results of operations
and financial condition for the three and six months ended June 30, 2009, and
its financial position as at June 30, 2009.
    All currencies specified in this press release are denominated in U.S.
dollars.

    HIGHLIGHTS

    
    -   24,413 tonnes of copper was produced during the quarter at an average
        (C1) operating cost of $1.44 per pound;
    -   Lumwana mine commenced commercial production as of April 01, 2009
        achieving an operating profit of $36.1 million for the quarter;
    -   The operating profit was subsequently offset by a non-cash hedging
        instrument loss, resulting from the rising copper price, leading to a
        net loss position, after tax, for the quarter of $38.7 million or
        $0.06 per share. For hedge details refer to the "Financial Results
        and Liquidity" section; and
    -   As at June 30, 2009, Equinox had cash resources of $187.2 million, an
        undrawn contingent funding facility of $45 million, and an undrawn
        FMO town infrastructure financing facility of $25 million.
        Outstanding project and fleet debt facilities was $626.5 million.
    

    DEVELOPMENTS IN THE QUARTER

    Operations

    During the quarter, the Lumwana mine continued to ramp up both the mine
and process plant operations. Production at Lumwana for the quarter was
3,031,783 dry metric tonnes of ore, producing 62,603 dry metric tonnes of
concentrate at an average copper grade of approximately 39.1%, an increase of
9.7% from the prior quarter resulting in copper produced in concentrate of
24,413 tonnes (53,821,388 pounds) at an average (C1) operating cost of $1.44
per pound.
    While ore production increased from last quarter, it was less than
expected due to:

    
    -   Availability of the mine truck and shovel mobile equipment fleet:
        Although substantially improved from Q1-2009 (from 71% availability
        in March, to 89% in June), this availability needs to further improve
        and be maintained to meet production targets;
    -   Shovel and truck productivity and cycle times: Although also
        significantly improved from last quarter (shovel productivity
        increased from 1,700tph in March, to 2,800tph in June), with total
        mine material movement increasing 134% from Q1-09, productivity needs
        to further improve and be maintained to meet production targets;
    -   Transitional ore zones: Significant tonnages of transitional (mixed
        sulphide-oxide) ore are being encountered where primary sulphide ore
        was expected. Substantially lower metallurgical recoveries are
        achieved in transition ore (ranging 5-65%) compared to sulphide ores
        which during May achieved 94% recovery; and
    -   Uranium: The pits currently being developed on the Malundwe copper
        orebody include the uranium zones at Valeria South and Valeria North.
        As these uranium zones are being selectively mined (applying a cutoff
        grade of 200ppm U, compared to the 700ppm U cutoff used in the
        original mine plan) and stockpiled, they are not treated by the
        copper concentrator and are effectively classified as 'waste' to the
        copper project. This uranium-rich copper ore stockpile may be treated
        at a later date, if and when the Company builds a uranium plant, but
        is not contributing to current production cash flow. To the end of
        Q2-2009 approximately 345,000 tonnes of uranium ore at a grade of
        800ppm uranium and 0.7% copper had been stockpiled at Lumwana.
    

    The orebody-related issues are expected to improve in the coming months
as the mine moves below the weathering profile and the uranium zones and into
more consistent sulphide ore. Availability and productivity parameters
continue to improve and management is implementing measures to further
increase productivity and mine output. These measures include engaging
specialist productivity consultants, Jamieson Group, internal training
programs to better focus and improve workforce skills and expertise. In
addition, Golder Associates have been contracted to review and assist in the
optimization of the Lumwana mining reserve reconciliation and mine scheduling.
    The 20Mtpa processing plant continues to perform to expectation and is
capable of producing in excess of its design capacity based on achieved
through put rates to date.
    As of April 1, 2009, the Lumwana mine was deemed to be in commercial
production for accounting purposes and therefore no further costs are being
capitalized.

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

                                             Q1 2009     Q2 2009       TOTAL

    Total mine material
     movement                  Tonnes      8,882,640  20,801,485  29,684,125

    Ore mined - sulphide       Tonnes      1,837,530   3,030,659   4,868,189

    Ore processed              Tonnes      2,877,141   3,031,783   5,908,924

    Head grade                 Copper %         0.93        0.98        0.96

    Copper recovery            Copper %        82.90       82.35       82.60

    Concentrate grade          Copper %        39.00       39.14       39.07

    Copper produced in
     concentrate               Tonnes         22,263      24,413      46,676

    Copper produced in
     concentrate               Pounds     49,081,908  53,821,388 102,903,296

    Average (C1) operating
     cost                      Per Pound           -       $1.44       $1.44
    -------------------------------------------------------------------------
    

    Revised Production Guidance

    The various challenges that have impacted ramp-up and production at
Lumwana in 2009 are considered to be of a short term nature. However, the
cumulative impact of these challenges has resulted in the Company revising its
production guidance for 2009. Management estimate production guidance for the
2009 calendar year, including production to June 30, 2009 of 46,676 tonnes,
will be in the range of 110,000 - 120,000 tonnes (or 242 - 265 million pounds)
of copper metal in concentrates at the average estimated (C1) operating cost
of between $1.35 - $1.50 per pound.
    Management believes that it is taking appropriate remediation action to
meet the challenges specified in this report and believes that the Lumwana
mine and ore body have not been impaired due to the events and issues
discussed herein.

    Off-take Update

    During the quarter, concentrate delivery was predominantly directed to
Chambishi Copper Smelter Limited ("CCS"). On May 6, 2006, the Company reported
that a five year concentrate offtake agreement with Konkola Copper mines Plc
("KCM") had been signed for the smelting at KCM's new Nchanga smelter on the
Zambian Copperbelt, of annual quantities of between 70,000 and 80,000 dry
metric tonnes of concentrates from the Lumwana copper mine. The agreement also
permits an option by mutual agreement for the smelting of additional annual
quantities of Lumwana copper concentrates under the same terms. KCM is
majority owned by Vedanta Resources Plc, a London listed metals and mining
company. During the quarter, the Company terminated its offtake with Mopani
Copper Mines Plc. The KCM offtake supplements the Company's primary long-term
offtake agreement with CCS, which when combined, will account for a large
majority of Lumwana's forecast production.
    Concentrate deliveries to KCM have commenced and Equinox continues to
make shipments of Lumwana copper concentrates to international traders active
on the Zambian Copperbelt to maintain distribution flexibility.

    ZESCO Update

    The Company has 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 between 2007 and 2008.
ZESCO has claimed invoice values totalling $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 while
conducting negotiations in an effort to resolve the matter. During the quarter
the board and the CEO of ZESCO were replaced. The ZESCO Notice of Termination
has been withdrawn and management discussions continue with ZESCO. Equinox
believes that the matter can be resolved in a reasonable manner.

    Town Development

    The Lumwana town development continues to advance with 539 houses
completed to date. The commercial and retail developments, including the
recently opened Lumwana supermarket, are advancing and a self-sustaining
modern town environment is being developed.
    The Company's subsidiary, Lumwana Property Development Company ("LPDC")
was established 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. No drawdowns of this facility have occurred to date.

    Corporate Activities

    On April 22, 2009, Equinox closed its public offering of 102,235,000
common shares, including the exercise of the over-allotment option, at a price
of Cdn$1.80 per share raising gross proceeds of Cdn$184.0 million (US$148.3
million). The net proceeds from the public offering have been used for the
improvement of the Company's cash position, and will be used 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.
    The Company held its annual shareholders' meeting on May 7, 2009 at which
the re-election of the directors and the amended and restated shareholder
rights plan were approved.
    The Company recorded a net loss for the quarter of $38.7 million or $0.06
per share.

    Exploration Activities

    The following exploration work continued its focus on the evaluation and
ranking of targets on the Lumwana mining license LML49:

    
    -   At the North Dome Prospect, soil sampling was completed over an
        historical RST copper soil anomaly, which coincides with a
        radiometric anomaly. The increased density and better detection
        limits of soil sampling by the Company resulted in the RST soil
        anomaly resolving into one main and two lesser anomalies, aligned
        along a north easterly trend. A spectrometer survey showed the
        radiometric anomaly coincided with the main peak of the soil anomaly.
        Chargeability anomalies identified using IP time domain geophysics
        also coincided with the soil anomalies, as well as identifying an
        additional anomaly for which no copper soil anomaly was found.

    -   Detailed dipole-dipole IP surveys were conducted across each soil-IP
        anomaly at North Dome as well as on IP targets identified on the
        Mwombezhi Dome in 2004-2008 at the Kababisa, Kamaranda, Malundwe West
        and Lubwe prospects to establish the depth to the chargeable source
        material; and.

    -   Soil sampling was initiated at the Kamasingo North (NE of Lubwe) and
        Kamaranda prospects.
    

    FINANCIAL RESULTS AND LIQUIDITY

    Equinox recorded a consolidated net loss for the three month period ended
June 30, 2009 of $38.7 million, or approximately $0.06 per share. This
compares to a consolidated net loss of $1.8 million, or approximately $nil per
share, for the corresponding three month period ended June, 30, 2008. The
major items affecting the net loss for the period were as follows:

    
    1.  Operating profit following Lumwana achieving commercial production:

        Lumwana commenced commercial production on April 1, 2009 achieving an
        operating profit of $36.1 million for three months ended June 30,
        2009. Prior to achieving commercial production the majority of costs
        incurred, included debt financing costs were capitalized as mine
        development.

    2.  Non-cash hedging instrument losses

        The Company's derivative instrument position has created a derivative
        instrument loss of $74.3 million during the period due to the
        strengthening copper price from $1.83 per pound at March 31, 2009 to
        $2.32 per pound at June 30, 2009. In three months ended June 30,
        2008, no derivative instrument gain or loss was recognized. The
        Company's hedge book at June 30, 2009 consists of forward contracts
        totalling 53,015 tonnes of copper at an average strike price of
        $5,672 per tonne ($2.57 per pound) and put options totalling 40,510
        tonnes of copper at an average strike price (net of premium payable)
        of $4,443 per tonne ($2.02 per pound).

    3.  Income tax benefit

        Due principally to the decrease in mark-to-market value of the
        derivative instruments and the carried forward losses held by the
        company, a future income tax benefit of $22.7 million was recognized
        for the three months ended June 30, 2009 (June 30, 2008: $0.1 million
        expense).
    

    Equinox recorded a consolidated net loss for the six month period ended
June 30, 2009 of $99.3 million, or approximately $0.16 per share. This
compares to a consolidated net loss of $9.9 million, or approximately $0.02
per share, for the corresponding six month period ended June, 30, 2008. The
major items affecting the net loss for the period were as follows:

    
    1.  Operating profit following Lumwana achieving commercial production:

        Lumwana commenced commercial production on April 1, 2009 achieving an
        operating profit of $36.1 million for six months ended June 30, 2009.
        Prior to achieving commercial production the majority of costs
        incurred, included debt financing costs were capitalized as mine
        development.

    2.  Non-cash hedging instrument losses

        The Company's derivative instrument position has created a derivative
        instrument loss of $172.4 million during the period due to the
        strengthening copper price from $1.38 per pound at December 31, 2008
        to $2.32 per pound at June 30, 2009. In the six months ended June 30,
        2008 no derivative instrument gain or loss was recognized. The
        Company's hedge book at June 30, 2009 consists of forward contracts
        totalling 53,015 tonnes of copper at an average strike price of
        $5,672 per tonne ($2.57 per pound copper) and put options totalling
        40,510 tonnes of copper at an average strike price (net of premium
        payable) of $4,443 per tonne ($2.02 per pound copper).

    3.  Income tax benefit

        Due principally to the decrease in mark-to-market value of the
        derivative instruments and the carried forward losses held by the
        company, a future income tax benefit of $65.4 million was recognized
        for the six months ended June 30, 2009 (June 30, 2008: $(0.2) million
        expense).

    As at June 30, 2009, Equinox had cash resources of $187.2 million, an
undrawn Contingent Funding Facility totalling $45 million and an undrawn FMO
financing facility of $25 million which remains subject to conditions
precedent. Project and fleet debt facilities outstanding total $626.5 million.
    

    SUBSEQUENT EVENTS

    Change to Management and Board

    On July 24 it was announced that Mr. Harry Michael, Vice President,
Operations and Chief Operating Officer intends to leave the Company effective
December 2009. Mr. Michael has been with Equinox for over four years and has
played a key role during the construction of the Lumwana Mine, managing site
activities through a very challenging period of growth for the Company with
the transition from developer to producer.
    The Company has retained an international executive search firm and is
actively seeking Mr. Michael's replacement. As a consequence of his intended
resignation from management in December, Mr. Michael has also resigned from
the Board of Equinox with effect from July 24, 2009. The Company and Mr.
Michael have agreed that during this transitional period Mr. Michael will
continue to focus on the continuing ramp up of Lumwana operations.

    OUTLOOK

    The Company is focused on operating its flagship, 100% owned Lumwana
copper mine in Zambia. Lumwana continues to ramp up and management estimates
interim production guidance for the 2009 calendar year, including this
quarter's production, will be in the range of between 110,000 - 120,000 tonnes
(or 242 - 265 million pounds) of copper metal in concentrates at the average
estimated (C1) operating cost of between US$1.35 - US$1.50 per pound.
    The Company believes that, following the completion of project ramp up,
there are significant opportunities at the Lumwana Project to further 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. The stockpiling of Lumwana uranium ore has
commenced.
    Equinox will continue to review and assess opportunities for organic
growth and expansion, and corporate opportunities to grow the Company.

    Q2-2009 CONFERENCE CALL AND WEBCAST

    The Company will host a conference call to discuss the Q2-2009 results.
The call will be hosted by Equinox President & CEO, Craig R. Williams with
participation from Michael Klessens, VP Finance and CFO, and Robert Rigo, VP
Project Development:

    
    Date:                    Thursday August 06, 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 - Friday 07 August, 2009)
                             08:00 HRS (Sydney / Melbourne time -
                                        Friday 07 August, 2009)

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

    Dial-in International:   +1 201 689 8035
    ----------------------
    Dial-in Australia:       Toll Free 0011-800-4626-6666
    ------------------

    Dial-in North America:   Toll-free +1 877 407 8035
    ----------------------

    Dial-in UK & EU:         Toll-free - 00 800 4626 6666
    ----------------

    Conference ID:           329442
    --------------
                             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 September 06, 2009.

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

    Replay North America:    +1-877-660-6853
    ---------------------
                             To access the recording, please enter Conference
                             ID: 329442 followed by the Replay pass code: 286

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




                         CONSOLIDATED BALANCE SHEETS
                  As at June 30, 2009 and December 31, 2008
                                 (unaudited)

                                                        June 30  December 31
                                                           2009         2008
                                                    -------------------------
    ASSETS                                              $'000        $'000
    Current assets
      Cash and cash equivalents                         187,249       51,327
      Accounts receivable                                83,211       35,409
      Inventories                                        49,695       27,473
      Current portion of derivative instruments          22,665      127,570
      Prepayments                                         9,289        6,471
                                                    -------------------------
                                                        352,109      248,250
                                                    -------------------------

    Restricted cash                                      26,057       26,076
    Property, plant and equipment                     1,069,056    1,067,290
    Derivative instruments                               12,944      129,109
    Future tax asset                                     14,290            -
    Other financial assets                                1,914          406
                                                    -------------------------
                                                      1,476,370    1,471,131
                                                    -------------------------

    LIABILITIES
    Current liabilities
      Accounts payable and accrued liabilities           79,163       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                 190,000      138,367
      Current portion of finance leases                     492          923
                                                    -------------------------
                                                        288,372      225,708

    Long term debt                                      414,942      475,040
    Finance lease                                         3,307        3,418
    Future income tax liabilities                             -       48,963
    Asset retirement obligation                           5,541        5,358
    Long term compensation                                1,151          269
    Other payables                                        9,041        2,167
                                                    -------------------------
                                                        722,354      760,923
                                                    -------------------------

    SHAREHOLDERS' EQUITY
    Share capital                                       722,753      581,477
    Retained earnings                                     9,011      108,343
    Contributed surplus                                  21,125       20,400
    Accumulated other comprehensive income/(loss)
     (net of tax)                                         1,127          (12)
                                                    -------------------------
                                                        754,016      710,208
                                                    -------------------------
                                                      1,476,370    1,471,131
                                                    -------------------------



                      CONSOLIDATED STATEMENTS OF INCOME
          For the three and six months ended June 30, 2009 and 2008
                                 (unaudited)

                                     Three months ended     Six months ended
                                           June 30               June 30
                                       2009       2008       2009       2008
                                   ------------------------------------------
                                      $'000      $'000      $'000      $'000

    Sales revenue                   112,364          -    112,364          -

    Cost of sales                   (72,756)         -    (72,756)         -
    Royalties                        (3,513)         -     (3,513)         -

                                   ------------------------------------------
    Operating profit                 36,095          -     36,095          -
                                   ------------------------------------------

    Other Expense/(Income)           76,948     (7,291)   176,050     (8,000)

    Expenditure
      Exploration                     1,045      1,776      2,109      4,810
      General and administration      4,156      2,013      5,885      3,861
      Financing costs                15,391      4,076     15,924      5,911
      Incentive stock options
       expensed                          20      1,330        848      3,143
                                   ------------------------------------------
                                     97,560      9,195    200,816     17,725

                                   ------------------------------------------
    Loss before income tax          (61,465)    (1,904)  (164,721)    (9,725)

      Future income tax
       benefit/(expense)             22,724        127     65,389       (211)

                                   ------------------------------------------
    Loss for the period             (38,741)    (1,777)   (99,332)    (9,936)
                                   ------------------------------------------

    Basic and diluted loss
     per share                        $0.06      $0.00      $0.16      $0.02

    Weighted basic average number
     of shares outstanding (000's)  675,762    582,653    636,565    574,190
    Weighted diluted average
     number of shares outstanding
     (000's)                        695,423    599,253    656,227    590,790



               CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
          For the three and six months ended June 30, 2009 and 2008
                                 (unaudited)

                                     Three months ended     Six months ended
                                           June 30               June 30
                                   ------------------------------------------
                                       2009       2008       2009       2008

                                      $'000      $'000      $'000      $'000

    Loss for the period             (38,741)    (1,777)   (99,332)    (9,936)
    Other comprehensive
     Income/(losses)
      Net unrealized gains on
       available-for-sale
       securities (net of tax)        1,051      1,521      1,139      1,003
      Net unrealized derivative
       instrument losses (net
       of tax)                            -    (28,390)         -   (147,680)
                                    -----------------------------------------
    Total comprehensive loss        (36,790)   (28,646)   (98,193)  (156,613)
                                    -----------------------------------------



         CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
          For the three and six months ended June 30, 2009 and 2008
                                 (unaudited)

                                     Three months ended     Six months ended
                                           June 30               June 30
                                       2009       2008       2009       2008
                                   ------------------------------------------
                                      $'000      $'000      $'000      $'000

    Share capital
      Balance at start of period    581,477    504,615    581,477    499,715
      Issue of shares               148,325          -    148,325      4,314
      Share issue costs              (7,356)         -     (7,356)         -
      Conversion of stock options       307      1,050        307      1,400
      Conversion of warrants              -     71,498          -     71,734
    -------------------------------------------------------------------------
      Balance at end of period      722,753    577,163    722,753    577,163
    -------------------------------------------------------------------------

      Balance at start of period     47,752    (72,497)   108,343    (64,338)
      Loss for the period           (38,741)    (1,777)   (99,332)    (9,936)
    -------------------------------------------------------------------------
      Balance at end of period        9,011    (74,274)     9,011    (74,274)
    -------------------------------------------------------------------------

      Balance at start of period     21,228     17,631     20,400     15,941
      Stock based compensation          546      1,417      1,374      3,230
      Transferred to share capital
       on exercise of stock options    (123)      (371)      (123)      (494)
      Forfeited stock options          (526)       (87)      (526)       (87)
    -------------------------------------------------------------------------
    Balance at end of period         21,125     18,590     21,125     18,590
    -------------------------------------------------------------------------

      Balance at start of period          -     12,082          -     12,122
      Transferred to share capital
       on conversion of warrants          -    (12,081)         -    (12,121)
      Forfeited warrants                  -         (1)         -         (1)
    -------------------------------------------------------------------------
      Balance at end of period            -          -          -          -
    -------------------------------------------------------------------------

    Accumulated other comprehensive
     income/(loss)
      Balance at start of period         76   (164,910)       (12)   (45,102)
      Net unrealized gain/(losses)
       on available-for-sale
       securities (net of tax)        1,051      1,521      1,139      1,003
      Net unrealized derivative
       instrument losses (net
       of tax)                            -    (28,390)         -   (147,680)
    -------------------------------------------------------------------------
      Balance at end of period        1,127   (191,779)     1,127   (191,779)
    -------------------------------------------------------------------------


                    CONSOLIDATED STATEMENTS OF CASH FLOWS
          For the three and six months ended June 30, 2009 and 2008
                                 (unaudited)

                                     Three months ended     Six months ended
                                           June 30               June 30
                                       2009       2008       2009       2008
                                   ------------------------------------------
                                      $'000      $'000      $'000      $'000

    Cash flows (used in)/provided
     by operating activities
      Loss for the period           (38,741)    (1,777)   (99,332)    (9,936)
      Items not affecting cash:
        Depletion and Amortization   11,806         69     11,859        127
        Unrealized foreign exchange
         loss                         4,474     (3,402)     4,579     (2,857)
        Incentive stock option
         expense                         20      1,330        848      3,143
        Future income tax
         expense/(benefit)          (22,724)      (127)   (65,389)       211
        Financing costs                   -    (12,518)   (13,339)   (12,102)
        Long term compensation
         expense                        578        100        882        163
        Gain / Loss on sale of
         property, plant and
         equipment                        -          -          -          2
        Mark to market changes in
         derivative instruments      74,312          -    172,414          -
        Proceeds from settlement
         of derivative instruments   14,419          -     48,654          -
        Deferred royalty payments     3,513          -      3,513          -
        Accretion Expense                92          -        183          -
        Amortization of Finance
         fees                         2,429          -      2,429          -

    Changes in non-cash working
     capital
      (Increase)/decrease in
       inventories                   (6,204)    (6,761)   (13,497)    (6,761)
      Increase/(decrease) in
       accounts payable, accrued
       liabilities and employee
       future benefits               17,362     (1,320)    13,347       (547)
     (Increase)/decrease in accounts
       receivable and prepayments   (36,512)    (5,015)   (50,620)    (3,164)
                                   ------------------------------------------
                                     24,824    (29,421)    16,531    (31,721)
                                   ------------------------------------------
    Cash flows (used in)/provided
     by financing activities
      Issue of share capital        148,325     60,095    148,325     60,518
      Share issue costs              (7,356)         -     (7,356)         -
      Proceeds from borrowings            -    113,174      4,044    202,479
      Repayment of borrowings       (16,684)    (7,611)   (17,299)    (8,228)
      Finance lease principal
       repayments                      (273)         -       (542)         -
                                   ------------------------------------------
                                    124,012    165,658    127,172    254,769
                                   ------------------------------------------
    Cash flows (used in)/provided
     by investing activities
      Decrease/(increase) in
       restricted cash                   (3)      (275)        19       (277)
      Additions for property,
       plant and equipment           (5,312)   (91,996)    (7,656)  (195,349)
                                   ------------------------------------------
                                     (5,315)   (92,271)    (7,637)  (195,626)
                                   ------------------------------------------

    Net increase in cash and
     cash equivalents               143,521     43,966    136,066    131,826
      Cash and cash equivalents -
       start of period               44,174     56,854     51,327     73,367
      Exchange rate changes on
       cash held in foreign
       currencies                      (446)     3,354       (144)     3,385
                                   ------------------------------------------
    Cash and cash equivalents -
     end of period                  187,249    104,174    187,249    104,174
                                   ------------------------------------------


    Craig R.  Williams - President & Chief Executive Officer


    -------------------------------------------------------------------------
    Cautionary Language and Forward Looking Statements
    --------------------------------------------------
    This press release contains certain information which may constitute
    "forward-looking statements" and "forward-looking information", within
    the meaning of securities laws. Forward-looking information can often,
    but not always, 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. Forward-
    looking information may relate to management's future outlook and
    anticipated events or results and may include statements or information
    regarding future plans or prospects of the Company. Without limitation,
    statements that the uranium stockpile may be treated at a later date if
    the Company builds a uranium plant; orebody-related issues are expected
    to improve in the coming months; a comprehensive review is underway that
    will provide a revised annual production forecast; 2009 production will
    be in the range of 110,000 to 120,000 tonnes of copper metal in
    concentrates at the average operating cost of U.S.$1.35 to U.S.$1.50 per
    pound; steady state production activities are expected to be reached by
    the second quarter of 2010; the Company expects a reduction in unit costs
    following the wet season; and the Company estimates uranium plant
    construction to take 18 to 24 months; are forward looking statements. The
    purpose of forward-looking information is to provide the reader with
    information about management's expectations and plans for 2009 and
    subsequent years.

    Forward-looking information is based on certain factors and assumptions
    regarding, among other things, anticipated financial or operating
    performances of Equinox, it subsidiaries and their respective projects;
    future prices 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
    offtakers; 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. Without limitation, in stating that the uranium stockpile may
    be treated at a later date if the Company builds a uranium plant and that
    the Company estimates uranium plant construction to take 18 to 24 months,
    the Company has assumed that the costs of building such a plant will be
    feasible, that the materials, labour, regulatory approvals and other
    requirements will be available and that the price and demand for uranium
    will be profitable. In stating that the orebody related issues are
    expected to improve in the coming months, the Company has assumed that it
    will successfully mine through the oxide and transitional mineralization
    in the weathering profile and reach a more consistent sulphide ore.
    Further in relation to the mining of the orebody, it assumes that it will
    successfully segregate the uranium mineralization within the copper
    orebody at the lower 200 ppm U cutoff grade. In stating that a
    comprehensive review is underway that will provide a revised annual
    production forecast and that 2009 production will be in the range of
    110,000 to 120,000 tonnes of copper metal in concentrates at the average
    operating cost of U.S.$1.35 to U.S.$1.50 per pound, that steady stage
    production activities are expected to be reached by the second quarter of
    2010 and that the Company expects a reduction in unit costs following the
    wet season, the Company has assumed that its efficiency study by its
    third party consultants will be completed and that the results of the
    study will confirm its interim forecast. While the Company continues to
    evaluate and address the issues that impacted production during the first
    half of 2009, the full impact of them on the Company's revised annual
    production forecast, earnings and ability to meet its obligations can not
    be ascertained at this time. Similarly, there can be no assurance on the
    affect of these issues on the Company's debt service obligations or loan
    covenants under its banking facilities and its offtake obligations. The
    Company is actively evaluating and addressing these issues with the
    expectation of mitigating them in the near future.

    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.
    These factors include risks inherent in the exploration and development
    of mineral deposits; operational risks inherent in the conduct of mining
    activities; risks relating to changes in copper and uranium prices;
    changes in demand and supply of copper and uranium; uncertainties
    inherent in the estimation of mineral reserves and resources; risks
    inherent in the estimation of future production and future production
    costs; the estimation of cash costs of copper production; risks related
    to the Company's indebtedness including risks related to meeting its
    financial covenants; financing risks; risks related to interest rates;
    exchange rates; inflation or deflation; changes in the value of the U.S.
    dollar to foreign currencies; political and economic conditions of major
    copper producing countries; risks inherent in securing offtake
    arrangements and terms and/or enforcing such terms; insurance; government
    regulation; licences and permits and environmental risks; risks inherent
    in the estimation of reclamation costs; risks related to the Company's
    hedging activities; litigation; competition and reliance on key
    personnel. These risks are discussed in the section entitled "Risk
    Factors" in the Company's Annual Information Form dated March 27, 2009.
    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, mine site 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. Readers are cautioned not to rely solely on
    the summary of such information contained in this release, but should
    also read the final prospectus dated April 16, 2009 and the documents
    incorporated by reference therein, particularly, the Annual Information
    Form dated March 27, 2009, all of which are filed on SEDAR
    (www.sedar.com). Readers are also directed to the cautionary notices and
    disclaimers contained herein.
    -------------------------------------------------------------------------
    





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: +1 (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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