Equinox Q2-10 Results Generate Operating Profit of $91.1 million and
Operating Cash Flow of $142.5 million

TORONTO, Aug. 12 /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 month ("Q2-10") and six month ("H1-10") period ended June 30, 2010.

Equinox will host a conference call and webcast to discuss these results on Thursday, August 12, 2010 at 18:00 HRS (Toronto time).

All currencies specified in this press release are denominated in U.S. dollars.



     -  Generated an operating profit(1) of $91.1 million, an increase of 11%
        over the first quarter of 2010 and an after tax profit of $73.4
        million, an increase of 128% over the first quarter.

     -  Copper production increased 44% over Q1-10 and by 80% over Q2-09,
        with 43,835 tonnes (96.64 million pounds) of copper in concentrate

     -  Achieved the lowest quarterly C1 operating cost(1) to date of $1.19
        per pound of copper.

     -  Increased cash resources to $212.2 million, an increase of $92.1
        million over Q1-10 and as a result of positive operating cash flows.

     -  Achieved Lumwana Mine design output levels for the first time with in
        excess of 5 million tonnes of ore mined. Total material movement
        increased by 77% over Q1-10 and by 28% compared to the corresponding
        quarter in Q2-09. Ore mined increased by 65% over Q1-10 and by 68%
        compared to the corresponding quarter in Q2-09.

     -  Achieved recoveries of 94% and mine head grade of 1.02% Cu.

     -  Commenced a two-phase feasibility study to investigate expanding the
        Lumwana Mine to 35 million tonnes per annum ("Mtpa") by 2014.

     -  Initiated an additional $10 million drilling program at the
        Chimiwungo copper deposit following the first drill hole which
        intersected significant intercepts of 127m (225m - 352m) of 0.82% Cu
        including 64m (288m - 352m) of 1.03% Cu.

Commenting on the results, Equinox President and Chief Executive Officer Craig Williams said: "We are extremely pleased to have delivered record copper production and operating profits this quarter. With improvements in all areas of mining and processing operations, our committed hard work over the past year is now paying off; Lumwana is starting to show its true potential."


    (in thousands of dollars        Three months ended     Six months ended
     except as otherwise                 June 30               June 30
     noted)                            2010     2009(2)      2010     2009(2)
    Gross sales                    $223,934   $127,734   $424,619   $127,734
    Net income/(loss)               $73,442   ($38,741)  $105,969   ($99,332)
    Earnings/(loss) per share
     (dollars)                        $0.10     ($0.06)     $0.15     ($0.16)
    Copper produced in tonnes        43,835     24,413     74,306     46,676
    Copper produced in pounds
     (millions)                       96.64       53.8     163.81      102.9
    Copper sold in tonnes            35,929     23,635     62,525     47,601
    Copper sold in pounds
     (millions)                       79.21      52.11     137.84     104.94
    Realized copper price per
     pound (net of smelter
     charges)                         $2.47      $2.08      $2.72      $1.60
    C1 operating cost(1) per
     pound of copper                  $1.19      $1.44      $1.36      $1.44
    Cash and cash equivalents      $212,189   $187,249   $212,189   $187,249
    Weighted average shares
     outstanding (in millions)       707.55     675.76     707.48     636.57

    (1) C1 operating cost is a non-GAAP financial measure. See "Non-GAAP
        Financial Measures".
    (2) The Lumwana Mine commercial production commenced April 1, 2009.

In relation to the concentrate offtake contracts, at the end of Q2-10 the Company had 24,533 tonnes of payable copper provisionally priced at $2.95 per pound ($6,498 per tonne) which remained subject to final pricing adjustment in Q3-10. The final pricing adjustments recognized during the second quarter from Q1-10 provisionally priced copper sales was a loss of $9.5 million which is included in the gross sales for the second quarter.


An operating profit(1) of $91.1 million and an after tax profit of $73.4 million were generated during Q2-10. The operating profit at June 30, 2010 represents an increase of 142% when compared to the June 30, 2009 quarter operating profit of $37.6 million. The after tax profit for the three months ended June 30, 2010 represents an increase of 290% when compared to the June 30, 2009 quarter net loss of $38.7 million.

Production performance at the Lumwana Mine continued to improve in the second quarter with 43,835 tonnes of copper produced at a C1 operating cost(1) of $1.19 per pound of copper. Production for the first half of the year was 74,306 tonnes of copper at a C1 operating cost(1) of $1.36 per pound of copper.

In Q2-10, a record 5.09 million tonnes of ore was mined, with 4.57 million tonnes of ore milled, at a head grade of 1.02% Cu and copper recovery of 94%, which resulted in the production of 43,835 tonnes of copper. This was 44% higher than the first quarter and 80% higher than the corresponding quarter in 2009. Although still impacted by some wet weather early in April, total material moved was 26.6 million tonnes, which represents an annualized rate in excess of 100 million tonnes, while ore mined exceeded 5 million tonnes (equivalent to annualized 20 Mtpa) for the first time.

    Lumwana Mine Production Statistics
                                             Q2     Q1     Q4     Q3     Q2
    Production Statistic      Measure       2010   2010   2009   2009   2009
    Total material movement   Tonnes (m)   26.60  14.99  22.23  29.30  20.80
    Ore mined                 Tonnes (m)    5.09   3.09   4.20   4.02   3.03
    Ore processed             Tonnes (m)    4.57   3.59   3.96   3.82   3.03
    Head grade                Copper %      1.02   0.93   0.94   0.92   0.98
    Copper recovery           Copper %        94     92     93     80     82
    Concentrate grade         Copper %        44     44     46     47     39
    Copper in concentrate     Tonnes      43,835 30,471 34,626 28,111 24,413
    Copper in concentrate     Pounds (m)   96.64  67.18  76.33  61.97  53.82
    Copper sold               Tonnes      35,929 26,596 31,410 26,470 23,640
    C1 operating cost(1)      Per Pound    $1.19  $1.60  $1.53  $1.46  $1.44

Improvements in mobile equipment availability, equipment utilization and productivity all contributed to the improvement in material mined. The improved utilization and productivity resulted from the Hitachi fleet moving into new pit stages, to both the north and the south of the Starter Pit, which had been stripped of oxide material by the light fleet over the wet season. The opening up of these additional stages and improved planning practices resulted in longer working faces, larger blasts and higher benches, leading to more efficient and productive mining during Q2-10. Most of the ore mined was still sourced from the higher grade Starter Pit over the quarter, but this will shift to the new stages over the remainder of the year resulting in lower grade feed to the mill.

The maintenance improvement program, undertaken in conjunction with Hitachi, has resulted in an improvement in equipment availability with the focus now shifting to planned maintenance and better management of parts inventories. Two of the new Hitachi EH4500 trucks have been now been commissioned, with assembly of the other three expected to be completed progressively over Q3-10. At times, the shovels were truck-limited, with longer waste hauls while raising the height of the tailings dam, but management expects this to be mitigated as the lift finishes in Q3-10 and the five new trucks become available.

The mill and crusher had a planned six-day shutdown in May, but produced at rates of close to 20 Mtpa in April and June. The primary constraint is now the Crushing circuit and plans are underway to improve utilization, availability and feed rates to the Crusher in the third quarter. Very little transitional ore was treated during the second quarter and this saw record recoveries of 94%. It is expected that some transition ore will be treated over the remainder of the year and this will see lower recoveries over the second half of 2010.

C1 operating costs(1) were $1.19 per pound of copper which was a significant (26%) decrease from Q1-10, an 18% decrease from Q2-09 and the lowest quarterly operating costs achieved to date. The cost improvements were largely driven by high head grades and improved mining efficiencies. Head grades and recoveries in the second half of 2010 are expected to be lower which will negatively impact C1 operating costs(1) for the remainder of the year.

In addition to the 5.09 million tonnes of copper ore mined during Q2-10, mining of the uranium zones at Valeria South and Valeria North within the Malundwe pit continued during the quarter with 1.145 million tonnes of uranium-copper ore mined. The uranium-copper ore stockpile on the ROM pad has increased to 4.2 million tonnes of 924 ppm uranium and 0.8% copper. This uranium-copper ore is being diverted away from the copper concentrator, and is being classified and expensed as "waste" to the copper project. This uranium-copper ore stockpile may be treated at a later date, if and when the Company builds a uranium plant.

Production Guidance

The Lumwana Mine continues to ramp up both the mine and process plant operations, with the mine achieving design throughput during the second quarter. It is anticipated that ramp up of the process plant to design throughput will be achieved in the second half of 2010. Management estimates that Lumwana will produce 135,000 tonnes (300 million pounds) of copper metal in concentrates at an average estimated C1 operating cost(1) of $1.35 per pound for the 2010 year.

Town Development

The Lumwana town development continues to advance with 931 houses completed as at June 30, 2010. The commercial and retail developments, including the recently opened Lumwana supermarket, are advancing and a self-sustaining modern town environment is being developed.

In June 2010, the Commerce, Trade and Industry Minister of the Republic of Zambia launched the Lumwana Multi-Facility Economic Zone ("MFEZ") after granting the Company a Statutory Instrument to operate MFEZ within the 1,355 km(2) Lumwana large scale mining license. The objective of the MFEZ is to kick start industrial and economic development in the manufacturing sector near Lumwana Mine and to ultimately enhance domestic and export oriented business activity through the provision of competitive environments that encourage investors to set up businesses with relative ease. At capacity, it is hoped the MFEZ will create some 13,000 jobs and initial investment of $60 million has already been secured from local and foreign investors. Once established, the estimated 13,000 jobs would be in addition to the 3,800 jobs already created by the Company at its wholly-owned Lumwana Mine.

Corporate Activities

Equinox held its annual shareholders' meeting on May 7, 2010 at which shareholders re-elected the directors, re-appointed PricewaterhouseCoopers as the Company's auditors and authorized and approved until 2013 the Company's Long-Term Incentive Plan.

Exploration Activities

The Company has accelerated its exploration program on the 1,355 km(2) Large Scale Mining License that surrounds the Lumwana Mine. This program primarily focused on the Chimiwungo East area, adjoining the previously defined Chimiwungo Open Pit that is planned as the second stage of Lumwana development.

    Chimiwungo East

The induced polarization geophysical anomalies identified during Q4-09 in the Chimiwungo East area were the focus of exploration during Q2-10. Evaluation of the geophysical target was undertaken by two drill programs within the footprint of the interpreted south plunging shoot at Chimiwungo East and its daylight position.

Chimiwungo East Shallow Target: RC drilling (43 RC drill holes totaling 4,544m) evaluated the potential for near surface sulphide ore in the daylight position of the mineralization. The three ore horizons that typify Chimiwungo mineralization were intersected on all section lines. Assay results have been received only for the northern part of the drill grid where the mineralized sheets come to surface. Ore grade intercepts have been returned from oxide, transition and sulphide mineralization and as the sequence dips to the south, it is expected that the volume of sulphides will increase down dip of the oxidized ore schists.

Chimiwungo East Down Plunge Target: Diamond core drilling (8 holes totaling 4,407m) was conducted on three drill traverses to test down plunge the potential for an ore shoot to exist at Chimiwungo East similar to that at the Chimiwungo Main shoot 2 km further to the west. The objective was to identify sufficient grade and thickness to establish the viability of extending the Chimiwungo open pit eastwards into this area. In the first quarter, the Company reported that the first hole of this drill program (CHI0084) intersected 127m of 0.85% Cu from 225m, including 65m of 1.06% Cu. These are significant intercepts and support the concept of a south plunging shoot of higher grade mineralization at Chimiwungo East.

An additional seven deep diamond holes on the interpreted down plunge trend were completed during the second quarter. The geological core logging suggests that thicker mineralization typical of a shoot was intersected on all three drill traverses with significant widths of copper sulphides, bornite and chalcopyrite identified in core. Table 1 presents the assays received to date, with only one hole now outstanding (CHI0058). Assay results for holes CHI0055 and CHI0057 suggest that these holes were drilled to the east of the ore shoot, where the mineralization has returned to the typical planar habit of the stacked ore schists. CHI0059 and CHI0083 support the concept of an ore shoot plunging south from CHI0084.

    TABLE 1: Diamond Drill Intercepts - Chimiwungo East Shoot Target

                                                            Intercept (m)
    Hole ID       East       North      Dip   Azimuth  ----------------------
                                                       From      To    Width
    CHI0054      379502     8641802     -80     360     299    373.2    74.2
                               incl                     299      325      26
                               incl                     331      366      35
    CHI0055      379833     8641622     -70     320     372      449      77
                               incl                     385    399.2    14.2
    CHI0056      379343     8641103     -80     360     566    626.5    60.5
                               incl                     591      609      18
                               incl                   617.9    626.5     8.6
    CHI0057    379737.51    8641102     -80     360     567      583      16
    CHI0059     379098.4    8640200     -80     360     517    594.1    77.1
                               incl                   543.8    594.1    50.3
    CHI0083     378950      8641100     -80     360     407      530     123
                               incl                   500.2      530    29.8

                             Copper     top
    Hole ID        Cu%      mineral-   below
                            ization   surface
    CHI0054      0.69      sulphide     294
                 0.77      sulphide     294
                 0.80      sulphide     326
    CHI0055      0.37      sulphide     350
                 1.06      sulphide     362
    CHI0056      0.87      sulphide     557
                 1.52      sulphide     582
                 1.27      sulphide     609
    CHI0057      0.54      sulphide     558
    CHI0059      0.84      sulphide     509
                 1.08      sulphide     536
    CHI0083      0.51      sulphide     401
                 1.31      sulphide     493

    NOTE: Intercepts in bold are indicative intercepts across the three ore
    schist units and include barren gneiss units that lie between the
    schists; the intervals below these that are not bolded represent
    intercepts within that overall bold intercept where Cu (greater than or
    equal to) 0.2% and the interval may contain (less than or equal to) 4m of
    sub-grade material.

The copper mineralization at Chimiwungo is open both to the south and east, and pit optimization studies suggest that the size of the Chimiwungo Pit is limited by the current extent of drilling. As a consequence of the encouraging results at Chimiwungo East, a substantially expanded drill program has commenced to evaluate expected areas for extensions, increase hole density and gain a better understanding of the structural controls on the mineralization. This work should also provide a better spread of drill data to enable mine expansions to be optimized to the scale of the Chimiwungo deposit. The Company now has four diamond rigs and two RC percussion rigs working in the Chimiwungo area.


    Zambia Regional Exploration Targets

In November 2009, the Company was granted the 1,957 km(2) Mufapanda license, an Iron Oxide Copper Gold target which is located 250 km southeast of Lumwana and 195 km west-northwest of Lusaka. Ground work has commenced with mapping, soil and rock chip sampling programs underway, and the construction of a semi-permanent field camp for the field teams. The planned exploration program includes an airborne magnetic, radiometric and gravity survey over the property to provide the essential foundation for exploration for this style of mineralization. Due to the proximity of Mufapanda to an air force base, airborne access has been restricted and the Company continues to seek permission to fly an airborne geophysical survey.

The Company holds additional exploration tenements and applications elsewhere in Zambia that have been affected by the introduction of legislation in 2008 that governs the title and commitments on prospecting licenses in Zambia. The Company is working closely with the Government of the Republic of Zambia (the "GRZ") to resolve the inconsistencies and ambiguities in the legislation before committing expenditure to these regional tenements. No work is being undertaken on these properties currently.

Expansion and Optimization Plans

Significant opportunities exist at the Lumwana Mine following the completion of ramp up to further expand and optimize the concentrator and mine throughput rate; to assess and evaluate the additional near mine deposits discovered to date; and to develop the Lumwana Mine uranium resource. Equinox will continue to assess these opportunities for expansion and organic growth at the Lumwana Mine.

The Lumwana processing plant is capable of treating ore at rates above the design capacity of 20 Mtpa and management believes it is capable of treating about 24 Mtpa without any significant modification. Once Lumwana reaches design capacity, it is the Company's objective over a further period of 18 months to increase mine output to achieve this 24 Mtpa target. However, given the very large resource and long mine life of the Lumwana Mine, there is potential to increase mine output further to 35 Mtpa. Such an increase will require expansion of the processing plant and possibly mining fleet.

During the second quarter, Equinox commenced a two phased feasibility study to investigate an expansion to 35 Mtpa of the Lumwana copper project with the award of the engineering contract to Ausenco. The Ausenco work is anticipated to take approximately ten months to complete with results expected by the end of the first quarter of 2011.

The Phase 1 expansion to 24 Mtpa throughput rate at Lumwana is a continuation of mine ramp up. It is expected to be largely achieved through project optimization and "de-bottlenecking" with some supplemental ore feed required from Chimiwungo and achieved with limited additional capital and within an 18-month time frame.

The Phase 2 expansion study will investigate the further expansion of the Lumwana Mine to 35 Mtpa. A scoping study aimed at identifying the appropriate mining and processing scale for the Lumwana operation has indicated that the Chimiwungo orebody would be capable of sustaining a mining rate of 35 Mtpa of ore feed to an expanded Lumwana plant. Further scoping work has indicated that the plant expansion could be implemented by incorporating an additional SAG mill to support a milling rate of similar scale. Preliminary estimates indicate that an expansion to 35 Mtpa would take approximately three to four years to complete and cost in the order of $300 million to $400 million.

Equinox also completed in 2008 a uranium feasibility study (the "UFS") investigating the onsite treatment of discrete and high grade uranium mineralization contained within the Lumwana Mine copper pit shells. The UFS has confirmed the potential viability of onsite uranium treatment. During Q2-10, Equinox undertook an assessment of the uranium offtake market aimed at identifying the current level of demand and available terms for uranium offtake. The findings of this assessment supported recent industry research suggesting that current supply levels outweigh demand and as a result the prevailing offtake terms are currently more favorable to offtakers. However, the uranium market is predicted to tighten over the next two to three years primarily due to forecast increases in demand from China. Equinox will continue to monitor the uranium market and assess the future development of the uranium project. Should Equinox be successful in negotiating viable uranium offtake agreements and securing the requisite project capital financing, the Company estimates plant construction to take approximately 18 to 24 months. The decision to proceed with the development of the Lumwana uranium project will depend, subject to Board approval, on a number of factors including satisfactory financing and offtake terms being secured. In the interim, the separate stockpiling of Lumwana Mine uranium ore is ongoing and to the end of Q2-10, the stockpile totaled 4.2 million tonnes at 924 ppm uranium and 0.8% copper.

Equinox will continue to review and assess opportunities for organic growth and expansion, and corporate opportunities to grow the Company.


Mine and process plant operations continued to ramp up at the Lumwana Mine, with the mine achieving design throughput during Q2-10. Consistent with previous guidance, it is anticipated that ramp up of the Lumwana Mine and process plant operations to design throughput will be achieved in the second half of 2010. Management estimates that Lumwana will produce 135,000 tonnes (300 million pounds) of copper metal in concentrates at an average estimated C1 operating cost(1) of $1.35 per pound for the 2010 year.

For further, detailed financial and other results of operations, readers are directed to such information contained in the accompanying 2009 financials posted on Equinox's website (www.equinoxminerals.com) and filed on SEDAR (www.sedar.com). Readers are also directed to the cautionary notices and disclaimers contained herein and therein.

                         CONSOLIDATED BALANCE SHEETS
                  As at June 30, 2010 and December 31, 2009

                                                             2010       2009
    ASSETS                                                   $000       $000
    Current assets
      Cash and cash equivalents                           212,189    109,130
      Accounts receivable                                  99,419    134,193
      Prepayments                                          10,061     16,080
      Inventories                                          92,105     67,428
                                                          413,774    326,831

    Restricted cash                                        25,338     26,164
    Property, plant and equipment                       1,097,267  1,102,773
    Other financial assets                                  1,475      1,906
                                                        1,537,854  1,457,674
    Current liabilities
      Accounts payable and accrued liabilities             85,082     62,504
      Current portion of long term debt                   113,363    113,229
      Current portion of finance leases                     8,120      9,339
      Current portion of derivative instruments            44,971     85,179
      Current other liabilities                               392        160
                                                          251,928    270,411

    Long term debt                                        337,540    405,423
    Finance leases                                         15,938     16,762
    Income tax liability                                    6,727      6,727
    Future income tax liability                            62,683      5,938
    Asset retirement obligation                             7,762      7,504
    Long term compensation                                  3,080      2,469
    Derivative instruments                                      -     22,131
    Other payables                                         64,828     39,737
                                                          750,486    777,102
    Share capital                                         738,871    737,838
    Retained earnings/(deficit)                            31,249    (74,720)
    Contributed surplus                                    16,322     15,966
    Accumulated other comprehensive income                    926      1,488
                                                          787,368    680,572
                                                        1,537,854  1,457,674

          For the three and six months ended June 30, 2010 and 2009

                                    Three months ended       Six month ended
                                           June 30               June 30
                                       2010       2009       2010       2009
                                      $'000      $'000      $'000      $'000

    Copper sales revenue            223,934    127,734    424,619    127,734
    Smelter treatment charges       (28,596)   (15,370)   (49,418)   (15,370)
    Net sales revenue               195,338    112,364    375,201    112,364

    Direct and indirect mining
     costs                           77,543     59,520    155,595     59,520
    Amortization and depreciation    19,239     11,747     33,465     11,747
    Royalties                         7,495      3,513     12,938      3,513
    Cost of sales                   104,277     74,780    201,998     74,780

                                     91,061     37,584    173,203     37,584
    Derivative (gain)/loss          (39,557)    74,312    (23,799)   172,414
    Exploration costs                 1,441      1,045      2,341      2,109
    Other operating costs             7,772      1,489      9,510      1,489
    General and administration        2,886      3,567      6,018      5,149
    Financing costs                   9,163     15,391     18,021     15,924
    Long term compensation expense      556        419        912      1,401
    Other (income)/expense           (4,412)     2,826     (2,514)     3,819
                                    (22,151)    99,049     10,489    202,305

    Profit/(Loss) before income
     tax                            113,212    (61,465)   162,714   (164,721)

    Income tax (expense)/benefit    (39,770)    22,724    (56,745)    65,389
    Net income/(loss) for the
     period                          73,442    (38,741)   105,969    (99,332)
    Basic earnings/(loss) per
     share                            $0.10     ($0.06)     $0.15     ($0.16)
    Diluted earnings/(loss) per
     share                            $0.10          -      $0.15          -

    Weighted basic average number
     of shares outstanding (000's)  707,546    675,762    707,484    636,565
    Weighted diluted average
     number of shares outstanding
     (000's)                        720,424    695,423    720,362    656,227

          For the three and six months ended June 30, 2010 and 2009

                                     Three months ended       Six month ended
                                           June 30               June 30
                                       2010       2009       2010       2009
                                      $'000      $'000      $'000      $'000

    Income/(loss) for the period     73,442    (38,741)   105,969    (99,332)
    Other comprehensive (losses)/
      Net unrealized (losses)/
       gains on available-for-sale
       securities                      (565)     1,051       (562)     1,139
    Total comprehensive income/
     (loss)                          72,877    (37,690)   105,407    (98,193)

          For the three and six months ended June 30, 2010 and 2009

                                    Three months ended       Six month ended
                                           June 30               June 30
                                       2010       2009       2010       2009
                                      $'000      $'000      $'000      $'000
    Share capital
      Balance at start of period    738,582    581,477    737,838    581,477
      Issue of shares                     -    148,325          -    148,325
      Share issue costs                   -     (7,356)         -     (7,356)
      Conversion of stock options       289        307      1,033        307
    Balance at end of period        738,871    722,753    738,871    722,753

      Balance at start of period    (42,193)    47,752    (74,720)   108,343
      Income/(loss) for the period   73,442    (38,741)   105,969    (99,332)
      Balance at end of period       31,249      9,011     31,249      9,011

      Balance at start of period     15,956     21,228     15,966     20,400
      Stock based compensation          493        546      1,065      1,374
      Transferred to share capital
       on exercise of stock options    (127)      (123)      (709)      (123)
      Forfeited stock options             -       (526)         -       (526)
      Balance at end of period       16,322     21,125     16,322     21,125
    Accumulated other comprehensive
      Balance at start of period      1,491         76      1,488        (12)
      Net unrealized gain/(losses)
       on available-for-sale
       securities                      (565)     1,051       (562)     1,139
      Balance at end of period          926      1,127        926      1,127

          For the three and six months ended June 30, 2010 and 2009

                                    Three months ended       Six month ended
                                           June 30               June 30
                                       2010       2009       2010       2009
                                      $'000      $'000      $'000      $'000
    Cash flows (used in)/provided
     by operating activities
      Income/(loss) for the period   73,442    (38,741)   105,969    (99,332)
      Items not affecting cash:
        Amortization and
         depreciation                20,545     11,806     36,098     11,859
        Unrealized foreign exchange
         (gain)/loss                 (2,280)     4,474     (2,164)     4,579
        Long term compensation
         expense                        418        598        912      1,730
        Income tax expense/
         (benefit)                   39,770    (22,724)    56,745    (65,389)
        Mark to market changes in
         derivative instruments     (39,557)    74,312    (23,799)   172,414
        (Payments)/proceeds from
         settlement of derivative
         instruments                (18,162)    14,419    (38,540)    48,654
        Deferred payments            18,245      3,513     27,257      3,513
        Accretion Expense               130         92        258        183
        Net financing costs           3,643      2,429      3,309    (10,910)

    Changes in non-cash working
      (Increase) in inventories     (25,275)    (6,204)   (24,677)   (13,497)
      Increase in accounts payable
       and accrued liabilities       15,905     17,362     22,578     13,347
      Decrease/(increase) in
       accounts receivable and
       prepayments                   55,639    (36,512)    40,793    (50,620)
                                    142,463     24,824    204,739     16,531
    Cash flows (used in)/provided
     by financing activities
      Issue of share capital            184    148,325        671    148,325
      Share issue costs                   -     (7,356)         -     (7,356)
      Payments of loan origination
       fees and break fees             (125)         -    (32,847)         -
      Proceeds from borrowings            -          -    275,701      4,044
      Repayment of borrowings       (36,682)   (16,684)  (313,109)   (17,299)
      Finance lease principal
       repayments                    (2,217)      (273)    (5,962)      (542)
                                    (38,840)   124,012    (75,546)   127,172
    Cash flows (used in)/provided
     by investing activities
      Decrease/(increase) in
       restricted cash                  828         (3)       825         19
      Payments for property,
       plant and equipment          (12,073)    (5,312)   (26,544)    (7,656)
                                    (11,245)    (5,315)   (25,719)    (7,637)
    Net increase in cash and
     cash equivalents                92,378    143,521    103,474    136,066
    Cash and cash equivalents
     - start of period              120,112     44,174    109,130     51,327
    Exchange rate changes on
     cash held in foreign
     currencies                        (301)      (446)      (415)      (144)
    Cash and cash equivalents
     - end of period                212,189    187,249    212,189    187,249

Q2-2010 Conference Call & Webcast

The Company's President & CEO, Craig R. Williams and COO, Cobb Johnstone will host a conference call and webcast to discuss the results

    Date:                   Thursday, August 12, 2010

    Time:                   18:00 HRS (Toronto time)
    -----                   18:00 HRS (New York time)
                            23:00 HRS (London time)
                            00:00 HRS (Lusaka time - Friday, August 13, 2010)
                            06:00 HRS (Perth time - Friday, August 13, 2010)
                            08:00 HRS (Sydney / Melbourne time - Friday,
                                       August 13, 2010)

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

    Dial-in International:  +1 201-689-8035

    Dial-in Australia:      0011-800-4626-6666 (Toll-free)

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

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

    Conference ID:          353537. Call in 10 minutes prior to the call and
    --------------          an operator will be available to assist you

    Replay:                 Available approximately one hour after
    -------                 completion of the call and until 23:59 HRS
                            (Toronto time) on September 12, 2010

    Replay Dial-in:         +1-201-612-7415 (International) and
    ---------------         +1-877-660-6853 (North America). To access the
                            recording, please enter Account No. 286, followed
                            by the Conference ID: 353537. An archived
                            transcript of the call will also be available on
                            the Company's website

    Craig R. Williams - President & Chief Executive Officer

About Equinox

Equinox Minerals Limited is an international mining company dual listed on the Canadian (Toronto) and Australian stock exchanges.

The Company is currently focused on operating its 100% owned large scale Lumwana Copper Mine in Zambia, one of the largest new copper mines to be developed globally over the last few years.

Equinox acquired the Lumwana project in 1999 and following nearly 10 years of feasibility, financing and construction, commissioned the mine, plant and infrastructure in December 2008. Situated 220 km northwest of the Zambian Copperbelt, Lumwana is now a major copper mine.

Lumwana is mining and processing in excess of 20 million tonnes of ore per year, mined at an average life of mine strip ratio of 4.2:1. Lumwana ore, which is predominantly sulphide, is treated through a large, yet conventional plant, producing a copper concentrate for sale to local and international offtakers.

In addition, Equinox is looking at opportunities to grow the Company through both internal expansion and through the international search for mergers and acquisitions.

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

    Cautionary Notes

    Forward-Looking Statements

Certain information contained or incorporated by reference in this press release, including any information as to the Company's strategy, projects, plans, prospects, future outlook, anticipated events or results or future financial or operating performance, constitutes "forward-looking statements" within the meaning of Canadian securities laws. All statements, other than statements of historical fact, are forward-looking statements. Forward-looking statements can often, but not always, be identified by the use of words such as "plans", "expects", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "predicts", "potential", "continue" or "believes", or variations (including negative variations) of such words; or statements that certain actions, events or results "may", "could", "would", "should", "might", "potential to", or "will" be taken, occur or be achieved or other similar expressions concerning matters that are not historical facts.

Without limitation, statements that the Company anticipates that ramp up of the Lumwana mine and process plant to design throughput will be achieved in the second half of 2010; that Management estimates that Lumwana will produce 135,000 tonnes (300 million pounds) of copper metal in concentrates at an average estimated C1 operating cost(1) of $1.35 per pound for the 2010 year; that head grades and recoveries in the second half of 2010 are expected to be lower which will negatively impact C1 operating costs(1) for the remainder of the year; and statements with respect to the expansion and optimization plans, including the timing and other related matters of such statements, are forward-looking statements. The purpose of forward-looking statements is to provide the reader with information about management's expectations and plans for 2010 and subsequent years. Actual results may vary.

Forward-looking statements are necessarily based on a number of factors, estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Such factors, estimates and assumptions include, but are not limited to, 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 grade, quality and content of the concentrate produced; the sale of production and the performance of offtakers; capital, operating and exploration expenditures; costs and timing of the development of the Lumwana Mine, 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. These risks and uncertainties are fully described in detail in the Company's Annual Information Form dated March 15, 2010 which can be found on SEDAR at www.sedar.com or the Company's website at www.equinoxminerals.com. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

Without limitation, in stating that the Company anticipates that ramp up of the Lumwana mine and process plant to design throughput will be achieved in the second half of 2010 and that Management estimates that Lumwana will produce 135,000 tonnes (300 million pounds) of copper metal in concentrates at an average estimated C1 operating cost(1) of $1.35 per pound, the Company has assumed that its ongoing efforts towards improving efficiencies will result in improvements in mine, mill and processing plant performance and in availability and utilization of the mining fleet, that the Hitachi trucks will arrive on schedule and will improve availability and utilization of the mining fleet and that the wet season will not have a material effect on production In stating that the head grades and recoveries in the second half of 2010 are expected to be lower which will negatively impact C1 operating costs(1) for the remainder of the year, the Company has assumed that it will be mining a greater amount of transitional ore from the surface of additional pits, which transitional ore will dilute head grade and recoveries. In making statements with respect to the expansion and optimizations plans, including the schedule and timing, anticipated results and work required to complete the plans and achieve the desired results, the Company has assumed that the preliminary studies completed to date prove to be accurate, any costs associated with completing such plans will be feasible, that the materials, labour, regulatory approvals and expertise will be available and that the price and demand for copper and uranium will be profitable and that it will secure any necessary financing and/or offtake commitments on satisfactory terms and that the underlying assumption and information in the preliminary studies are correct.

Readers are cautioned that forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Equinox and/or its subsidiaries, including costs, production and returns, to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These factors are fully discussed in the Company's Annual Information Form dated March 15, 2010. Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-looking statements made or incorporated in this press release are qualified by these cautionary statements.

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.

    Technical Information

Certain technical information in this press release has been summarized or extracted from the Technical Report on the Lumwana Project, North Western Province, Republic of Zambia dated June 2008 and as re-filed in April 2009 (the "Technical Report"). Scientific and technical information contained in this press release has been prepared under the supervision of Robert Rigo, BEng., FAusIMM, MIEAust, Vice President, Project Development of Equinox who is a "Qualified Person" in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects. Readers are cautioned not to rely solely on the summary of information contained in this release, but should read the Technical Report which is posted on Equinox's website at www.equinoxminerals.com and filed on SEDAR at www.sedar.com and any future amendments to such report. Readers are also directed to the cautionary notices and disclaimers contained therein.


SOURCE Equinox Minerals Limited

For further information: For further information: Craig R. Williams, (President and Chief Executive Officer); Michael Klessens, (Vice President - Finance and Chief Financial Officer), 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; or David Griffiths, (Gryphon Management Australia), Phone +61 (0) 419 912 496, Email: david.griffiths@gryphon.net.au

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Equinox Minerals Limited

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