Petaquilla Minerals Ltd. (fka PTQMF)

[mjkiii]

The MD&A facts.

New additional machinery was acquired, installed, and brought on stream during Q1 FY 2014.

Gold production and aggregate supply have been rebalanced and operations normalized at a record high revenue level.

The additional revenue stream will add about two million dollars going forward to FCF in each quarter.

LP construction continues at a rate of more than one million dollars per month. Total cost of ramp is $7 million.

Ore from Spain will begin to arrive before the end of fiscal year.

Payments to DB have been completed to remove acceleration of loan impacting A/P causing E&Y qualification.

Negotiations with DB are underway to terminate or restructure gold/silver facility.

New equipment lease agreement has been completed with Caterpillar.

'Bridge loan' has been completed to support cash requirements until revenue stream reaches budget plan.