Wednesday, March 30, 2011

 "Equinox Offer Remains the Clear and Compelling Choice for Lundin Shareholders".

 
TORONTO, ON, March 30, 2011: Equinox Minerals Limited (TSX and ASX symbol: "EQN") ("Equinox" or the "Company") today commented on the announcement by Lundin Mining Corporation ("Lundin") and Inmet Mining Corporation ("Inmet") on March 29, 2011 that Lundin and Inmet have mutually terminated the merger of equals agreement dated January 12, 2011.  The reason for termination as per Mr Phil Wright's comments (President and CEO of Lundin) "We have however agreed to mutually terminate the agreement on the grounds that we could not reach a position that we thought would be supported by both companies' shareholders" provides further support that the Equinox offer to acquire Lundin (the Equinox "Offer") is, by any measure, the most attractive alternative for Lundin shareholders.
 
Equinox also notes Lundin's announcement on March 29, 2011 that its Board of Directors has adopted a Shareholder Rights Plan (the "Rights Plan").  This is a common delay tactic adopted by recipients of unsolicited acquisition approaches in North America.  Equinox notes that, as disclosed in Lundin's and Inmet's notice of meeting and joint information circular dated February 9, 2011, Lundin conducted a strategy session in September 2010, almost six months ago, during which a number of strategic alternatives were discussed.  The outcome of this strategy session was the approach and ultimate agreement to a nil-premium merger with Inmet, which was announced on January 12, 2011.  However,  Mr Wright has today said that he wants to again "explore all alternatives to bring value to Lundin shareholders" and that "the Rights Plan ensures that [Lundin] can do this in a considered and structured way and get the best result for [Lundin] shareholders".  Equinox believes that Lundin has already had every opportunity to do just this in the months leading up to the execution of its agreement with Inmet.
 
During the eleven weeks that have followed the announcement of the Inmet-Lundin proposal, Equinox's Offer is the only alternative that has emerged.  Equinox does not believe that Lundin's proposed further review process at this point in time can be considered likely to result in a superior proposal to Equinox's Offer, which remains the only clear and compelling offer available to Lundin shareholders.
 
Equinox's President and Chief Executive Officer, Craig Williams, commented, "Our offer has always been and remains the clear and compelling choice for Lundin shareholders. It provides them with the flexibility to receive significant value in cash now or to benefit over the long term by participating in the potential of a leading pure-play copper company with a portfolio of world-class assets and a strong growth profile."
 
Clear Choice for Lundin Shareholders: Superior Value and Flexibility
 
Since it was announced, Equinox's Offer has been the superior alternative for Lundin shareholders. During this period, Lundin shares have traded in line with the implied value of the Equinox Offer on the TSX.  Equinox's Offer of C$8.10 per share, based on Equinox's share price prior to announcement of the Offer, reflects a 26% premium to the closing price of Lundin shares on the TSX of C$6.45 per share on February 25, 2011 (the last trading day before the announcement of the Offer).  Moreover, with the flexibility to choose between Equinox shares or cash, the Equinox Offer provides Lundin shareholders with the opportunity to select the consideration that best suits their individual preferences.
 
As previously disclosed, the Equinox Offer is now open to Lundin shareholders who are residents of Sweden.  The Offer will remain open to all Lundin shareholders until 6:00pm on April 14, 2011 unless withdrawn or extended. Equinox intends to list its shares on the OMX and looks forward to welcoming Swedish investors onto its register.
 
Combined Company Well-Positioned to Create Long-Term Value for Shareholders
 
Together Equinox and Lundin will have a geographically diverse portfolio of expandable copper assets with a production growth target of 500,000 tonnes per annum of copper.  Equinox will be able to leverage its considerable experience in both exploration and construction to pursue both the expansion potential of this high-quality portfolio and the considerable exploration potential surrounding these operations.
 
Those Lundin shareholders who elect to receive Equinox shares will be able to participate in the value created through this combination through exposure to one of the most attractive, lower-risk copper growth profiles in the sector with confidence that this increased copper production will be delivered into the expected near term strength in copper prices.

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