Quadra Call Option Deed with AMP is Cancelled

Quadra Mining Ltd. announced today that it is has received a Notice of Termination from Quay Mining Limited, a subsidiary of AMP Life Limited, with respect to the Call Option Deed established between Quadra & AMP in relation to Quadra's offer to acquire 100% of Equatorial Mining Limited.

Quadra entered into the Call Option Deed with AMP for 9,975,600 shares including a cancellation fee, representing 19.99 per cent of the shares in Equatorial, at A$8.00 per share prior to announcing an offer of A$9.26 for all the issued shares of Equatorial on July 19th, 2006. Subsequently, Antofagasta PLC submitted a higher offerfor the purchase of the shares of Equatorial. As Quadra did not match the offer from Antofagasta, AMP exercised its right under the Call Option Deed to terminate the agreement. AMP must pay to Quadra a cancellation fee of approx., A$31.9 million (approx., US$24million) if it accepts Antofagasta's offer, following receipt of funds from Antofagasta.

Paul Blythe, President & C.E.O. said, "After careful consideration of our options, we have decided not to increase the consideration payable under our bid for Equatorial. Although we are disappointed that this transaction will not proceed, we continue to look for opportunities to deliver strategic value in other areas."