Indaba Presentation

RNS Number:0920Y
Adastra Minerals Inc
08 February 2006


NEWS RELEASE


Adastra Indaba Conference Presentation



Trading: TSX and AIM: AAA



London, UK (February 8, 2006) - At today's Indaba Conference in Cape Town, South
Africa, Tim Read, President and Chief Executive of Adastra Minerals Inc. 
("Adastra" or the "Company"), gave a presentation in which he included an update
on the Kolwezi Tailings Project ("Kolwezi Project").



Definitive Feasibility Study

The Kolwezi Project Definitive Feasibility Study ("DFS") is well advanced and
scheduled to be completed in early March 2006.  Management anticipates it will
define a project with annual production capacity of approximately 5,900 tonnes
of cobalt and 33,200 tonnes of copper.  These annual production estimates are
more than 7% higher for cobalt and 10% higher for copper than the estimates
Adastra announced in December 2004.  Total project capital costs (including
owners' costs, engineering, procurement and construction fees and contingencies,
insurance, first-fill and spares) are anticipated to be less than US$350 million
in December 2005 real terms.



Management believes that the higher production estimates will more than offset
the operating and capital cost increases expected to be included in the DFS when
calculating the net present value of the Kolwezi Project.

Financing

As recently announced, Adastra has mandated the Royal Bank of Scotland as senior
arranger for an untied commercial bank tranche of the Kolwezi Project financing
for US$60-75 million with an eight year maturity and has mandated the Industrial
Development Corporation of South Africa Limited and Investec Bank Limited to
co-arrange a South African export credit tranche of the project financing for
US$80-120 million with a ten year maturity.



In addition, other bilateral and multilateral lenders have provided expressions
of interest in providing senior and subordinated loans amounting to in aggregate
more than US$150 million.  Advanced negotiations for a capital overrun facility
of US$30 million are underway with two public sector lenders.  Adastra expects
to start lender due diligence and detailed documentation immediately following
completion of the DFS in early March 2006.  Management has also been actively
investigating means of raising project equity without the need to issue new
Adastra shares, although there can be no certainty that this will be achieved.

Off-take agreements

Negotiations are well advanced to sell all of the copper production and
approximately 50% of the cobalt production under long-term contracts.



"We have made significant progress in developing the Kolwezi Project" said Tim
Read, President and Chief Executive of Adastra.  "Technical and financial
work-streams are on track to achieve our goal of beginning construction by the
year-end."

Hostile Take-Over Bid

Tim Read will also take the opportunity to reiterate the view of the Board of
Directors of Adastra and its financial advisers that the opportunistic and
hostile bid made for the Company by First Quantum Minerals Ltd ("First Quantum")
significantly undervalues the Company.  The offer to Adastra shareholders of 1
First Quantum share for every 171/2 Adastra shares would give Adastra
shareholders approximately 7% of the combined company, a derisory shareholding
in an enlarged group when compared with the significant contribution that the
Kolwezi Project would make to the production, profitability, resources and
reserves of an enlarged group.



As previously announced, Adastra shareholders who, in aggregate, hold more than
50% of Adastra's issued share capital have advised the Board that they do not
find First Quantum's offer attractive and would support the Board in rejecting
the offer.





A copy of the presentation will shortly be available on Adastra's website
www.adastramin.com.



ENDS

Contact us:



London

Tim Read                                        Cathy Malins / Annabel Leather
Chief Executive Officer                         Parkgreen Communications
T: +44 (0)20 7355 3552                          T: +44 (0)20 7493 3713
F: +44 (0)20 7355 3554                          F: +44 (0)20 7491 3936
E: london@adastramin.com                        E: cathy.malins@parkgreenmedia.com



North America

Martti Kangas
The Equicom Group
T: +1 416 815 0700 x. 243
    +1 800 385 5451 (toll free)
F: +1 416 815 0080
E: mkangas@equicomgroup.com



This News Release contains forward-looking statements within the meaning of the
United States Private Securities Litigation Reform Act of 1995 and
forward-looking information within the meaning of the Securities Act (Ontario)
(together, "forward-looking statements").  Such forward-looking statements,
include but are not limited to the Company's plans for its Kolwezi Project in
the Democratic Republic of Congo ("DRC"), the Kolwezi Project's resource size,
production capacity, net present value, its overall economic potential and the
availability of project financing, and involve known and unknown risks,
uncertainties and other factors which may cause the actual results, performance
or achievements expressed or implied by such forward-looking statements to be
materially different. Such factors include, among others, risks and
uncertainties relating to political risks involving the Company's operations in
the DRC and the policies of other nations and organizations towards companies
doing business in such jurisdictions, the inherent uncertainty of production and
cost estimates and the potential for unexpected costs and expenses, fluctuations
in the price of copper and cobalt, conclusions of economic evaluations, changes
in project parameters as plans continue to be refined, the inability or failure
to obtain adequate financing on a timely basis and other risks and
uncertainties, including those described in the Company's Annual Report on Form
20-F for the year ended October 31, 2005 and Reports on Form 6-K filed with the
Securities and Exchange Commission and the Canadian Securities Administrators
and available at www.sedar.com.



N M Rothschild & Sons Limited ("Rothschild"), which is authorised and regulated
by the Financial Services Authority in the United Kingdom, is acting for Adastra
in relation to the matters referred to in this announcement and no one else and
will not be responsible to anyone other than Adastra for providing the
protections offered to clients of Rothschild nor for providing advice in
relation to the matters referred to in this announcement.





Notes to editors;



About Adastra

Adastra is an international mining company listed on the Toronto Stock Exchange
and on AIM, in London, under the symbol "AAA".  It is currently developing
mineral assets in Central Africa, including the Kolwezi Tailings Project, and
the possible rehabilitation of the Kipushi zinc mine in the DRC.  Adastra's
growth strategy emphasizes the creation of shareholder value through the
development of world-class resources in stable of stabilizing political
environments.



About the Kolwezi Project

Adastra's Kolwezi Project consists of two dams containing 112.8 million tonnes
of oxide tailings, grading 1.49% copper and 0.32% cobalt, as determined by Dr.
Isobel Clark of Geostokos Limited, a "qualified person" as defined by the
Canadian Securities Administrators' N1 43-101. This resource has the potential
to host one of the world's largest and lowest cost cobalt producers.  A
definitive feasibility study is scheduled to be completed in early March 2006.
If this study is favourable, construction is expected to commence before
year-end, with first production in mid 2008 and a mine life of around 50 years.



Such a project would generate significant taxation, royalty and dividend
revenues to the Government, as well as providing local employment and
contributing to the regeneration of the DRC's copper belt infrastructure.








                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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