2016 TAX TRANSPARENCY AND CONTRIBUTIONS TO

GOVERNMENT REPORT

ABOUT THIS REPORTFirst Quantum makes significant contributions to the public finances of the countries in which we operate in. We strongly support the various transparency initiatives which provides all stakeholders with clear information of the contributions which First Quantum makes to our host governments. The 2016 Tax Transparency and Contributions to Government Report highlights First Quantum’s contributions to our host Governments which helps to illustrate the positive impact we strive to create everywhere we do business.

This report is intended to meet Canada’s Extractive Sector Transparency Measures Act (“ESTMA”) reporting obligations as well as Chapter 10 of the EU Accounting Directive as noted in Appendix A of this report. All amounts in this report are expressed in U.S. dollars unless otherwise noted.

ABOUT FIRST QUANTUMEstablished in 1996 to develop the Bwana Mkubwa project in Zambia, First Quantum Minerals Ltd. has grown steadily to become an international leader in mineral exploration, development and mining. Following the acquisition of Inmet Mining Corporation in 2013, First Quantum is one of the leading global producers of copper, with a diversified portfolio of operations and development projects on four continents.

PRINCIPAL PRODUCTS: copper, nickel, zinc, gold

COPPER PRODUCTION: 539,458 tonnes (2016)

SALES REVENUES: $2,673 billion (2016)

EMPLOYEES: 16,950 (2016)

CORPORATE OFFICES: Vancouver (Registered office), Toronto,

London, Perth, Johannesburg

OWNERSHIP: publicly traded company

STOCK EXCHANGE LISTINGS: TSX: FM

MESSAGE FROM CHIEF FINANCIAL OFFICER

I am pleased to present First Quantum Mineral Ltd’s first report on our economic contribution and payments to governments. This report discloses the payments we made during 2016 on a country by country and project by project basis and is aligned with the reporting requirements of Canada’s ESTMA and Chapter 10 of the EU Accounting Directive.

First Quantum strongly supports and is committed to providing our stakeholders with clear and transparent information on the contributions we make in the countries in which we operate. We believe that it is important that both the local and the broader communities which are affected by our operations are provided with information on the payments and contributions we make to Governments. In taking this transparent and responsible approach, we provide communities with the opportunity to understand the revenue contributions we make to their governments and how these contributions ultimately assist in the development of local communities and the overall economic and broader positive wellbeing of those communities and countries.

The payments we make in taxes and royalties represent direct annual contributions to our host governments. These payments often represent a significant proportion of government revenues.

First Quantum’s approach to tax and royalty payments reflects its underlying core values which focuses on building open and transparent relationships with the tax authorities in those countries.

First Quantum’s investments in our host countries are large and involve significant amounts of upfront capital. First Quantum believes to attract capital to make these large scale multi-year investments it is essential for tax policy to be stable and consistent and that agreements are respected.

We believe by openly working with host countries on tax policy and ensuring we are transparent in what we invest, pay, and contribute, we can benefit the countries we operate in by not only the contributions we make but also by the positive endorsement our investments make in the host country.

In 2016, our contributions under ESTMA reporting amounted to $299M. Our total direct contributions including consumptions taxes, payroll taxes and CSR totaled $599M.

I look forward to engaging with our stakeholders on this report.

Hannes Meyer

COUNTRY PROJECT NAME TAXES ROYALTIES FEESOTHER ESTMA

PAYMENTS1

TOTAL PER ESTMA AND EU TRANSPARENCY

DIRECTIVE

PAYROLL TAXES2 CONSUMPTION TAX (INCL. VAT)3

CSR AND INFRA-STRUCTURE4

TAX PAID BY OFFSETTING

VAT/PRIOR YEAR REFUNDS5

TOTAL CONTRIBUTION

Zambia Kansanshi 54,220,000 113,880,000 4,890,000 172,990,000 22,210,000 15,510,000 1,850,000 35,400,000 247,960,000

Zambia FQMO 34,910,000 250,000 35,160,000 21,690,000 7,850,000 2,370,000 67,070,000

Zambia Trident 8,120,000 1,530,000 9,650,000 14,210,000 5,780,000 2,110,000 31,750,000

Zambia Kansanshi and Trident 81,000,000 81,000,000

Turkey Çayeli 5,050,000 4,740,000 310,000 10,100,000 3,930,000 40,000 180,000 26,600,000 40,850,000

Spain Las Cruces 43,360,000 240,000 460,000 44,060,000 6,980,000 3,550,000 240,000 54,830,000

Australia Ravensthorpe 680,000 7,180,000 1,030,000 8,890,000 7,820,000 290,000 17,000,000

Mauritania Guelb Moghrein 3,320,000 8,840,000 12,160,000 9,180,000 1,000,000 22,340,000

Finland Pyhäsalmi 2,160,000 2,160,000 5,110,000 16,370,000 70,000 23,710,000

Panama Cobre Panama 2,330,000 500,000 2,830,000 3,580,000 190,000 3,070,000 9,670,000

Peru Haquira 660,000 660,000 960,000 720,000 2,340,000

Argentina Taca Taca 90,000 90,000 90,000

Chile Various early stage exploration 520,000 520,000 140,000 10,000 670,000

Totals 143,790,000 142,760,000 5,030,000 7,690,000 299,270,000 95,810,000 49,300,000 92,900,000 62,000,000 599,280,000

1 Relates to fees, bonuses and infrastructure improvements reportable under ESTMA. Please note that bonuses relate to CSR payments.

2 Includes employer and employee burden.

3 This figure only includes VAT that is non-refundable and import/withholding taxes.

4 This figure includes CSR directly to communities and infrastructure improvement payments where the primary user is the company. For instance, in 2016, the Company spent $202M on power infrastructure that was handed to the state-owned power company for $121M prepaid electricity credits. The Company is the current main user of the power infrastructure. The above table reports the $81M transfer but this amount is not reported under ESTMA.

5 $10M transfer of VAT refund and $25M application of prior year refund on hand with Zambian Revenue Authority to pay tax liability. Turkish taxes paid via VAT refunds. Non-cash payment is not reportable under ESTMA.

2016 TAX TRANSPARENCY AND CONTRIBUTIONS TO GOVERNMENT REPORT

Extractive Sector Transparency Measures Act Report

Reporting Year From: 20160101 To: 20161231

Reporting Entity Name First Quantum Minerals Ltd.

Reporting Entity ESTMA Identification Number E332692

Subsidiary Reporting Entities (if necessary)

FQM Australia Nickel Pty Ltd., First Quantum Mining & Operations Limited, Kalumbila Minerals Limited, Kansanshi Mining Plc, Mauritanian Copper Mines S.A., Pyhäsalmi Mine Oy, Çayeli Bakırisletmeleri A.S., Cobre Las Cruces S.A., Minera Panama S.A., Minera Antares Peru S.A.C., Corriente Argentina S.A., FQM Exploration (Chile) S.A.

Attestation: Please check one of the the boxes below and provide the required information

þ Attestation ( by Reporting Entity)

In accordance with the requirements of the ESTMA, and in particular section 9 thereof, I attest I have reviewed the information contained in the ESTMA report for the entity(ies) listed above. Based on my knowledge, and having exercised reasonable diligence, the information in the ESTMA report is true, accurate and complete in all material respects for the purposes of the Act, for the reporting year listed above. ¨ Attestation (through independent audit)

In accordance with the requirements of the ESTMA, and in particular section 9 thereof, I attest that I engaged an independent auditor to undertake an audit of the ESTMA report for the entity(ies) and reporting year listed above. Such an audit was conducted in accordance with the Technical Reporting Specifications issued by Natural Resources Canada for independent attestation of ESTMA reports.

The auditor expressed an unmodified opinion, dated [enter date: yyyy-mm-dd], on the ESTMA report for the entity(ies) and period listed above. The independent auditor’s report can be found at [insert weblink to audit opinion posted online – link should be on same page as report link]

Director or Officer of Reporting Entity Full Name: Hannes Meyer

Date: 05/29/2017Position Title: Chief Financial Officer

APPENDIX A - ESTMA AND EU TRANSPARENCY DIRECTIVE REPORT

PAYMENTS BY PAYEE

COUNTRY PAYEE NAME TAXES ROYALTIES FEES PRODUCTION ENTITLEMENTS BONUSES DIVIDENDS

INFRASTRUCTURE IMPROVEMENT

PAYMENTS

TOTAL AMOUNT PAID TO PAYEE NOTES

Zambia Zambian Revenue Authority 85,810,000 122,000,000 207,810,000

Kansanshi - Amount does not include non-cash $10.3M transfer of VAT refund and $25.1M application of prior year refund on hand with Zambian Revenue Authority to pay tax liability.

Zambia Solwezi Municipal Council 1,510,000 250,000 1,760,000

Zambia Environmental Protection Fund 800,000 800,000

Zambia Ministry of Mine 800,000 800,000

Zambia Ministry of Land 210,000 210,000

Zambia North-Western Province of Zambia 6,140,000 6,140,000

Zambia National Parks, Wildlife and Schools 280,000 280,000

Turkey Madenli Municipality 310,000 220,000 530,000

TurkeyTurkish Revenue

Agency/Ministry of Finance

4,120,000 4,120,000

2016 income taxes is $26.6M. Amount in ESTMA is lower because the tax liability was paid by transferring VAT refunds. As amounts are not cash settled, it is not reported.

TurkeyRize Province

Special Provincial Administration

310,000 310,000

TurkeyRize Province Union of Village Delivery

Service 310,000 310,000

Turkey

Eti Maden Isletmeleri (Public Mining Company/

Institution)

4,740,000 4,740,000 Majority state owned company

Turkey Rize Province 90,000 90,000

Spain Spanish Revenue Agency 42,970,000 42,970,000 Does not include €4.7M tax refund

Spain Town Hall Gerena 390,000 90,000 190,000 670,000

Spain Town Hall Salteras 90,000 90,000

Spain Town Hall Guillena 90,000 90,000

SpainHydrographical confederation/

Industry Ministere 120,000 120,000

SpainAndalusian Regional

Government 120,000 188,000 120,000

Reporting Year From: 20160101 To: 20161231

Reporting Entity Name First Quantum Minerals Ltd.

Reporting Entity ESTMA Identification Number E332692

Subsidiary Reporting Entities (if necessary)

FQM Australia Nickel Pty Ltd., First Quantum Mining & Operations Limited, Kalumbila Minerals Limited, Kansanshi Mining Plc, Mauritanian Copper Mines S.A., Pyhäsalmi Mine Oy, Çayeli Bakırisletmeleri A.S., Cobre Las Cruces S.A., Minera Panama S.A., Minera Antares Peru S.A.C., Corriente Argentina S.A., FQM Exploration (Chile) S.A.

Extractive Sector Transparency Measures Act Report

PAYMENTS BY PAYEE

COUNTRY PAYEE NAME TAXES ROYALTIES FEES PRODUCTION ENTITLEMENTS BONUSES DIVIDENDS

INFRASTRUCTURE IMPROVEMENT

PAYMENTS

TOTAL AMOUNT PAID TO PAYEE NOTES

AustraliaDepartment

of Mines & Petroleum (WA)

6,290,000 1,030,000 7,320,000

Australia Equity Trust Wealth Service 890,000 890,000 Native Title Royalty

Australia Shire of Ravensthorpe 680,000 680,000

Mauritania

Direction Generale des Impot

(Ministry of Finance -Mauritania)

3,320,000 3,320,000

Mauritania

Ministry of Mines, Energy,

and Petroleum - Mauritania

8,840,000 8,840,000

Finland Finnish Tax Administration 2,160,000 2,160,000

PanamaMunicipio De

Donoso / Ministerio De Ambiente

1,930,000 1,930,000

Panama Autoridad Maritima De Panama 400,000 400,000

Panama Colón Province 500,000 500,000

PeruInstituto

Geológico Minero y Metalúrgico

660,000 660,000

ArgentinaAdministracion

Federal de Ingresos Públicaos (AFIP) 

90,000 90,000

Chile Tesoreria General de la Republic 80,000 80,000

Chile Various Municipalities 440,000 440,000

Totals 143,790,000 142,760,000 5,030,000 770,000 6,920,000 299,270,000

Note: Above numbers are reported in USD. When payments are made in a foreign currency they are reported using the year-end exchange rate which are as follows:

Currency USD Argentine Peso - 15.8522 Australian Dollar - 1.3839Canadina Dollar - 1.3434 Chilean Peso - 671.1 Euro - 0.9482 Peruvian Nuevo Sol - 3.3562 Turkish Lira - 3.521 Zambian Kwatcha - 9.9175

The Company reported all payments in excess of USD $74,437 (CAD $100,000/1.3434) per payee per category.

PAYMENTS BY PROJECT

COUNTRY PROJECT NAME TAXES ROYALTIES FEES PRODUCTION ENTITLEMENTS BONUSES DIVIDENDS

INFRASTRUCTURE IMPROVEMENT

PAYMENTS

TOTAL AMOUNT PAID BY

PROJECTNOTES

Zambia Kansanshi 54,220,000 113,880,000 4,890,000 172,990,000 Amount does not include non-cash $10.3M transfer of VAT refund and $25.1M application of prior year refund on hand with Zambian Revenue Authority to pay tax liability.

Zambia FQMO 34,910,000 250,000 35,160,000

Zambia Trident 8,120,000 280,000 1,250,000 9,650,000

Turkey Çayeli 5,050,000 4,740,000 220,000 90,000 10,100,000

Royalty is to a majority state-owned company. 2016 income taxes is $26.6M. Amount in ESTMA is lower because the tax liability was paid by transferring VAT refunds. As amounts are not cash settled, it is not reported.

Spain Las Cruces 43,360,000 240,000 270,000 190,000 44,060,000 Does not include €4.7M tax refund

Australia Ravensthorpe 680,000 7,180,000 1,030,000 8,890,000

Mauritania Guelb Moghrein 3,320,000 8,840,000 12,160,000

Finland Pyhäsalmi 2,160,000 2,160,000

Panama Cobre Panama 2,330,000 500,000 2,830,000

Peru Haquira 660,000 660,000

Argentina Taca Taca 90,000 90,000

Chile Various early stage exploration 520,000 520,000

Totals 143,790,000 142,760,000 5,030,000 770,000 6,920,000 299,270,000

Reporting Year From: 20160101 To: 20161231

Reporting Entity Name First Quantum Minerals Ltd.

Reporting Entity ESTMA Identification Number E332692

Subsidiary Reporting Entities (if necessary)

FQM Australia Nickel Pty Ltd., First Quantum Mining & Operations Limited, Kalumbila Minerals Limited, Kansanshi Mining Plc, Mauritanian Copper Mines S.A., Pyhäsalmi Mine Oy, Çayeli Bakırisletmeleri A.S., Cobre Las Cruces S.A., Minera Panama S.A., Minera Antares Peru S.A.C., Corriente Argentina S.A., FQM Exploration (Chile) S.A.

Extractive Sector Transparency Measures Act Report

Note: Above numbers are reported in USD. When payments are made in a foreign currency they are reported using the year-end exchange rate which are as follows:

Currency USD Argentine Peso - 15.8522 Australian Dollar - 1.3839Canadina Dollar - 1.3434 Chilean Peso - 671.1 Euro - 0.9482 Peruvian Nuevo Sol - 3.3562 Turkish Lira - 3.521 Zambian Kwatcha - 9.9175

The Company reported all payments in excess of USD $74,437 (CAD $100,000/1.3434) per payee per category.

ABOUT THIS REPORT BASIS OF PREPARATION AND SCOPE This report has been prepared as required by the ESTMA and the EU Transparency and Accounting Directive with respect to disclosure of Payments to Governments, along with voluntary additional reporting of contributions relating to payroll tax, consumption tax and social contributions. Taxes, production entitlements, royalties and other payments to governments are presented on a cash paid basis during the reporting period. In-kind payments are converted into monetary value at the date of settlement. The report includes all such payments for activities which relate to exploration, discovery, development and extraction of minerals for each of our projects.

First Quantum Minerals Ltd. as parent of the group has prepared the report on a consolidated basis and reports the activity of any of its subsidiary undertakings that are active in the extractive industry. Unless noted otherwise in the report, the following terms have the meanings noted below:

Government Any national, regional or local authority of a country and includes any department, agency or undertaking controlled by such an authority. Also included are any crown corporations and other state-owned enterprises that are exercising or performing a power, duty or function of government.

Project Project means the operational activities that are governed by a single contract, license, lease, concession or similar legal agreement and form the basis for payment liabilities with a government. Nonetheless, if multiple such agreements are substantially interconnected, this shall be considered a project.

Tax Tax generally means any type of government charge that is enforceable by law, imposed under statutory authority, levied by a public body and intended for a public purpose.

Royalties Payments to governments in respect of revenue or production related to the extraction of mineral, coal, oil and gas reserves.

Fees Payments to governments where no specific service is attached, but rather ‘levies’ on the initial or ongoing right to use an area for exploration, development and/or production. Such fees include licenses, rentals, entry fees and other consideration for licences and concessions.

Production Entitlements A payee’s share of oil, gas or mineral production under a production sharing agreement or similar contractual or legislated arrangement should be categorized as a production entitlement under ESTMA. The Company does not currently pay any production entitlements.

Bonuses Signing, discovery, production and any other type of bonuses paid to a payee in relation to the commercial development of oil, gas or minerals must be reported under the Act. The Company reports cash donations and in-kind donations relating to Corporate Social Responsibility under this category.

Dividends Payments so named to governments, other than dividends to government units in their capacity as ordinary shareholders in an enterprise. In 2016, no such payments were made.

Infrastructure Improvements Payments to governments, comprising of the provision of public access infrastructure, such as roads and bridges. Payments are either in the form of cash or in kind contributions (the completed infrastructure). Payments in respect of social or community programs such as building/providing a hospital, school or playground are excluded.

Disclosure threshold - payments that will be reported are those of CAD $100,000 or more per specific category above.