Exploration -  - Introduction

Table 6: 2008 Drill Footage Completed

FNX’s 2008 exploration budget totaled $25.2 million with the bulk of the expenditures ($11.5 million) focused on various targets at the Levack Mine. Expenditures for definition and expansion drilling of the LFD and Rob’s Deposit totaled $6.9 million, while drilling of other footwall and contact targets at the Levack Property cost another $4.6 million. Drill programs at Victoria for $4.0 million, McCreedy West for $2.4 million and the Falconbridge Footwall Project for $0.7 million accounted for most of the balance of the 2008 exploration expenditures.

Table 6 summarizes surface and underground drilling totals in 2008. Surface drilling totaled 146,578 ft in 61 holes, while another 161,712 ft of underground drilling was completed in 230 holes.

The 2008 exploration highlights included the initial mineral resource estimate for a 250-ft vertical slice of the LFD, confirmation of the LFD and Rob’s Deposit model through a 15,027 ton bulk sample, related mapping of the deposits along new access development headings and identification of exciting new geological environments at both Podolsky and Victoria properties, which will generate exploration targets to be tested for the next several years. The $10.2 million 2009 exploration program is focused on detailed drilling of Rob’s and LFD ($5.4 million) and a surface drilling program to follow-up on the new footwall environment discovered in 2008 on the Podolsky Mine property ($2.4 million).