Fnx Mining Press Releases

FNX Discovers New Mineral System at Victoria

Tue, 19 Jan 2010 11:25:00 -0500

TORONTO, ONTARIO -- (MARKET WIRE) -- 01/19/10 -- FNX Mining Company Inc. (TSX: FNX) ("FNX" or "the Company") reports that recent drilling at the Company's Sudbury Basin Victoria Property has discovered a new mineralized environment containing wide widths of mining-camp grade nickel, copper and precious metal mineralization within multiple mineralized zones associated with quartz diorite along the Worthington Offset Dyke (see Figures 1 and 2).

All three mineralized zones discovered to date have been drill intersected and the initial drill results are disclosed in Tables 1 and 2 and shown in the Figures 4, 5 and 6. Zone 1 has nickel mineralization consistent with the central portion of an Offset Dyke environment (1.0% to 2.0% Ni) with associated copper (0.5% to 1.0% Cu) and total precious metals (0.5 to 1.5 g/t platinum plus palladium and gold). Zone 2 appears to occur in a typical Sudbury Basin Offset Dyke pinch environment where the quartz diorite intrudes a package of well developed Sudbury Breccia. The mineralization associated with this Zone contains very typical Offset Dyke copper, nickel and total precious metal values (e.g. FNX Hole # 1182 intersected 82.3 ft of 2.0% Cu, 1.7% Ni and 4.5 g/t total precious metal). Zone 3 occurs in Sudbury Breccia within the wallrock of the Offset Dyke. Typical of this type of environment, the precious metal content of the sulphides can be significantly high grade (e.g. FNX Hole # 1172B intersected 17.2 feet of 20.0 g/t total precious metal, 1.2% Ni and 2.1% Cu).

Table 1: Highlights - Victoria Drill Results


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                   From     To     Width             Pt    Pd    Au     TPM
  Borehole   Zone  (ft)    (ft)     (ft) Cu % Ni %  g/t   g/t   g/t     g/t
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  FNX1172       1  2259.9 2283.9    24.0  1.3  1.0  1.1   0.4   0.1      1.6
----------------------------------------------------------------------------
  FNX1172       1  2488.8 2563.8    75.0  0.5  1.8  0.3   0.3   0.1      0.7
----------------------------------------------------------------------------
  FNX1172B      1  2497.9 2552.7    54.8  0.5  2.2  0.4   0.3   0.0      0.7
----------------------------------------------------------------------------
  FNX1175       1  2785.1 2801.4    16.3  0.2  2.0  0.1   0.2   0.0      0.3
----------------------------------------------------------------------------
  FNX1184       1  2335.0 2339.3     4.3  0.8  5.0  0.3   0.3   0.2      0.8
----------------------------------------------------------------------------
  FNX1184       1  2421.2 2432.1    10.9  0.8  1.1  0.1   0.3   0.0      0.4
----------------------------------------------------------------------------


----------------------------------------------------------------------------
  FNX1184       2  3977.9 3984.2     6.3 13.2  1.5 15.7  15.0   1.1     31.8
----------------------------------------------------------------------------
  FNX1178       2  4170.3 4228.2    57.9  1.5  1.6  1.8   3.3   0.3      5.4
----------------------------------------------------------------------------
  FNX1182       2  4870.0 4952.3    82.3  2.0  1.7  1.4   2.4   0.6      4.4
----------------------------------------------------------------------------
  FNX1183B      2  5465.6 5502.0    36.4  2.9  0.9  2.3   4.3   2.3      8.9
----------------------------------------------------------------------------


----------------------------------------------------------------------------
  FNX1172B      3  3741.0 3758.2    17.2  2.1  1.2  2.9  16.3   0.7     19.9
----------------------------------------------------------------------------
  FNX1186       3  4021.5 4037.1    15.6  1.5  0.1  0.7   0.2   0.1      1.0
----------------------------------------------------------------------------
1 Zone refers to each of the three distinct mineral areas shown in Figures
  4, 5 and 6
2 TPM equals Total Precious Metal equals Platinum + Palladium + Gold

Terry MacGibbon, Chairman and CEO stated, "The discovery of a new blind mineralized environment containing multiple zones of mineralization some 2,000 ft below surface on the Victoria property is a great tribute to the FNX exploration team, which has made nine discoveries on the Company's Sudbury properties since 2002; four of which have been put into production. This new discovery represents the Company's first significant involvement with Offset Dyke type of deposits, which have and continue to be been mined extensively in the Sudbury mining camp. A great deal more work is required to fully understand this discovery and its possible economic potential. We will continue to aggressively drill the discovery throughout the year".

Geological and downhole geophysical interpretations were used to characterize the three distinct mineralized zones within the host rocks. The borehole UTEM geophysical surveys were conducted at a low frequency of 4 Hertz so as to detect and identify only the most highly conductive rocks and the most sulphide-rich zones.

The mineralized zones do not appear to outcrop at surface, but occur between 2,500 and 5,500 vertical ft below surface. The limited amount of drilling completed to date is insufficient to determine the size and orientation of the mineralized zones, the true widths of the borehole intersections and if or how the multiple mineralized zones may be associated with each other. Extensive drilling will be required to fully understand the new mineralized zones.

Mineralized Zones

Zone 1 is located within the quartz diorite dyke where it starts to narrow and becomes choked with numerous gabbro and amphibolite inclusions, which is typical of Offset Dyke mineralized environments. The mineralization is dominantly nickel with associated copper and total precious metals (e.g., FNX Hole # 1172B, which contains two intersections of 54.8 ft and 78.1 ft grading 2.2% and 1.0% nickel and 0.5% and 0.5% copper, respectively). Current geologic and geophysical modeling indicates that Zone 1 may have a minimum strike length of 500 ft and a dip extent of over 800 ft and is open along strike and down-dip.

Zone 2, which has been intersected with four boreholes to date, is also within a major narrowing of the quartz diorite dyke and in conjunction with Sudbury Breccia as the wallrock. This is a classic mineralized environment for Offset Dyke deposits. Mineralization in Zone 2 is characteristic of Offset Dyke mineralization with good copper, nickel and total precious metal values. For example, FNX Hole # 1182 intersected 82.3 ft of 2.0% Cu, 1.7% Ni and 4.5 g/t total precious metals. The most detailed information is available for this Zone which through a combination of drill information and borehole geophysical responses, has current interpreted dimensions of 2,000 feet dip extent and 300 feet of strike length. Zone 2 is also characterized by a number of still undrilled offhole borehole geophysical responses, spatially located within this part of the Offset Dyke. The polymetallic grades of Zone 2 borehole intersections are very similar to Vale Inco's Totten Mine reserve grades.

Zone 3 has been intersected by two boreholes and occurs within highly recrystallized Sudbury Breccia adjacent to the south wall of the Offset Dyke. The precious metal content can be high in Sudbury Breccia hosted environments within the wallrocks of the dyke, as typified by FNX Hole # 1172B, which contains 17.2 ft of high grade precious metal mineralization averaging 20.0 g/t precious metals with 2.1% Cu and 1.2% Ni. The borehole geophysics from FNX Hole # 1172B indicates significant conductivity over a considerable size associated with this Zone. The borehole geophysical response was modeled with a conductive plate measuring 1,000 ft along strike and 2,000 ft of dip length. This Zone remains open at depth with only the upper part of the modeled conductive environment having been drill tested to date.

The multiple mineralized zones occur within a previously unknown mineralized environment at Victoria and are located south of the historic Victoria Mine's contact nickel orebodies and north of the former producing Totten Mine Offset Dyke orebodies (see Figure 2).

The historic Victoria Mine's contact nickel deposits are located within the Company's Victoria property and produced approximately 1.5 million tons averaging 2.2% Cu, 1.5% Ni and 2.3 g/t of total precious metals. Vale Inco's Totten Mine, with a published reserve of 7.85 million tons grading 2.0% Cu, 1.5% Ni and 4.3 g/t total precious metals, is a typical Offset Dyke type deposit and is located about four kilometers to the south and is currently under renewed development and being brought into production by Vale Inco.

The Victoria Property contains one of four major productive Offset Dyke environments known in the Sudbury Basin. Apart from the Copper Cliff Offset Dyke, which is almost entirely controlled by Vale Inco, FNX controls most of the proximal portion of three of the four major Offset Dykes, which are: the Worthington Offset Dyke on the Victoria property, the Whistle Offset Dyke on the Podolsky property and the Foy Offset Dyke on the Foy property. The Company is actively exploring on all three properties with the greatest effort currently on the Victoria property.

The Company's exploration activities were adversely affected in 2008 and the first half of 2009 by the economic downturn, but were dramatically increased in the second half of 2009 utilizing funds from the Company's flow-through financing in the spring of 2009. This renewed activity has enabled FNX's exploration team to aggressively expand its exploration activities for new deposits on its non-producing properties in the Sudbury mining camp, particularly on the Victoria Property, and this has helped lead to the discovery being announced today.

The current drilling at the Victoria property is focused on the multiple mineralized zones associated with a quartz diorite pinch within Victoria portion of the Worthington Offset. The Company currently has five surface drill rigs on the Victoria Property and plans to spend about $7.2 million exploring the Victoria property during 2010.

Qualified Person Statement

Catharine Farrow Ph.D., P. Geo., Senior Vice President - Corporate Development and Technical Services for FNX is the designated Qualified Person pursuant to NI 43-101 of the Canadian Securities Administrators and is responsible for the verification and quality assurance of the technical content if this news release. Diamond drill core samples are prepared at the SGS Minerals Group preparation facility in Sudbury, Ontario. The resulting pulps are subsequently shipped for assay at the SGS laboratory in Toronto. SGS is accredited by the Standards Council of Canada (SCC) for specific mineral tests listed on the scope of accreditation to the ISO/IEC 17025 standard. Please see the Company's most recent technical report, dated March 31, 2009, for the details of FNX's sample preparation, analyses, security, and assay quality assurance/quality control.

Forward-Looking Statement

This news release contains certain forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond the Company's ability to control or predict, which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. In this news release, statements about the size and grade of any mineralized zone, the potential viability of new deposits and future drilling results are examples of forward-looking statements. There is no guarantee that the initial exploration results will result in a viable mineral deposit. Forward-looking statements speak only as of the date on which they are made. The Company undertakes no obligation to publicly update any such statement or reflect new information or the occurrence of future events or circumstances, except where required by securities regulations. Accordingly, readers should not place undue reliance on forward-looking statements.

Table 2: Intersections


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                                    Width              Pt   Pd   Au
  Borehole   # Zone From(ft) To(ft)   (ft) Cu % Ni %  g/t  g/t  g/t  TPM g/t
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  FNX1172    1   1   2259.9 2283.9    24.0  1.3  1.0  1.1  0.4  0.1      1.6
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  FNX1172    2   1   2488.8 2563.8    75.0  0.5  1.8  0.3  0.3  0.1      0.7
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  FNX1172B   3   1   2497.9 2552.7    54.8  0.5  2.2  0.4  0.3  0.0      0.7
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  FNX1174    4   1   2422.8 2434.0    11.2  0.6  0.5  0.6  0.4  0.2      1.2
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  FNX1174A   5   1   2602.3 2640.0    37.7  0.6  0.5  0.6  0.3  0.2      1.1
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  FNX1175    6   1   2785.1 2801.4    16.3  0.2  2.0  0.1  0.2  0.0      0.3
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  FNX1184    7   1   2335.0 2339.3     4.3  0.8  5.0  0.3  0.3  0.2      0.8
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  FNX1184    8   1   2421.2 2432.1    10.9  0.8  1.1  0.1  0.3  0.0      0.4
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  FNX1146        1 No Significant Intervals
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  FNX1145        1 No Significant Intervals
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  FNX1176        1 No Significant Intervals
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  FNX1187        1 No Significant Intervals
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  FNX1187A       1 No Significant Intervals
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  FNX1184    9   2   3977.9 3984.2     6.3 13.2  1.5 15.7 15.0  1.1     31.8
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  FNX1178   10   2   4170.3 4228.2    57.9  1.5  1.6  1.8  3.3  0.3      5.4
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  FNX1182   11   2   4870.0 4952.3    82.3  2.0  1.7  1.4  2.4  0.6      4.4
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  FNX1183B  12   2   5465.6 5502.0    36.4  2.9  0.9  2.3  4.3  2.3      8.9
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  FNX1182B       2 No Significant Intervals
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  FNX1182A       2 No Significant Intervals
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  FNX1186A       2 No Significant Intervals
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  FNX1172B  13   3   3741.0 3758.2    17.2  2.1  1.2  2.9 16.3  0.7     19.9
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  FNX1186   14   3   3917.9 3932.5    14.6  0.8  0.5  0.7  0.6  0.2      1.5
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  FNX1186   15   3   3958.7 3962.1     3.4  0.3  0.1  1.5  0.6  0.1      2.2
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  FNX1186   16   3   4021.5 4037.1    15.6  1.5  0.1  0.7  0.2  0.1      1.0
----------------------------------------------------------------------------

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/6.pdf

To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/7.pdf

To view Figure 3, please visit the following link: http://media3.marketwire.com/docs/8.pdf

To view Figure 4, please visit the following link: http://media3.marketwire.com/docs/9.pdf

To view Figure 5, please visit the following link: http://media3.marketwire.com/docs/10.pdf

To view Figure 6, please visit the following link: http://media3.marketwire.com/docs/11.pdf

Contacts:
FNX Mining Company Inc.Terry MacGibbon
Chairman and Chief Executive Officer
416-628-5929

FNX Mining Company Inc.David Constable
Vice President Investor Relations
416-628-5929
info@fnxmining.comwww.fnxmining.com

FNX Mining Company Inc.: 2010 Production and Capex Guidance

Wed, 23 Dec 2009 07:00:00 -0500

TORONTO, ONTARIO -- (MARKET WIRE) -- 12/23/09 -- FNX Mining Company Inc. (TSX: FNX) ("FNX" or "the Company") announces production and capital expenditures guidance for 2010.

During 2009, FNX produced copper-nickel-platinum-palladium-gold from its copper-precious metal dominant ore deposits at the McCreedy West and Podolsky mines but continued its suspension of production from its nickel dominant ore deposits. The Company's 2009 operations were impacted by the shutdown of FNX's primary custom processor; however, the Company has continued to produce during the ongoing shutdown and expects to meet its original 2009 production guidance.

In 2010, FNX will continue to focus its mining activities on its copper-precious metal dominant deposits, including achieving commercial production at the LFD by mid-year. The 2010 forecast does not include any production from its primary nickel dominant deposits, although that opportunity remains under active consideration and will be assessed on a quarterly basis.

Production in 2010 is expected to total 891,000 tons of ore shipped, a 31% increase over the 2009 production plan. The total payable metal forecast for 2010 consists of 48.1 million lbs of copper, 7.7 million lbs of nickel and 74,500 oz of combined platinum, palladium and gold.


Table 1: 2010 Annual Production Forecast(1)

                            Podolsky     LFD(2) McCreedy     Total
          Tons               417,000   200,000   274,000   891,000
          Payable Metal
           Copper (Mlbs)        27.1      16.6       4.4      48.1
           Nickel (Mlbs)         1.7       5.2       0.8       7.7
           Pt+Pd+Au (ozs)     35,000     8,700    30,800    74,500

(1) Assumed commodity prices: nickel equals US$7.50 per pound, copper
    equals US$2.75 per pound, platinum equals US$1,300 per ounce,
    palladium equals US$300 per ounce and gold equals US$1,000 per ounce.
(2) Includes 54,000 tons of LFD pre-production ore producing 5.3 million
    lbs Cu, 1.3 million lbs Ni and 1,950 oz Pt+Pd+Au

The Company recently completed the remaining internal ramp development at the Podolsky Mine, which improved logistics and will allow a 13% increase in production to 417,000 tons of copper-precious metal dominant ore in 2010.

The Company's ongoing development of the high grade LFD remains slightly ahead of schedule with commercial production from the upper portions of the LFD expected to commence by mid-2010. The LFD is expected to produce a total of 200,000 tons of ore consisting of 146,000 tons of commercial ore and 54,000 tons of pre-production and development ore. The commercial ore will consist of 48,900 tons mined throughout the year from the former Rob's Zone at the top of the LFD and 97,400 tons of initial commercial production below the Rob's Zone. The 54,000 tons of pre-production development ore will be shipped from the LFD in the first half of 2010 and is expected to contain payable metals totaling 5.3 million pounds of copper, 1.3 million pounds of nickel and 1,950 total ounces of platinum, palladium and gold. Pre-production revenues from this production will be credited against capital development costs and neither the tons shipped nor the payable metals will be included in the Company's operations statements.

The tenor of the ore and the expected mine grades of the LFD mineralization increase with depth from previously published probable reserve grades in the transitional Rob's Zone at the top of the LFD of 1.3% Cu, 1.9% Ni and 1.2 g/t total precious metals ("TPM") to the previously published indicated resource grades at the 4000 Level in the middle portion of the LFD of 8.8% Cu, 1.4% Ni and 7.8 g/t TPM. The mining grades from the bottom of the low grade Rob's Zone to the high grade 4000 Level of the deposit are expected to increase with depth and have a drill indicated range of 5.0% to 6.0% Cu, 1.2% to 1.5% Ni and 2.0 to 4.0 g/t TPM. As the ongoing development allows greater access and production from the middle portions of the deposit, the expected mine grade will increase accordingly.

FNX has historically provided its cost and revenue guidance and results in the form of minesite cash operating margins per ton of ore shipped per mine site (i.e. mine site cash operating revenue per ton minus mine site cash operating cost per ton leaving mine site cash operating margin per ton per mine site). With the growing increase in production from higher grade copper and precious metal dominant deposits, including the future LFD production, the revenues, costs and margins per ton of ore shipped will vary widely from deposit to deposit and from mine site to mine site and such guidance is no longer considered useful for evaluating performance and quarterly production comparisons. Therefore, starting in 2010 and going forward, cost guidance will be stated as the minesite cash operating cost, net of by-product credits, of producing a pound of copper from the copper-precious metal dominant deposits When production from the primary nickel dominant deposits is reactivated and becomes material, consideration will be given to providing financial guidance and results for those operations in terms of cost to produce a pound of nickel, net of by-product credits.

As the majority of the 2010 production is expected to come from the copper-precious metal dominant deposits, the Company's financial guidance, at this time, will only be stated in terms of cost to produce a pound of copper, net of by-products credits. The Company's 2010 anticipated minesite cash operating cost to produce a pound of copper, net of by-product credits is forecast at US$0.60/lb. The sale of 50% of the contained TPM ounces, totaling about 60,500 ounces of platinum+palladium+gold, has not been considered in the calculation of mine site cash operating cost per pound of copper.


Table 2: 2010 Capital Budget ($Million)

                            Operations  Mines Exploration Exploration
      Levack Complex               8.4                9.0           -
      Podolsky                    14.3                4.3         1.7
      LFD(1)                      49.1                  -         2.7
      Victoria                       -                  -         7.2
      Nickel Lake                    -                  -         2.2
      Falconbridge Footwall          -                  -         1.2
      Other Properties               -                  -         0.7
      Corporate and Other          3.4                  -           -


      Total                       75.2               13.3        15.7

(1) Excludes LFD pre-production costs and credits

Capital expenditures for 2010 (shown in Table 2) are forecast to total $75.2 million for operations, $13.3 million for mines' exploration and $15.7 million for greenfield exploration. Capital expenditures for operations include $49.1 million for LFD to complete the initial development of the upper portion of the LFD and to continue the ramp below the 4000 Level to allow access to the deposit at depth. Sustaining capital, totaling $14.3 million for Podolsky and $8.4 million for the Levack Complex, is slightly higher than normal because of cost cutting over the past two years. Also, due to cash conservation and cost cutting, mines' exploration expenditures were dramatically reduced over the past two years and have been increased to $13.3 million in 2010 to facilitate near and mid-term mine planning and development and to increase the reserves and resources around the existing ore deposits. A total of $15.7 million will be spent exploring for new deposits and discoveries on the Company's Sudbury properties with approximately $9.5 million of that budget consisting of the unspent flow-through funds raised in the spring of 2009.

The Company expects its DMC Mining Services division to breakeven during 2010.

As at September 30, 2009, the Company's liquid assets totaled $409.3 million and consisted of $258.2 million in cash, $151.1 million in investments and no debt. The Company's strong balance sheet is sufficient to implement the 2010 operating plan and provide additional resources to seek new opportunities in Sudbury or elsewhere.

Forward-Looking Statement

This news release contains certain forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond the Company's ability to control or predict, which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. In this news release, statements about ore and metal production forecasts, capital budget projections, possible future cash balances and future operating costs are examples of forward-looking statements. There is no guarantee that the production or cost forecasts will be accurate or that deposits will be viable. Forward-looking statements speak only as of the date on which they are made. The Company undertakes no obligation to publicly update any such statement or reflect new information or the occurrence of future events or circumstances, except where required by securities regulations. Accordingly, readers should not place undue reliance on forward-looking statements.

Contacts:
FNX Mining Company Inc.Terry MacGibbon
Chairman and Chief Executive Officer
416-628-5929

FNX Mining Company Inc.David Constable
Vice President Investor Relations
416-628-5929
info@fnxmining.comwww.fnxmining.com

FNX Reports Third Quarter Results

Thu, 12 Nov 2009 06:30:00 -0500

TORONTO, ONTARIO -- (MARKET WIRE) -- 11/12/09 -- FNX Mining Company Inc. (TSX: FNX) ("FNX" or the "Company") reports financial and operating results for the quarter ended September 30, 2009 for its Sudbury Mining Operations and its DMC Mining Services business ("DMC"). FNX's third quarter operations were impacted by the extended maintenance shutdown and ongoing labour interruption at the Company's third party processing facilities in Sudbury. This resulted in most ore produced during the third quarter going into inventory and minor revenue recognition and cash flows for the quarter. Third quarter inventory and fourth quarter production will be recognized as revenue in the fourth quarter.

The consolidated net loss for the third quarter was $58.5 million ($0.65 per share) on revenues of $18.8 million, compared to a net loss of $26.5 million ($0.31 per share) on revenues of $76.4 million in the same period of 2008. Year to date consolidated net loss totaled $72.2 million ($0.83 per share) on revenues of $129.6 million, compared to net earnings of $8.9 million ($0.10 per share) on revenues of $329.3 million for the first nine months of 2008.

The Company recorded a $57.9 million impairment to its investment portfolio this quarter. While management believes in the long-term value of its investment in Gold Wheaton Gold Corp., current accounting rules required the Company to write this investment down to its current market value. This resulted in a total impairment loss of $53.0 million being recognized for the Gold Wheaton investment and a significant loss in the Company's earnings for the third quarter.

Terry MacGibbon, Chairman and CEO of FNX noted that, "The third quarter of 2009 was particularly challenging for the Company's Sudbury Operations with nearly all production being stockpiled as inventory. Production during most of June, July and August, totaling approximately 156,000 tons, was shipped to Xstrata Nickel's Sudbury facilities for processing and revenue recognition in the fourth quarter. The Company has been shipping ore to Vale Inco's processing facilities since September and expects to continue to do so, subject to any possible labour interruptions."

Mr. MacGibbon continued, "In spite of these ongoing operating challenges, the Company expects to meet its original 2009 operating guidance. Revenue from production in both the third and fourth quarter will be recognized in the fourth quarter and cash will be received in the first half of 2010. FNX completed a net $137 million financing in the third quarter and has a strong balance sheet with approximately $258 million of cash to continue development of the high-grade LFD and take advantage of any new opportunities."

As at September 30, 2009, the Company's cash and investment portfolio totaled $409.3 million, with $258.2 million in cash and $151.1 million in investments, compared to $129.6 million and $219.6 million respectively as at December 31, 2008. Working capital at the end of the third quarter was $256.3 million, compared to $137.7 million at the end of June 2009 and $130.1 million at the end of December 2008. The Company continues to have zero debt.

Net cash flow from operating activities and adjusted EBITDA for this quarter were an inflow of $8.2 million ($0.09 per share) and a negative $1.0 million respectively, compared to a net outflow of $0.1 million ($0.00 per share) and $1.8 million respectively for the same period in 2008. Year to date cash flow from operating activities and adjusted EBITDA for 2009 were $23.6 million ($0.27 per share) and $29.2 million respectively, compared to $69.2 million ($0.82 per share) and $81.8 million respectively in the first nine months of 2008.


----------------------------------------------------------------------------
 Table 1 - Financial and
 Operating Highlights                Q3 2009   Q3 2008  YTD 2009  YTD 2008
----------------------------------------------------------------------------
       Consolidated
------------------------------------
       Revenue                        18,782    76,423   129,604   329,339
       Net Earnings (Loss) (C$000)   (58,501)  (26,542)  (72,199)    8,862
       Basic Earnings (Loss) per
        Share (C$)                     (0.65)    (0.31)    (0.83)     0.10
       Diluted Earnings (Loss) per
        Share (C$)                     (0.65)    (0.31)    (0.83)     0.10
       Cash and Cash Equivalents
        (C$000)                      258,202   151,069   258,202   151,069
       Cash Flow from Operating
        Activities (C$000)             8,240      (127)   23,643    69,200
       Cash Flow per Share (C$)         0.09     (0.00)     0.27      0.82

       Adjusted EBITDA (C$000)          (966)    1,845    29,184    81,771

       Mining Operations
------------------------------------
       Total Revenue (C$000)           4,601    51,178    90,282   217,693
       Cash Operating Costs (C$000)    2,245    48,289    53,684   144,587
       Cash Operating Margin (C$000)   2,356     2,889    36,598    73,106
       Depreciation and Amortization
        (C$000)                          583    13,863     5,349    34,976
       Operating Margin (C$000)        1,773   (10,974)   31,249    38,130
       Net Earnings (Loss) (C$000)   (58,220)   16,974   (69,685)   20,934
       Cash Flow From Operating
        Activities (C$000)            10,713     2,354    22,677    68,421

       Total Ore Sold (tons)           9,302   346,987   306,369   984,651
       Total Ore in Inventory (tons) 176,858         -   176,858         -
       Nickel Ore Sold (tons)              -   159,419    34,030   579,052
       Grade of Nickel Ore Sold
        (%Ni)                              -       1.3       2.0       1.2
       Payable Metal Sold - Nickel
        (000 lbs)                         38     3,146     2,759    10,129
       Copper Ore Sold (tons)          9,302   187,568   272,339   405,599
       Grade of Copper Ore Sold
        (%Cu)                            2.8       3.0       3.8       3.1
       Payable Metal Sold - Copper
        (000 lbs)                        419     9,558    17,994    23,712

       Payable Metal Sold - Total
        Precious Metals (oz)             997    16,379    24,944    35,233

       Minesite Revenue per Ton Sold
        (C$)                             575       147       315       221
       Cash Operating Costs per Ton
        Sold (C$)                        241       139       175       147
       Minesite Cash Operating
        Margin per Ton Sold (C$)         334         8       140        74

       Realized Nickel Price
        (US$/lb)                       26.68      6.61      6.72     10.20
       Realized Copper Price
        (US$/lb)                        4.99      2.93      2.17      3.43
       Exchange Rate (C$ /US$)          1.10      1.04      1.17      1.02

       DMC Mining Services
------------------------------------
       Total Revenue (C$000)          14,181    25,245    39,322   111,646
       Cash Operating Costs (C$000)   12,536    25,063    37,078   107,262
       Cash Operating Margin (C$000)   1,645       182     2,244     4,384
       Net Earnings (Loss) (C$000)      (281)   (9,568)   (2,514)  (12,072)
       Cash Flow from Operating
        Activities (C$000)            (2,473)   (2,481)      966       779
----------------------------------------------------------------------------

Certain of the above items are considered to be non-GAAP performance
measures

Mining Operations

FNX's Sudbury Operations faced several major challenges in the third quarter, including Vale Inco's extended maintenance shutdown, which subsequently became a labour disruption on July 13, 2009. These events interrupted access to Vale Inco's processing facilities and resulted in the Company stockpiling ore to maintain its planned 2009 production levels. A temporary offtake agreement was signed with Xstrata Nickel, which allowed FNX to stockpile approximately 156,000 tons of ore near Xstrata's Strathcona Mill to be processed in the fourth quarter. Vale Inco subsequently requested that the Company recommence ore shipment to the Clarabelle Mill late in September. While the Company maintains its 2009 guidance, these challenges have increased ore inventories and delayed revenue recognition and cash flows creating skewed financial and operating results for the third quarter.

During the third quarter, Sudbury Operations shipped and sold only 9,302 tons of copper-precious metal ore and placed another 176,000 tons of copper-precious metal ore into inventory, compared to 347,000 tons of ore shipped in the same period of 2008. Year to date 2009, the Company shipped 306,000 tons and held 176,000 tons in inventory, compared to 985,000 tons of ore shipped and sold in the first nine months of 2008.

Total payable metals during the third quarter were 38,000 pounds of nickel, 419,000 pounds of copper and 997 ounces of platinum, palladium and gold, compared to 3.15 million pounds of nickel, 9.56 million pounds of copper and 16,379 ounces of platinum, palladium and gold in the third quarter of 2008. Year to date 2009, payable metals totaled 2.76 million pounds of nickel, 17.99 million pounds of copper and 24,944 ounces of platinum, palladium and gold, compared to 10.13 million pounds, 23.71 million pounds and 35,233 ounces respectively in the first nine months of 2008. The steep decline in payable nickel is due to the suspension of primary nickel production at the end of 2008 and the decline in payable copper is due to significant payable copper currently held in inventory.

In the third quarter, the average minesite revenue per ton of ore sold was $575, while the average cash operating cost per ton of ore sold was $241 leaving an average minesite cash operating margin per ton of ore sold of $334, compared to $147, $139 and $8 respectively in the third quarter of 2008. For the first nine months of 2009, average minesite revenue per ton of ore sold was $315, while the average cash operating cost per ton of ore sold was $175 leaving an average minesite cash operating margin per ton of ore sold of $140, compared to $221, $147 and $74 respectively in the first nine months of 2008.

The average metal prices received in the third quarter were adjusted upward as a result of provisional pricing adjustments from rising metal prices. Due to the unusually low quantities of metal sold in the third quarter, the prices that FNX received from its metal sales were unusually high on a per unit basis. The average realized metal prices were US$26.68 per pound for nickel, US$4.99 per pound for copper, US$3,314 per ounce for platinum, US$1,422 per ounce for palladium and US$1,029 per ounce for gold, compared to US$6.61, US$2.93, US$201, (US$6) and US$827 respectively in the third quarter of 2008.

The Sudbury Mining Operations and contractors during third quarter experienced zero lost time injuries and six medical aids. The Lost Time Injury Frequency Rate ("LTIFR") for this quarter was zero and the Total Medical Injury Frequency Rate ("TMIFR") was 4.9, compared to 0.8 and 9.8 respectively in the comparable period of 2008. For the first nine months of 2009, the LTIFR was 0.3 and TMIFR was 5.5, compared to 0.6 and 8.3 respectively for the same period of 2008. There were no reportable environmental incidents during the third quarter, compared to two incidents during 2008 third quarter.


----------------------------------------------------------------------------
 Table 2 - Production and Sales   Three months ended      Nine months ended
  Summary                                   Sept. 30               Sept. 30
 Podolsky Mine                    2009          2008     2009          2008
----------------------------------------------------------------------------
 Copper Ore Inventory (tons)    78,827             -   78,827             -
 Copper Ore Sold (tons)          6,814        82,215  163,192       161,222
 Grade of Copper Ore Sold (%Cu)    3.5           5.6      5.5           6.3
 Payable Metal Sold
   Nickel (000s lbs)                28           486    1,132         1,204
   Copper (000s lbs)               394         6,948   15,174        16,428
   TPM (ozs)                       924         7,795   12,598        15,870
 Metal Sales and Costs
   Minesite Revenue ($/ton of
    ore sold)                      449           294      375           486
   Cash Operating Cost ($/ton
    of ore sold)                   213           194      198           225
   Minesite Cash Operating
    Margin ($/ton of ore sold)     236           100      177           261
----------------------------------------------------------------------------


----------------------------------------------------------------------------
 Table 3 - Production and Sales   Three months ended      Nine months ended
  Summary                                   Sept. 30               Sept. 30
 Levack Complex                Q3-2009       Q3-2008     2009          2008
----------------------------------------------------------------------------
 Copper Ore Inventory (tons)    94,031             -   94,031             -
  Nickel Ore Sold (tons)             -       159,419   34,030       579,052
 Copper Ore Sold (tons)          2,488       105,353  109,147       244,377
 Total Ore Sold                  2,488       264,772  143,177       823,429
 Grade of Nickel Ore (%Ni)           -           1.3      2.0           1.2
 Grade of Copper Ore (%Cu)         0.8           0.5      1.3           0.4
 Payable Metal Sold
   Nickel (000s lbs)                10         2,660    1,627         8,925
   Copper (000s lbs)                25         2,611    2,820         7,284
   TPM (ozs)                        73         8,584   12,346        19,363
 Metal Sales and Costs
   Minesite Revenue ($/ton of
    ore sold)                      921           102      245           169
   Cash Operating Cost ($/ton
    of ore sold)                   319           122      148           132
   Minesite Cash Operating
    Margin ($/ton of ore sold)     602           (20)      97            37
----------------------------------------------------------------------------

Development

Driving the access ramp at the LFD continued to be the priority development activity for the Company in the third quarter. The access ramp progressed from the 3500 Level to just above the 3700 Level, representing approximately 1,000 ft of new development. This advance leaves roughly 1,700 ft of additional advancement required in order to break into the existing 4000 Level crosscut from Xstrata's Craig Mine. Significant pre-production development also occurred on the 3180 and 3450 levels. Current development of the access ramp has provided drill platforms for close-spaced definition drilling to support mine planning and resource estimates. An access drift at the 3450 Level was driven to the bottom of a planned fresh ore raise and the raise development will be started in October. Work is currently underway to increase the trucking capacity on the access ramp.

Other significant development work at the Levack Complex consisted of 2,236 ft of drifting at McCreedy West to support current and future production.

Development at the Podolsky Mine during the quarter focused on advancing the main access ramp and further lateral development. Total advancement during the third quarter was 1,482 ft, which included main access ramp development above the 2225 Level and lateral work at the 2000 and 2225 levels. The main access ramp remains on schedule for internal connection late in 2009, which will support access on all levels for future production. Capital work on the backfill plant and system was completed during the third quarter.

Capital expenditures during the third quarter totaled $16.2 million, including LFD development at $8.8 million, Podolsky at $2.9 million, Levack Complex at $1.2 million, $3.1 million on other exploration properties and $0.2 million on corporate and DMC. Year to date capital expenditures totaled $43.9 million, including $26.6 million on LFD development, $9.5 million at Podolsky, $3.7 million at the Levack Complex, $4.0 million on other exploration properties and $0.1 million for corporate and DMC.

Exploration

Mine geology in the third quarter focused on the LFD and Podolsky Mine development. At the former, four drills were engaged in detailed definition of the LFD between the 3050 and the 3650 levels. A total of 27,029 ft was drilled in 138 holes on the LFD during the third quarter, bringing year to date footage on the LFD to 66,576 ft. Additional drilling during this quarter tested for footwall mineralization up-dip from the LFD and below the historic Main Nickel Orebody. Narrow, footwall mineralization was encountered.

At McCreedy West, two drills supported production planning in the PM and 700 deposits. In total during the quarter, 14,350 ft were completed in 79 holes bringing the year to date total to 52,516 ft in 288 holes.

Two underground drills were active during the third quarter at Podolsky. Third quarter drilling totaled 16,864 ft in 65 holes, bringing year to date drilling to 42,891 ft in 169 holes. The focus shifted during the third quarter from defining 2009 mining blocks to 2010 mining plans and beyond. A compilation and re- interpretation of the 2000 Deposit is underway targeted for completion at the end of 2009 in time to be used in the year end reserve and resource estimates. Also at Podolsky, surface drilling was initiated in early July and was focused on four different targets, including deepening a hole below the 2000 Deposit, two footwall targets located to the west of the Whistle Pit to test a Sudbury Breccia unit and a geophysical target located east of the Whistle Offset Dyke. Total surface drill footage completed or in progress at Podolsky during the quarter was 12,260 ft in five holes.

The flow-through budget for 2009 is approximately $6.2 million with the balance of the original $15.0 million in flow-through funds budgeted for 2010. The initial focus of flow-through activity was at the Victoria Property, where three surface drill-rigs were testing the Worthington Offset Dyke structure. The Victoria property contains numerous favourable Quartz Diorite related exploration environments, including the southern extent of the Worthington Offset Dyke. During the third quarter, two additional surface drill rigs were mobilized onto the Victoria Property to accelerate testing of the multiple targets. Total drilling at Victoria in the third quarter was 29,239 ft, including five holes currently in progress.

DMC Mining Services

Revenues from DMC totaled $14.2 million for the three months ended September 30, 2009, compared to $25.2 million for the third quarter of 2008. Year to date revenues were $39.3 million, compared to $111.6 million in the first nine months of 2008. Contract operating costs for the third quarter and year to date were $12.5 million and $37.1 million respectively.

The cash operating margin in this reporting quarter, calculated as the operating revenues of DMC less operating costs and excluding depreciation and amortization, was $1.7 million, compared to $0.2 million in the same period of 2008. For the nine months ended September 30, 2009, operating margin was $2.2 million, compared to $4.4 million for the first nine months of 2008.

The loss for DMC in the third quarter was $0.3 million, compared to a loss of $9.6 million for the comparable period in 2008, while the loss for the nine months ended September 30, 2009 was $2.5 million, compared to $12.1 million for the first nine months of 2008.

The operating cash flow for this quarter was $1.0 million, while the net cash flow from operating activities for this reporting period was an outflow of $2.5 million.

Employees at DMC experienced zero Lost Time Injuries and four Medical Aid Injuries during this quarter for a LTIFR and TMIFR of zero and 6.6 respectively, compared to zero and 0.5 for the same period in 2008.

As at September 30, 2009, DMC had a work backlog of approximately $26.9 million, the majority located in the United States. Approximately $14.4 million of the work backlog is scheduled to be earned in 2009. As part of the normal course of business, DMC regularly sources new clients and contracts to replace expiring contracts. DMC Management continues to actively pursue new opportunities on an ongoing basis.

Investments

Investment impairments totaled $57.9 million in the third quarter of 2009, compared to $nil in the second quarter of 2009 and $10.0 million the third quarter of 2008. The impairments were recorded due to the other-than-temporary decline in the market value experienced by the Company's investment portfolio over the last twelve month period.

FNX evaluates its available-for-sale investments for evidence of impairment under CICA 3855, Financial Instruments - Recognition and Measurement. Under the impairment tests, it was determined that an other-than-temporary impairment exists with respect to FNX's investments in certain junior exploration companies as at September 30, 2009. As a result, these investments were written down to their market values at the balance sheet date, with the impairment loss of $4.9 million being recognized on the Statement of Operations.

FNX accounts for its investment in Gold Wheaton using the equity method and is, therefore, required to include in earnings FNX's share of Gold Wheaton's income or loss for the period, and the Company's investment therein is adjusted by an equivalent amount. For the quarter ended September 30, 2009, FNX's 25.6% share of Gold Wheaton's loss, was $0.5 million, compared to a loss of $1.0 million in the third quarter of 2008.

FNX evaluates its equity accounted investment in Gold Wheaton for evidence of impairment under CICA 3051, Investments. Under the required impairment tests, it was determined that an other-than-temporary impairment exists with respect to FNX's investment in Gold Wheaton as at September 30, 2009. While management believes in the long-term investment value of Gold Wheaton, accounting rules require that the investment be written down to its fair value, which was considered to be the market value at the Balance Sheet date with total impairment losses of $53.1 million being recognized in the Statement of Operations. At September 30, 2009, the market value of FNX's 360 million Gold Wheaton shares was approximately $95.4 million.

Share Capital and Warrants

During the third quarter of 2009, share capital and warrants increased by $138.7 million as a result of the issuance of 14,950,000 common shares in the bought deal which closed on September 9, 2009, net of transaction costs and taxes and the issuance of 7,475,000 warrants to purchase one common share at a price of $13.00 per share at any time prior to September 9, 2012. Year to date share capital has increased by $153.2 million as a result of the aforementioned bought deal, the exercise of 12,500 stock options and the issuance of 2,173,914 flow-through shares in April. As at September 30, 2009, outstanding shares were 102,013,190 and stock options to purchase 3,589,167 common shares at a weighted average of $13.42 per share were outstanding. Including 327,432 outstanding deferred share units, the fully diluted share total was 113,404,789 as at September 30, 2009.

Forward-Looking Statement

Certain information included in this press release, including information relating to future financial or operating performance and other statements that express management's expectations or estimates of future performance constitute "forward-looking statements." Such forward-looking statements include, without limitation, (i) estimates of future capital expenditures; (ii) estimates regarding timing of future development and production; and (iii) estimates of future costs towards profitable commercial operations. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to, interpretation and implications of drilling and geophysical results; estimates regarding timing of future capital expenditures and costs towards profitable commercial operations. Other factors that could cause actual results, developments or events to differ materially from those anticipated include, among others, increases/decreases in production; volatility in metals prices and demand; currency fluctuations; cash operating margins; cash operating cost per pound sold; costs per ton of ore; variances in ore grade or recovery rates from those assumed in mining plans; reserves and/or resources; the ability to successfully integrate acquired assets; operational risks inherent in mining or development activities, and legislative factors relating to prices, taxes, royalties, land use, title and permits, importing and exporting of minerals and environmental protection. Accordingly, undue reliance should not be placed on forward-looking statements. These forward-looking statements are made as at the date hereof and the Company does not undertake any obligation to update publicly or revise any such forward-looking statements or any forward-looking statements contained in any other documents whether as a result of new information, future events or otherwise, except as may be required under applicable securities law. For a more detailed discussion of such risks and other factors, see the Company's latest filings with Canadian securities regulators.

Conference Call

FNX will be hosting a third quarter conference call on November 12, 2009 at 10:00 am Eastern Time.


  CONFERENCE CALL numbers are:

  Live in North America:
  Toll-Free Access: 1-888-789-9572 or 416-695-7806
  Ask for "FNX Mining Conference Call" or Enter Passcode: 7852335#

  Replay Access information:
  Toll-Free Access: 1-800-408-3053 or 416-695-5800
  Passcode: 5071353#
  Available until December 17, 2009 at Midnight (Toronto Time)

  Slides for the conference call may be accessed on the Company's website
  at www.fnxmining.com. There will be no transcript available for the
  conference call.

Note: The unaudited balance sheet, statement of operations and statement of cash flow are appended to this news release.


Consolidated Balance Sheets
(in thousands of Canadian dollars)
(Unaudited)                                     September 30  December 31
As at                                                   2009         2008
---------------------------------------------------------------------------
---------------------------------------------------------------------------
                                                           $            $
Assets
Current
 Cash and cash equivalents                           258,202      129,561
 Accounts receivable                                  22,842       59,324
 Inventory                                            19,685        2,307
 Prepaid and other assets                              2,517        1,504
---------------------------------------------------------------------------
                                                     303,246      192,696
Investments                                           14,794        4,009
Investment in Gold Wheaton                           136,340      215,620
Property, plant and equipment                        465,985      435,114
Reclamation deposits                                   6,485        6,485
---------------------------------------------------------------------------
                                                     926,850      853,924
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Liabilities
Current
 Accounts payable and accrued liabilities             26,613       36,136
 Deferred revenue                                     20,306       26,433
---------------------------------------------------------------------------
                                                      46,919       62,569
---------------------------------------------------------------------------

Long-term deferred revenue                           367,580      368,969
Mine closure and site restoration                      5,635        5,393
Future income and resource taxes                      53,450       60,499
---------------------------------------------------------------------------
                                                     426,665      434,861
---------------------------------------------------------------------------
                                                     473,584      497,430
---------------------------------------------------------------------------
Shareholders' equity
 Share capital                                       711,123      571,750
 Warrants                                             13,873            -
 Contributed surplus - stock-based compensation       17,490       13,741
 Retained earnings (deficit)                        (292,779)    (220,580)
 Accumulated other comprehensive income (loss)         3,559       (8,417)
---------------------------------------------------------------------------
                                                     453,266      356,494
---------------------------------------------------------------------------
                                                     926,850      853,924
---------------------------------------------------------------------------
---------------------------------------------------------------------------



Consolidated Segmented Balance Sheets
(in thousands of Canadian dollars)
(Unaudited)                                       Mining      DMC    Total
As at September 30, 2009
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Assets                                                 $        $        $
 Cash and cash equivalents                       249,887    8,315  258,202
 Accounts receivable                              14,378    8,464   22,842
 Other current assets                             20,750    1,452   22,202
--------------------------------------------------------------------------
                                                 285,015   18,231  303,246
Investments                                       14,794        -   14,794
Investment in Gold Wheaton                       136,340        -  136,340
Property, plant and equipment                    443,847   22,138  465,985
Reclamation deposits                               6,485        -    6,485
--------------------------------------------------------------------------
                                                 886,481   40,369  926,850
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Liabilities
 Accounts payable and accrued liabilities         21,125    5,488   26,613
 Deferred revenue                                 19,978      328   20,306
--------------------------------------------------------------------------
                                                  41,103    5,816   46,919
--------------------------------------------------------------------------
Long-term deferred revenue                       367,580        -  367,580
Mine closure and site restoration                  5,635        -    5,635
Future income and resource taxes                  52,684      766   53,450
--------------------------------------------------------------------------
                                                 425,899      766  426,665
--------------------------------------------------------------------------
                                                 467,002    6,582  473,584
--------------------------------------------------------------------------
--------------------------------------------------------------------------

As at December 31, 2008                           Mining      DMC    Total
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Assets                                                 $        $        $
 Cash and cash equivalents                       120,131    9,430  129,561
 Accounts receivable                              44,459   14,865   59,324
 Other current assets                              2,823      988    3,811
--------------------------------------------------------------------------
                                                 167,413   25,283  192,696
Investments                                        4,009        -    4,009
Investment in Gold Wheaton                       215,620        -  215,620
Property, plant and equipment                    409,718   25,396  435,114
Reclamation deposits                               6,485        -    6,485
--------------------------------------------------------------------------
                                                 803,245   50,679  853,924
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Liabilities
 Accounts payable and accrued liabilities         28,469    7,667   36,136
 Deferred revenue                                 25,456      977   26,433
--------------------------------------------------------------------------
                                                  53,925    8,644   62,569
--------------------------------------------------------------------------
Long-term deferred revenue                       368,969        -  368,969
Mine closure and site restoration                  5,393        -    5,393
Future income and resource taxes                  59,374    1,125   60,499
--------------------------------------------------------------------------
                                                 433,736    1,125  434,861
--------------------------------------------------------------------------
                                                 487,661    9,769  497,430
--------------------------------------------------------------------------
--------------------------------------------------------------------------



Consolidated Statements of
 Operations
(in thousands of Canadian dollars  Three months ended   Nine months ended
 except earnings per share)              September 30        September 30
(Unaudited)                           2009       2008      2009      2008
---------------------------------------------------------------------------
---------------------------------------------------------------------------
                                         $          $         $         $
Operating revenues                  18,782     76,423   129,604   329,339
---------------------------------------------------------------------------

Operating expenses
 Expenses, excluding depreciation
  and amortization                  14,781     73,352    90,762   251,849
 Depreciation and amortization       1,707     16,233     8,815    41,949
---------------------------------------------------------------------------
                                    16,488     89,585    99,577   293,798
---------------------------------------------------------------------------
                                     2,294    (13,162)   30,027    35,541
---------------------------------------------------------------------------
Expenses
 Administration                      2,580      4,896     7,049    11,912
 Capital taxes                           -          -         -    (1,803)
 Depreciation                          202        206       651       624
 Stock-based compensation            1,573        856     5,479     3,419
 Investment impairments             57,935     10,000    57,935    10,000
 Dilution loss                           -          -    31,238         -
 Other expenses (income)              (570)     4,227    (4,648)   (6,612)
---------------------------------------------------------------------------
                                    61,720     20,185    97,704    17,540
---------------------------------------------------------------------------
Earnings (loss) before taxes and
 other                             (59,426)   (33,347)  (67,677)   18,001
Income and resource taxes recovery
 (expense)                           1,465      7,814    (3,754)   (8,130)
Share of income (loss) of equity
 investee                             (540)    (1,009)     (768)   (1,009)
---------------------------------------------------------------------------
Net earnings (loss) for the period (58,501)   (26,542)  (72,199)    8,862
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Basic earnings (loss) per share      (0.65)     (0.31)    (0.83)     0.10
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Diluted earnings (loss) per share    (0.65)     (0.31)    (0.83)     0.10
---------------------------------------------------------------------------
---------------------------------------------------------------------------



Consolidated Segmented Statements of
 Operations
(in thousands of Canadian dollars)
(Unaudited)
For the three months ended September 30, 2009   Mining      DMC     Total
---------------------------------------------------------------------------
---------------------------------------------------------------------------
                                                     $        $         $

Operating revenues                               4,601   14,181    18,782
---------------------------------------------------------------------------

Operating expenses
 Expenses, excluding depreciation and
  amortization                                   2,245   12,536    14,781
 Depreciation and amortization                     583    1,124     1,707
---------------------------------------------------------------------------
                                                 2,828   13,660    16,488
---------------------------------------------------------------------------
                                                 1,773      521     2,294
---------------------------------------------------------------------------
Expenses
 Administration                                  2,580        -     2,580
 Depreciation                                      202        -       202
 Stock-based compensation                        1,336      237     1,573
 Investment impairments                         57,935        -    57,935
 Other expenses (income)                          (414)    (156)     (570)
---------------------------------------------------------------------------
                                                61,639       81    61,720
---------------------------------------------------------------------------
Earnings (loss) before taxes and other         (59,866)     440   (59,426)
Income and resource taxes recovery (expense)     2,186     (721)    1,465
Share of income (loss) of equity investee         (540)       -      (540)
---------------------------------------------------------------------------
Net earnings (loss) for the period             (58,220)    (281)  (58,501)
---------------------------------------------------------------------------
---------------------------------------------------------------------------

For the nine months ended September 30, 2009    Mining      DMC     Total
---------------------------------------------------------------------------
---------------------------------------------------------------------------
                                                     $        $         $
Operating revenues                              90,282   39,322   129,604
---------------------------------------------------------------------------

Operating expenses
 Expenses, excluding depreciation and
  amortization                                  53,684   37,078    90,762
 Depreciation and amortization                   5,349    3,466     8,815
---------------------------------------------------------------------------
                                                59,033   40,544    99,577
---------------------------------------------------------------------------
                                                31,249   (1,222)   30,027
---------------------------------------------------------------------------
Expenses
 Administration                                  7,049        -     7,049
 Depreciation                                      651        -       651
 Stock-based compensation                        4,871      608     5,479
 Investment impairments                         57,935        -    57,935
 Dilution loss                                  31,238        -    31,238
 Other expenses (income)                        (4,256)    (392)   (4,648)
---------------------------------------------------------------------------
                                                97,488      216    97,704
---------------------------------------------------------------------------
Earnings (loss) before taxes and other         (66,239)  (1,438)  (67,677)
Income and resource taxes recovery (expense)    (2,678)  (1,076)   (3,754)
Share of income (loss) of equity investee         (768)       -      (768)
---------------------------------------------------------------------------
Net earnings (loss) for the period             (69,685)  (2,514)  (72,199)
---------------------------------------------------------------------------
---------------------------------------------------------------------------



Consolidated Segmented Statements of
 Operations
(in thousands of Canadian dollars)
(Unaudited)
For the three months ended September 30, 2008  Mining       DMC     Total
---------------------------------------------------------------------------
---------------------------------------------------------------------------
                                                    $         $         $

Operating revenues                             51,178    25,245    76,423
---------------------------------------------------------------------------

Operating expenses
 Expenses, excluding depreciation and
  amortization                                 48,289    25,063    73,352
 Depreciation and amortization                 13,863     2,370    16,233
---------------------------------------------------------------------------
                                               62,152    27,433    89,585
---------------------------------------------------------------------------
                                              (10,974)   (2,188)  (13,162)
---------------------------------------------------------------------------
Expenses
 Administration                                 4,896         -     4,896
 Depreciation                                     206         -       206
 Stock-based compensation                         371       485       856
 Investment impairments                             -    10,000    10,000
 Other expenses (income)                        5,979    (1,752)    4,227
---------------------------------------------------------------------------
                                               11,452     8,733    20,185
---------------------------------------------------------------------------
Earnings (loss) before taxes and other items  (22,426)  (10,921)  (33,347)
Income and resource taxes recovery              6,461     1,353     7,814
Share of income (loss) of equity investee      (1,009)        -    (1,009)
---------------------------------------------------------------------------
Net earnings (loss) for the period            (16,974)   (9,568)  (26,542)
---------------------------------------------------------------------------
---------------------------------------------------------------------------

For the nine months ended September 30, 2008   Mining       DMC     Total
---------------------------------------------------------------------------
---------------------------------------------------------------------------
                                                    $         $         $

Operating revenues                            217,693   111,646   329,339
---------------------------------------------------------------------------

Operating expenses
 Expenses, excluding depreciation and
  amortization                                144,587   107,262   251,849
 Depreciation and amortization                 34,976     6,973    41,949
---------------------------------------------------------------------------
                                              179,563   114,235   293,798
---------------------------------------------------------------------------
                                               38,130    (2,589)   35,541
---------------------------------------------------------------------------
Expenses
 Administration                                11,912         -    11,912
 Capital taxes                                 (1,803)        -    (1,803)
 Depreciation                                     624         -       624
 Stock-based compensation                       1,801     1,618     3,419
 Investment impairments                             -    10,000    10,000
 Other expenses (income)                       (4,393)   (2,219)   (6,612)
---------------------------------------------------------------------------
                                                8,141     9,399    17,540
---------------------------------------------------------------------------
Earnings (loss) before taxes and other items   29,989   (11,988)   18,001
Income and resource taxes recovery (expense)   (8,046)      (84)   (8,130)
Share of income (loss) of equity investee      (1,009)        -    (1,009)
---------------------------------------------------------------------------
Net earnings (loss) for the period             20,934   (12,072)    8,862
---------------------------------------------------------------------------
---------------------------------------------------------------------------



Consolidated Statements of Cash Flow
(in thousands of Canadian         Three months ended    Nine months ended
 dollars)                               September 30         September 30
(Unaudited)                          2009       2008      2009       2008
---------------------------------------------------------------------------
---------------------------------------------------------------------------
                                        $          $         $          $
Operating activities
 Net earnings (loss) for the
  period                          (58,501)   (26,542)  (72,199)     8,862
 Non-cash items
  Depreciation and amortization     1,909     16,439     9,466     42,573
  Stock-based compensation          1,203        856     3,768      3,419
  Future income and resource
   taxes                           (2,228)        62    (5,699)    10,559
  Investment impairments           57,935     10,000    57,935     10,000
  Write-down of intangible assets       -      4,128         -      4,128
  Provision for doubtful accounts       -      4,242         -      4,242
  Amortization of Gold Wheaton
   deferred revenue                  (384)     3,213    (6,867)     3,213
  Gain on disposal of shares            -          -         -     (8,461)
  Mark-to-market and accretion of
   Gold Wheaton
    note receivable                (2,094)         -    (5,786)         -
  (Increase) decrease in value of
   investments held-
   for-trading                       (634)       474      (751)       727
  Share of (income) loss of
   equity investee                    540      1,009       768      1,009
  Dilution loss                         -          -    31,238          -
  Other                                (2)    (2,516)       (3)    (2,711)
---------------------------------------------------------------------------
                                   (2,256)    11,365    11,870     77,560
 Net change in non-cash working
  capital                          10,496    (11,492)   11,773     (8,360)
---------------------------------------------------------------------------
                                    8,240       (127)   23,643     69,200
---------------------------------------------------------------------------
Financing activities
 Common shares issued             129,841      2,173   144,904      2,814
 Warrants issued                   14,427          -    14,427          -
 Transaction costs on shares and
  warrants issued                  (7,602)         -    (8,354)         -
 Bank indebtedness - advance            -          -         -     45,837
 Bank indebtedness - payment            -    (20,372)        -    (45,837)
---------------------------------------------------------------------------
                                  136,666    (18,199)  150,977      2,814
---------------------------------------------------------------------------
Investing activities
 Investments                            -          -         -    (10,000)
 Property, plant and equipment    (16,174)   (41,224)  (43,948)  (139,625)
 Proceeds on sale of gold
  equivalent units                      -    175,000         -    175,000
 Gold Wheaton transaction costs         -     (4,366)        -     (4,366)
 Proceeds from disposal of
  investments                           -          -         -     21,441
---------------------------------------------------------------------------
                                  (16,174)   129,410   (43,948)    42,450
---------------------------------------------------------------------------
Effect of exchange rate changes
 on cash                           (1,606)       513    (2,031)     1,445
---------------------------------------------------------------------------
Change in cash and cash
 equivalents for the period       127,126    111,597   128,641    115,909
Cash and cash equivalents -
 beginning of period              131,076     39,472   129,561     35,160
---------------------------------------------------------------------------
Cash and cash equivalents - end
 of period                        258,202    151,069   258,202    151,069
---------------------------------------------------------------------------
---------------------------------------------------------------------------



Consolidated Segmented Statements of Cash Flow
(in thousands of Canadian dollars) (Unaudited)
For the three months ended September 30, 2009   Mining      DMC     Total
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Operating activities                                 $        $         $
 Net earnings (loss) for the period            (58,220)    (281)  (58,501)
 Non-cash items
  Depreciation and amortization                    785    1,124     1,909
  Stock-based compensation                         967      236     1,203
  Future income and resource taxes              (2,163)     (65)   (2,228)
  Investment impairments                        57,935        -    57,935
  Amortization of Gold Wheaton deferred
   revenue                                        (384)       -      (384)
  Mark-to-market and accretion of Gold Wheaton
   note                                         (2,094)       -    (2,094)
  Share of (income) loss of equity investee        540        -       540
  Other                                           (629)      (7)     (636)
---------------------------------------------------------------------------
                                                (3,263)   1,007    (2,256)
 Net change in non-cash working capital         13,976   (3,480)   10,496
---------------------------------------------------------------------------
                                                10,713   (2,473)    8,240
Financing activities
 Common shares issued                          136,666        -   136,666
Investing activities
 Property, plant and equipment                 (16,114)     (60)  (16,174)
Effect of exchange rate changes on cash              -   (1,606)   (1,606)
---------------------------------------------------------------------------
Change in cash and cash equivalents for the
 period                                        131,265   (4,139)  127,126
Cash and cash equivalents - beginning of
 period                                        118,622   12,454   131,076
---------------------------------------------------------------------------
Cash and cash equivalents - end of period      249,887    8,315   258,202
---------------------------------------------------------------------------
---------------------------------------------------------------------------

For the nine months ended September 30, 2009    Mining      DMC     Total
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Operating activities                                 $        $         $
 Net earnings (loss) for the period            (69,685)  (2,514)  (72,199)
 Non-cash items
  Depreciation and amortization                  6,000    3,466     9,466
  Stock-based compensation                       3,160      608     3,768
  Future income and resource taxes              (5,342)    (357)   (5,699)
  Investment impairments                        57,935        -    57,935
  Amortization of Gold Wheaton deferred
   revenue                                      (6,867)       -    (6,867)
  Mark-to-market and accretion of Gold Wheaton
   note                                         (5,786)       -    (5,786)
  Share of (income) loss of equity investee        768        -       768
  Dilution loss                                 31,238        -    31,238
  Other                                           (888)     134      (754)
---------------------------------------------------------------------------
                                                10,533    1,337    11,870
 Net change in non-cash working capital         12,144     (371)   11,773
---------------------------------------------------------------------------
                                                22,677      966    23,643
Financing activities
 Common shares issued                          150,977        -   150,977
Investing activities
 Property, plant and equipment                 (43,898)     (50)  (43,948)
Effect of exchange rate changes on cash              -   (2,031)   (2,031)
---------------------------------------------------------------------------
Change in cash and cash equivalents for the
 period                                        129,756   (1,115)  128,641
Cash and cash equivalents - beginning of
 period                                        120,131    9,430   129,561
---------------------------------------------------------------------------
Cash and cash equivalents - end of period      249,887    8,315   258,202
---------------------------------------------------------------------------
---------------------------------------------------------------------------



Consolidated Segmented Statements of Cash Flow
(in thousands of Canadian dollars) (Unaudited)
For the three months ended September 30,
 2008                                         Mining       DMC      Total
---------------------------------------------------------------------------
---------------------------------------------------------------------------
                                                   $         $          $
Operating activities
 Net earnings (loss) for the period          (16,974)   (9,568)   (26,542)
 Non-cash items
  Depreciation and amortization               14,069     2,370     16,439
  Stock-based compensation                    10,000     8,370     18,370
  Future income and resource taxes             1,009         -      1,009
  Other                                        1,607       482      2,089
---------------------------------------------------------------------------
                                               9,711     1,654     11,365
 Net change in non-cash working capital       (7,357)   (4,135)   (11,492)
---------------------------------------------------------------------------
                                               2,354    (2,481)      (127)
Financing activities
 Bank indebtedness - net                       2,173         -      2,173
 Common shares issued                        (20,372)        -    (20,372)
Investing activities
 Proceeds from disposal of investments       (35,694)   (5,530)   (41,224)
 Property, plant and equipment               170,634         -    170,634
Effect of exchange rate changes on cash            -       513        513
---------------------------------------------------------------------------
Change in cash and cash equivalents for the
 period                                      119,095    (7,498)   111,597
Cash and cash equivalents - beginning of
 period                                       26,274    13,198     39,472
---------------------------------------------------------------------------
Cash and cash equivalents - end of period    145,369     5,700    151,069
---------------------------------------------------------------------------
---------------------------------------------------------------------------

 For the nine months ended September 30,
  2008                                        Mining       DMC      Total
---------------------------------------------------------------------------
---------------------------------------------------------------------------
                                                   $         $          $
Operating activities
 Net earnings (loss) for the period           20,934   (12,072)     8,862
 Non-cash items
  Depreciation and amortization               35,600     6,973     42,573
  Stock-based compensation                    10,000     8,370     18,370
  Future income and resource taxes             1,009         -      1,009
  Other                                        5,225     1,521      6,746
---------------------------------------------------------------------------
                                              72,768     4,792     77,560
 Net change in non-cash working capital       (4,347)   (4,013)    (8,360)
---------------------------------------------------------------------------
                                              68,421       779     69,200
Financing activities
 Common shares issued                          2,814         -      2,814
Investing activities
 Property, plant and equipment              (132,188)   (7,437)  (139,625)
 Proceeds from disposal of investment        182,075         -    182,075
Effect of exchange rate changes on cash            -     1,445      1,445
---------------------------------------------------------------------------
Change in cash and cash equivalents for the
 period                                      121,122    (5,213)   115,909
Cash and cash equivalents - beginning of
 period                                       24,247    10,913     35,160
---------------------------------------------------------------------------
Cash and cash equivalents - end of period    145,369     5,700    151,069
---------------------------------------------------------------------------
---------------------------------------------------------------------------



Consolidated Statements of Retained
Earnings (Deficit)
(in thousands of Canadian dollars)
 (Unaudited)                     Three months ended    Nine months ended
                                       September 30         September 30
                                     2009      2008       2009      2008
--------------------------------------------------------------------------
--------------------------------------------------------------------------
                                        $         $          $         $

 Retained earnings (deficit) -
  beginning of period            (234,278)  203,364   (220,580)  167,960
 Net earnings (loss) for the
  period                          (58,501)  (26,542)   (72,199)    8,862
--------------------------------------------------------------------------
 Retained earnings (deficit) -
  end of period                  (292,779)  176,822   (292,779)  176,822
--------------------------------------------------------------------------
--------------------------------------------------------------------------



Consolidated Statements of Comprehensive
Income (Loss)
(in thousands of Canadian dollars)
 (Unaudited)                     Three months ended    Nine months ended
                                       September 30         September 30
                                     2009      2008       2009      2008
--------------------------------------------------------------------------
--------------------------------------------------------------------------
                                        $         $          $         $

 Net earnings (loss) for the
  period                          (58,501)  (26,542)   (72,199)    8,862
 Other comprehensive income
  (loss), net of tax
  Unrealized gains (loss) on
   available for sale
   investments                      5,927     (7,879)   10,034   (15,681)
  Investment impairments            3,973          -     3,973         -
  Cumulative translation
   adjustment                      (1,606)       513    (2,031)    1,074
--------------------------------------------------------------------------
 Comprehensive income (loss)       50,207    (33,908)   60,223    (5,745)
--------------------------------------------------------------------------
--------------------------------------------------------------------------

Contacts:
FNX Mining Company Inc.Terry MacGibbon
Chairman and Chief Executive Officer
416-628-5929

FNX Mining Company Inc.Ronald P. Gagel
Senior Vice President and Chief Financial Officer
416-628-5929

FNX Mining Company Inc.David Constable
Vice President Investors Relations
416-628-5929
info@fnxmining.comwww.fnxmining.com

FNX Mining Announces Conference Call on Q3-2009 Financial and Operating Results

Tue, 20 Oct 2009 09:30:00 -0400

TORONTO, ONTARIO -- (MARKET WIRE) -- 10/20/09 -- FNX Mining Company Inc. (TSX: FNX) ("Company") announced today that it will host a conference call covering third quarter-2009 financial and operating results at 10:00 am (Toronto time), Thursday, November 12, 2009.

A news release detailing the Company's third quarter-2009 results will be issued before market opening on Thursday, November 12, 2009.


    CONFERENCE CALL numbers are:

    Live in North America:
    Toll-Free Access: 1-888-789-9572 or 416-695-7806
    Ask for "FNX Mining Conference Call" or Enter Passcode: 7852335#

    Replay Access information:
    Toll-Free Access: 1-800-408-3053 or 416-695-5800
    Passcode: 5071353#
    Available until December 17, 2009 at Midnight (Toronto Time)

    Slides for the conference call may be accessed on the Company's website
    at www.fnxmining.com. There will be no transcript available for the
    conference call.

Contacts:
FNX Mining Company Inc.David Constable
Vice President Investor Relations
416-628-5928
dconstable@fnxmining.comwww.fnxmining.com

FNX 2009 Production Update

Wed, 23 Sep 2009 08:53:00 -0400

TORONTO, ONTARIO -- (MARKET WIRE) -- 09/23/09 -- FNX Mining Company Inc. (TSX: FNX) ("FNX or the "Company") reports that the Company completed its requirements under the terms of a temporary offtake agreement with Xstrata Nickel and shipped a total of approximately 157,000 tons of ore to Xstrata Nickel's Sudbury processing facilities by the end of August. The ore is stockpiled on surface and is scheduled to be processed by Xstrata Nickel in October (see news release dated August 14, 2009).

Since the beginning of September, FNX has continued its mining operations as planned and has been stockpiling the ore mined on surface at the Company's Podolsky and McCreedy West Mines for future processing at Vale Inco Limited's ("Vale Inco") Sudbury facilities.

The Company has recently been notified by Vale Inco, under the terms of the FNX-Vale Inco Offtake Agreement, to begin delivery of the ore stockpiled since the beginning of September and all future daily production to Vale Inco's Clarabelle Mill. FNX plans to resume ore deliveries from its Sudbury Operations to the Clarabelle Mill shortly. Current plans call for initial deliveries of ore to Vale Inco from an approximately 10,000 ton surface stockpile of crushed and sampled ore to be followed by additional ore deliveries directly from the Company's current operations at the Podolsky and McCreedy West Mines.

Ore shipments to Vale Inco were originally suspended on May 31, 2009, when Vale Inco's Sudbury mines and processing facilities closed for an extended maintenance shutdown. The suspension of ore deliveries was further extended by a labour disruption at Vale Inco's Sudbury Operations, which began July 13, 2009 and continues to the present time.

FNX's Sudbury Operations continue to operate under its original 2009 production plan and cost guidance disclosed in February 2009 (see news release dated February 6, 2009), although the timing of revenue recognition and cash receipts are delayed by the processing interruptions.

Development work on the LFD Deposit and Podolsky Mine continues as planned and remains on schedule.

Forward-Looking Statement

This news release contains certain forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond the Company's ability to control or predict, which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. In this news release, statements about possible future actions, ore deliveries and production are examples of forward-looking statements. There is no guarantee that any anticipated production plans or ore deliveries will be completed as anticipated. Forward-looking statements speak only as of the date on which they are made. The Company undertakes no obligation to publicly update any such statement or reflect new information or the occurrence of future events or circumstances, except where required by securities regulations. Accordingly, readers should not place undue reliance on forward-looking statements.

Contacts:
FNX Mining Company Inc.Terry MacGibbon
Chairman and Chief Executive Officer
416-628-5929

FNX Mining Company Inc.David Constable
Vice President Investor Relations
416-628-5929
info@fnxmining.comwww.fnxmining.com

FNX Completes $144 Million Financing

Wed, 09 Sep 2009 09:45:00 -0400

TORONTO, ONTARIO--(Marketwire - Sept. 9, 2009) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

FNX Mining Company Inc. (TSX:FNX) ("the Company") is pleased to announce that it has closed its previously announced bought deal equity financing, (including the full amount of the over-allotment option), for aggregate gross proceeds to the Company of $144,267,500. A syndicate of underwriters, co-led by BMO Capital Markets and GMP Securities L.P., and including Dundee Securities Corporation and RBC Dominion Securities Inc., purchased an aggregate of 14,950,000 units at a price of $9.65 per unit. Each unit consists of one common share and one-half of one common share purchase warrant. Each whole common share purchase warrant entitles the holder to purchase one common share of the Company at a price of $13.00 at any time prior to September 9, 2012. The warrants are listed on the Toronto Stock Exchange under the trading symbol "FNX.WT".

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities offered have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

Forward-Looking Statement

This news release contains certain forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond the Company's ability to control or predict, which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. In this news release, statements about completion of the announced financing and final proceeds are examples of forward-looking statements. There is no guarantee that the announced financing will receive all final approvals and be completed at all. Forward-looking statements speak only as of the date on which they are made. The Company undertakes no obligation to publicly update any such statement or reflect new information or the occurrence of future events or circumstances, except where required by securities regulations. Accordingly, readers should not place undue reliance on forward-looking statements.

FOR FURTHER INFORMATION PLEASE CONTACT:
        FNX Mining Company Inc.Terry MacGibbon
        Chairman and Chief Executive Officer
        416-628-5929

        FNX Mining Company Inc.Ronald P. Gagel
        Senior Vice President and Chief Financial Officer
        416-628-5929

        FNX Mining Company Inc.David Constable
        Vice President Investors Relations
        416-628-5929
        info@fnxmining.comwww.fnxmining.com

Source: FNX Mining Company Inc.

FNX Announces $ 125 Million Bought Deal Financing

Tue, 18 Aug 2009 16:22:00 -0400

TORONTO, ONTARIO--(Marketwire - Aug. 18, 2009) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

FNX Mining Company Inc. (TSX:FNX) ("Company") is pleased to announce that it has entered into an agreement with a syndicate of underwriters co-led by BMO Capital Markets and GMP Securities L.P. under which the underwriters have agreed to purchase, on a bought deal basis, 13,000,000 units (the "Units"), each Unit consisting of one common share and one-half of one common share purchase warrant, at a price of $9.65 per Unit for aggregate gross proceeds to FNX of $125,450,000. Each whole common share purchase warrant will entitle the holder to purchase one common share of the Company at a price of $13.00 prior to the date which is three years following the closing of the offering. The Company has granted the underwriters an option, for a period of 30 days following the closing of the offering, to purchase up to an additional 15% of the number of Units purchased pursuant to the offering to cover over-allotments, if any. The proceeds of this financing will be used to take advantage of any future business opportunities and for general corporate purposes. The offering is scheduled to close on or about September 9, 2009 and is subject to certain conditions, including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange and other applicable securities regulatory authorities.

The Units to be issued under this offering will be offered by way of a short form prospectus in each province of Canada, other than Quebec, and in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended.

Forward-Looking Statement

This news release contains certain forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond the Company's ability to control or predict, which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. In this news release, statements about completion of the announced financing and final proceeds are examples of forward-looking statements. There is no guarantee that the announced financing will receive all final approvals and be completed at all. Forward-looking statements speak only as of the date on which they are made. The Company undertakes no obligation to publicly update any such statement or reflect new information or the occurrence of future events or circumstances, except where required by securities regulations. Accordingly, readers should not place undue reliance on forward-looking statements.

FOR FURTHER INFORMATION PLEASE CONTACT:
        FNX Mining Company Inc.Terry MacGibbon
        Chairman and Chief Executive Officer
        416-628-5929

        FNX Mining Company Inc.Ronald P. Gagel
        Senior Vice President and Chief Financial Officer
        416-628-5929

        FNX Mining Company Inc.David Constable
        Vice President Investors Relations
        416-628-5929
        info@fnxmining.comwww.fnxmining.com

Source: FNX Mining Company Inc.

FNX Earns $12.5 Million in Second Quarter

Fri, 14 Aug 2009 06:30:00 -0400

TORONTO, ONTARIO -- (MARKET WIRE) -- 08/14/09 -- FNX Mining Company Inc. (TSX: FNX) ("FNX" or the "Company") reports financial and operational results for the quarter ending June 30, 2009 for its Sudbury Mining Operations and its DMC Mining Services business ("DMC").

Consolidated net earnings for the second quarter were $12.5 million ($0.14 per share) on revenues of $61.9 million, compared to net earnings of $11.3 million ($0.13 per share) on $112.2 million in revenues for the same period of 2008. For the first six months of 2009, the Company had a net loss of $13.7 million (($0.16) per share) on revenues of $110.8 million, compared to net earnings of $35.4 million ($0.42 per share) on revenues of $252.9 million for the first six months of 2008. Excluding the first quarter's Gold Wheaton Gold Corp. ("GLW") dilution loss, the Company had adjusted earnings of $17.5 million ($0.20 per share) for the first six months of 2009.

Cash and cash equivalents and working capital as at June 30, 2009 improved to $131.1 million and $137.7 million respectively, compared to $129.6 million and $130.1 million respectively as at December 31, 2008 and $114.6 million and $137.2 million respectively, as at March 31, 2009. FNX continues to have zero debt.

Terry MacGibbon, Chairman and CEO of FNX stated that, "The benefits of our earlier prudent and decisive actions to optimize our 2009 operational plans and the implementation of strict controls on capital, operating and corporate expenditures to preserve cash are evident in our positive second quarter results. Not only did the Company generate positive earnings, but we also strengthened our balance sheet with increases in our cash balance and working capital, while continuing to aggressively develop our most valuable asset, the Levack Mine's LFD Deposit."

"However, the Company continues to face challenges at its Sudbury operations with the extended shutdown of its primary custom processor's Sudbury operations due to their ongoing labour disruption. The Company suspended all ore shipments to its primary custom processor at the end of May and to the start of August has stockpiled on surface over 120,000 tons of Cu-Ni-precious metal ore from its Podolsky and McCreedy West Mines."

He also stated, "The Company is pleased to announce that it has concluded an agreement with Xstrata Nickel to process at their Strathcona Mill up to 150,000 tonnes of the Company's stockpiled ore. The terms of the Xstrata Nickel processing agreement will remain confidential. If the Company's primary custom processor's facilities continue to be shut down for an extended period, the Company will continue to mine as planned and to stockpile ore through at least the rest of 2009. The stockpiled ore will be processed at its primary custom processor's facilities when their operations resume or possibly at the Strathcona Mill, if the Xstrata Nickel processing agreement is extended. The Company has sufficient working capital to continue to mine and stockpile its production into 2010, if required."

Mr. MacGibbon added, "We will continue to monitor the Company's situation in light of economic challenges and changes in the global commodity markets and in the Sudbury mining camp during the balance of 2009. I am confident that, with its new processing agreement with Xstrata Nickel, a strong balance sheet and streamlined operations, the Company will not only continue to prosper with improvements in global markets, but to grow and take advantage of business opportunities that may emerge."


----------------------------------------------------------------------------
Table 1 -
 Financial and Operating Highlights    Q2 2009  Q2 2008  YTD 2009  YTD 2008
----------------------------------------------------------------------------
Consolidated
------------
Revenue                                 61,869  112,200   110,822   252,916
Net Earnings (Loss) (C$000)             12,453   11,341   (13,698)   35,404
Basic Earnings (Loss) per Share (C$)     $0.14    $0.13    ($0.16)    $0.42
Diluted Earnings (Loss) per Share (C$)   $0.14    $0.13    ($0.16)    $0.42
Cash and Cash Equivalents (C$000)      131,076   39,472   131,076    39,472
Cash Flow from Operating Activities
 (C$000)                                18,076   13,531    15,403    69,327
Cash Flow per Share (C$)                 $0.21    $0.16     $0.18     $0.82

Adjusted EBITDA (C$000)                 17,765   31,645    30,150    79,926

Mining Operations
-----------------
Total Revenue (C$000)                   50,196   75,192    85,681   166,515
Cash Operating Costs (C$000)            28,533   51,066    51,439    96,298
Cash Operating Margin (C$000)           21,663   24,126    34,242    70,217
Depreciation and Amortization (C$000)    1,734   12,520     4,766    21,113
Operating Margin (C$000)                19,929   11,606    29,476    49,104
Net Earnings (Loss) (C$000)             13,723   12,957   (11,465)   37,728
Cash Flow From Operating Activities
 (C$000)                                10,609   10,914    11,962    66,067

Total Ore Sold (tons)                  192,023  352,765   297,067   637,664
Nickel Ore Sold (tons)                  29,615  220,579    34,030   419,633
Grade of Nickel Ore Sold (%Ni)             2.0      1.1       2.0       1.2
Payable Metal Sold - Nickel (000 lbs)    1,545    3,491     2,722     6,983
Copper Ore Sold (tons)                 162,408  132,186   263,037   218,031
Grade of Copper Ore Sold (%Cu)             2.5      2.9       3.8       3.4
Payable Metal Sold - Copper (000 lbs)    7,857    7,262    17,575    14,154

Payable Metal Sold - Total Precious
 Metals (oz)                            16,532   11,582    23,947    18,854

Minesite Revenue per Ton Sold (C$)         274      213       306       261
Cash Operating Costs per Ton Sold (C$)     148      145       173       151
Minesite Cash Operating Margin per
 Ton Sold (C$)                             126       68       133       110

Realized Nickel Price (US$/lb)            7.55     9.21      6.45     11.82
Realized Copper Price (US$/lb)            2.51     3.70      2.10      3.77
Exchange Rate (C$ /US$)                   1.17     1.01      1.21      1.01

DMC Mining Services
-------------------
Total Revenue (C$000)                   11,673   37,008    25,141    86,401
Cash Operating Costs (C$000)            11,269   35,215    24,542    82,199
Cash Operating Margin (C$000)              404    1,793       599     4,202
Net Earnings (Loss) (C$000)             (1,270)  (1,616)   (2,233)   (2,324)
Cash Flow from Operating Activities
 (C$000)                                 7,467    2,617     3,441     3,260
----------------------------------------------------------------------------
Certain of the above items are considered to be non-GAAP performance
measures (see below)

Cash flow from operating activities and adjusted EBITDA for this quarter were $18.1 million and $17.8 million respectively, compared to $13.5 million and $31.6 million respectively in the same period of 2008. For the first half of 2009, cash flow and adjusted EBITDA were $15.4 million and $30.2 million respectfully, compared to $69.3 million and $79.9 million respectfully in the first six months of 2008. The net change in cash balance as a result of operating, financing and investing activities was a net inflow of $16.5 million during the 2009 second quarter and a net inflow of $1.5 million year to date, compared to $10.3 million and $4.3 million respectively in 2008.

Mining Operations

Production from the Sudbury Mining Operations during second quarter generated revenues of $50.2 million and $85.7 million year to date 2009, compared to $75.2 million and $166.5 million respectively for the same periods of 2008. Sudbury Mining Operations shipped a total of 192,000 tons of ore during the second quarter bringing total ore shipped for the first half of 2009 to 297,000 tons. This compares to 353,000 tons and 638,000 tons for the second quarter and first half of 2008, respectively. The second quarter production consisted of 162,000 tons of footwall ore from PM and Podolsky and 3,249 tons of transition nickel-copper ore from the up-dip extension of the LFD (formerly Rob's Deposit) operational earning during second quarter contained a provisional price adjustment of $13.6 million.

Tables 2 and 3 summarize second quarter and year to date production statistics from the Podolsky operations and Levack Complex, respectively.


----------------------------------------------------------------------------
----------------------------------------------------------------------------
Table 2 - Production and Sales Summary  Three months ended  Six months ended
                                                   June 30           June 30
Podolsky Mine                                2009     2008     2009     2008
----------------------------------------------------------------------------
Copper Ore Sold (tons)                     64,029   54,895  156,378   79,007
Grade of Copper Ore Sold (%Cu)                4.5      5.4      5.6      7.3

Payable Metal Sold
  Nickel (000s lbs)                           306      377    1,105      718
  Copper (000s lbs)                         5,428    4,845   14,780    9,480
  TPM (ozs)                                 7,751    5,349   11,674    8,075

Metal Sales and Costs
  Net Minesite Revenue ($/ton of ore sold)    431      519      372      687
  Cash Cost ($/ton of ore sold)               175      212      198      257
  Minesite Cash Operating Margin ($/ton of
   ore sold)                                  256      307      174      430
----------------------------------------------------------------------------
----------------------------------------------------------------------------

----------------------------------------------------------------------------
----------------------------------------------------------------------------
Table 3 - Production and Sales Summary  Three months ended  Six months ended
                                                   June 30           June 30
Levack Complex                               2009     2008     2009     2008
----------------------------------------------------------------------------
Nickel Ore Sold (tons)                     29,615  220,579   34,030  419,633
Copper Ore Sold (tons)                     98,379   77,291  106,659  139,024
                                          ----------------------------------
                                          ----------------------------------
Total Ore Sold                            127,994  297,870  140,689  558,657
                                          ----------------------------------
                                          ----------------------------------
Grade of Nickel Ore (%Ni)                     2.0      1.1      2.0      1.2
Grade of Copper Ore (%Cu)                     1.3      1.2      1.3      1.2

Payable Metal Sold
  Nickel (000s lbs)                         1,239    3,114    1,617    6,265
  Copper (000s lbs)                         2,429    2,417    2,795    4,674
  TPM (ozs)                                 8,781    6,233   12,273   10,779

Metal Sales and Costs
  Net Minesite Revenue ($/ton of ore sold)    195      157      233      201
  Cash Cost ($/ton of ore sold)               135      132      145      136
  Minesite Cash Operating Margin ($/ton of
   ore sold)                                   60       25       88       65
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Total payable metals for the second quarter consisted of 1.5 million pounds of nickel, 7.9 million pounds of copper, 3,195 ounces of gold, 5,926 ounces of platinum and 7,411 ounces of palladium. For the first half of 2009, payable metals totaled 2.7 million pounds of nickel, 17.6 million pounds of copper, 3,532 ounces of gold, 8,705 ounces of platinum and 11,710 ounces of palladium. This compares to payable metals in the second quarter of 2008 of 3.5 million pounds of nickel, 7.3 million pounds of copper and 11,582 ounces of TPM, and 7.0 million pounds, 14.2 million pounds and 18,854 ounces respectively in the first half of 2008.

The average realized prices for metals in this quarter were US$7.55 per pound for nickel, US$2.51 per pound for copper, US$931 per ounce for gold, US$1,292 per ounce for platinum and US$279 per ounce for a palladium, compared to US$9.21, US$3.70, US$862, US$2,041, and US$453 respectively in the same period in 2008. Year to date the average realized metal prices were US$6.45 per pound for nickel, US$2.10 per pound for copper, US$1,000 per ounce for gold, US$1,481 per ounce for platinum and US$279 per ounce for palladium, compared to US$11.82, US$3.77, US$911, US$2,308, and US$524 respectively for the first half of 2008.

The average minesite revenue per ton during this reporting quarter was $274 while the average cash operating cost per ton was $148, leaving an average minesite cash operating margin per ton of $126, compared to $213, $145 and $68 in the same period of 2008. For the first half of 2009, the average minesite cash operating margin per ton was $133, compared to $110 in the first half of 2008.

Shipping of ore from the company's Sudbury Mining Operations was suspended at the end of May, when the Company's third party processor implemented an extended shutdown, which subsequently became a labour disruption. FNX has continued to produce ore according to our 2009 production plan and is stockpiling ore on surface sites for future shipment.

This reporting quarter, the Podolsky Mine shipped 64,000 tons (see Table 2) of footwall ore with an average copper grade of 4.5%, compared to 55,000 tons at an average grade of 5.4% copper in the same period last year. Year to date shipped production from Podolsky totaled 156,000 tons at an average copper grade of 5.6%, compared to 79,000 tons grading 7.3% copper in the six months to June 30, 2008. These production numbers refer only to shipped ore and exclude ore in stockpile reported as inventory.

Production during the second quarter from the Levack Complex (see Table 3) consisted of footwall ore from the PM Deposit, limited contact nickel ore from the Inter Main and transitional nickel-copper ore from the up-dip extension of the LFD. Total ore shipped from the Levack Complex in this quarter was 128,000 tons producing 1.2 million pounds of payable nickel, 2.4 million pounds of payable copper and 8,781 ounces of TPM, compared to 298,000 tons yielding 3.1 million pounds of payable nickel, 2.4 million pounds of payable copper and 6,233 ounces of TPM shipped in the same period of 2008. Year to date the Levack Complex shipped 141,000 tons, compared to 559,000 tons in the first half of 2008. Ore stockpiled and unshipped since the end of May is excluded from these totals and included in the inventories.

The second quarter safety performance for the Sudbury Mining Operations included one Lost Time Injury and five Medical Aid Injuries, compared to three Lost Time Injuries in the 2008 second quarter. The Lost Time Injury Frequency Rate for Sudbury was 0.9 and the Total Medical Injury Frequency Rate was 5.2, compared to 1.1 and 8.9, respectively in 2008.

There were no reported environmental incidents in this reporting quarter and year to date.

Development

The primary development focus for the Company continues to be advancing the LFD toward commercial production start up in 2010. The advance of the access decline ramp to the LFD remains on schedule. During the second quarter, the ramp face advanced 190 vertical feet to the 3500 Level. Three ore accesses were established at the 3390, 3450 and 3510 Levels and an access heading to the fresh air raise commenced. Extension of a ventilation and secondary egress raise was completed to the 3220 Level during this quarter. Three underground diamond drill rigs were active all through second quarter supporting optimal access ramp planning and targeting sub-level access locations. All three drills will remain active during the third quarter.

Reconditioning of the Levack #2 Shaft below the 2900 Level continued to progress during the second quarter, limited by water inflow management. Shaft reconditioning progressed by 175 vertical ft and should reach the target depth at the 3600 Level in the third quarter of 2009. The current timeline for the utilization of the 3600 Level to further develop the LFD remains the fourth quarter of 2009.

Focused narrow vein mining in the up-dip extension of the LFD continued in the second quarter. Several level accesses will be driven into ore during the third quarter in preparation for removal of pre-production LFD development ore late in 2009. Other development work at the Levack Complex during the second quarter included 1,234 ft of drifting on the PM Deposit at the McCreedy West Mine.

Development at the Podolsky Mine during this reporting quarter focused on advancing the main access ramp and related lateral development. Total advancement for the quarter was 1,543 ft, including lateral work on the 2300 and 2375 Levels plus access ramp development up to the 2225 Level. The main access ramp will be completely connected internally later in 2009 to support ongoing stope access. Other development at the Podolsky site included work on the backfill plant and system and work on the new exhaust ventilation raise.

Total capital expenditures for the second quarter were $14.7 million, including $8.5 million for LFD development, $3.4 million at Podolsky and $1.8 million at the Levack Complex. Total capital expenditures for 2009 to the end of June were $27.8 million, compared to $98.4 million to the end of June, 2008.

Exploration

FNX completed a $15.0 million flow-through financing during the second quarter to be used to explore the Company's non-producing properties in Sudbury. This flow-through financing will allow FNX's exploration team to dramatically increase its exploration activity for the balance of 2009 and 2010 without impacting the Company's cash position.

A preliminary flow-through budget of $6.2 million is planned for 2009 and flow-through exploration programs began in June. The focus for 2009 flow-through exploration will be drilling and geophysical programs at Victoria, the Falconbridge Footwall, Kirkwood, Nickel Lake and Foy Offset.

Total exploration expenditures on all projects in Sudbury during second quarter were $0.8 million, bringing the total year to date to $0.9 million. During the second quarter, the focus remained on detailed drilling on the LFD from drill platforms established from the 2650 access ramp. Three underground drill rigs continued to test the up-dip extension of the LFD at the 3400, 3450 and 3500 Levels in order to support lateral development planning and to provide data for resource estimates later in 2009 on the up-dip extension of the LFD. During second quarter, 50 holes were drilled on the up-dip extension of the LFD for a total of 25,935 ft. This brings the 2009 year to date total drilling on the up-dip extension of the LFD to 39,547 ft in 68 holes.

On underground drill rig continued to operate in the McCreedy West PM Deposit in support of production. In the second quarter at the PM Deposit, 67 holes were drilled for a total footage of 12,385 ft. This brings the total footage drilled on the PM Deposit year to date to 38,166 ft in 209 holes.

DMC Mining Services

Revenues from DMC totaled $11.7 million for the three months ended June 30, 2009 and $25.1 million for the first six months of 2009, compared to $37.0 million and $86.4 million, respectively in 2008. Contract costs for the second quarter were $11.3 million and depreciation and amortization expenses totaled $1.1 million.

Cash operating margin, calculated as the operating revenues of DMC less operating costs and excluding depreciation and amortization, was $0.4 million during this quarter, compared to $1.8 million in the same period of 2008. For the six months ended June 30, 2009 the cash operating margin was $0.6 million, compared to $4.2 million in the same period of 2008.

Overall DMC incurred losses of $1.3 million and $2.2 million for the three and six months ended June 30, 2009 respectively, compared to losses of $1.6 million and $2.3 million respectively for the comparable periods in 2008.

Operating cash flow for the second quarter and first half of 2009 was $7.5 million and $3.4 million respectively in 2009. As at June 30, 2009, DMC had a cash balance of $12.5 million compared to $9.4 millionDecember 31, 2008 and $6.3 million at the end of the first quarter of 2009.

The overall climate for the mining contracting business in the US remains positive, while the Canadian segment has shown slightly increased levels of activity, but remains very competitive. At the end of the second quarter, DMC had a work backlog of approximately $36.9 million with $25.6 million of that scheduled for completion in 2009. DMC continues to pursue new clients and contracts to replace expiring contracts. DMC re-structured the organization late in 2008 to ensure the operating costs were appropriate to the volume of business forecast for 2009.

These changes have been effective in containing costs and should allow DMC to break even on a cash flow basis in 2009, based on our current work backlog.

Investments

FNX accounts for its investment in GLW using the equity method and is, therefore, required to include in earnings FNX's share of GLW's earnings or loss for the period and the Company's investment therein is adjusted by an equivalent amount. For the quarter ended June 30, 2009, FNX's 26% share of the earnings of its equity investee, GLW, was $nil, compared to a loss of $0.2 million in the first quarter of 2009.

The note receivable from GLW for $50 million was renegotiated on December 8, 2008 and the due date of the note was extended to July 16, 2010. Due to the nature of the renegotiated note receivable, both a call and put option exist on the derivative, which must be fair valued at each balance sheet date with any changes thereto charged or credited to earnings. As a result of the above, the carrying value of the note receivable at June 30, 2009 was $38.8 million, a difference of $3.0 million from the end of the first quarter.

As at June 30, 2009, the market value of FNX's 360 million GLW shares was approximately $97.2 million, while the market value of the entire investment portfolio was approximately $105.5 million.

Share Capital

During the second quarter, share capital increased to 87,063,190 common shares issued and outstanding as a result of the exercise of 12,500 options and the issuance of 2,173,914 flow-through shares in April. Year to date 2009, share capital has increased by $14.5 million as a result of the 12,500 stock option exercise and the issuance of flow-through shares. As of June 30, 2009 stock options to purchase 3,654,833 million Common shares at a weighted average exercise price of $13.65 were outstanding. Including 320,146 outstanding deferred share units, the fully diluted share total was 90,718,023 as at June 30, 2009.

Forward-Looking Statement

CONFERENCE CALL

FNX will be hosting a Second Quarter Conference Call on August 14, 2009 at 10:00 am Eastern Time.

CONFERENCE CALL numbers are:

Live in North America:

Toll-Free Access: 1-888-789-9572 or 416-695-7806

Ask for the FNX Mining Conference Call or Enter Passcode: 411336#

Replay Access information:

Toll-Free Access: 1-800-408-3053 or 416-695-5800

Passcode: 3186288#

Available until September 18, 2009 at Midnight (Toronto Time)

Slides for the conference call may be accessed on the Company's website www.fnxmining.com.

Note: The unaudited balance sheet, statement of operations and statement of cash flow are appended to this news release.


Consolidated Balance Sheets
(in thousands of Canadian dollars)
(Unaudited)                                            June 30  December 31
As at                                                     2009         2008
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                             $            $
Assets
Current
 Cash and cash equivalents                             131,076      129,561
 Accounts receivable                                    44,523       59,324
 Inventory                                               5,145        2,307
 Prepaid and other assets                                2,025        1,504
----------------------------------------------------------------------------
                                                       182,769      192,696
Investments                                              8,234        4,009
Investment in Gold Wheaton                             187,846      215,620
Property, plant and equipment                          455,515      435,114
Reclamation deposits                                     6,485        6,485
----------------------------------------------------------------------------
                                                       840,849      853,924
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Liabilities
Current
 Accounts payable and accrued liabilities               26,858       36,136
 Deferred revenue                                       18,180       26,433
----------------------------------------------------------------------------
                                                        45,038       62,569
----------------------------------------------------------------------------

Long-term deferred revenue                             369,852      368,969
Mine closure and site restoration                        5,554        5,393
Future income and resource taxes                        56,850       60,499
----------------------------------------------------------------------------
                                                       432,256      434,861
----------------------------------------------------------------------------
                                                       477,294      497,430
----------------------------------------------------------------------------
Shareholders' equity
 Share capital                                         586,280      571,750
 Contributed surplus - stock-based compensation         16,287       13,741
 Retained earnings (deficit)                          (234,278)    (220,580)
 Accumulated other comprehensive income (loss)          (4,734)      (8,417)
----------------------------------------------------------------------------
                                                       363,555      356,494
----------------------------------------------------------------------------
                                                       840,849      853,924
----------------------------------------------------------------------------
----------------------------------------------------------------------------



Consolidated Segmented Balance Sheets
(in thousands of Canadian dollars) (Unaudited)
As at June 30, 2009                                    Mining    DMC   Total
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Assets                                                      $      $       $
 Cash and cash equivalents                            118,622 12,454 131,076
 Accounts receivable                                   36,015  8,508  44,523
 Other current assets                                   5,606  1,564   7,170
----------------------------------------------------------------------------
                                                      160,243 22,526 182,769
Investments                                             8,234      -   8,234
Investment in Gold Wheaton                            187,846      - 187,846
Property, plant and equipment                         432,332 23,183 455,515
Reclamation deposits                                    6,485      -   6,485
----------------------------------------------------------------------------
                                                      795,140 45,709 840,849
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Liabilities
 Accounts payable and accrued liabilities              20,095  6,763  26,858
 Deferred revenue                                      18,090     90  18,180
----------------------------------------------------------------------------
                                                       38,185  6,853  45,038
----------------------------------------------------------------------------
Long-term deferred revenue                            369,852      - 369,852
Mine closure and site restoration                       5,554      -   5,554
Future income and resource taxes                       56,017    833  56,850
----------------------------------------------------------------------------
                                                      431,423    833 432,256
----------------------------------------------------------------------------
                                                      469,608  7,686 477,294
----------------------------------------------------------------------------
----------------------------------------------------------------------------

As at December 31, 2008                                Mining    DMC   Total
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Assets                                                      $      $       $
 Cash and cash equivalents                            120,131  9,430 129,561
 Accounts receivable                                   44,459 14,865  59,324
 Other current assets                                   2,823    988   3,811
----------------------------------------------------------------------------
                                                      167,413 25,283 192,696
Investments                                             4,009      -   4,009
Investment in Gold Wheaton                            215,620      - 215,620
Property, plant and equipment                         409,718 25,396 435,114
Reclamation deposits                                    6,485      -   6,485
----------------------------------------------------------------------------
                                                      803,245 50,679 853,924
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Liabilities
 Accounts payable and accrued liabilities              28,469  7,667  36,136
 Deferred revenue                                      25,456    977  26,433
----------------------------------------------------------------------------
                                                       53,925  8,644  62,569
----------------------------------------------------------------------------
Long-term deferred revenue                            368,969      - 368,969
Mine closure and site restoration                       5,393      -   5,393
Future income and resource taxes                       59,374  1,125  60,499
----------------------------------------------------------------------------
                                                      433,736  1,125 434,861
----------------------------------------------------------------------------
                                                      487,661  9,769 497,430
----------------------------------------------------------------------------
----------------------------------------------------------------------------



Consolidated Statements of Operations
(in thousands of Canadian dollars      Three months ended  Six months ended
except earnings per share)                        June 30           June 30
(Unaudited)                               2009       2008     2009     2008
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                             $          $        $        $
Operating revenues                      61,869    112,200  110,822  252,916
----------------------------------------------------------------------------

Operating expenses
 Expenses, excluding depreciation and
  amortization                          39,802     86,281   75,981  178,497
 Depreciation and amortization           2,857     14,826    7,108   25,716
----------------------------------------------------------------------------
                                        42,659    101,107   83,089  204,213
----------------------------------------------------------------------------
                                        19,210     11,093   27,733   48,703
----------------------------------------------------------------------------
Expenses
 Administration                          1,502      4,341    4,469    7,016
 Capital taxes                               -     (1,803)       -   (1,803)
 Depreciation                              215        198      449      418
 Stock-based compensation                2,553      1,389    3,906    2,563
 Dilution loss                               -          -   31,238        -
 Other expenses (income)                  (531)    (8,017)  (4,078) (10,839)
----------------------------------------------------------------------------
                                         3,739     (3,892)  35,984   (2,645)
----------------------------------------------------------------------------
Earnings (loss) before taxes and other  15,471     14,985   (8,251)  51,348
Income and resource taxes recovery
 (expense)                              (3,020)    (3,644)  (5,219) (15,944)
Share of income (loss) of equity
 investee                                    2          -     (228)       -
----------------------------------------------------------------------------
Net earnings (loss) for the period      12,453     11,341  (13,698)  35,404
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Basic earnings (loss) per share          $0.14      $0.13   ($0.16)   $0.42
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Diluted earnings (loss) per share        $0.14      $0.13   ($0.16)   $0.42
----------------------------------------------------------------------------
----------------------------------------------------------------------------



Consolidated Segmented Statements of Operations
(in thousands of Canadian dollars)
(Unaudited)
For the three months ended June 30, 2009            Mining     DMC    Total
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                         $       $        $

Operating revenues                                  50,196  11,673   61,869
----------------------------------------------------------------------------

Operating expenses
 Expenses, excluding depreciation and amortization  28,533  11,269   39,802
 Depreciation and amortization                       1,734   1,123    2,857
----------------------------------------------------------------------------
                                                    30,267  12,392   42,659
----------------------------------------------------------------------------
                                                    19,929    (719)  19,210
----------------------------------------------------------------------------
Expenses
 Administration                                      1,502       -    1,502
 Depreciation                                          215       -      215
 Stock-based compensation                            2,385     168    2,553
 Other expenses (income)                              (559)     28     (531)
----------------------------------------------------------------------------
                                                     3,543     196    3,739
----------------------------------------------------------------------------
Earnings (loss) before taxes and other              16,386    (915)  15,471
Income and resource taxes recovery (expense)        (2,665)   (355)  (3,020)
Share of income (loss) of equity investee                2       -        2
----------------------------------------------------------------------------
Net earnings (loss) for the period                  13,723  (1,270)  12,453
----------------------------------------------------------------------------
----------------------------------------------------------------------------

For the six months ended June 30, 2009              Mining     DMC    Total
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                         $       $        $
Operating revenues                                  85,681  25,141  110,822
----------------------------------------------------------------------------

Operating expenses
 Expenses, excluding depreciation and amortization  51,439  24,542   75,981
 Depreciation and amortization                       4,766   2,342    7,108
----------------------------------------------------------------------------
                                                    56,205  26,884   83,089
----------------------------------------------------------------------------
                                                    29,476  (1,743)  27,733
----------------------------------------------------------------------------
Expenses
 Administration                                      4,469       -    4,469
 Depreciation                                          449       -      449
 Stock-based compensation                            3,535     371    3,906
 Dilution loss                                      31,238       -   31,238
 Other expenses (income)                            (3,842)   (236)  (4,078)
----------------------------------------------------------------------------
                                                    35,849     135   35,984
----------------------------------------------------------------------------
Earnings (loss) before taxes and other              (6,373) (1,878)  (8,251)
Income and resource taxes recovery (expense)        (4,864)   (355)  (5,219)
Share of income (loss) of equity investee             (228)      -     (228)
----------------------------------------------------------------------------
Net earnings (loss) for the period                 (11,465) (2,233) (13,698)
----------------------------------------------------------------------------
----------------------------------------------------------------------------



Consolidated Segmented Statements of Operations
(in thousands of Canadian dollars)
(Unaudited)
For the three months ended June 30, 2008            Mining     DMC    Total
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                         $       $        $

Operating revenues                                  75,192  37,008  112,200
----------------------------------------------------------------------------

Operating expenses
 Expenses, excluding depreciation and amortization  51,066  35,215   86,281
 Depreciation and amortization                      12,520   2,306   14,826
----------------------------------------------------------------------------
                                                    63,586  37,521  101,107
----------------------------------------------------------------------------
                                                    11,606    (513)  11,093
----------------------------------------------------------------------------
Expenses
 Administration                                      4,341       -    4,341
 Capital taxes                                      (1,803)      -   (1,803)
 Depreciation                                          198       -      198
 Stock-based compensation                              832     557    1,389
 Other expenses (income)                            (8,017)      -   (8,017)
----------------------------------------------------------------------------
                                                    (4,449)    557   (3,892)
----------------------------------------------------------------------------
Earnings before taxes                               16,055  (1,070)  14,985
Income and resource taxes                            3,098     546    3,644
----------------------------------------------------------------------------
Net earnings (loss) for the period                  12,957  (1,616)  11,341
----------------------------------------------------------------------------
----------------------------------------------------------------------------


For the six months ended June 30, 2008              Mining     DMC    Total
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                         $       $        $

Operating revenues                                 166,515  86,401  252,916
----------------------------------------------------------------------------

Operating expenses
 Expenses, excluding depreciation and amortization  96,298  82,199  178,497
 Depreciation and amortization                      21,113   4,603   25,716
----------------------------------------------------------------------------
                                                   117,411  86,802  204,213
----------------------------------------------------------------------------
                                                    49,104    (401)  48,703
----------------------------------------------------------------------------
Expenses
 Administration                                      7,016       -    7,016
 Capital taxes                                      (1,803)      -   (1,803)
 Depreciation                                          418       -      418
 Stock-based compensation                            1,430   1,133    2,563
 Other expenses (income)                           (10,192)   (647) (10,839)
----------------------------------------------------------------------------
                                                    (3,131)    486   (2,645)
----------------------------------------------------------------------------
Earnings before taxes                               52,235    (887)  51,348
Income and resource taxes                           14,507   1,437   15,944
----------------------------------------------------------------------------
Net earnings (loss) for the period                  37,728  (2,324)  35,404
----------------------------------------------------------------------------
----------------------------------------------------------------------------



Consolidated Statements of Cash Flow  Three months ended   Six months ended
(in thousands of Canadian dollars)               June 30            June 30
(Unaudited)                               2009      2008      2009     2008
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                             $         $         $        $

Operating activities
 Net earnings (loss) for the period     12,453    11,341   (13,698)  35,404
 Non-cash items
  Depreciation and amortization          3,072    15,024     7,557   26,134
  Stock-based compensation               1,382     1,389     2,565    2,563
  Future income and resource taxes      (5,670)    1,523    (3,471)  10,497
  Amortization of Gold Wheaton
   deferred revenue                     (4,344)        -    (6,483)       -
  Gain on disposal of shares                 -    (8,461)        -   (8,461)
  Gain on disposal of fixed assets          (3)        -        (3)     (94)
  Mark-to-market and accretion of Gold
   Wheaton note receivable              (3,004)        -    (3,692)       -
  (Increase) decrease in value of
   investments held-for-trading           (120)      215      (117)     253
  Share of (income) loss of equity
   investee                                 (2)        -       228        -
  Dilution loss                              -         -    31,238        -
  Other                                    (18)      143         2     (101)
----------------------------------------------------------------------------
                                         3,746    21,174    14,126   66,195
 Net change in non-cash working
  capital                               14,330    (7,643)    1,277    3,132
----------------------------------------------------------------------------
                                        18,076    13,531    15,403   69,327
----------------------------------------------------------------------------
Financing activities
 Common shares issued                   15,063       301    15,063      641
 Transaction costs on shares issued       (752)               (752)
 Bank indebtedness - advance                 -    45,837         -   45,837
 Bank indebtedness - payment                 -   (25,465)        -  (25,465)
----------------------------------------------------------------------------
                                        14,311    20,673    14,311   21,013
----------------------------------------------------------------------------
Investing activities
 Investments                                 -         -         -  (10,000)
 Property, plant and equipment         (14,663)  (45,741)  (27,774) (98,401)
 Proceeds from disposal of
  investments                                -    21,441         -   21,441
----------------------------------------------------------------------------
                                       (14,663)  (24,300)  (27,774) (86,960)
----------------------------------------------------------------------------
Effect of exchange rate changes on
 cash                                   (1,220)      431      (425)     932
----------------------------------------------------------------------------
Change in cash and cash equivalents
 for the period                         16,504    10,335     1,515    4,312
Cash and cash equivalents - beginning
 of period                             114,572    29,137   129,561   35,160
----------------------------------------------------------------------------
Cash and cash equivalents - end of
 period                                131,076    39,472   131,076   39,472
----------------------------------------------------------------------------
----------------------------------------------------------------------------



Consolidated Segmented Statements of Cash Flow
(in thousands of Canadian dollars) (Unaudited)
For the three months ended June 30, 2009            Mining     DMC    Total
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Operating activities                                     $       $        $
 Net earnings (loss) for the period                 13,723  (1,270)  12,453
 Non-cash items
  Depreciation and amortization                       1,949   1,123    3,072
  Stock-based compensation                          1,214     168    1,382
  Future income and resource taxes                  (5,378)   (292)  (5,670)
  Amortization of Gold Wheaton deferred revenue     (4,344)      -   (4,344)
  Mark-to-market and accretion of Gold Wheaton note (3,004)      -   (3,004)
  Share of (income) loss of equity investee             (2)      -       (2)
  Other                                               (136)     (5)    (141)
----------------------------------------------------------------------------
                                                     4,022    (276)   3,746
 Net change in non-cash working capital              6,587   7,743   14,330
----------------------------------------------------------------------------
                                                    10,609   7,467   18,076
Financing activities
 Common shares issued                               14,311       -   14,311
Investing activities
 Property, plant and equipment                     (14,602)    (61) (14,663)
Effect of exchange rate changes on cash                  -  (1,220)  (1,220)
----------------------------------------------------------------------------
Change in cash and cash equivalents for the period  10,318   6,186   16,504
Cash and cash equivalents - beginning of period    108,304   6,268  114,572
----------------------------------------------------------------------------
Cash and cash equivalents - end of period          118,622  12,454  131,076
----------------------------------------------------------------------------
----------------------------------------------------------------------------

For the six months ended June 30, 2009              Mining     DMC    Total
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Operating activities                                     $       $        $
 Net earnings (loss) for the period                (11,465) (2,233) (13,698)
 Non-cash items
  Depreciation and amortization                      5,215   2,342    7,557
  Stock-based compensation                           2,194     371    2,565
  Future income and resource taxes                  (3,179)   (292)  (3,471)
  Amortization of Gold Wheaton deferred revenue     (6,483)      -   (6,483)
  Mark-to-market and accretion of Gold Wheaton note (3,692)      -   (3,692)
  Share of (income) loss of equity investee            228       -      228
  Dilution loss                                     31,238       -   31,238
  Other                                               (261)    143     (118)
----------------------------------------------------------------------------
                                                    13,795     331   14,126
 Net change in non-cash working capital             (1,833)  3,110    1,277
----------------------------------------------------------------------------
                                                    11,962   3,441   15,403
Financing activities
 Common shares issued                               14,311       -   14,311
Investing activities
 Property, plant and equipment                     (27,785)     11  (27,774)
Effect of exchange rate changes on cash                  -    (425)    (425)
----------------------------------------------------------------------------
Change in cash and cash equivalents for the period  (1,509)  3,024    1,515
Cash and cash equivalents - beginning of period    120,131   9,430  129,561
----------------------------------------------------------------------------
Cash and cash equivalents - end of period          118,622  12,454  131,076
----------------------------------------------------------------------------
----------------------------------------------------------------------------



Consolidated Segmented Statements of Cash Flow
(in thousands of Canadian dollars) (Unaudited)
For the three months ended June 30, 2008            Mining     DMC    Total
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                         $       $        $
Operating activities
 Net earnings (loss) for the period                 12,957  (1,616)  11,341
 Non-cash items
  Depreciation and amortization                     12,718   2,306   15,024
  Stock-based compensation                           1,048     557    1,605
  Future income and resource taxes                   1,523       -    1,523
  Other                                             (8,319)      -   (8,319)
----------------------------------------------------------------------------
                                                    19,927   1,247   21,174
 Net change in non-cash working capital             (9,013)  1,370   (7,643)
----------------------------------------------------------------------------
                                                    10,914   2,617   13,531
Financing activities
 Bank indebtedness - net                            20,372       -   20,372
 Common shares issued                                  301       -      301
Investing activities
 Proceeds from disposal of investments              21,441       -   21,441
 Property, plant and equipment                     (45,711)    (30) (45,741)
Effect of exchange rate changes on cash                  -     431      431
----------------------------------------------------------------------------
Change in cash and cash equivalents for the period   7,317   3,018   10,335
Cash and cash equivalents - beginning of period     18,957  10,180   29,137
----------------------------------------------------------------------------
Cash and cash equivalents - end of period           26,274  13,198   39,472
----------------------------------------------------------------------------
----------------------------------------------------------------------------

For the six months ended June 30, 2008              Mining     DMC    Total
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                         $       $        $
Operating activities
 Net earnings (loss) for the period                 37,728  (2,324)  35,404
 Non-cash items
  Depreciation and amortization                     21,531   4,603   26,134
  Stock-based compensation                           1,673   1,133    2,806
  Future income and resource taxes                  10,497       -   10,497
  Other                                             (8,552)    (94)  (8,646)
----------------------------------------------------------------------------
                                                    62,877   3,318   66,195
 Net change in non-cash working capital              3,190     (58)   3,132
----------------------------------------------------------------------------
                                                    66,067   3,260   69,327
Financing activities
 Bank indebtedness - net                            20,372       -   20,372
 Common shares issued                                  641       -      641
Investing activities
 Investments                                       (10,000)      -  (10,000)
 Property, plant and equipment                     (96,494) (1,907) (98,401)
 Proceeds from disposal of investment               21,441       -   21,441
Effect of exchange rate changes on cash                  -     932      932
----------------------------------------------------------------------------
Change in cash and cash equivalents for the period   2,027   2,285    4,312
Cash and cash equivalents - beginning of period     24,247  10,913   35,160
----------------------------------------------------------------------------
Cash and cash equivalents - end of period           26,274  13,198   39,472
----------------------------------------------------------------------------
----------------------------------------------------------------------------



Consolidated Statements of Retained Earnings (Deficit)
(in thousands of Canadian dollars)
(Unaudited)                           Three months ended   Six months ended
                                                 June 30            June 30
                                          2009      2008      2009     2008
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                             $         $         $        $

Retained earnings (deficit) -
 beginning of period                  (246,731)  192,023  (220,580) 167,960
Net earnings (loss) for the period      12,453    11,341   (13,698)  35,404
----------------------------------------------------------------------------
Retained earnings (deficit) - end of
 period                               (234,278)  203,364  (234,278) 203,364
----------------------------------------------------------------------------
----------------------------------------------------------------------------


Consolidated Statements of Comprehensive Income (Loss)
(in thousands of Canadian dollars)
(Unaudited)                           Three months ended   Six months ended
                                                 June 30            June 30
                                          2009      2008      2009     2008
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                             $         $         $        $

Net earnings (loss) for the period      12,453    11,341   (13,698)  35,404
Other comprehensive income, net of
 tax
  Unrealized gains (loss) on available
   for sale investments                  3,515    (5,727)    4,108   (7,802)
  Cumulative translation adjustment     (1,220)     (109)     (425)     561
----------------------------------------------------------------------------
Comprehensive income (loss)             14,748     5,505   (10,015)  28,163
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Contacts:
FNX Mining Company Inc.Terry MacGibbon
Chairman and Chief Executive Officer
416-628-5929

FNX Mining Company Inc.Ronald P. Gagel
Senior Vice President and Chief Financial Officer
416-628-5929

FNX Mining Company Inc.David Constable
Vice President Investors Relations
416-628-5929
info@fnxmining.comwww.fnxmining.com

FNX Mining Announces Conference Call on Q2-2009 Financial and Operating Results

Wed, 22 Jul 2009 08:30:00 -0400

TORONTO, ONTARIO -- (MARKET WIRE) -- 07/22/09 -- FNX Mining Company Inc. (TSX: FNX) ("Company") announced today that it will host a conference call covering second quarter-2009 financial and operating results at 10:00 am (Toronto time), Friday, August 14, 2009.

A news release detailing the Company's second quarter-2009 results will be issued before market opening on Friday, August 14, 2009.


CONFERENCE CALL numbers are:

Live in North America:
Toll-Free Access: 1-888-789-9572 or 416-695-7806
Ask for "FNX Mining Conference Call" or Enter Passcode: 4113336#

Replay Access information:
Toll-Free Access: 1-800-408-3053 or 416-695-5800
Passcode: 3186288#
Available until September 18, 2009 at Midnight (Toronto Time)

Slides for the conference call may be accessed on the Company's website at www.fnxmining.com. There will be no transcript available for the conference call.

Contacts:
FNX Mining Company Inc.David Constable
Vice President Investor Relations
416-628-5928
dconstable@fnxmining.comwww.fnxmining.com

FNX Continues Mining at Its Sudbury Operations

Mon, 01 Jun 2009 09:19:00 -0400

TORONTO, ONTARIO -- (MARKET WIRE) -- 06/01/09 -- FNX Mining Company Inc. (TSX: FNX) ("FNX" or the "Company") reports that it is continuing its Sudbury, Ontario mining operations as planned and with its full complement of employees. However, as a result of a previously announced 8-week temporary shutdown of the Company's normal custom processing facilities, effective May 29 2009, it has suspended shipments of ore production to the custom mill and is temporarily stockpiling its ore production on surface for future processing. The underground development at both the Levack Footwall Deposit and the Podolsky Mine's 2000 Deposit will also continue as planned.

The Company will continue to evaluate and consider its many options as circumstances evolve. These options include shipping to an alternative third party processing facility, continuing to stockpile ore on surface or temporarily suspending ore production until the custom processing facilities resume operations. The custom mill is scheduled for resumption of operations on July 27, 2009, however there is a possibility that the shutdown might be further extended due to a labour interruption.

Terry MacGibbon, President and CEO of FNX, noted that "The Company is again taking advantage of its great flexibility and, even in light of the 8-week shutdown and possible labour interruption at our third party's custom processing facilities, we are continuing to mine as planned and will stockpile the ore on surface for processing at a later date, while maintaining our current Sudbury workforce. However, we will evaluate, on a weekly basis, the option to ship ore to another third party processing facility, to continue stockpiling the ore or temporarily suspend our mining operations until our third party custom processing facilities are re-opened. In any case, we will continue the aggressive development of our Levack Footwall Deposit for commercial production in 2010."

The Company will issue further guidance as new developments occur.

Forward-Looking Statement

This news release contains certain forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond the Company's ability to control or predict, which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. In this news release, statements about possible future actions or operating options and alternatives are examples of forward-looking statements. There is no guarantee that any anticipated production plans or forecasts will be implemented or be viable. Forward-looking statements speak only as of the date on which they are made. The Company undertakes no obligation to publicly update any such statement or reflect new information or the occurrence of future events or circumstances, except where required by securities regulations. Accordingly, readers should not place undue reliance on forward-looking statements.

Contacts:
FNX Mining Company Inc.Terry MacGibbon
Chairman and Chief Executive Officer
416-628-5929

FNX Mining Company Inc.David Constable
Vice President Investors Relations
416-628-5929
info@fnxmining.comwww.fnxmining.com