Quadra FNX Mining Announces Earnings Of $64 Million In The Second Quarter Of 2011

FNX Mining Ltd. (the "Company" or "Quadra FNX") (TSX: QUX) is pleased to announce its second quarter 2011 ("Q2 2011") financial and operational results. The Company recorded a strong performance again this quarter driven by higher average copper prices and increased production from the inclusion of the Sudbury operations. The Company's financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS").

SECOND QUARTER AND RECENT HIGHLIGHTS:

• Total revenues increased 76% to $298 million in the quarter compared to $169 million in the same quarter of 2010.
• EBITDA increased 79% to $109 million compared to $62 million in the second quarter of 2010 ("Q2 2010").
• Total production was 55 million pounds of copper and 27 thousand ounces of total precious metals (TPMs). Cash costs were $2.33 per pound of copper. Sales lagged production by 2 million pounds.
• Earnings increased 75% to $64 million or $0.33 per share (basic) compared to $37 million in Q2 2010 or $0.26 per share. The increased earnings in Q2 2011 were primarily driven by a $31.9 million increase in operating profit, due to higher average copper prices, the inclusion of the Sudbury operations, partially offset by lower operating income at Robinson and Franke.
• The Company completed the private placement of $500 million aggregate principal amount of 7.75% senior notes and ended the quarter with $1.03 billion of cash.
• The Company entered into a definitive agreement to form a Joint Venture ("JV") with Sumitomo Metal Mining Co., Ltd. and Sumitomo Corporation (collectively "Sumitomo") to develop the Sierra Gorda project in Chile subject only to customary regulatory approvals. The Company will retain a 55% interest in the JV.
• The National Instrument 43-101 (NI 43-101) compliant Technical Reports were filed in support of the Sierra Gorda Feasibility Study and the Inferred Mineral Resource for the Victoria project in Sudbury, Ontario
• As a subsequent event, the Company received approval of the Environmental Impact Assessment ("EIA"), the master environmental permit, for Sierra Gorda.
• Adjusted earnings for Q2 2011 totalled $42.8 million or $0.22 per share (basic) compared to $22.9 million or $0.16 per share (basic) for the previous year. Unusual items included a $24.6 million gain on marketable securities, mainly our investment in Far West Mining, partially offset by a loss on derivatives.

Paul Blythe, President and CEO of Quadra FNX comments, "Our financial results were driven by an increase in production from the underground and open pit mines and a favourable copper price environment. During the quarter, we reached significant milestones at our flagship Sierra Gorda development project in Chile, by securing a Joint Venture partner, completing financing and, subsequently, receiving the EIA permit. These milestones have allowed us to commence construction activities and we remain focused on achieving production in 2014. We have progressed the various elements required for a decision to proceed on Victoria including stakeholder discussion, engineering studies and permitting. With a robust cash balance of over $1 billion, and a continuing strong copper market, we are well positioned to advance our significant growth profile."



(1) Adjusted earnings is a non-IFRS financial measure and consists of net earnings with adjustments made to exclude derivative losses, gain on marketable securities and investments, merger costs, inventory write down and tax related items.
(2) EBITDA is a non-IFRS financial measure which is defined as earnings attributable to shareholders before interest expenses, income taxes, depreciation, amortization and depletion
(3) Revenues and earnings from the former FNX operations are reported only for the period commencing May 21, 2010, the day after the closing of the merger with FNX Mining Ltd.

At Robinson, mud removal from the bottom of the Ruth pit was completed ahead of schedule, allowing access across the pit bottom. Other measures to increase flexibility, including the development of a new ramp, transfer of haul trucks from Carlota and exploration in the Liberty pit all progressed.

Production from Morrison continued to increase during the quarter and combined copper production from all three Sudbury operations was better than plan. The ramp from the 4200 Level of the Morrison Deposit to the Levack #2 Shaft is expected to reach the 3900 Level in November, after which shaft rehabilitation work will commence. During the quarter the Company received a waiver by Vale of its right to the MgO nickel ores. The Company has entered into negotiations to sell this ore to another party, and mining of contact nickel ores recommenced in order to provide a 40,000 - 50,000 tonne bulk test sample which will be used to establish definitive payability terms.

At Franke, the transition to owner mining and maintenance is largely complete and the ongoing recovery optimization programs continued to improve pad performance. Following the transition to conveyor stacking at Carlota, the focus is on evaluating the long term impact of this change on the mine plan while optimizing recoveries and the cost structure.

The complete financial statements and the MD&A will be available at www.quadrafnx.com and www.sedar.com.