FNX Mining Company Inc.
TSX : FNX

FNX Mining Company Inc.

December 20, 2007 10:34 ET

FNX Comments on Shareholder Letter and Filing

TORONTO, ONTARIO--(Marketwire - Dec. 20, 2007) - FNX Mining Company Inc. ("FNX" or the "Company") (TSX:FNX) reports that the Company's board of directors has completed a review of York Capital's letter of November 19, 2007 (See November 20, 2007 News Release). Since receiving York Capital's letter, the FNX board has given careful and full consideration to the points raised in the York Capital letter and advice received from its financial and legal advisors and has determined that, at this time, it would not be in the best interests of the Company's shareholders to run a public process to sell the Company.

As part of its mandate, the FNX board regularly conducts strategic reviews to determine appropriate strategies for the Company, including potential M&A activity and opportunities on both sides of a transaction. To assist the FNX board in its strategic reviews, the board consults with its long time financial advisor, BMO Capital Markets and third party consultants for advice as to which strategies are expected to create the greatest shareholder value.

FNX has successfully put two mines into production and expects to achieve commercial production at a third mine early in 2008. The Company has made several material discoveries and is poised to bring two of its highest margin ore deposits into production. The board believes that, at this time, following through on our current production plans and exploration successes is the best way to maximize shareholder value.

The FNX board has, and will continue, to be open to entertaining any bona fide offers from qualified parties interested in the Company and will give full and careful consideration to such offers.

About FNX Mining

FNX Mining operates, develops and explores for nickel, copper, cobalt, platinum, palladium and gold in the prolific Sudbury mining camp. The Company mines ore from its mines, crushes and samples the ore and trucks it to third party facilities to be milled, smelted, refined and marketed. FNX has aggressive plans to significantly increase ore and metal production over the next three years based on its 42.7 million tons of measured and indicated resources and 35.1 million tons of inferred resources. Well financed, generating strong cash flow and debt free, FNX is well positioned to implement its ambitious growth plans.

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, the reference to possible future strategic decisions and any possible future M&A activities are forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements.

Contact Information

  • FNX Mining Company Inc.
    John Lill
    President and CEO
    (416) 628-5929
    (416) 360-0550 (FAX)
    or
    FNX Mining Company Inc.
    David Constable
    Vice President, Investor Relations and Corporate Secretary
    (416) 628-5929
    (416) 360-0550 (FAX)
    Email: info@fnxmining.com
    Website: www.fnxmining.com