Falconbridge Limited

Falconbridge Limited

October 18, 2005 14:23 ET

Falconbridge Acquires Units Of Blackstone Ventures Inc.

TORONTO, ONTARIO--(CCNMatthews - Oct. 18, 2005) - Falconbridge Limited (TSX:FAL.LV)(NYSE:FAL) ("Falconbridge") announced today that it has acquired 1,060,000 units (the "Units") in the capital stock of Blackstone Ventures Inc. ("Blackstone") by non-brokered private placement, representing approximately 3.3% of the issued and outstanding common shares of Blackstone. Each Unit consists of one common share and one-half common share purchase warrant and has an issue price of $0.33 per Unit. Falconbridge has acquired an additional 466,338 units (the "South Norway Units") in the capital stock of Blackstone pursuant to the South Norway Agreement, representing approximately 2% of the issued and outstanding common shares of Blackstone. Each South Norway Unit consists of one common share and one non-transferable, common share purchase warrant. Falconbridge has both control and ownership over the Units and the South Norway Units.

As a result of the acquisitions, Falconbridge holds 4,838,393 common shares and 3,032,053 common share purchase warrants, representing approximately 16.5% of the issued and outstanding common shares of Blackstone (after giving effect to the exercise of the warrants).

In August of 2003, Blackstone and A/S Sulfidmalm, a wholly-owned subsidiary of Falconbridge, entered into an option and joint venture agreement with respect to the Espedalen and Vakkerlien projects in Norway pursuant to which A/S Sulfidmalm is required to operate and participate in Blackstone financings at a 15% level in 2005 and a 10% level in 2006, of annual Norwegian project expenditures. This non-brokered private placement fulfills Falconbridge's financing obligations for 2005 and 2006 under such agreement.

Blackstone issued the South Norway Units to Falconbridge pursuant to the South Norway Agreement dated September 1, 2005 whereby Blackstone can earn 50% in 5 new projects by funding US$18 million in exploration. Under the terms of the South Norway option and joint venture agreement Blackstone is required to issue a number of units (each unit comprising one share and one warrant) equal to 1.5% of the current number of shares outstanding as of the date of the agreement. These units are to be issued within 30 days of signing the agreement and on each subsequent anniversary until the option is exercised or the agreement is terminated.

The acquisition of the Units and South Norway Units by Falconbridge was for investment purposes only and not with the purpose of influencing control or direction over Blackstone. Falconbridge may, in the ordinary course of its business, increase or decrease its holdings in Blackstone.

Falconbridge Limited is a leading copper and nickel company with investments in fully-integrated zinc and aluminum assets. Its primary focus is the identification and development of world-class copper and nickel mining deposits. It employs 14,500 people at its operations and offices in 18 countries. Falconbridge's common shares are listed on the New York Stock Exchange (FAL) and the Toronto Stock Exchange (FAL.LV). Falconbridge's website can be found at www.falconbridge.com.

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