Falconbridge Limited

Falconbridge Limited

August 11, 2006 11:15 ET

Falconbridge to Launch Perseverance Zinc Mine Project

Welcomes Premier Jean Charest and Minister Pierre Corbeil to Launch Activities in Matagami

MATAGAMI, QUEBEC--(CCNMatthews - Aug. 11, 2006) -

Editors Note: A photo for this release will be available on the CP picture wire via CCNMatthews.

Falconbridge (TSX:FAL)(NYSE:FAL) announced today that it expects to invest approximately US$130 million (Cdn$145 million) in the development of the Perseverance zinc mine, made possible in part by stronger zinc markets and the continued collaboration and support of the Quebec Government. The Quebec Premier Jean Charest and Minister of Natural Resources and Wildlife, Pierre Corbeil, were in attendance at the press conference in Matagami.

Construction will last about two years, with the mine's life expectancy estimated at roughly five years. The mine will employ approximately 250 people during the construction's peak period and about 225 thereafter.

Jean Desrosiers, Vice-President, Falconbridge Zinc Group, underscored the positive economic news for the people of Matagami. "While the size of the Perseverance deposit will allow only a relatively short operating life, the investment will nevertheless give the community a seven to eight-year period to pursue greater economic diversification."

The zinc produced at the Perseverance mine will be processed at Falconbridge's former Lac Matagami mine facilities where, in anticipation of the Perseverance project start-up, the Company retained the administrative offices and concentrator after the Bell-Allard mine's closure in 2004. The annual production of 228,000 tonnes of zinc concentrate will be shipped and processed at the CEZinc Refinery in Valleyfield, Quebec, the second largest refinery in North America, employing 700 people.

Falconbridge remains firmly rooted in Abitibi and Northern Quebec, with exploration camps in Rouyn-Noranda and Matagami, as well as in the Nunavik where, alone or with partners, it has invested more than Cdn$20 million in exploration annually in recent years. Falconbridge operates a smelter in Rouyn-Noranda, employing 560, and a nickel mine in the Nunavik, employing 500 and using the services of 250 subcontractors.

Perseverance has measured and indicated resources of 5.1 million tonnes grading 15.8% zinc, 1.24% copper, 29 grams of silver per tonne and 0.38 gram of gold per tonne. The Falconbridge exploration team won the 2001 Bill Dennis Prospector of the Year Award from the Prospectors and Developers Association of Canada for its discovery of this deposit.

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). Falconbridge's website can be found at www.falconbridge.com.

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