FNX Mining Company Inc.
TSX : FNX

FNX Mining Company Inc.

March 30, 2007 07:00 ET

FNX Increases Reserves

TORONTO, ONTARIO--(CCNMatthews - March 30, 2007) - FNX Mining Company Inc. ("FNX" or "Company") (TSX:FNX) announces that in addition to replacing all McCreedy West Mine reserves mined in 2006, it is reporting initial reserves for its Levack Mine and updating resource estimates for year-end 2006 on its Sudbury, Ontario properties (see Tables 1 and 2 for details).

For the third year in a row, the Company has found new reserves to replace all the ore mined during the year at its McCreedy West Mine, which now has proven and probable nickel contact ore reserves totaling 1.21 million tons grading 1.57% Ni and 0.20% Cu, compared to 1.21 million tons at the end of 2005. In addition, the proven and probable reserves for McCreedy West Mine's copper and precious metal 700 and PM Deposits total 0.88 million tons grading 1.43% Cu, 0.28% Ni and 0.14 oz/t TPM, compared to 0.78 million tons at the end of 2005.

For the first time, reserves are being published by FNX for the Levack Mine. The initial proven and probable reserves at the Levack Mine total 1.42 million tons grading 1.54% Ni and 0.57% Cu. The Levack Mine was re-opened late in 2006 and commenced production in 2007. The Company expects to incrementally increase its daily production rate during the year and to reach its planned target of 1,500 tons per day late in 2007.

Current proven and probable reserves for the Levack Complex (McCreedy West and Levack Mines) total 3.51 million tons, a 77% increase from 2005 (see Table 1 for details).

Resource estimates at the end of 2006 are shown in Table 2 and include those measured and indicated resources, which have been converted to reserves as shown in Table 1. The Company has a total of 3.73 million tons of measured and indicated resources and 1.06 million tons of inferred resources at the McCreedy West Mine. The Levack Mine contains a total of 4.77 million tons of measured and indicated resources grading 2.04% nickel and 1.01% copper and 0.73 million tons of inferred resources grading 1.91% nickel and 0.88% copper. The Podolsky Mine has 3.24 million tons of indicated resources grading 3.37% Cu, 030% Ni and 0.11 oz/t TPM plus 4.86 million tons of inferred resources grading 1.16% Cu, 0.15% Ni and 0.04 oz/t TPM (see Table 2 for details).

The Company's current measured and indicated resource estimates total 11.73 million tons and its inferred resources estimates total 6.64 million tons.

The Company is conducting aggressive 2007 surface and underground drilling program to replace the reserves to be mined in 2007, to convert a significant portion of the resources to reserves and to discover additional reserves and resources.



Table 1

FNX Reserves (December 31, 2006)
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Cu Ni Pt Pd Au TPM
Deposit Tons -----------------------------
Mine Category Type (millions) % oz/ton
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McCreedy West Proven Contact 0.49 0.21 1.85
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Probable Contact 0.72 0.19 1.37
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Footwall 0.88 1.43 0.28 0.05 0.07 0.02 0.14
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Subtotal Contact 1.21 0.20 1.57
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Footwall 0.88 1.43 0.28 0.05 0.07 0.02 0.14
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Levack Proven Contact 0.04 0.40 1.54
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Probable Contact 1.37 0.57 1.54
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Subtotal Contact 1.42 0.57 1.54
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TOTAL 3.51
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The mineral reserve and resource estimates are prepared in accordance with the "CIM Definition Standards On Mineral Resources and Mineral Reserves", adopted by the CIM Council on December 11, 2005, and the "CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines", adopted by CIM Council on November 23, 2003, using geostatistical and/or classical methods, plus economic and mining parameters appropriate to each deposit. Reserves are based on estimates of long-term metal prices of (US$): Cu equals US$1.50/lb, Ni equals US$5.00/lb, Co equals US$10.00/lb, Pt equals US$800/oz, Pd equals US$350/oz, Au equals US$400/oz, and a Canadian dollar exchange rate equals US$0.80. Reserves are the economic portion of the Measured and Indicated resources. Reserve estimates include mining dilution at grades assumed to be zero. Mining dilution and recovery factors vary for specific deposits and are influenced by several factors including deposit type, deposit shape and mining method. Mining cut-off for reserves has been determined from net smelter return ("NSR") based on the CVRD-Inco Off-take Agreement metal accountability and a three year production history in the McCreedy West Mine.

Cu equals Copper, Pt equals Platinum. Au equals Gold, Ni equals Nickel. Pd equals Palladium. oz/t equals troy ounce/short ton. TPM equals Pt+PD+Au.



Table 2

FNX Resources (December 31, 2006)
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Deposit Tons Cu Ni Pt Pd Au TPM
Mine Category Type (millions) % oz/ton
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McCreedy West Measured Contact 0.52 0.30 2.45
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Indicated Contact 0.71 0.23 1.65
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Footwall 2.50 1.33 0.26 0.06 0.07 0.02 0.15
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Subtotal Contact 1.23 0.26 1.99
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Footwall 2.50 1.33 0.26 0.06 0.07 0.02 0.15
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Inferred Contact 0.45 0.29 1.43
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Footwall 0.61 0.92 0.27 0.07 0.10 0.02 0.19
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Levack Measured Contact 2.45 1.06 2.11
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Indicated Contact 2.31 0.98 1.96
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Subtotal Contact 4.77 1.01 2.04
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Inferred Contact 0.73 0.88 1.91
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Podolsky Indicated Footwall 3.24 3.37 0.30 0.05 0.04 0.02 0.11
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Inferred Footwall 4.86 1.16 0.15 0.01 0.02 0.01 0.04
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Includes 1.34 3.12 0.37 0.04 0.04 0.02 0.10
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TOTAL MEASURED
AND INDICATED 11.73
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TOTAL
INFERRED 6.64
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The Measured and Indicated Mineral Resources are inclusive of those Mineral Resources modified to produce the Mineral Reserves. The mineral reserve and resource estimates are prepared in accordance with the "CIM Definition Standards On Mineral Resources and Mineral Reserves", adopted by the CIM Council on December 11, 2005, and the "CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines", adopted by CIM Council on November 23, 2003, using geostatistical and/or classical methods, plus economic and mining parameters appropriate to each deposit. All resource estimates based on estimates of long-term metal prices of (US$): Cu equals US$1.50/lb, Ni equals US$5.00/lb, Co equals US$10.00/lb, Pt equals US$800/oz, Pd equals US$350/oz, Au equals US$400/oz, and a Canadian dollar exchange rate equals US$0.80. 2 3

2007 Outlook

The Company's priority for 2007 is to expand both the reserve and resource estimates and thereby increase the life of its operations and expand planned production rates. An in-mine definition diamond drill and exploration development program is planned for 2007 at McCreedy West, Levack and Podolsky to identify new resources and to upgrade current resources to reserves, with an emphasis on expanding both the mine reserve and resource base by the end of the year. At Levack, additional focus will be on reviewing the historic nickel contact mineralization in the Levack Mine mineral resource inventory and upgrading it to NI 43-101 compliant reserves and resources. Definition drilling and bulk sampling of the recently discovered Levack Main Depths Deposit is also a 2007 priority and is expected to lead to initial resource estimates for the Deposit. Underground access from both the Craig and Levack Mines to the Levack Footwall Deposit will permit detailed definition drilling, geological mapping and bulk sampling of the high-grade mineralization leading to initial resource estimates for a portion of the Deposit. The completion of detailed drilling and the extraction of bulk samples at the Podolsky Mine later in 2007 will allow reserves estimates to be established for the 2000 Deposit in preparation for a production decision late in the year.

QP Statement

Reserves and Resources are generated in-house by FNX's Exploration and Mining Personnel using previously described methodologies. James M. Patterson, Ph.D., P.Geo, Executive Consultant, a designated Qualified Person pursuant to NI 43-101 of the Canadian Securities Administrators, is responsible for the verification and quality assurance of the Corporation's exploration data and analytical results. Richard B. Smith, P.Eng, Manager of Engineering for FNX is the Qualified Person responsible for the conversion of resources to reserves.

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 reserve and resource estimates, and their future economic viability are examples of forward-looking statements. There is no guarantee that any discovery of commercial mineralization will be made on FNX Mining's Levack or other properties. Accordingly, readers should not place undue reliance on forward-looking statements.

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