FNX Mining Company Inc.
AMEX : FNX
TSX : FNX

FNX Mining Company Inc.

August 23, 2005 07:00 ET

FNX Mining Continues to Expand Levack Footwall Deposit

TORONTO, ONTARIO--(CCNMatthews - Aug. 23, 2005) - FNX Mining Company Inc. (TSX:FNX)(AMEX:FNX) announces additional high-grade Cu-Ni-Pt-Pd-Au drill intersections from its recent footwall discovery at the Company's 75% owned Levack Mine property situated in Sudbury, Ontario. The geology, mineralogy and grade of these intersections are similar to those encountered in the four previously announced discovery boreholes (see February 28 and May 18, 2005 FNX press releases).

The Levack Footwall Deposit's high-grade mineralized vein system has now been intersected from about 3,900 ft to 4,400 ft below surface and for about 500 ft along strike. It remains open in all directions except to the west where it appears to be thinning. (see Figure 1).



HIGHLIGHTS

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DDH Length (ft) Cu % Ni % Pt+Pd+Au(g/t) Pt+Pd+Au(oz/st)

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FNX6046A 5.2 24.8 2.8 31.7 0.9
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6.8 27.0 3.8 39.6 1.2
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FNX6046B 20.6 25.5 5.4 29.5 0.9
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FNX6047A 49.9 8.8 0.9 11.1 0.3
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incl. 27.4 12.2 1.4 19.1 0.6
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FNX7026 22.2 13.5 3.9 17.8 0.5
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incl. 10.2 23.1 7.1 25.3 0.7
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40.6 6.5 0.3 11.0 0.3
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17.6 13.7 0.5 20.3 0.6
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incl. 9.0 23.8 1.0 36.5 1.1
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FNX7027 19.7 21.7 3.0 22.2 0.7
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FNX7031 10.4 10.3 2.2 11.5 0.3
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34.5 5.2 1.2 10.0 0.3
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incl. 6.0 18.8 0.3 20.1 0.6
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21.2 8.5 2.0 5.4 0.2
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FNX7032 7.9 27.6 4.3 34.5 1.0
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FNX7035A 36.3 6.4 1.2 8.3 0.2
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incl. 3.2 28.0 3.5 30.1 0.9
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FNX7038 12.9 25.0 3.8 24.0 0.7
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Note: See Table 1 and Figures 1 & 2 for drill details.


All 15 of the holes (totaling 47,780 ft) being announced today, intersected Sudbury Breccia host rocks containing high-grade, massive sulphide veins varying in thickness from several inches to over 20 ft. Twelve of these holes were targeted to intersect the mineralized vein system, of which nine holes intersected significant widths of high-grade mineralization (see Highlights above) and three holes intersected similar but narrower mineralization (see Figure 2 and Table 1). Three holes designed to test outside the known limits of the mineralized vein system and to provide platforms for borehole geophysical surveys also intersected narrower mineralization (see Table 1).

The borehole electromagnetic surveys (BH-UTEM) completed to date have been conducted at a frequency of 2 Hertz, which responds to and identifies the most conductive (i.e. massive sulphide) and interconnected parts of the mineralized vein system. Interpretation of the BH-UTEM results, in conjunction with interpretation of the geological and drilling data, suggests a prospective target area or "geophysical plate" with a dip extent of some 1200 ft, a strike length of at least 500 feet (the detection limits of the current borehole surveys) and a width varying from 50 to 100 ft. The untested portions of the target area or geophysical plate have potential to host similar massive sulphides veins.

The Levack Footwall Deposit massive sulphides veins, like other footwall deposits along the North Range of the Sudbury Basin, vary from 1 ft to 20 ft in thickness and consist of chalcopyrite, cubanite, pentlandite and millerite with high-grade precious metal values. The drill results on the Levack Footwall Deposit to date are typical of the drill results normally encountered in Sudbury Basin North Range footwall ore deposits (i.e. sharp walled massive sulphide veins, consistently high metal values and significant variations in the number and thickness of the mineralized veins).

Terry MacGibbon, President and CEO of FNX Mining stated, "We are encouraged by the results being announced today. The mineralogy, the high-grade metal values and the widths intersected to date are very similar to those in the footwall ore bodies currently being mined by other companies a few kilometers along strike to the east of the Levack Footwall Deposit. However, to determine the size, tonnage and economic significance of the mineralized vein system will require extensive additional drilling and eventually underground bulk sampling and mapping. The Levack Footwall Deposit is favourably located in an area of producing and formerly producing mines and is situated near underground mine infrastructures. We've initiated a review of access alternatives".

Four Levack surface drill rigs and two underground drill rigs operating from the adjacent Falconbridge Limited Craig Mine are currently drilling the Levack Footwall Deposit. The drill program will continue throughout the rest of 2005 and further results will be announced later in the year.

Sudbury Joint Venture-Exploration Update

The Sudbury Joint Venture currently has 15 drill rigs operating on its Sudbury properties. Four surface and two underground rigs are drilling the Levack Footwall Deposit. At the McCreedy West Mine two surface rigs are testing for new deposits and extensions of known deposits and three underground rigs are conducting delineation drilling for reserve and mine planning purposes. Four surface rigs are drilling on the Aurora Project with two rigs at the Falconbridge Mine property and two on the Foy Property. Additional drilling is also planned later this year for the Podolsky Property and the recently discovered Segway Deposit on the Kirkwood Property.

Sudbury Joint Venture-General

The Sudbury Joint Venture is owned 75% by FNX (exploration operator) and 25% by Dynatec Corporation (mining operator). The Sudbury Joint Venture properties (McCreedy West, Levack, Victoria, Podolsky (formerly Norman) and Kirkwood) are all former copper, nickel, platinum, palladium, gold producers located in the Sudbury District of northeastern Ontario and are covered by previously announced agreements between FNX and Dynatec (see February 3, 2002 FNX and Dynatec press release). For a detailed description of the properties and previous work, please refer to FNX's Annual Information Form dated March 31, 2005 and go to the FNX website "www.fnxmining.com".

James M. Patterson, Ph.D., P.Geo., Executive Consultant, is the designated Qualified Person and is responsible for the verification and quality assurance of the Sudbury Joint Venture's exploration data and analytical results. Anthony P. Makuch, M. Eng., P. Eng., M.B.A., and Dynatec's Vice President, Sudbury Joint Venture Mining Operations, oversees mining activities on behalf of the Sudbury Joint Venture. Samples of half core are prepared at SGS Lakefield Laboratories in Garson and shipped to ALS Chemex in Vancouver for assay. Please see the July 16, 2003 FNX news release and the March 31, 2005 Annual Information Form for a description of sample preparation and assay procedures for the Sudbury Joint Venture.

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 about potential discoveries or extensions of footwall type deposits 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.

NOTE: To view Table 1 - Levack Footwall Deposit - Drill Results go to the following link:

http://www2.ccnmatthews.com/database/fax/2000/Table-1FNX.pdf

NOTE: To view Table 2 - Holes Previously Reported go to the following link:

http://www2.ccnmatthews.com/database/fax/2000/Table2FNX.pdf

NOTE: To view Table 3 - Borehole Co-Ordinates go to the following link:

http://www2.ccnmatthews.com/database/fax/2000/Table3FNX.pdf

NOTE: To view Levack Footwall Deposit Schematic Section(Looking East) go to the following link (Figure 1):

http://www2.ccnmatthews.com/database/fax/2000/mapFNX.pdf

NOTE: To view Levack Footwall Deposit East - West Inclined Section go to the following link (Figure 2):

http://www2.ccnmatthews.com/database/fax/2000/section1FNX.pdf

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