FNX Mining Company Inc.

FNX Mining Company Inc.

February 28, 2005 07:00 ET

FNX Mining Discovers High-Grade Cu-Pt-Pd-Au Mineralization in Footwall of Levack Mine


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: FNX MINING COMPANY INC.

TSX, AMEX SYMBOL: FNX

FEBRUARY 28, 2005 - 07:00 ET

FNX Mining Discovers High-Grade Cu-Pt-Pd-Au
Mineralization in Footwall of Levack Mine

TORONTO, ONTARIO--(CCNMatthews - Feb. 28, 2005) - FNX Mining Company
Inc. (TSX:FNX)(AMEX:FNX) announces the discovery of high-grade
Cu-Ni-Pt-Pd-Au mineralization in the footwall rocks behind its 75% owned
Levack Mine property in Sudbury, Ontario. Two massive sulfide veins
consisting of chalcopyrite, cubanite, pentlandite and millerite were
intersected approximately 3,900 ft vertically below surface.



Borehole FNX 6010

5357.2 - 5367.4 10.2 ft 26.2% Cu, 3.0% Ni, 0.42 oz./ton Pt+Pd+Au
5395.0 - 5411.4 16.4 ft 26.2% Cu, 3.7% Ni, 0.45 oz./ton Pt+Pd+Au


The upper sulfide vein consists of 10.2 ft of massive sulfide grading
26.2% copper, 3.0% nickel and 0.42 ounces per short ton of platinum plus
palladium plus gold. The lower massive sulfide vein occurs 27.6 ft
further down the hole and consists of 16.4 ft of massive sulfides
grading 26.2% copper, 3.7% nickel and 0.45 ounces per short ton of
platinum plus palladium plus gold (see Table 1).

The full significance of this new discovery and the true width and
orientation of the veins are unknown at this time and cannot be
determine without further drilling. However, the intersected high grade
footwall-style mineralization has many of the features and
characteristics of Sudbury Basin footwall ore deposits and has the
largest and best quality borehole geophysical response yet encountered
by FNX on any of the Sudbury Joint Venture properties.

Borehole FNX 6010 was collared behind the Levack No.2 Shaft and drilled
to the southeast and sub-parallel to the Sudbury Igneous Complex contact
(see Figure 1). The borehole was temporarily halted to allow for the
original drill rig to be replaced by a larger drill rig which will allow
the borehole to be deepened to depths of 7,000, if required.

Mineralized Sudbury Breccia was intersected throughout most of the
borehole (see Figure 2). Sudbury Breccia is the host to most Sudbury
Basin footwall deposits and in this area behind the Levack Mine hosts
the Levack No. 3 ore body and represents a 3,500 ft by 5,000 ft footwall
target.

From about 5,000 ft to 5,750 ft, the current depth of the borehole, the
borehole intersected a large bornite-bearing, sulphide mineralized
system containing veins, blebs and disseminations of bornite. This type
of bornite mineralization tends to occur at the periphery or as a halo
to Sudbury Basin footwall ore deposits.

The large mineralized system and the massive sulphide veins are similar
in character and occur at the same stratigraphic location as Inco's
McCreedy East 153 and Falconbridge's Fraser-Strathcona Deep Copper ore
deposits. This new discovery is located 6,000 ft west of the McCreedy
East Mine 153 footwall deposit and 12,000 ft from the Fraser-Strathcona
Deep Copper deposits. It is also located directly behind and below the
Levack Mine, which produced some 60 million tons of 1.8% nickel and 1.0%
copper ore from 1937 - 1999.

Borehole FNX 6010 was surveyed by Lamontagne Geophysics using their
UTEM-4 system to a depth of 5,450 ft. The geophysical results outlined a
large, complex, strongly conductive environment with significant in-hole
and off-hole anomalies that are open at depth (see Figure 3). Of these
multiple conductors, the main conductor is composed of a highly
conductive core (50,000 Siemens measured at 2 Hz) that is 225 ft by 375
ft in area. This core area is hosted within a larger conductor that is
650 ft by 1000 ft in area with variable conductivity from 10,000 to
1,000 Siemens (measured at 2 Hz). The location of the majority of the
UTEM anomaly appears to be to the west of the borehole but definitive
interpretations will only be possible when the drilling has progressed
through the conductive zone, which is open to depth and a full UTEM-4
profile is available.

The existing Levack infrastructure, including the 4,400 ft vertical
Levack No. 2 shaft that is currently being reconditioned by the Sudbury
Joint Venture, could provide underground access to the new discovery
area, if warranted. The distance from both the Levack 3600 Level and
previously-mined No.7 ore body infrastructure is less than 1500 ft (see
Figure 2).

There are currently four drill rigs testing footwall targets on the
Levack property. Additional drill rigs will be added as they become
available over the next few months. New drill information and results
will be released when available, but none is expected for at least one
month.

Terry MacGibbon, President and CEO of FNX Mining Company Inc. stated,"It
has been the Company's policy not to release data from a single
borehole, but the mineralogy, the high grade metal values, the strong
borehole geophysical anomalies, the location and the significant
potential of the intersected mineralization and surrounding rocks
warrant its release at this time".

Mr. MacGibbon further added, "Our exploration team, over the past year,
in addition to dedicating most of their efforts defining resources and
reserves and supporting our McCreedy West Phase 1 Mining, conducted
surface mapping and sampling programs in the footwall environments of
the McCreedy West/Levack mine properties to identify footwall target
areas for drill testing. This discovery of high-grade footwall
mineralization behind the Levack Mine is a direct result of this work
and the exploration team's knowledge and expertise gained over the past
three years exploring our Sudbury Joint Venture properties".

Sudbury Joint Venture - General

The Sudbury Joint Venture is owned 75% by FNX (exploration operator) and
25% by Dynatec (mining operator). The Sudbury Joint Venture properties
(McCreedy West, Levack, Victoria, Podolsky and Kirkwood) are all former
copper, nickel, platinum, palladium, gold producers. The properties are
located in the Sudbury District of northeastern Ontario and are covered
by previously announced agreements between FNX and Dynatec Corporation
(see February 3, 2002 FNX and DY press release). For a detailed
description of the properties and previous work, please go to the FNX
website "www.fnxmining.com" and refer to FNX's Annual Information Form
dated March 23, 2004.

James M. Patterson, Ph.D., P.Geo., and Vice President Exploration of
FNX, is the designated Qualified Person and 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. Please see the July 16, 2003 FNX news release and the March 23,
2004 Annual Information Form for a description of sample preparation and
assay procedures for the Sudbury Joint Venture.

Forward looking statement

This press 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. The exploration
discussed n this news release is at an early stage and there is no
guarantee that a viable mineral deposit has been discovered or will be
discovered on the Sudbury Joint Venture properties. Accordingly, readers
should not place undue reliance on forward-looking statements



TABLE 1:

BH FNX 6010: Levack Footwall Mineralization: (Assays received to date)

--------------------------------------------------------------------
(feet) % (g/T) TPM
--------------------------------------------------------------------
From To Length Cu Ni Pt Pd Au (g/T) (oz/st)
--------------------------------------------------------------------
5357.2 5359.0 1.8 26.80 1.24 4.26 7.31 0.24 11.81 0.34
--------------------------------------------------------------------
5359.0 5361.1 2.1 27.10 3.11 2.83 7.57 0.04 10.44 0.31
--------------------------------------------------------------------
5361.1 5363.5 2.4 30.20 0.49 4.17 10.75 0.02 14.94 0.44
--------------------------------------------------------------------
5363.5 5365.3 1.8 26.10 3.96 4.33 12.10 0.05 16.48 0.48
--------------------------------------------------------------------
5365.3 5367.4 2.1 20.40 6.38 5.62 11.10 1.87 18.59 0.54
--------------------------------------------------------------------
--------------------------------------------------------------------
5357.2 5367.4 10.2 26.22 2.99 4.24 9.80 0.45 14.49 0.42
--------------------------------------------------------------------
--------------------------------------------------------------------

--------------------------------------------------------------------
5395.0 5396.9 1.9 27.70 2.31 4.21 6.28 0.41 10.90 0.32
--------------------------------------------------------------------
5396.9 5399.8 2.9 28.90 1.94 3.48 5.17 0.03 8.68 0.25
--------------------------------------------------------------------
5399.8 5402.9 3.1 29.30 0.89 4.33 7.91 0.02 12.26 0.36
--------------------------------------------------------------------
5402.9 5405.4 2.5 25.00 3.68 4.84 14.05 0.06 18.95 0.55
--------------------------------------------------------------------
5405.4 5407.4 2.0 29.70 1.48 5.00 11.35 0.03 16.38 0.48
--------------------------------------------------------------------
5407.4 5409.0 1.6 23.60 7.56 6.09 17.10 0.06 23.25 0.68
--------------------------------------------------------------------
5409.0 5410.1 1.1 14.00 17.40 2.88 10.35 0.08 13.31 0.39
--------------------------------------------------------------------
5410.1 5411.4 1.3 20.40 3.11 13.10 12.30 3.46 28.86 0.84
--------------------------------------------------------------------
--------------------------------------------------------------------
5395.0 5411.4 16.4 26.15 3.67 5.09 10.00 0.35 15.44 0.45
--------------------------------------------------------------------
--------------------------------------------------------------------

- The lengths reported are drill intersected core lengths.
- Cu equals copper; Ni equals nickel; Pt equals platinum;
Pd equals palladium; Au equals gold
- TPM equals Total Precious Metals defined as Pt+Pd+Au
- g/T equals grams per metric tonne
- oz/st equals ounces/short ton
- conversion factor g/t to oz/st equals g/T x 0.02917


NOTE: To view Figures 1,2,3 go to the following link
http://www2.ccnmatthews.com/database/fax/2000/fnx0228.pdf

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    FNX Mining Company Inc.
    Terry MacGibbon
    President and CEO
    (416) 628-5922
    (416) 360-0550 (FAX)
    Email: tmacgibbon@fnxmining.com
    or
    FNX Mining Company Inc.
    David Constable
    Vice President, Investor Relations and Corporate Affairs
    (416) 628-5938
    (416) 360-0550 (FAX)
    Email: dwconstable@fnxmining.com
    FNX Website - www.fnxmining.com