Feasibility study to begin at Norman (May 31, 2004)

Drilling is ongoing at the Norman 2000 and Norman North copper-nickel deposits in the Sudbury area of Ontario, where FNX Mining (FNX-T) and Dynatec (DY-T) are preparing to begin feasibility work.

At the end of December 2003, FNX and Dynatec exercised an option with Inco (N-T) to assume ownership of several deposits in the area, including the Normans.

Since the end of October, 13 surface holes totalling 31,178 ft. have helped define the 2000 deposit. Recent highlights include:

— 238 ft. grading 1.4% copper and 0.2% nickel, including 49.8 ft. grading 3.6% copper and 0.5% nickel and 15 ft. of 8.3% copper and 1% nickel;

— 10.8 ft. grading 29.3% copper and 0.3% nickel; and

— 159 ft. of 4.3% copper and 0.4% nickel, which included two higher-grade intercepts of 23 ft. grading 7.7% copper and 0.8% nickel and 5.8 ft. grading 31.2% copper and 0.5% nickel.

Also present were assays of up to 0.57 oz. combined gold-platinum-palladium per ton over 11 ft.

The Norman 2000 is 2,000 ft. below the past-producing Whistle open pit. During the late 1980s and for four years in the 1990s, Whistle produced 5.7 million tons grading 0.33% copper, 0.95% nickel, 0.03% cobalt, and 0.009 oz. gold-platinum-palladium per ton.

Norman North will be accessible via a ramp 500 ft. from the 2000 shaft. The two deposits are separated by about 2,500 ft. Underground drilling and bulk sampling will further test the North deposit.

Four surface holes totalling 2,809 ft. were recently drilled into the North deposit. Highlights include 8.3 ft. grading 10.4% copper and 0.3% nickel, plus 81 ft. of 6.4% copper and 0.4% nickel. The latter intersection included 31 ft. grading 15.7% copper and 0.7% nickel.

A feasibility study of the 2000 deposit is expected to take 24 months and cost about $25 million. A road is being built in preparation for shaft-sinking, and a vertical condemnation hole was drilled at the shaft site. A vertical shaft will be sunk to the 2450 level, and crosscutting, ramping and drifting will be followed by underground drilling and bulk sampling.

FNX owns 75% of the Sudbury joint venture; Dynatec, the remainder.