Quadra FNX Mining Ltd. Announces Record Revenues And Earnings  

VANCOUVER - Quadra FNX Mining Ltd. recorded 2010 earnings of $173 million compared to earnings of $81 million for the previous year. The increased earnings in the current year are primarily a result of higher average copper prices, and the increased earnings contribution from Franke and the Sudbury operations following the merger with FNX. Adjusted earnings totalled $225 million for the year.

In the fourth quarter of 2010 the Company recorded earnings of $58 million. Unusual items included a $33 million leach pad inventory write down at the Carlota mine and a $22 million accounting loss on derivatives. Fourth quarter 2010 adjusted earnings totalled $105 million. In May 20, 2010 the Company completed a merger with FNX Mining Company Inc, and with this transaction, established a new, mid-cap Canadian mining company with considerable financial strength and a diverse asset base. The Robinson Mine transitioned from the Veteran to the Ruth pit, and produced 109 million pounds of copper in concentrate for the year. The Morrison deposit delivered above plan and is expected to continue to increase production in both 2011 and 2012. Both the Franke and Carlota operations emerged at year-end with strategies that should improve on the 2010 results. Specifically, Carlota is transitioning to conveyor stacking while Franke is continuing to make progress on its ongoing optimisation programs. Paul Blythe, President and CEO of Quadra FNX said, "In mid-2010 we successfully completed the merger with FNX. Since then our strong financial results have been driven by a much improved copper price environment as well as the increase in copper production from the combined Quadra and FNX asset base. In January 2011 we closed the sale of our Gold Wheaton shares for initial cash proceeds of C$263 million which increased our cash balance to approximately $600 million." "The internal Sierra Gorda Financing Study, which establishes the development parameters for the project, remains on track for completion by the end of the first quarter of 2011, with the NI 43-101 compliant Feasibility Study expected to be completed in the second quarter of 2011. Discussions with potential partners are ongoing and progressing well and we remain confident that a favourable partnership and financing structure will be in place by mid-2011. The environmental permit process (EIS) also remains on track for completion in June. In the meantime, we will continue to move the project forward in accordance with our 2014 start-up schedule, with our current focus on detailed engineering and mining equipment acquisition." Blythe said; "2010 also saw the discovery of Zone 4 at Victoria, which we view as one of the most important discoveries in the Sudbury district in recent history. Our next step is to complete an inferred resource calculation which will be used in our ongoing Scoping Study. We are also advancing permitting, First Nations consultation and discussions with Vale on processing terms and their potential back-in right. Our intention is to commence shaft construction this year, initially for underground exploration, but ultimately this infrastructure could also be for future production." The company's address is Suite 2414, Four Bentall Centre, 1055 Dunsmuir Street, P.O. Box 49185, Vancouver, BC V7X 1K8, 604-689-8550, fax: 604-689-8556.