Buxom

FNX Feb 23, 2004

Inter Main Deposit 1,020,000 tons 2.2% Ni Indicated

617,000 tons 1.8% Ni Inferred (PR dated 23 Feb 04)

Production mine life increased from 4.5 years to up to 9 years

Phase 1 producing 500 tons per day of ore and will increase production to over 1,000 tons of ore per day by mid 2004 when phase 1 is in full production.

Joint venture 75% FNX - 25% Dynatec Corporation

*******************

FNX generates $5.0 Million Cash Operating Profit in Its Initial Quarter of Commercial Operations (PR dated 21 Apr 04)

figures represent 100% interest

Forecasted Ni price US$5.00/lb of Ni and US $1.00/lb Cu

They realized US$6.65/lb for Ni and US$1.20/lb Cu

Cobalt, platinum, palladium, and gold credits

The average grade of the ore delivered to the custome mill was 1.9% Ni 0.3% Cu and 0.06% Co

The copper-precious metalore averaged 6.8% Cu, 0.8% Ni and 0.14 oz/ton platinum + paladium + gold. In total 952,342 lbs of Ni and 509,893 lbs of Cu were attributed to the account.

The SJV's estimated cash cost per pound of nickel, net of by-product credits, was US $2.69. This is lower than the 2004 average planned cost of US$2.98/lb due to lower than forecast operating costs and higher realized by-product metal prices.

Going from exploration start-up to production in just 14 months.

The SJV declard Phase 1 Commercial Production at its McCreedy West Mine on Jan 1, 2004. The SJV 2004 First Quarter operating results in this release represent the SJVs mining and processing activities that took place in the three-month period from Nov 1, 2003 to end of Jan 2004 and are respectively recognized and accounted for in Jan, Feb and Mar 2004. The revenues for cobalt are recognized after 3 mths and the revenues for platinum and palladium are recognized 5 months following delivery of the ore to the custom mill.

******************

Differences - FNX was working at reconditioning existing facilities

We have been doing McWatters from scratch.

Our average grade will be approx 0.93% and our mining costs are closer to 4.50 per pound.

Our financial results are positive down to a break-even price of $5.50 per lb of Ni (p109)

So at 1200 tpd Total operating cost is $58.97/20=$2.9485 per lb (17.5.46 p 100)

**************

What does all this tell me?

FNX gets some very good credits

Our production figures are realistic once preproduction starts

Good news is diesal oil costs should be heading down.

FNX gives us some comparison results to compare our first quarter of real production to but our byproduct credits will not be as good and we are not going to access the high grade ore right away.