FNX Mining Suspends Nickel Ore Production and

("FNX" or "the Company") announces plans to extend the suspension of nickel ore production at its Levack Mine (see October 21, 2008 News Release) and to also suspend production of nickel ore from its adjoining McCreedy West Mine, effective immediately.

This decisive action is being taken to ensure the Company’s business remains viable throughout the current global economic downturn and this period of dramatically falling nickel prices. The suspension of all nickel ore production from the Company’s Sudbury operations is indefinite and the Company will closely monitor global commodity markets and make further adjustments as required.

Both the Levack and McCreedy West mines will remain open and active with production from the Company’s higher margin copper-nickel-precious metal deposits at the McCreedy West PM Deposit, the Levack Rob’s Deposit and at the Podolsky Mine’s 2000 Deposit.

The Company will continue its development of the advanced stage, high-grade copper-nickel-precious metal Levack Footwall Deposit, which is expected to provide development ore in late 2009 and to be in production in 2010.

The Company is currently working on its 2009 Plan and Budget and will provide production guidance during the first quarter of 2009.

As a result of the suspension of all nickel ore production, the Company is reducing its work force across its Sudbury mining operations by 307 employees; 59 staff will be terminated and 248 hourly employees will be laid off, effective immediately. All hourly employees at the Sudbury operations are being offered a voluntary severance package which could reduce the number of hourly employees laid off. Employees will be transferred to the Company’s on-going copper-nickel-precious metal operations.

Terry MacGibbon, Chairman and CEO of FNX stated that, "Management and the Board acknowledge the tremendous contribution to the Company made by all of our Sudbury employees and it is with great regret that we announce today’s terminations and layoffs. However, low global nickel prices have made our nickel operations uneconomic at this time. FNX must now adjust in order to not only retain approximately 375 current jobs at our Sudbury mining operations but to prepare itself to thrive and increase its employee levels when commodity prices recover."

Mr. MacGibbon further added that, "the Company is in an excellent position to weather the current economic downturn with its strong balance sheet ($151 million cash and zero debt as of September 30, 2008) and some $140 million in securities. We will concentrate our efforts on only those ores that produce a positive cash operating margin and limit our sustainable capital expenditures to an absolute

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