Aurora Platinum

In July 2005, we completed the acquisition of all of the issued and outstanding common shares of Aurora Platinum Corp., a former TSX Venture Exchange junior resource company with extensive land holdings in the Sudbury mining camp and other copper-nickel-platinum-palladium-gold (Cu- Ni-Pt-Pd-Au) interests in Ontario and Quebec. One of Aurora’s chief assets is its majority interest in 1,600 hectares of patented mineral claims over the historic Falconbridge Mine and Falconbridge East Mine which collectively produced 46.0 million tons of contact nickel-rich ore at an average grade of 1.49% Ni and 0.86% Cu. The area is host to a relatively unexplored footwall environment with excellent potential for high-grade Cu-Ni-Pt-Pd- Au footwall deposits. Included in Aurora’s portfolio of land holdings is a 10 km long section of the Foy Offset, where historical exploration has indicated the potential for offset and footwall type mineralization within the Aurora properties. In addition, through Aurora’s interests, FNX acquired beneficial ownership of 13.3 million shares of Lake Shore Gold Corp. and 6.8 million shares of Superior Diamonds Inc.

Upon completion of the transaction for a total consideration of 4.3 million FNX common shares, valued at that time at $38 million, FNX transferred a 50% interest in Aurora Platinum to then Sudbury Joint Venture partner Dynatec Corporation, in exchange for 7.7 million shares of Dynatec and $12.2 million in cash. FNX subsequently re-acquired all of Dynatec’s interest in Aurora Platinum Corp. through the acquisition of Dynatec’s interest in the former Sudbury Joint Venture. The market value, including cash and liquid securities, of the above transactions at yearend of approximately $50 million have more than offset FNX’s original investment of $38 million while increasing its foothold in the prolific Sudbury Basin eight-fold.