Quadra FNX Announces Record Revenue of $260 Million for the 2010 Third Quarter

Quadra FNX Mining is pleased to provide its third quarter 2010 financial and operational results. The third quarter of 2010 marked the first full quarter for the combined Quadra FNX and the strong financial performance reflects the increased production as a result of the merger, as well as the stronger copper price.

As reported in the Press Release dated October 18, 2010, the US operations had a mixed quarter. At Robinson, production rebounded versus the second quarter and confirmatory drilling indicates that the historic underground workings below the Ruthcoal laboratory raymond mill pit are not expected to have any further impact on the remainder of 2010 or any impact on 2011 or on the reserve base. The operations team has now completed the generation of a block model for the mine that reflects the extensive metallurgical program over the last two years, improving the ability to predict production going forward. Production at Carlota remained largely flat and technical studies are ongoing as how to deal with the fines in the ore body, which are affecting percolation. It has now been concluded that these are not a local effect but occur throughout the ore body and planned programmes include material stacking strategies, processing options and leaching strategies. A review of the pit slope in the area of the Kelly fault has also indicated that a change in the pit wall angle may be necessary, and that increased stripping may be required. The economic and reserve implications of this potential change are currently being studied and will be published once finalized. On the positive side, the Company has developed a new ore genesis model which improves our understanding of the fines issue and supports exploration potential at depth. An initial drill program will be following this up in the fourth quarter.

The Canadian operations reached a significant milestone when commercial production was declared at Morrison on September 1, 2010. The ramp up of Morrison is on schedule and the concept of selective mining continues with a focus on ore quality versus tonnes mined. Podolsky struggled with adverse ground conditions, but production is expected to rebound in the fourth quarter as the high grade stope initially planned for the third quarter is brought into production. McCreedy West met production tonnage and copper grade goals in the third quarter and production for the year is expected to be on target. The Company continues to investigate the restart of nickel production at the Sudbury operations. Key considerations in making this decision include the processing terms from Vale, nickel prices and infrastructure capabilities.

In Chile, third quarter production at the Franke mine was similar to the second quarter as a result of variable recoveries, despite success with the changes to the leach pad height on some of the pads leached. Adjustments to the leach parameters at Franke, particularly the leach solution strategies, will continue as well as adjustments to the crush size going forward.

During the quarter, significant advancements were made on the Sierra Gorda and Victoria development projects, and it was announced that ongoing drilling at the Victoria property had expanded and added considerable confidence to Zone 4, which has now been delineated over a vertical length of over 3,000 feet, yielding grades significantly higher than are typical in the Sudbury camp. Studies are currently being initiated to support a decision on an advanced underground exploration program and work is processing on environment permitting and with First Nations negotiations.

Partnership discussions and the technical work for the ongoing Financing Study on Sierra Gorda continued through the quarter. The Financing Study is still targeted to be completed by the end of the first quarter of next year, with the Feasibility Study to follow. The base case for project has increased in scope and the development plan now envisions a plus 25 year operation processing 111ktpd of sulphide ore at start-up, expanding to 190ktpd at the end of the fourth year. The Scoping Study released in mid-2009 had a more modest throughput of 111ktpd and an initial capital cost of $1.7 billion. For the purposes of discussions with potential partners, the Company is assuming a capital cost of between $2 1/2 billion and $2 3/4 billion for the larger scale project. An updated capital cost estimate is being prepared as part of the Financing Study. The target date for the commencement of development remains the third quarter of 2011, with production targeted in the first half of 2014.

Paul Blythe, President & CEO comments; "We continue to make significant progress on the integration of the former Quadra and FNX teams at both the corporate and mine site level. We have a robust balance sheet of approximately$600 million in cash and marketable securities at today's prices. There is an experienced team in place that is driving forward on resolving our technical issues and our organic growth projects at Sierra Gorda and Victoria. We are now stronger and have more capacity to deal with our much larger asset base."