FNX Announces $ 125 Million Bought Deal Financing

TORONTO, ONTARIO--(Marketwire - Aug. 18, 2009) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

FNX Mining Company Inc. (TSX:FNX) ("Company") is pleased to announce that it has entered into an agreement with a syndicate of underwriters co-led by BMO Capital Markets and GMP Securities L.P. under which the underwriters have agreed to purchase, on a bought deal basis, 13,000,000 units (the "Units"), each Unit consisting of one common share and one-half of one common share purchase warrant, at a price of $9.65 per Unit for aggregate gross proceeds to FNX of $125,450,000. Each whole common share purchase warrant will entitle the holder to purchase one common share of the Company at a price of $13.00 prior to the date which is three years following the closing of the offering. The Company has granted the underwriters an option, for a period of 30 days following the closing of the offering, to purchase up to an additional 15% of the number of Units purchased pursuant to the offering to cover over-allotments, if any. The proceeds of this financing will be used to take advantage of any future business opportunities and for general corporate purposes. The offering is scheduled to close on or about September 9, 2009 and is subject to certain conditions, including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange and other applicable securities regulatory authorities.

The Units to be issued under this offering will be offered by way of a short form prospectus in each province of Canada, other than Quebec, and in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities offered have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

Forward-Looking Statement

This news release contains certain forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond the Company's ability to control or predict, which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. In this news release, statements about completion of the announced financing and final proceeds are examples of forward-looking statements. There is no guarantee that the announced financing will receive all final approvals and be completed at all. Forward-looking statements speak only as of the date on which they are made. The Company undertakes no obligation to publicly update any such statement or reflect new information or the occurrence of future events or circumstances, except where required by securities regulations. Accordingly, readers should not place undue reliance on forward-looking statements.