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FNX and Wahnapitae First Nation Sign Historic Mutual Benefits Agreement

July 4, 2008

TORONTO, ONTARIO–(Marketwire – July 4, 2008) – FNX Mining Company Inc. (TSX:FNX) (“FNX” or the “Company”) and Wahnapitae First Nation (“WFN”) today signed an Impact and Benefits Agreement (“IBA” or “Agreement”), which describes how they will collaborate during the life of the Podolsky Mine and into the future on other mining projects at FNX’s Podolsky Property. The IBA provides social, cultural and business related benefits for each party from successful mine development and, among other aspects, describes the processes for protecting and preserving the environment.

Ted Roque is Chief of the Wahnapitae First Nation, located on the northwest side of Lake Wahnapitae and situated close to the Greater City of Sudbury in an area currently undergoing significant mineral production, development and exploration activities. “We are very excited about FNX’s interest in developing the Podolsky Mine adjacent to our community. The two parties began communicating about creating an IBA in 2004 and communication has continued since then leading to this progressive, collaborative outcome for our community and for the Company.” said Chief Ted Roque.

John Lill President and CEO of FNX noted that, “This Agreement was negotiated in a spirit of goodwill and cooperation on both sides and its finalization supports our Company’s belief that where FNX operates, communities near our operations will benefit.”

Beginning in 2002 when FNX first acquired the Podolsky Property, FNX commenced an aggressive surface exploration program, which led to the delineation of the 2000 Deposit. This culminated in construction of approximately $150 million in surface and underground facilities at Podolsky, including the sinking of a 2,650 ft deep vertical production shaft. Pre-production ore was produced from the site in the fourth quarter of 2007 and commercial production was declared on January 1, 2008.

Shortly after acquiring the Podolsky Property, the Company also entered in to a Memorandum of Understanding (“MOU”) with the Wahnapitae First Nation. The MOU described how the parties would communicate, protect the environment, provide for employment and business opportunities for Wahnapitae First Nation Band members and negotiate an IBA.

“The IBA paves the way for many of our community members to participate with FNX in employment, business, education and training opportunities and environmental management. Our entire community will benefit from this Agreement”, says Chief Roque. He adds, “The IBA’s objectives, from the Wahnapitae First Nation’s perspective, will compliment and enhance the community’s broader growth plans and will provide the opportunity to share infrastructure with the Podolsky Mine project. The Agreement sets the stage for providing a long term legacy from mining in the community”. The Agreement also includes provisions for financial support of WFN’s “Education and Employment Fund” and “Community Development and Growth Fund”.

“The past six months of negotiations have been rewarding for both parties. Now the parties will put in place the committees and structures to implement the Agreement in the spirit of a true partnership” stated John Lill.

About Wahnapitae First Nation

Wahnapitae First Nation is signatory to the Robinson-Huron Treaty of 1850. It is listed as #11 on the Schedule of Reserves. ELEVENTH – -Tagawinini and his Band, two miles square at Wanabitibing, a place about forty miles inland, near Lake Nipissing. The First Nation is an Ojibway Band and forms part of the Anishinabek Nation. The Indian Reserve #11 is located some 50 km north of Sudbury, Ontario, and is accessible by all season paved and gravel roads from the town of Capreol. The reserve land base is 2 miles by 2 miles on the north shore of Lake Wahnapitae.

About FNX

FNX operates, develops and explores its mining properties located in the prolific Sudbury mining camp, Ontario, Canada. The Company produces nickel, copper, cobalt, platinum, palladium and gold ores from its McCreedy, Levack and Podolsky Mines, crushes and samples the ore on surface and trucks it to third party facilities to be milled, smelted, refined and marketed. FNX has aggressive plans to significantly increase ore and metal production over the next few years. Well financed and generating strong cash flow, FNX is well positioned to implement its ambitious growth plans.

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 the potential future benefits of the IBA is an example of a forward-looking statement. There is no guarantee that specific benefits will be achieved. 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. Accordingly, readers should not place undue reliance on forward-looking statements.

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