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(all dollar amounts are in US dollars unless otherwise stated) Vancouver, Canada – May 16th, 2011-Quadra FNX Mining Ltd. (“Quadra FNX” or the “Company”) (TSX – QUX) is pleased to announce that it has entered into a definitive agreement to form a Joint Venture (“JV”) with Sumitomo Metal Mining Co., Ltd. and Sumitomo Corporation (collectively “Sumitomo”) to develop the world class Sierra Gorda copper–molybdenum project in Chile. Quadra FNX will retain a 55% interest in the JV. Concurrently, the Company is also pleased to announce the results of a positive feasibility study which confirms a robust, large-scale, low cost mine in a mining friendly jurisdiction. Board of Director’s approval to proceed with the project has been given.

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Quadra FNX and Sumitomo to form 55%/45% JV to develop the Sierra Gorda project in Chile, subject to normal anti-trust approval Sumitomo to contribute the next $724 million of JV equity after closing Sumitomo to arrange a minimum $1.0 billion project financing non-recourse to Quadra FNX or, if not available, to provide to the project an $800 million loan non-recourse to Quadra FNX Quadra FNX plans to provide its proportional share of the remaining JV funding requirements estimated at ~ $650 million through cash on hand and debt. JP Morgan has been engaged to arrange corporate debt financing for the Company Production from current sulphide reserves average: 483 M lbs of copper (Cu), 25 M lbs of molybdenum (Mo) and 64 kozs of gold (Au) per annum over a 20 year mine life. Mo production will be 54 M lbs per year during the first three years of operation Expected life of mine cash cost of $1.15 per pound of Cu, with $0.56 per pound of Cu in the first five years (net of by-product credits)1 20 year mine life based on current sulphide resources, with upside potential to process an additional 237 Mt of oxide resources Initial throughput rate 110,000 tonnes per day (“tpd”), with expansion after three years to 190,000 tpd Base Case1 after-tax NPV (8%) of $780 million; Spot Case2 after-tax NPV (8%) of $5.1 billion Initial capital cost estimated at $2,877 million, with first production scheduled for 2014 Expansion capital of $818 million expected to be funded from project cash flow

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Assuming $2.50/lb Cu, $12/lb Mo and $1,000/oz Au

Assuming $4.00/lb Cu, $15/lb Mo and $1,200/oz Au

Mr. Paul Blythe, the President and CEO of Quadra FNX commented “The JV with Sumitomo and the development of Sierra Gorda will provide Quadra FNX with a large, long life, low cost copper project which will allow us to move past our strategic objective of 500 million pounds of annual copper production. We are proud to be able to announce a partnership with a world class organization like Sumitomo, which will bring a wealth of experience, knowledge, and financial strength to the development and operation of the Sierra Gorda project. We now have the team and a financing structure in place which will allow us to bring the project into production. In addition, the project debt structure, non-recourse to Quadra FNX, leaves us with the flexibility to pursue other growth opportunities, including the recently announced Victoria project in Sudbury. ”

Sierra Gorda Partnership & Feasibility Study

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The JV will manage the marketing of the molybdenum with oversight from a commercial committee. Sumitomo has the right to participate through the JV. Sumitomo will have the right to take over or appoint a different party to provide JV support services. However. The remaining funding will be met by the shareholders of the JV in proportion to their interest. with no recourse to Quadra FNX. The bridge loan would be secured against 45% of the shares of MQCL. then Quadra FNX may draw from Sumitomo a “bridge loan” at $90 million per month. services and offtake agreements which are expected to close once all normal anti-trust approvals are in place but not later than December 31. 2012 if closing anti-trust approvals is not received.  Quadra FNX will earn a service fee for operational and technical support over the life of mine.   Phase II – Expansion of the project from 2014 to 2018 The capital for the expansion to 190. at $3. The loan is repayable on the earlier of twelve months after termination. Any such expansion would be funded first from project cash flows and then from cash calls to the respective partners. or December 31. with the remainder of the $724 million on an as needed basis for construction activities before Quadra FNX has to provide any further funds.  Quadra FNX retains the right to advance the development of the JV’s oxide resources. then Sumitomo will provide a shareholder back-up loan for $800 million to the JV. project financing is not satisfactorily arranged. In addition. Other expansions The JV will be responsible for any further expansion projects approved by shareholders. Sumitomo has the right and the obligation to purchase 50% of the copper concentrate and Quadra FNX has the right to direct the sale of the remaining 50%. if needed. The JV funding is structured as follows:   Upon closing. JP Morgan has been engaged to arrange a corporate debt financing for the Company. 2011.  Both shareholders will have normal course super majority rights. It is projected to be funded entirely from project cash flow. A $360 million bridge facility from Sumitomo has also been agreed to cover costs subsequent to August 31. any balance would be funded by cash calls to the respective partners. Penal dilution will apply during the construction phase. The Investment Agreement will govern the parties during the interim period. Sumitomo will pay a minimum of $360 million into the JV. The key terms of the arrangements:  Quadra FNX and Sumitomo to conduct activities through the existing holder of Sierra Gorda. The JV will have a right of first refusal on any new properties within 25 kilometers of the project.0 billion of which Quadra FNX’s share going forward would be approximately $650 million assuming $1billion of project financing.000 tpd is expected to cost $818 million over three years.PARTNERSHIP AND FINANCING STRUCTURE On May 14th. 2011. which will be owned 55% by Quadra FNX and 45% by Sumitomo. In the event of a change of control of Quadra FNX. and will guarantee. with no recourse to Quadra FNX.  Normal dilution provisions apply to the interests in the JV should either party fail to meet shareholder cash call obligations after commercial production. In the event. for up to a total of $360 million. including a right of first refusal if one party wishes to dispose of its JV interest. Details of the JV financing structure: Phase I – Construction of the project to 2014 The initial funding will match the funding schedule of the project over the period to 2014. Sumitomo shall take the lead in efforts to arrange.0 billion in project financing for the JV. Sumitomo and Quadra FNX have fixed the Phase 1 budget including capital costs. $1. Sierra Gorda Partnership & Feasibility Study Page 2 . working capital. 2011. back-up financing. the parties have agreed to the terms of a JV. Minera Quadra Chile Limitada (“MQCL”). However. interest during construction and costs already incurred. If closing has not taken place by August 1. 2011 Quadra FNX and Sumitomo signed the Investment Agreement with respect to funding arrangements for the Sierra Gorda project.

SUMMARY OF SIERRA GORDA FEASIBILITY STUDY The Sierra Gorda project has been designed as a conventional open pit operation. The initial throughput rate was selected to constrain molybdenum production to levels that were judged to have limited impact on the global molybdenum market. long-term corporate relationship with Sumitomo. Molybdenum concentrate will be bagged on site for sale locally and overseas. During this search. Sumitomo boasts a long history of over four centuries in mining and metal smelting. and a high level of partner credibility.000 tpd is planned for completion during the third year of operations.000 tpd is planned for completion in Year 4 of operations. and Batu Hijau Copper Mine in Indonesia. limited conditionality. Using their strong financial position. after which molybdenum production will average 20 million pounds per year for the balance of the mine life. Quadra FNX has a pre-existing. Northparkes Copper Mine in Australia. who is a primary customer for concentrates produced at the Robinson Mine in Nevada. In the last year and a half of mine life. production is derived from stockpile re-handling. The bulk of the copper concentrates will be sent to the port of Mejillones. Significant copper mining partnerships include Morenci Copper Mine in Arizona. blasting. In addition Sumitomo solely owns and operates the Toyo Copper Smelter in Japan which has an annual production capacity of 450. using drilling.Transaction History Following the announcement of the National Instrument 43-101 Scoping Study on the Sierra Gorda project in July of 2009. The molybdenum head grades are highest during the first three years. Quadra FNX began its search for a suitable JV partner with the following objectives: certainty of the partner’s funding plan to ensure sufficient capital was available to complete the project on time. and truck haulage. loading with rope shovels. which is accomplished by stockpiling lower-grade ore. Candelaria Copper Mine and Ojos del Salado Copper Mine in Chile.000 tpd using high-pressure grinding rolls crushing ( “HPGRs”). The waste dumps are set back approximately 500 metres from the pit rim to allow for pit expansion in the event of operating margin increases. waste mining drops off substantially and copper feed grades increase. As mining progresses into the lower-grade areas. An expansion to a throughput of 190. An expansion to a throughput of 190. from which it will be shipped to global smelters. the focus changes to maximizing ore grade to the mill. Discussions with Sumitomo initially started in the fall of 2009 and recommenced in July 2010 following the announcement by the Company that it was ending its previously announced arrangements with State Grid International Development Limited. The process plant has an initial planned throughput of 110. The dumps have extra capacity to allow for possible expansion and include an oxide stockpile with sufficient capacity to hold oxide material for possible future processing. an attractive value proposition. Molybdenum production will be 54 million pounds per year during the first three years of operation. ball milling and conventional flotation to produce both a copper and molybdenum concentrate. Sierra Gorda Partnership & Feasibility Study Page 3 .000 metric tonnes of copper per year. the Cerro Verde Copper Mine. Oxide mineralisation will be stockpiled separately for treatment in a possible future heap leach operation. and the Batu Hijau Copper Mine. the Company engaged CIBC Capital Markets as financial advisor and Blake Cassels & Graydon LLP as legal advisors in the process. Life of Mine Plan The mine plan is designed in six phases in order to reduce waste mining and manage ore grades and production starts in the Catalina Zone and progresses eastward. Sumitomo arranged project financing through Japan Export for International Corporation (formerly Export and Import Bank of Japan) for the Candelaria Copper Mine. Cerro Verde Copper Mine in Peru. Once the higher-grade 281 Zone is developed.

675.000 tpd.7 4.275 % % % 87% 74% 48% kt % % g/t kt kt ratio kt 20 yrs.274.000 tpd to 190. 1.038 million (average approximately $52 million per year across the 20-year mine life. with an additional $818 million of capital required from 2015 to 2017 for the expansion from 110. Mo in Mo Concentrates Dry Mo Conc.274. % k DMT % k DMT 30% 14. dollars.583 51% 441 M lbs M lbs k ozs 9. The contingency added to the capital cost estimate reflects an 85% probability of completing the project within the amount estimated.832 3. Mine and plant sustaining capital is estimated to total $1.024 0.393 0.798 2. All costs are expressed in Q4 2010 U. refinery and roaster deductions Capital Costs Initial capital costs for the Sierra Gorda project are estimated at $2.) The summary breakdown of initial and expansion capital is as follows: Sierra Gorda Partnership & Feasibility Study Page 4 .A summary of the life of mine project parameters is outlined in the table below: Sierra Gorda Life of Mine Plan LOM Total Mining Ore to Mill Cu Mo Au Ore Mined Waste & Pre-strip Strip Ratio Total from pit Mill Recoveries Cu Mo Au Mill Recoverable Metals* Cu Mo Au Concentrate Cu in Cu Concentrates Dry Cu Conc.400.653 500 1.832 0.630 *prior to transportation losses and smelter.877 million.065 1.S.

48 per tonne of ore processed. replacement parts. Some costs estimates were provided in Chilean Pesos (CLP) and were converted to US dollars (USD) using 513CLP/1USD for 2012-2013 and 560CLP/1USD for 2014 onward. and exclude smelting.Sierra Gorda Capital Cost Breakdown Capital Costs Direct Costs Pre-Stripping Mining Equipment Process Plant Seawater Supply Rail Spur Tailing Total Direct Cost Indirect Cost EPCM Services Facilities/Camps/Freight/Other Total Indirect Owners Costs Contingency Total Project Capital Costs Initial Capital ($ M) 216 366 934 183 20 81 1. supplies. refining. Sierra Gorda Partnership & Feasibility Study Page 5 .877 Expansion to 190 ktpd ($ M) 440 440 69 90 159 121 97 818 Operating Costs Life-of-mine operating costs for the Sierra Gorda project are expected to average $11.07 per tonne of material mined. wear items.95 4. and ocean freight. Life-of-mine mining costs are estimated at $1.21 5. The operating unit cost estimates are summarized in the table below: Operating Cost Life–of-Mine Breakdown Average $/t Ore milled 0.29 11.48 Cost Center Camp & Site G&A Mine Concentrator Concentrate Ground Transport Port Total Note: Detailed costs were estimated by obtaining vendor quotes for consumables. and certain contract services. Wages were obtained from a survey of neighbouring mines from which the average wage rates were used. Unit power costs of $0.73 0.800 154 232 386 398 293 2.30 0.1075/kWh were used throughout the estimate.

for a 20-year contract. the process plant has been designed for seawater.A. assuming $12/lb Mo and $1. (BCSA) to develop the seawater delivery system from the coastal town of Mejillones to the mine site through a 140-km pipeline. and fresh and seawater supply. The JV has 30 L/s of fresh water for site.Estimated Project Production and Cash Cost per Pound for Period 2014-2023 600 483 414 400 557 552 539 516 528 $1. Power: The Company is currently finalizing a life-of-mine offtake Agreement with a local power provider who will construct a coal-fired power plant located in the port of Mejillones.25 100 0 $(0. with a maximum transport capacity of 1.000 workers. This water will arrive at site by means of a pipeline that runs alongside the rail to the Sierra Gorda mine site.A. Employment and Community Relations At peak construction the Sierra Gorda project is expected to employ 6. 750 L/s of seawater will be pumped from Mejillones to the seven-day seawater pond located at the plant site. The transport pipeline system was designed for the project life.75 $0. S. own. While in full production the operation is expected to employ approximately 2.000/oz Au Key Milestones: Environment An Environmental Impact Assessment (“EIA”) was submitted to the regulatory authorities in May 2010. Initially.000 full-time employees. concentrates loading at the port. The power for the Sierra Gorda project will be supplied by a 140 km overland power line that will provide 220 kV of power at 50 Hz to an on-site Sierra Gorda Partnership & Feasibility Study Page 6 .25 Cash Cost $/lb Cu* Cu M Lbs 300 243 200 254 263 $0.25) 2014 1 2015 2 2016 3 2017 4 2018 5 2019 6 2020 7 2021 8 2022 9 2023 10 Year Of Operation * costs net of by product revenue. This capacity will be increased to 1. Water: Except for specific areas. Quadra FNX and Sumitomo will provide certain BOO contract guarantees when necessary. 2011.200 L/s for the expansion phase.200 L/s. The JV will be initiating its community engagement programs during project development. concentrate transportation.75 500 $1. power transmission to plant site. Quadra FNX has contracted the services of BRASS Chile S. The question and answer phases of the evaluation process are complete and permit approval is expected by the end of June. operate (“BOO”) contracts with the exception of the seawater pipeline which is expected to be operated by the JV. Key Offsite Infrastructure Requirements The key offsite infrastructure areas are: power supply. which will be supplied by Ferro Carril Antofagasta Bolivia. These services will be predominantly supplied through build.

8 (%) (x1000) t (x1.20 0.9 564. Molybdenum & Gold Resources Cutoff Tonnes CuEq (%) (%) Cu Mo Au (g/t) Measured CuEQ (%) (x1000.625. The overall impact of both the infill drilling and the new copper prices increased Measured and Indicated resources by approximately 890 million tonnes.32 0.31 0.20 172.2 39. Long-term copper price assumptions were updated from the previously used $2.55 0.000.021 NA 0.40 0.6 1.035 NA 0.20 1.8 12. contains high levels of acid soluble molybdenum.421 NA 639. These resources are inclusive of the reserves reported later in this press release. as follows:  The high acid soluble molybdenum zone.421 906.5 87.239.000) lbs 1.399 0.49 0.47 0. Concentrate transport: Copper concentrate will be transported from the site and to the port of Mejillones where a port facility will be constructed. however.38 0.087.507 NA 130.650 m of new drilling since the scoping study in July 2009 in and around the resource area.215.018 0.37 0.998.029 121 267. 2.7 13.3 5.3 8.900.6 4.20 237. and sulphide. they have different mineralogical and metallurgical characteristics.021 0. and the CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines.801 NA 3. Mine Development Associates ("MDA") of Reno.018 NA 0.32 0.36 0.760.34 0.820 130.1 16.432.067 0. metallurgical recoveries. MDA considered metal prices.601.20 665.6 0. Expected molybdenum recovery is ~20%.31 (X1000) t (x1. Resources Since 2009.2 4.779.000) lbs 0.37 0.894 3.3 255.37 0.2 Total Meas.3 Oxide 0.5 Total Indicated 1. and Ind.39 0.00/lb to $2.035 (x1000) ozs 908 NA 908 2.39 0.3 Indicated Sulfide 0.37 0. In all cases.24 0.20 1.000) Sulfide 0.P.51 0.55 to 1 (g/t to %) using a long term metal price for copper of US$2. C.20 422.49 0. During the construction (2012 thru 2013) the operation’s power needs (i. using geostatistical and/or classical methods.5 681. Quadra FNX completed an updated infill drilling programme of 117 new drill holes with 63.20 64.G.189.126.50/lb resulting in a lower cutoff grade of 0.substation.5 807.059 NA 0.057 NA 0.000.4 6.236.688.399 NA NA NA 0..2% copper equivalent (previously 0.7 Total Measured 487. and economics to derive the reported cutoffs .40 0.20 % Cu equivalent for the sulphide and oxide mineralization.4 4.7 18.e.059 0.029 121 267.9 1. which represents less than 1% of the reserve. high acid soluble molybdenum.50/lb. Cu equivalent calculations reflect gross metal content and have not been adjusted for relative metallurgical recoveries or relative processing and smelting costs. plus economic and mining parameters appropriate for this operation.8 Measured and Indicated Sulfide 0.6 2.3 16. Reserves There are three major ore types identified in this deposit: transition.820 NA 906. Sierra Gorda Partnership & Feasibility Study Page 7 . All three zones consist of sulphide mineralization that can be processed in the flotation plant.339.057 0. mining methods and costs.009 NA 0.009 290 NA 290 411 NA 411 59 NA 59 639.24 0.067 NA 0.8 2.507 0.34 0. The reported cutoff grade(s) for the Resource is 0. approximately 30 MW) will be supplied by local power providers.cim. not recoverable by flotation. The Cu equivalent calculation was based on long-term average Mo/Cu metal price ratios to arrive at a ratio of 5 to 1 and a Au/Cu price ratio of 0.9 Oxide 0.6 Oxide 0.788.165.576.976.1 Inferred Sulfide Oxide Total Inferred 0.57 0.4 551.894 NA 2. This infill drilling continued after the cutoff date for the resource database.5 7.801 744 NA 744 The Mineral Resource estimate was prepared in compliance with requirements set out in National Instrument 43-101 by Steven Ristorcelli.1 1.748.644. Nevada and in accordance with the “CIM Definition Standards On Mineral Resources and Mineral Reserves”. Definitions and guidelines can be found at www.3%).385. 2011 Sierra Gorda Copper.

065 Waste 3.3 0.084 0.024 0.14 93 13 0. Mo at US$ and Au at US$1.355 0. Definitions and guidelines can be found at www.302 622 2. The possibility of processing oxides resources.056 678 2.073 Total 983.675. Ore reserves for the Sierra Gorda deposit were developed by applying relevant economic and engineering criteria to estimated Measured and Indicated resource model to define the economically extractable portions. Mo and Au were all included in determining economic value.084 0.393 0.8 0.6 0.021 0.063 Proven & Probable Tonnes (millions).3 0.2% Cu. where a net value is calculated for each of the model blocks based on grades. Grades Ore Cu % Mo % Au g/t 291.400. Grades Material Ore Cu % Mo % Au g/t Sulphide 1.14 93 13 0.388 0.611 0.066 Transition 84.183. the Measured and Indicated oxide resources at the Sierra Gorda project total 237 Mt of oxide material grading 0.425 466 1.064 Transition 84. using heap leach and SX-EW processing was included in the EIA permits. Molybdenum & Gold Mineral Reserves Proven Tonnes (millions).073 Material Sulphide Contained Metal (millions) Cu lbs Mo lbs Au ozs 2. Project Upside Opportunities Oxide Leach Cap Based on a cutoff grade of 0.68 Probable Tonnes (millions). Currently approximately 200 Mt of this material is treated as waste and will be stockpiled to be potentially processed at a later stage. Sierra Gorda Partnership & Feasibility Study Page 8 . and represents 8.021 0.4 Total in-pit 4.9 0.390 0. The long term metal prices used for the Mineral Reserves were: Cu at US$2. The transition zone is the material between the oxide-sulphide contact and the sulphide zone.033 0.7 0. Sumitomo has the right of first refusal to participate or allow Quadra FNX to proceed with the development of the oxide potential with or without a third party. It contains some oxide molybdenum and recovery is ~65%. The JV agreement gives Quadra FNX the right to advance the development of the project oxide resources on its own.1 0.000/oz. and the CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines.02 8. plus economic and mining parameters appropriate to each operation.67 The Mineral Reserve estimate was prepared in accordance with the “CIM Definition Standards On Mineral Resources and Mineral Reserves”.02 11.024 0. A net-value calculation methodology was used to estimate profitability of material in the block model. using geostatistical an d/or classical methods.5 0.410 0.024 0.84 661 44 0. stored in the model blocks.  The sulphide zone representing by far the greatest part of the resource.395 0.672 409 1.cim.34% Cu. Grades Material Ore Cu % Mo % Au g/t Sulphide 892.355 0.99 Contained Metal (millions) Cu lbs Mo lbs Au ozs 10. Cu.611 0.630 213 0. 2011 Sierra Gorda Copper. The resulting values.9 0.67 Contained Metal (millions) Cu lbs Mo lbs Au ozs 7.050 Acid Soluble 6. averaging ~40 metres below the oxide-sulphide contact. is the mineralization from a distance of ~40 metres below the oxide-sulphide contact to the bottom of the resource model (elevation 652 metres) and expected molybdenum recovery is ~ 76%. are used to generate the ultimate pit shells and to determine ore and waste.024 0. recovery and estimated costs for mining and processing and metal prices.52 661 44 0.274.073 Total Ore 1.50/lb.3 Strip Ratio 2.00/lb.5% of the reserve.050 Acid Soluble 6.

645 $1. The economics are shown both pre-tax and after the Chilean Mining Tax and First Category Tax (After-Tax).858 $5. with the first test work scheduled for September 2011.50 $12. although it is possible that it could be added into a future mine plan. 2011 Financial Summary for Base and Spot Metal Price Cases Unit Metal Price Assumptions Copper Molybdenum Gold Pre-Tax NPV 0% Discount NPV 8% Discount After-Tax NPV 0% Discount NPV 8% Discount Pre-Tax IRR After-Tax IRR First Five Years Operations* Average Annual Cash Flow** Average C1 Cash Costs LOM*** Average Annual Cash Flow** Average C1 Cash Costs $/lb $/lb $/oz $M $M $M $M % % $M $/lb Cu $M $/lb Cu Base Case $2.15 Spot Case $4. On-site pilot plant In advance of the project start date.823 $16. Details of the price assumptions are shown below.076 27% 24% $1. Risk Mitigation EPCM contractor Fluor has been appointed EPCM contractor for the on-site process and ancillary facilities.56 $648 $1. The Company believes that this additional technical due-diligence will significantly de-risk the ramp up of the Sierra Gorda project.200 $21. Financial Analysis and Commodity Price Sensitivity The financial analysis of the project is based upon two pricing cases: the Base Case and a Spot Case closer to current prices. In addition.00 $1.950 $780 13% 11% $642 $0.00 $1.233 $0.386 $1.940 $6.12 Note:* including start up year ** before capital and taxes and *** excluding closing year Sierra Gorda Partnership & Feasibility Study Page 9 . Cash flows are discounted to January 1. and particularly in Chile.Exploration potential The Salvadora area was not included in the reserve because of its higher strip ratio. confirmatory metallurgical and pilot plant test work will continue to be conducted on the Sierra Gorda project in order to further develop the flotation model. with a focus on the molybdenum-rich transition ores. and using various discount rates.288 $5.000 $7.28 $1. Fluor has significant experience globally in copper mine development projects and a strong presence in Latin America. A core drilling program to develop additional ore for the test work is ongoing. as well as optimizing reagent and blend strategies. there are numerous other exploration targets that exist in the vicinity of the Sierra Gorda project area.00 $15.

557 4.7% 13. Allen & Holt (“PAH”) to provide an independent Qualified Person’s Review and NI 43-101 compliant Technical Report (“Technical Report”) for the Sierra Gorda Project based on information contained in a feasibility study prepared for Quadra FNX. $12.400 3. which will describe the resource and reserve updates and feasibility study findings.164 375 9.00am ET (8.82 Chilean pesos (CLP) was used for the capital costs.008 23. The playback version of the call will be available until or www.022 15.2% 10. For the purposes of the financial evaluation.5% $3.1% 7.00/lb Cu. A significant portion of the site operating costs is based on local Chilean costs. At $4. Qualified Persons Quadra FNX commissioned Pincock.950 780 11.InvestorCalendar.4% 5. To access the simultaneous webcast.5% $3. The table highlights that the economics of the Sierra Gorda project is most sensitive to the copper price and operating costs.437 21.594 5. Based on this correlation at a Cu price of $2.775 4.378 13. 2011 at 1-905-694-9451 or North American toll free 1-800-408-3053 and using the pass code: 8762401.00 NPV (8%) IRR NPV (0%) $12. The Technical Report will be filed on the Company’s website and SEDAR wi thin 45 days. The North American toll free number for this conference call is 1-416-340-8530 while the international number is 1-877-240-9722.404 1.201 2.8% 16.00 14.00am PDT). PAH has reviewed the feasibility study and is preparing the Technical Report.50 11.649 2. A fixed exchange rate of 512. May 24th.4% 15.9% $4.363 2. at 11.6% The table below highlights the sensitivity of project economics to a 10% change in key input variable on the After-Tax NPV of the project using an 8% discount rate.50 5.quadrafnx. which has been used for the Spot Case economics Metal Price Sensitivity Cu (US$/lb) Mo (US$/lb) NPV (0%) $10.The analysis is presented in US dollars but a material portion of the capital and operating costs are based on local Chilean derived inputs.79 which was used to determine the relationship between the copper price and CLP.50 17.000/oz Au.021 559 188 CONFERENCE CALL DETAILS: A conference call to discuss the Sierra Gorda Joint Venture Agreement and the results of the feasibility study has been scheduled for Monday. visit Quadra FNX’s website at www. the CLP would be 560 and that rate has been used in the financial model.735 6.3% 12.240 18.815 5.2% 18.821 20.200 23.610 17.5% 19.164 26.044 20.363 BASE CASE 780 780 780 780 +10% 1. Key Sensitivities NPV 8% ($ M) Cu price Mo price Capex Opex -10% 145 538 1.548 3.125 1.687 5.00/lb Mo and $1.854 17. payable in Chilean pesos.00 NPV (8%) IRR $2.7% 9. May 16th 2011. the costs subject to CLP variations were assumed to be 30% of total operating costs. The work Sierra Gorda Partnership & Feasibility Study Page 10 .629 24. Base case commodity price assumptions assumed $2.00 8.436 1.50/lb Cu.001 1.9% $4. the model indicates a 471 CLP exchange rate.50/lb. A monthly analysis of LME Cu prices since 2002 shows an R-squared correlation of 0.00 NPV (8%) IRR NPV (0%) $15.

as a qualified person for the purposes of National Instrument 43-101. and McCreedy West. earnings per share and shareholder value. equipment and other capital required at the Sierra Gorda project.  The production facilities may not achieve the planned desired recoveries. this forward-looking information can be identified by the use of forward-looking terminology such as "outlook". end-use demand for copper. is a leading mid-tier copper mining company with corporate offices in Vancouver. financing plans. Franke in northern Chile. which includes Morrison. property acquisitions. cash and total costs of production of copper. analysis. Lopez has reviewed and approved the contents of this news release. performance or achievements to be materially different from those expressed or implied by such forward-looking information. timing of expected sales and final pricing of concentrate sales. nickel and precious metals from its operating mines: Robinson in Nevada. results of exploration (including targets) and related expenses. C. anticipated outcome of litigation and anticipated timing of production at the Sierra Gorda project. "will".  Receipt of approvals from regulatory agencies before the Joint Venture Agreement can be formalized. estimating grade levels. mine operations. statements with respect to the Company's business strategy. "project".  Uncertainties as to the impact on the molybdenum market of the quantity anticipated to be produced  Uncertainties as to the availability and price of a long term power supply  Fluctuations in metal prices. future copper. and Toronto. including the Sierra Gorda copper-molybdenum project in Chile. availability of water for milling and mining. Generally. and developed based on assumptions about such risks. including but not limited to:  Our ability to successfully bring the Sierra Gorda project into production. debt reductions. About Quadra FNX Mining Ltd. Mr.  Fluctuation in prices of plant. power and other infrastructure to the site.G. quality assurance and quality control. future production levels. completion dates for the various development stages of mines. level of PAH is being done under the direction of Leonel Lopez. gold and other minerals. "estimate". Ontario.  The ability of our key contractors to perform the services for us in the manner contracted for. a qualified person for the purposes of National Instrument 43-101. plans. targets and expectations as to reserves. Steven Ristorcelli. estimates and projections as of the dates as of which those statements were made. "target". outlook. Quadra FNX produces copper. use of future tax assets. among other things. resources. uncertainties and other factors that may cause Quadra FNX's actual results. "expect". Forward-Looking Statement This Press Release contains "forward-looking information" that is based on Quadra FNX's expectations. and Podolsky in Sudbury. gold.C. reclamation and other post closure obligations and estimated future expenditures for those matters. "plan" and similar expressions. currency exchange rates. an advanced exploration project in Sudbury. mine production costs. and the Victoria project. Quadra FNX employs approximately 1. For a discussion of sampling. the percentage of anticipated production covered by option contracts or agreements.  Receipt of all permits required for the Sierra Gorda project. projections. "intend". please see the discussion in the Company’s July 2009 scoping study. sampling and other data.900 people in North and South America. "anticipate". Sierra Gorda Partnership & Feasibility Study Page 11 . expenditures for environmental matters. mine development. long-term growth in cash flow. "believe". future recovery levels. molybdenum and other mineral prices (including the long-term estimated prices used in calculating Quadra FNX's mineral reserves). drilling activity.  Delays in construction of the power transmission line. The Company has two key development projects.  Fluctuations between the Chilean peso and the US dollar. Levack. B. uncertainties and other factors set out herein.  The availability and cost of key operating supplies and services and in particular shortages of critical supplies such as tires. steel and key items of equipment. data verification. This forward-looking information includes.P. Sierra Gorda resources were estimated by Mine Development Associates (“MDA”) under the direction of Steven Ristorcelli. Carlota in Arizona. a copy of which is available on SEDAR or the Company’s website. capital costs. Forward-looking information is subject to known and unknown risks. costs savings. projected life of Quadra FNX's mines. (TSX: QUX) Quadra FNX Mining Ltd. "scheduled". "should". has reviewed and verified the data that pertains to the resources in this press release.  The plans currently in place with respect to securing adequate sources of water. Ontario.

Although Quadra FNX has attempted to identify important factors that could cause actual results to differ materially from those contained in forwardlooking statements. Accordingly. Inherent hazards and risks associated with mining operations. including Quadra FNX's Annual Information Form. Investor Relations (416) 642-9209 Sierra Gorda Partnership & Feasibility Study Page 12 . The highly competitive labor market in the mining industry in general and Chile specifically may have an adverse effect on the company’s ability to attract and retain qualified people. and Global financial conditions. estimates or options. Inherent uncertainties associated with mineral exploration. Political and country risk. Seismic events at the Chilean sites. Quadra FNX disclaims any intent or obligations to update or revise publicly any forward-looking statements whether as a result of new information. The ability to expand or replace depleted reserves and the possible recalculation or reduction of the reserves and resources. readers should not place undue reliance on forward-looking statements. performance. Forward-looking statements are based on assumptions management believes to be reasonable. operating costs and expenditures. and such other assumptions and factors as set out herein. future events or results or otherwise. including change in regulation. estimated or intended. The actual costs of reclamation may vary from original estimates. Actual capital costs. production schedules and economic returns from the Company’s mining projects. there may be other factors that cause results not to be as anticipated. Being subject to government regulation.                      Insurance coverage may not be available for certain risks that the company might deem it prudent to insure against. specifically pit slope stability. The ongoing litigation and potential future litigation at the Sierra Gorda Project. .. including changes in regulation. Media and Investor Relations Contact: Derek White Executive Vice President. no material adverse change in the market price of commodities. The dependence on transportation facilities and infrastructure. achievements or financial position is contained in the filings by Quadra FNX with the Canadian provincial securities regulatory authorities. including but not limited to the continued operation of Quadra FNX's mining operations. There can be no assurance that forward-looking statements will prove to be accurate. Geotechnical issues. A discussion of these and other factors that may affect Quadra FNX's actual results. that the mining operations will operate in accordance with Quadra FNX's public statements and achieve its stated production outcomes. Potential challenges to title to the properties. unless required to do so by law. Need for governmental licenses and permits. Taxation. Fluctuations in foreign currency exchange rates. Corporate Development (604) 807-7555 Nawojka Wachowiak Vice President. The mineralogy and block model assumptions. Being subject to extensive environmental laws and regulations. The mining industry is competitive. Derivative contracts and exposure to the credit risk of counter-parties.