Quadra Fnx Mining Ltd. Announces Record Revenues And Earnings For The Year Ended December 31, 2010

(All figures, except per share amounts, are in $US thousands unless otherwise stated or unless context requires otherwise)

Vancouver, Canada -- February 28th, 2011 - Quadra FNX Mining Ltd. (the "Company" or "Quadra FNX") (TSX: QUX) is pleased to provide its fourth quarter and year end 2010 financial and operational results. The Company recorded 2010 earnings of $173 million or $1.11 per share (basic) compared to earnings of $81 million or $0.89 per share for the previous year. The increased earnings in the current year are primarily a result of higher average copper prices, and the increased earnings contribution from Franke and the Sudbury operations following the merger with FNX. Adjusted earnings totalled $225 million or $1.45 per share (basic) for the year.

In the fourth quarter of 2010 the Company recorded earnings of $58 million or $0.30 per share (basic). Unusual items included a $33 million leach pad inventory write down at the Carlota mine and a $22 million accounting loss on derivatives. Fourth quarter 2010 adjusted earnings totalled $105 million or $0.55 per share (basic).

2010 AND FOURTH QUARTER HIGHLIGHTS:

On May 20, 2010 the Company completed a merger with FNX Mining Company Inc, and with this transaction, established a new, mid-cap Canadian mining company with considerable financial strength and a diverse asset base. The following financial information only includes the FNX operations since May 21, 1010 unless otherwise stated.

• Production for the year was 224 million pounds of copper and 148 thousand ounces of total precious metals (TPMs). Cash costs for the year were $1.57 per pound of copper. Production in the fourth quarter totalled 57 million pounds of copper and 39 thousand ounces of TPMs while cash costs were $1.55 per pound of copper.
• In 2010 total revenues increased 100% to $958 million compared to $479 million in 2009 supported by an over 30% increase in the copper price, which ended the year at $4.42 per pound.
• 2010 earnings increased 114% to $173 million (or $1.11 per share basic) from $81 million (or $0.89 per share basic) in 2009.
• Operating income from the Robinson mine increased 36% to $193 million from $143 million in 2009.
• The Morrison deposit achieved commercial production on September 1, 2010 and produced 7.1 million pounds of payable copper in the fourth quarter and 19 million pounds of payable copper for the year, exceeding expectations.
• The Sierra Gorda Financing Study approached completion as the Company continued discussions with potential financial partners.
• Exploration at the Victoria property resulted in the discovery of the Zone 4 sulphide mineralized system. Drilling has continued to add significant confidence and a Scoping Study is underway.
• The Company ended the year with $320 million of cash and after year end Quadra FNX sold its holding in Gold Wheaton for initial proceeds of C$263 million, and contingent proceeds of C$30 million.

The Robinson Mine transitioned from the Veteran to the Ruth pit, and produced 109 million pounds of copper in concentrate for the year. The Morrison deposit delivered above plan and is expected to continue to increase production in both 2011 and 2012. Both the Franke and Carlota operations emerged at year-end with strategies that should improve on the 2010 results. Specifically, Carlota is transitioning to conveyor stacking while Franke is continuing to make progress on its ongoing optimisation programs.

Paul Blythe, President and CEO of Quadra FNX comments, "In mid-2010 we successfully completed the merger with FNX. Since then our strong financial results have been driven by a much improved copper price environment as well as the increase in copper production from the combined Quadra and FNX asset base. In January 2011 we closed the sale of our Gold Wheaton shares for initial cash proceeds of C$263 million which increased our cash balance to approximately $600 million."

"The internal Sierra Gorda Financing Study, which establishes the development parameters for the project, remains on track for completion by the end of the first quarter of 2011, with the NI 43-101 compliant Feasibility Study expected to be completed in the second quarter of 2011. Discussions with potential partners are ongoing and progressing well and we remain confident that a favourable partnership and financing structure will be in place by mid-2011. The environmental permit process (EIS) also remains on track for completion in June. In the meantime, we will continue to move the project forward in accordance with our 2014 start-up schedule, with our current focus on detailed engineering and mining equipment acquisition."

Paul Blythe concludes; "2010 also saw the discovery of Zone 4 at Victoria, which we view as one of the most important discoveries in the Sudbury district in recent history. Our next step is to complete an inferred resource calculation which will be used in our ongoing Scoping Study. We are also advancing permitting, First Nations consultation and discussions with Vale on processing terms and their potential back-in right. Our intention is to commence shaft construction this year, initially for underground exploration, but ultimately this infrastructure could also be for future production."

"This has been a pivotal year for our Company and, with the integration of Quadra and FNX essentially complete, we will focus on optimizing the performance of our existing asset base and on delivering growth"

The complete financial statements and the MD&A will be available at www.quadrafnx.com and www.sedar.com.



This Management Discussion and Analysis ("MD&A") of Quadra FNX Mining Ltd. and its subsidiaries ("Quadra FNX" or the "Company") has been prepared as at February 25, 2011 and is intended to be read in conjunction with the accompanying audited consolidated financial statements for the year ended December 31, 2010. This MD&A contains 'forward looking information' and reference to the cautionary statement at the end of this MD&A is advised. Additional information relating to the Company, including its Annual Information Form, is available on the SEDAR website at www.sedar.com. The Company is a reporting issuer in all provinces and territories of Canada and its common shares are traded on the Toronto Stock Exchange under the symbol: QUX.All financial information in this MD&A is prepared in accordance with the Canadian Generally Accepted Accounting Principles and all dollar amounts are expressed in millions of United States dollars unless otherwise indicated.

FORWARD-LOOKING INFORMATION

This Press Release that includes the MD&A contains "forward-looking information" that is based on Quadra FNX's expectations, estimates and projections as of the dates as of which those statements were made. This forward-looking information includes, among other things, statements with respect to the Company's business strategy, plans, outlook, financing plans, long-term growth in cash flow, earnings per share and shareholder value, projections, targets and expectations as to reserves, resources, results of exploration (including targets) and related expenses, property acquisitions, mine development, mine operations, mine production costs, drilling activity, sampling and other data, estimating grade levels, future recovery levels, future production levels, capital costs, costs savings, cash and total costs of production of copper, gold and other minerals, expenditures for environmental matters, projected life of Quadra FNX's mines, reclamation and other post closure obligations and estimated future expenditures for those matters, completion dates for the various development stages of mines, availability of water for milling and mining, future copper, gold, molybdenum and other mineral prices (including the long-term estimated prices used in calculating Quadra FNX's mineral reserves), end-use demand for copper, currency exchange rates, debt reductions, use of future tax assets, timing of expected sales and final pricing of concentrate sales, the percentage of anticipated production covered by option contracts or agreements, anticipated outcome of litigation and anticipated impact of converting to IFRS,. Generally, this forward-looking information can be identified by the use of forward-looking terminology such as "outlook", "anticipate", "project", "target", "believe", "estimate", "expect", "intend", "should", "scheduled", "will", "plan" and similar expressions. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause Quadra FNX's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, and developed based on assumptions about such risks, uncertainties and other factors set out herein, including but not limited to:

• risks associated with the mineralogy and block model assumptions at all mines and projects including, in particular the complex Robinson mine;
• uncertainties related to the extent to which historical mining activities at Robinson have removed mineral material expected to be present;
• uncertainties related to the impact of the 2010 storm event at the Carlota Mine and uncertainty relating to the leaching rate achieved at Carlota;
• risks related to maintaining current operating parameters at Podolsky;
• uncertainties related to actual capital costs, operating costs, production schedules and economic returns associated with the ramp-up of the Morrison deposit;
• risks associated with Quadra FNX's off-take agreement with Vale Inco, including the risk of potential adjustment to final payable metal and processing cost terms;
• uncertainties relating to availability of updated equipment, the leaching rate and the transition to owner mining at Franke;
• uncertainties related to the construction quality and structural design at Franke;
• risks associated with the development of the Sierra Gorda project, a large project with significant capital expenditure, permitting and infrastructure requirements;
• risks relating to the preliminary nature of the testwork underlying the scoping study described in the Sierra Gorda 2009 Technical Report;
• risks associating with ongoing litigation at Sierra Gorda and with potential future litigation at Sierra Gorda and other projects;
• risks relating to Quadra FNX's ability to find a suitable partner or obtain project financing for Sierra Gorda;
• uncertainties related to the amount of funding required to achieve full production levels at Franke and Carlota and at the Morrison deposit;
• uncertainties related to Quadra FNX's ability to expand or replace depleted reserves;
• uncertainties related to the possible recalculation or reduction of the Company's mineral reserves and resources;
• risks that Quadra FNX's title to its property could be challenged, including potential challenges from First Nations with respect to the Sudbury operations;
• risks associated with Quadra FNX's dependence on transportation facilities and infrastructure;
• risk associated with labour relations;
• risks related to Quadra FNX's shareholder rights plan;
• risk related to derivative contracts and exposure to the credit risk of counterparties;
• risks associated with taxation;
• conflicts of interest;
• risks associated with fluctuations in costs of operating supplies and other inputs;
• uncertainties related to actual capital costs, operating costs and expenditures, production schedules and economic returns from the Company's mining projects;
• inherent hazards and risks associated with mining operations;
• inherent uncertainties associated with mineral exploration;
• risks associated with Quadra FNX being subject to government regulation, including changes in regulation;
• risks associated with Quadra FNX being subject to extensive environmental laws and regulations, including change in regulation;
• risks associated with Quadra FNX's need for governmental license and permits;
• political and country risk;
• Quadra FNX's need to attract and retain qualified personnel;
• risks related to the need for reclamation activities on Quadra FNX's properties, including the nature of reclamation required and uncertainty of costs estimates related thereto;
• risk of water shortages and risks associated with competition for water;
• increases in off-site transportation and concentrate processing costs;
• risks related to the stability of mine pit walls;
• uncertainties related to fluctuations in copper and other metal prices;
• uncertainties related to the current global financial conditions; and
• uncertainties related to fluctuation in foreign currency exchange rates.

A discussion of these and other factors that may affect Quadra FNX's actual results, performance, achievements or financial position is contained in the filings by Quadra FNX with the Canadian provincial securities regulatory authorities, including Quadra FNX's Annual Information Form and the Annual Information Form filed by FNX prior to the merger between Quadra and FNX. Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to the continued operation of Quadra FNX's mining operations, no material adverse change in the market price of commodities, that the mining operations will operate in accordance with Quadra FNX's public statements and achieve its stated production outcomes, and such other assumptions and factors as set out herein. Although Quadra FNX has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate. Accordingly, readers should not place undue reliance on forward-looking statements. Quadra FNX disclaims any intent or obligations to update or revise publicly any forward-looking statements whether as a result of new information, estimates or options, future events or results or otherwise, unless required to do so by law.

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