Vancouver, Canada - June 10, 2011 - Quadra FNX Mining Ltd. (the "Company" or "Quadra FNX") (QUX:TSX) announced that it has priced its private offering of US$500,000,000 aggregate principal amount of 7.75% Senior Notes (the "notes") due 2019. The sale of the notes is expected to close on June 17, 2011 subject to customary closing conditions. The notes will be fully and unconditionally guaranteed by the Company's existing and future restricted subsidiaries (the "Guarantors"), other than certain immaterial subsidiaries and excluding the Sierra Gorda joint venture. The notes are not secured and are not convertible into equity of Quadra FNX. The Company intends to use the net proceeds from the offering of the notes of approximately US$487.4 million, together with cash on hand, to fund its capital expenditure requirements in connection with its Sierra Gorda project in Chile.

Paul Blythe, President and Chief Executive Officer of Quadra FNX commented, "We are pleased with the strong interest in this, our first bond, in what is currently a tight market. The proceeds of the bond issuance together with cash on the balance sheet will satisfy Quadra FNX's $650 million obligation to contribute equity to the Sierra Gorda Project. The balance of the construction and working capital costs will be provided $1,260 million as equity by our 45% joint venture partner, Sumitomo, and an expected $1,000 million in non-recourse project financing. The project development is already moving forward with detailed engineering and process equipment procurement in progress. Mining equipment was procured in 2010, and deliveries are expected to commence later this year, enabling pre-strip mining to begin in early 2012. The overall schedule calls for the commencement of commercial production in 2014."

The notes will be governed by an Indenture between the Company, the Guarantors and Wells Fargo Bank, National Association, who will act as trustee thereunder. Under the Indenture, the Company may redeem some or all of the notes at any time on or after June 15, 2015, June 15, 2016 and June 15, 2017, at redemption prices equal to 103.875%, 101.938% and 100%, respectively, of the principal amount of the notes, plus, in each case, accrued and unpaid interest to the date of redemption. Prior to June 15, 2015, the Company may redeem some or all of the notes at a price equal to 100% of the principal amount of the notes plus a "make-whole" premium, plus accrued and unpaid interest to the date of redemption. The Company may also redeem up to 35% of the aggregate principal amount of the notes using the proceeds of certain equity offerings completed on or before June 15, 2014 at a price equal to 107.75 % of the principal amount of the notes, plus accrued and unpaid interest to the date of redemption. For so long as the notes are outstanding, the Indenture will contain terms customary for transactions of this nature including limitations on the Company's ability to pay dividends, incur additional indebtedness, undertake certain transactions which would impair the creditworthiness of or restrict the Company's ability to repay the notes. In addition, if the Company experiences a change in control, it must offer to purchase all of the notes at a price equal to 101% of the principal amount of the notes, plus accrued and unpaid interest to the date of redemption. For full details of the terms of the notes, reference should be made to the Indenture which will be filed on www.sedar.com following closing.

This press release shall not constitute an offer to sell or a solicitation of an offer to purchase the notes or any other securities in the United States or any other jurisdiction. The notes have not and will not be registered under the U.S. Securities Act, or the securities laws of any other jurisdiction and may only be offered and sold in the United States pursuant to an exemption from the registration requirements of the U.S. Securities Act. In addition, the notes may only be offered and sold in Canada pursuant to an exemption from the prospectus requirements of Canadian securities laws.