Ongoing infill drilling has increased the inferred resource tonnage from the NI 43-101 release of June, 2011 of 12.5 million tonnes grading 2.2% Ni, 2.3% Cu and 8.5 g/t TPMs to 14.5 million tonnes grading 2.5% Ni, 2.5% Cu and 7.6 g/t TPM's. This equates to a 16% increase in tonnes and 32%, 26% and 4% increase in contained Ni, Cu and TPMs, respectively. Borehole geophysical surveys have yielded significant extensions of electromagnetic conductance that are interpreted to be sulphide mineralization down-dip of the known Victoria Zone 4 mineral envelope. Additional conductive domains have been identified several hundreds of meters to the west of Zone 4. Diamond drilling designed to test these conductive domains is planned to continue in 2012.

Stuart Gibbins M.Sc., P.Geo., Manager Mineral Resources for Quadra FNX is the designated Qualified Person for the Victoria Project Inferred Mineral Resource pursuant to NI 43-101 of the Canadian Securities Administrators. Mr. Gibbins has reviewed and approved this news release. Please see the Company's most recent technical report on the Victoria Project, 'Technical Report on the Victoria Project Deposit, Sudbury, Ontario, Canada', by Farrow, Everest, Gibbins and Jolette, June 3, 2011, for the details of sample preparation, analyses, security, and assay quality assurance/quality control. The Mineral Resource was completed by ID2 interpolation using the following cut-off parameters: 9m x 6m x 15m blocks, a C$205 economic cut-off, and Vale mill & smelter recoveries as reported in the public document "External Audit of Mineral Reserves", for Vale Inco Limited, Ontario Operations, by Golder Associates, effective June 30, 2010. The metal prices used for the Mineral Resource were Cu at $5.00/lb, Ni at $14.50/lb, Pt at $2,910/oz, Pd at $910/oz and Au at $1,820/oz with a Canadian dollar exchange rate of 1.00.