Xstrata's Offer for Falconbridge Remains Open After Inco's Offer Expires

Chief Executive Mick Davis said, “We welcome the fact that Falconbridge shareholders have acted decisively in rejecting the Inco offer and we urge them now to tender to Xstrata’s all cash offer by 14 August 2006.”

“The success of Xstrata’s offer is the best outcome for Falconbridge stakeholders, including, in particular, shareholders and employees. Throughout this process, we have maintained that Xstrata's 20% stake in Falconbridge, purchased at C$28 per share, has put us in a unique position to make a definitive, compelling and generous offer to Falconbridge shareholders, while ensuring that the acquisition of Falconbridge remains value, earnings and cash flow accretive to Xstrata shareholders.”