GRAPHIC

FALCONBRIDGE LIMITED

2002 ANNUAL INFORMATION FORM
April 30, 2003

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TABLE OF CONTENTS

|                                                            |                                 | Page                       
|----------------------------------------------------------- | ------------------------------- | ---------------------------
|TECHNICAL GLOSSARY                                          |                                 | 2                          
|KEY ASSUMPTIONS FOR MINERAL RESERVE AND RESOURCE ESTIMATION |                                 | 4                          
|CURRENCY                                                    |                                 | 4                          
|METRIC/IMPERIAL CONVERSION TABLE                            |                                 | 4                          
|FALCONBRIDGE LIMITED                                        |                                 | 5                          
|Overview                                                    |                                 | 5                          
|Corporate Strategy and Business Developments                |                                 | 5                          
|Organizational Chart                                        |                                 | 7                          
|BUSINESS OF FALCONBRIDGE                                    |                                 | 8                          
|Integrated Nickel Operations                                |                                 | 8                          
|                                                            | Sudbury Operations              |                            
|                                                            |                                 | Sudbury Mines/Mill         
|                                                            |                                 | Sudbury Smelter            
|                                                            | Raglan                          |                            
|                                                            | Nikkelverk                      |                            
|                                                            | FIL                             |                            
|Kidd Creek Operations                                       |                                 | 13                         
|                                                            |                                 | Kidd Mining Division       
|                                                            |                                 | Kidd Metallurgical Division
|Falcondo                                                    |                                 | 16                         
|Collahuasi                                                  |                                 | 17                         
|Lomas Bayas                                                 |                                 | 18                         
|Corporate                                                   |                                 | 20                         
|                                                            | Exploration                     |                            
|                                                            | Koniambo Project, New Caledonia |                            
|                                                            | Montcalm Project, Canada        |                            
|                                                            | Business Development            |                            
|                                                            | Technology                      |                            
|                                                            | Employees                       |                            
|PRINCIPAL PRODUCTS                                          |                                 | 24                         
|Nickel                                                      |                                 | 24                         
|Copper                                                      |                                 | 26                         
|Zinc                                                        |                                 | 27                         
|Cobalt                                                      |                                 | 29                         
|Other Metals and Products                                   |                                 | 29                         
|Sales Volumes, Average Prices and Revenue                   |                                 | 30                         
|ENVIRONMENT, SAFETY AND HEALTH                              |                                 | 32                         
|Environment                                                 |                                 | 32                         
|Safety and Health                                           |                                 | 34                         
|TRENDS, RISKS AND UNCERTAINTIES                             |                                 | 35                         
|SELECTED CONSOLIDATED FINANCIAL INFORMATION                 |                                 | 39                         
|DIVIDEND POLICY                                             |                                 | 39                         
|MANAGEMENT'S DISCUSSION AND ANALYSIS                        |                                 | 39                         
|RECONCILIATION OF NON-GAAP FINANCIAL MEASURES               |                                 | 39                         
|MARKET FOR SECURITIES OF THE CORPORATION                    |                                 | 41                         
|DIRECTORS AND EXECUTIVE OFFICERS                            |                                 | 41                         
|ADDITIONAL INFORMATION                                      |                                 | 44                         

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TECHNICAL GLOSSARY

bankable feasibility study:means a comprehensive study of a deposit in which all geological, engineering, operating, economic and other relevant
factors are considered in sufficient detail that it could reasonably serve as a basis for a financial decision by a financial institution to finance the development of the deposit for mineral
production.

by-product credits:all revenues received from by-products.

capacity:the design number of units which can be produced in a given time period based on operations with a normal number of shifts and maintenance
interruptions.

CIS:the Commonwealth of Independent States.

Comex:The New York Commodity Exchange.

concentrate:a product containing valuable minerals from which most of the waste material in the ore has been separated.

copper cathode:flat plate of pure (approximately 99.9%) copper that is the product of electrolytic copper refining or the solvent
extraction/electrowinning process.

Defence Logistics Agency:a United States of America Department of Defence, defence agency. One of the responsibilities of the Defence Logistics
Agency is the Defence National Stockpile.

Eastern Bloc:Albania, Bulgaria, the CIS, Cuba, the Czech Republic, Hungary, Mongolia, North Korea, the People's Republic of China, Poland, Romania and
Slovakia.

Falcondo:Falconbridge Dominicana, C. por A. The Corporation owns 85.26% of the outstanding shares of Falcondo.

ferronickel:an alloy containing nickel and iron (approximately 38% nickel and 62% iron in the case of ferronickel produced by Falcondo). The volumes
produced and prices realized by Falconbridge set forth in this annual information form are expressed in terms of nickel contained in ferronickel.

LME:the London Metal Exchange.

matte:a mixture of metal sulphides enriched with nickel, copper, cobalt, silver, gold and platinum group metals.

mill:a plant where ore is ground and undergoes physical or chemical treatment to extract and produce a concentrate of the valuable minerals.

mineral reserve:(1) the economically mineable part of a measured or indicated mineral resource demonstrated by at least a preliminary
feasibility study. This study must include adequate information on mining, processing, metallurgical, economic and other relevant factors that demonstrate, at the time of reporting, that economic
extraction can be justified. A mineral reserve includes diluting materials and allowances for losses that may occur when the material is mined. Mineral reserves are categorized as follows:



mineral resource:(1) a concentration or occurrence of natural, solid, inorganic or fossilized organic material in or on the Earth's crust
in such form and quantity and of such grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics and continuity of a mineral

2

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resource
are known, estimated or interpreted from specific geological evidence and knowledge. Mineral resources are categorized as follows:



National Instrument 43-101:National Instrument 43-101, Standards of Disclosure for Mineral Exploration and Development of
Mining Properties published by the Canadian Securities Administrators.

off-warrant nickel stocks:nickel stocks not held in LME registered warehouses.

ounce:troy ounce.

platinum group metals:platinum, palladium, rhodium and related metals present in some nickel/copper ores.

preliminary feasibility study:a comprehensive study of the viability of a mineral project that has advanced to a stage where a mining method, in the
case of underground mining, or a pit configuration, in the case of an open pit, has been established, and where an effective method of mineral processing has been determined, includes a financial
analysis based on reasonable assumptions of technical, engineering, operating, economic factors and the evaluation of other relevant factors which are sufficient for a "qualified person", (as defined
in National Instrument 43-101),acting reasonably, to determine if all or part of the mineral resource may be classified as a mineral
reserve.

primary nickel:the nickel contained in products of smelters and refineries which are in a form ready for use by consumers.

refinery:a plant where concentrates or matte are processed into one or more refined metals.

smelter:a plant where concentrates are processed into an upgraded product.

tonne:1,000 kilograms.

Western World:all countries other than those in the Eastern Bloc.

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Note:

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KEY ASSUMPTIONS FOR MINERAL RESERVE AND RESOURCE ESTIMATION

Bulk Density:The factor used to convert volume into tonnage. This factor is a function of the mineralogy and physical characteristics of a deposit.
Formulae are developed using regression analyses on a suitably large number of individual determinations.

Cut-Off Grade:The grade that ensures that the revenue from the metal content of the lowest grade parcel included in a deposit will be at
least equal to the anticipated prime operating costs of producing this revenue. These costs include mining, milling, smelting, refining, selling and all transportation and administration costs. The
cut-off grade will vary greatly from property to property due to a range of factors, including deposit size and shape, metal content and prime cost structure.

Exchange Rate (U.S. $ to Cdn $):1.50

Long Term Metal Prices (U.S. $ per pound):Nickel $3.25, Copper $0.90, Zinc $0.50

Minimum Mining Width:The smallest horizontal thickness used in an estimation based on the selected mining method and the minimum opening size required
by mining equipment used. The grade across this minimum width must equal or exceed the cut-off grade.

Mining Dilution:(1) All external material with grades lower than the cut-off grade that must be removed with the ore. The
amount of this diluting material can vary considerably and depends upon mining method and the location, attitude, size, shape and wall rocks of the ore zone.

Mining Recovery:(1) The proportion of the ore that is extracted after accounting for mining losses. The mining recovery can vary widely
both within a single mine and from property to property due to a range of factors including deposit geometry and mining method.

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Note:

CURRENCY

All references in this annual information form to "dollars" or "$" are to Canadian dollars, unless otherwise indicated.

METRIC/IMPERIAL CONVERSION TABLE

The imperial equivalents of the metric units of measurement used in this annual information form are as follows:

Metric Unit

Imperial Equivalentgram

0.03215 troy ounceshectare

2.4711 acreskilogram

2.2046223 poundskilometre

0.62139 milesmetre

3.2808 feettonne

1.1023 short tons


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FALCONBRIDGE LIMITED

Overview

Falconbridge Limited (the "Corporation") is the continuing corporation resulting from the amalgamation under theBusiness Corporations
Act(Ontario) on June 22, 1994 of several companies including a company also named Falconbridge Limited. Predecessors of the Corporation have carried on business under
the Falconbridge Limited name since 1928. The registered and principal office of the Corporation is at BCE Place, Suite 200, 181 Bay Street, Toronto, Ontario, M5J 2T3.

At
December 31, 2002, Noranda Inc. ("Noranda") owned, directly and indirectly, approximately 59.5% and public shareholders owned approximately 40.5% of the outstanding
common shares of the Corporation.

The
Corporation's articles of amalgamation were amended on March 5, 1997 to provide for the issuance of cumulative preferred shares series 1, 2 and 3. On March 7,
1997 the Corporation completed the issue of 8,000,000 units, each unit consisting of one cumulative preferred share series 1 and one cumulative preferred share series 2 purchase
warrant. The holder of a unit was entitled, on each of September 1, 1998, December 1, 1998 and March 1, 1999, to acquire one cumulative preferred share series 2 upon the
exercise of the warrant and the payment of $15.00 and the concurrent conversion of the cumulative preferred share series 1 into a cumulative preferred share series 2. At
December 31, 2002, there were 89,835 cumulative preferred shares, series 1, and 7,910,165 cumulative preferred shares, series 2, issued and outstanding. In 2004, the
cumulative preferred shares series 2 will be convertible into cumulative preferred shares series 3.

The
Corporation and its subsidiaries (collectively, "Falconbridge") are engaged in the exploration, development, mining, processing and marketing of metals and minerals. Falconbridge is
also engaged in the custom feed business through the processing and recycling of third-party materials. Falconbridge has mining and mineral processing facilities in Canada (Sudbury Operations, Raglan,
Kidd Creek Operations), Norway (Nikkelverk), the Dominican Republic (Falcondo) and Chile (Collahuasi and Lomas Bayas).

In
April 2002, the Corporation and Noranda agreed to combine certain of their respective management functions. As a result there are a number of officers of the Corporation who
are also officers of Noranda and a number of the functions of each company that are managed jointly.

Falconbridge's
principal products are nickel, ferronickel, copper, zinc and cobalt. Other products include silver, gold, platinum group metals, cadmium, indium and sulphuric acid.
Falconbridge markets and sells nickel and cobalt and certain other products through marketing and sales offices in Canada, the United States, Belgium and Japan. In 2002, approximately 42% of
Falconbridge's revenues were from sales of nickel and ferronickel, 41% from sales of copper, 8% from sales of zinc, 3% from sales of cobalt and 6% from sales of other products.

The
Corporation believes that Falconbridge is the third-largest producer of refined nickel in the world. Approximately 32% of Falconbridge's combined nickel and ferronickel sales are
used in the manufacture of stainless steel. Approximately 58% of Falconbridge's 2002 combined nickel and ferronickel sales by volume were to customers in Europe, 18% to customers in the
United States and the balance to customers in Japan, Canada, Mexico, Latin America, Southeast Asia and Korea.

Corporate Strategy and Business Developments

Falconbridge's strategy remains focused on the exploration, development and production of nickel and copper metals.



At the Sudbury Mines/Mill and Kidd Mining Division, Falconbridge's focus during the past three years has been on the development of higher grade mines and
initiatives to reduce operating costs. The Fraser and Strathcona mine rationalization program was completed during this period. The second phase of the development of the Kidd Mining Division's
No. 3 mine was completed in 2002. The development of the Kidd Mining Division's Mine D was approved during this period.

During
the last three years, the capacity of the smelter at the Kidd Metallurgical Division was expanded from 148,000 to 150,000 tonnes of blister copper per year, the copper refinery
capacity was expanded from

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145,000
to 147,000 tonnes of copper cathode per year and the zinc plant capacity from 146,000 to 147,000 tonnes of zinc per year. Raglan increased its annual rate of milled tonnage from 800,000 to
1 million tonnes of ore and completed an optimization plan to increase mill capacity from 2,400 to 3,000 tonnes of ore throughput per day. During this period, Collahuasi completed a preliminary
feasibility study regarding the transfer of mining activity from the Ujina to the Rosario orebody and a bankable feasibility study to increase concentrator throughput. In 2002, the decision to proceed
with the expansion of the concentrator was made and construction at the site began in November 2002.

Exploration
on Falconbridge's land holdings has continued over the past three years. At the Sudbury Operations exploration programs conducted in 2001 and 2002 have resulted in the
discovery of a new mineral resource at Nickel Rim South. Falconbridge's business development group continued to search for new opportunities for growth in nickel, platinum group metals and advanced
copper projects during this period.



In 2002, Falconbridge completed a three-year program to improve the performance of the tailings management system at the Kidd Metallurgical Division.
In 2001, construction of Pond E was completed at a cost of $5.25 million and Pond E was commissioned in February 2002. The settling pond is expected to increase capacity for settling
metals and suspended solids during extreme weather events. In the past, extreme weather events have led to some exceedances over the allowable discharge of metals and suspended solids.

Also
during 2002, Raglan commissioned a project to recycle 100% of the mill effluent water. Recycling will ensure compliance with provincial regulations, including effluent toxicity
which has been a seasonal problem. The management of water originating from mine pit operations is currently the subject of a study to improve practices that will simplify operations affected by
extreme seasonal variations. This is expected to lead to improved performance and lower operating costs for current and future mine developments.



Since January 1, 2000, Falconbridge's capital and project expenditures have totaled $955.7 million, including $352.4 million at the Kidd
Creek Operations, $134.6 million at Collahuasi, $130.9 million at Raglan, $108.9 million at the Sudbury Operations, $96.6 million on the Koniambo project,
$73.8 million at Falcondo, $32.8 million at Nikkelverk, $18.9 million at Lomas Bayas, and $6.8 million at other locations.

During
the same period, Falconbridge spent $119.0 million on exploration and $57.8 million on research and development.

In
2001, Falconbridge completed the acquisition of Lomas Bayas for a cash payment of $100.7 million. See "Business of Falconbridge  Lomas
Bayas".

In
the last three years, Falconbridge's consolidated long-term debt increased by $447.5 million. Long-term debt increased primarily as a result of the
issue of $558.4 million principal amount of debentures by the Corporation, the acquisition of Lomas Bayas and its outstanding debt of $161.8 million, the net repayment of
$179.6 million of indebtedness outstanding under the Corporation's bank credit facilities and commercial paper program, the repayment of $213.8 million and $23.9 million in bank
loans by Collahuasi and Lomas Bayas respectively. The balance of the increase is primarily due to changes over the last three years in the Canadian/U.S. exchange rate.



The United States Department of Justice has convened a grand jury to investigate possible criminal antitrust violations by Falconbridge, Noranda and other
sulphuric acid producers in the United States. To the Corporation's knowledge, no decision has been made by the Department of Justice as to whether it will bring charges or close the
investigation. In addition, several federal and state class action suits have been filed in the United States alleging antitrust violations in connection with the sale of sulphuric acid in the
United States by Noranda, Falconbridge and NorFalco LLC (a joint venture owned 65% by Noranda and 35% by Falconbridge that markets, transports and distributes sulphuric acid in North
America). The complaints allege that Noranda, Falconbridge and NorFalco LLC conspired with certain alleged co-conspirators to fix the price of sulphuric acid in the
United States. In each action, the plaintiffs claim prices for sulphuric acid were artificially inflated and therefore the plaintiffs paid more than they otherwise would have paid for sulphuric
acid in the absence of the

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alleged
price fixing conspiracy. Each complaint seeks unspecified treble damages, attorney fees and costs. Falconbridge denies engaging in any such conspiracy and has asserted that its actions
relating to the sale of sulphuric acid during the period in question were lawful. Falconbridge intends to vigorously defend these actions.

Organizational Chart

The principal direct and indirect subsidiaries of the Corporation and the jurisdictions in which they were incorporated or organized are set out below:

GRAPHIC

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Notes:

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BUSINESS OF FALCONBRIDGE

Falconbridge operates in one industry  the exploration, development, mining, processing and marketing of mineral products.
These activities are conducted through six segments  the Integrated Nickel Operations, Kidd Creek Operations, Falcondo, Collahuasi, Lomas Bayas and Corporate.
All are 100% owned except for Falcondo and Collahuasi which are 85.26% and 44% owned, respectively.



Integrated Nickel Operations

Sudbury Operations

The Sudbury Operations consist of the Sudbury Mines/Mill and Sudbury Smelter.

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The Corporation has been mining nickel/copper ores in the Sudbury area of northern Ontario since 1929. The Sudbury Mines/Mill principal nickel/copper producing
properties in the Sudbury area are located in the Townships of Falconbridge, Levack, Garson, Dowling, Blezard and Denison. The properties comprise
2,670 hectares owned by the Corporation and 14 hectares held under two licences of occupation of mining rights from the Province of Ontario. The licences of occupation are held in perpetuity.

Sudbury
Mines/Mill operates four underground nickel/copper mines in the Sudbury area: the Craig, Fraser, Lindsley and Lockerby mines. In 2002, the Craig mine provided 43% of Sudbury
Mines/Mill's ore production.

Total
mine production for 2002 was 3.7% higher than planned while nickel grades were approximately the same as planned.

In
July 2002, the Ontario Ministry of Labour laid charges against the Corporation under the Occupational Health and Safety Act with respect to the underground fatality of an
employee that occurred in July 2001 at the Fraser mine at Sudbury Mines/Mill. A trial of the action is expected to be scheduled for later in 2003.



The Sudbury Mines/Mill's mineral reserves and mineral resources as at December 31, 2001 and December 31, 2002 were as follows:

|                                                   |  |        |  |      |  |      |  | Changes in 2002 (tonnes) |   |       |   |        |  |     
|-------------------------------------------------- |  | ------ |  | ---- |  | ---- |  | ------------------------ | - | ----- | - | ------ |  | ----
|
|
|
|
|Mineral Reserves(1)                                |  |        |  |      |  |      |  |                          |   |       |   |        |  |     
|Proven                                             |  | 9,906  |  | 1.51 |  | 1.28 |  | (2,076                   | ) | 84    |   | 7,914  |  | 1.45
|Probable                                           |  | 7,113  |  | 1.30 |  | 1.32 |  | (76                      | ) | 2,175 |   | 9,212  |  | 1.22
|                                                   |  |        |  |      |  |      |  |                          |   |       |   |        |  |     
|Total                                              |  | 17,019 |  | 1.42 |  | 1.30 |  | (2,152                   | ) | 2,259 |   | 17,126 |  | 1.33
|                                                   |  |        |  |      |  |      |  |                          |   |       |   |        |  |     
|Mineral Resources(in addition to Mineral Reserves) |  |        |  |      |  |      |  |                          |   |       |   |        |  |     
|Measured                                           |  | 164    |  | 1.63 |  | 0.90 |  | (10                      | ) | (69   | ) | 85     |  | 2.38
|Indicated                                          |  | 16,131 |  | 2.47 |  | 1.16 |  |                         |   | 617   |   | 16,748 |  | 2.38
|                                                   |  |        |  |      |  |      |  |                          |   |       |   |        |  |     
|Total                                              |  | 16,295 |  | 2.46 |  | 1.16 |  | (10                      | ) | 548   |   | 16,833 |  | 2.38
|                                                   |  |        |  |      |  |      |  |                          |   |       |   |        |  |     
|Inferred                                           |  | 15,300 |  | 1.80 |  | 2.04 |  |                         |   | 6,800 |   | 22,100 |  | 1.8 

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Note:

At planned operating rates, the mineral reserves at Sudbury Mines/Mill are equal to approximately eight years of production.



The ore from the Sudbury Mines/Mill's mines is crushed and ground and the nickel/copper-bearing sulphide minerals contained in the ore are separated from waste
materials at the Sudbury Mines/Mill's Strathcona mill to produce nickel/copper concentrate and copper concentrate. The Strathcona mill has a capacity of approximately 10,000 tonnes of ore per day.

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The
copper concentrate from the Strathcona mill is delivered to the Kidd Metallurgical Division's mineral processing facilities for smelting and refining. See "Kidd Creek
Operations  Kidd Metallurgical Division". The nickel/copper concentrate from the Strathcona mill is delivered to Sudbury Smelter for smelting.

The
annual production of the Sudbury Mines/Mill for the two years ended December 31, 2002 was as follows:

|                            |  |           |  | 2002      |  | 2001  
|--------------------------- |  | --------- |  | --------- |  | ------
|
|Ore milled from all sources |  | 2,295,000 |  | 1,946,000
|Mine output in concentrate  |  |  nickel  |  | 27,800    |  | 25,200
|                            |  |  copper  |  | 31,100    |  | 22,900
|                            |  |  cobalt  |  | 690       |  | 630   



The mineral processing facilities operated by Sudbury Smelter include a smelter and a sulphuric acid plant. The smelter processes concentrates and other feed
material containing nickel, copper, cobalt, silver, gold and platinum group metals. In 2002, the smelter treated all of the nickel/copper concentrates from the Sudbury Mines/Mill and all the
concentrate from Raglan, as well as a variety of metal bearing, secondary, recyclable and intermediate feedstocks from third parties and smaller amounts of concentrates from third parties.

Sudbury
Smelter produces a matte containing nickel, copper and cobalt, as well as silver, gold and platinum group metals. The Sudbury Smelter has the capacity to produce approximately
130,000 tonnes of matte per year. The roaster gas from the smelter operation is treated in an adjacent plant to produce sulphuric acid thereby reducing sulphur dioxide emissions to the natural
environment. The sulphuric acid plant has the capacity to produce approximately 300,000 tonnes of sulphuric acid per year. The Sudbury Smelter's output of sulphuric acid is purchased for resale by a
subsidiary of Noranda (which is partly owned by Falconbridge) that markets, transports and distributes sulphuric acid in North America.

The
matte produced by the Sudbury Smelter is shipped by rail to Quebec City and by sea to the Nikkelverk refinery for further processing. See "Business of
Falconbridge  Integrated Nickel Operations  Nikkelverk".

The
annual production of the Sudbury Smelter for the two years ended December 31, 2002 was as follows:

|                         |               |          |        | 2002    |        | 2001  
|------------------------ | ------------- | -------- | ------ | ------- | ------ | ------
|
|Smelter output of nickel |               |          |        |        
|                         | Sudbury mines |          | 28,300 |         | 24,600
|                         | Raglan        |          | 25,200 |         | 26,900
|                         | Custom feed   |          | 4,400  |         | 3,400 
|                         |               |          |        |         |        |       
|                         | Total         |          | 57,900 |         | 54,900
|                         |               |          |        |         |        |       
|Smelter output of copper |               |          |        |        
|                         | Sudbury mines |          | 11,200 |         | 8,900 
|                         | Raglan        |          | 6,600  |         | 7,200 
|                         | Custom feed   |          | 2,700  |         | 1,800 
|                         |               |          |        |         |        |       
|                         | Total         |          | 20,500 |         | 17,900
|                         |               |          |        |         |        |       
|Smelter output of cobalt |               |          |        |        
|                         | Sudbury mines |          | 690    |         | 590   
|                         | Raglan        |          | 370    |         | 420   
|                         | Custom feed   |          | 900    |         | 780   
|                         |               |          |        |         |        |       
|                         | Total         |          | 1,960  |         | 1,790 
|                         |               |          |        |         |        |       
|Copper concentrate       |               |  nickel |        | 90      |        | 60    
|                         |               |  copper |        | 21,700  |        | 14,000
|Sulphuric acid           |               | 246,800  |        | 224,600

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Raglan



The Raglan property is located 105 kilometres south of the northern tip of the Ungava (Nunavik) Peninsula in the Province of Quebec, approximately
1,800 kilometres north of Montreal. The property comprises 1,226 map-designated claims covering 48,655 hectares and six 20-year mining leases covering 441
hectares. The first of the leases expires in June 2016. All are renewable for three 10-year terms, provided that mining has taken place for at least two of the preceding ten years.
The property is owned by Société minière Raglan du Québec ltée, an indirect wholly-owned subsidiary of the Corporation.

Falconbridge
has explored the Raglan property since the 1960s. Development of the Raglan mine site at Katinniq began in 1996 following receipt of environmental approvals and the
conclusion of agreements with Makivik Corporation (the representative of the local Inuit population) and the Province of Quebec regarding infrastructure funding. The Raglan facilities include
underground mine development and open pits, a concentrator, a power plant, accommodation and administration buildings, fresh water supply and fuel storage tanks. The facilities are linked by
all-weather roads to an airstrip at Donaldson and to concentrate storage and shiploading facilities at Deception Bay, 100 kilometres from Katinniq. Raglan concentrate is transported
by ship to unloading, storage and rail load-out facilities in Quebec City.

Commercial
production at Raglan began in 1998. Raglan's annual production capacity is 1,000,000 tonnes per year of ore milled.



Raglan's mineral reserves and mineral resources as at December 31, 2001 and December 31, 2002 were as follows:

|                                                   |  |        |  |      |  |      |  | Changes in 2002 (tonnes) |   |      |   |        |  |     
|-------------------------------------------------- |  | ------ |  | ---- |  | ---- |  | ------------------------ | - | ---- | - | ------ |  | ----
|
|
|
|
|Mineral Reserves(1)                                |  |        |  |      |  |      |  |                          |   |      |   |        |  |     
|Proven                                             |  | 7,136  |  | 3.05 |  | 0.81 |  | (869                     | ) | 424  |   | 6,691  |  | 3.04
|Probable                                           |  | 12,404 |  | 2.76 |  | 0.78 |  |                         |   | (986 | ) | 11,418 |  | 2.78
|                                                   |  |        |  |      |  |      |  |                          |   |      |   |        |  |     
|Total                                              |  | 19,540 |  | 2.87 |  | 0.79 |  | (869                     | ) | (562 | ) | 18,109 |  | 2.88
|                                                   |  |        |  |      |  |      |  |                          |   |      |   |        |  |     
|Mineral Resources(in addition to Mineral Reserves) |  |        |  |      |  |      |  |                          |   |      |   |        |  |     
|Measured                                           |  |       |  |     |  |     |  |                         |   | 289  |   | 289    |  | 1.62
|Indicated                                          |  | 3,066  |  | 1.93 |  | 0.70 |  |                         |   | (479 | ) | 2,587  |  | 1.98
|                                                   |  |        |  |      |  |      |  |                          |   |      |   |        |  |     
|Total                                              |  | 3,066  |  | 1.93 |  | 0.70 |  |                         |   | (190 | ) | 2,876  |  | 1.95
|                                                   |  |        |  |      |  |      |  |                          |   |      |   |        |  |     
|Inferred                                           |  | 2,600  |  | 2.60 |  | 0.89 |  |                         |   | 800  |   | 3,400  |  | 2.7 

---

Note:

At planned operating rates, the mineral reserves at Raglan are equal to approximately 18 years of production.



The ore from the Raglan mine is crushed, ground and treated at the Raglan mill in Katinniq to produce nickel/copper concentrate. The current capacity of the mill
is 3,000 tonnes of ore throughput per day.

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Raglan concentrate is trucked to Deception Bay for marine shipment to Quebec City and then transported by rail to the Sudbury Smelter for treatment. There were six shipments from
Deception Bay during 2002. No shipping occurs from mid-March to early-June.

Raglan's
annual production for the two years ended December 31, 2002, was as follows:

|                           |  |          |  | 2002    |  | 2001  
|-------------------------- |  | -------- |  | ------- |  | ------
|
|Ore milled                 |  | 868,000  |  | 961,000
|Mine output in concentrate |  |  nickel |  | 24,600  |  | 24,600
|                           |  |  copper |  | 6,500   |  | 6,900 
|                           |  |  cobalt |  | 390     |  | 320   

Nikkelverk



Nikkelverk owns and operates a refinery and sulphuric acid plant at Kristiansand, Norway. The refinery processes the matte produced by the Sudbury Smelter as well
as custom feed from other sources. The Corporation believes that the Nikkelverk refinery is among the lowest cost nickel refineries in the western world.

The
Nikkelverk refinery uses a chlorine leach and electrowinning process developed by Falconbridge to separate and recover component metals. The process is cost-efficient in
the treatment of complex raw materials and achieves high productivity and recoveries. This efficiency allows greater flexibility in the sourcing and treatment of custom feed. The refinery has an
annual capacity of approximately 85,000 tonnes of nickel, 38,000 tonnes of copper and 4,500 tonnes of cobalt. Expansion of the refinery to 100,000 tonnes of nickel, 60,000 tonnes of
copper and 5,000 tonnes of cobalt per year or higher is possible when market conditions warrant. The sulphuric acid plant has a capacity of approximately 100,000 tonnes of sulphuric acid per year.

The
Nikkelverk refinery also treats the silver, gold and platinum group metals contained in the matte produced by Sudbury Smelter and the custom feed from other sources. Mattes from
Sudbury Smelter and from BCL Limited ("BCL") in Botswana were the main sources of nickel/copper feed materials for the Nikkelverk refinery in 2002. See
"FIL  Custom Feed".

The
production of platinum group metals grew in importance during 2002 as production volumes expanded. The Nikkelverk refinery produced approximately 355,000 ounces of platinum group
metals in 2002 compared with approximately 234,000 ounces in 2001.

The
Nikkelverk refinery's annual production for the two years ended December 31, 2002 was as follows:

|               |  | 2002   |  | 2001  
|-------------- |  | ------ |  | ------
|
|Nickel         |  | 68,500 |  | 68,200
|Copper         |  | 30,600 |  | 26,700
|Cobalt         |  | 4,000  |  | 3,300 
|Sulphuric acid |  | 89,900 |  | 86,400

The
Nikkelverk refinery operated at low levels during the third quarter of 2002 due to a shortage of feed from the feed suppliers and was shut down for three weeks in July/August, 2002.

FIL

FIL, through its offices in Bridgetown, Barbados and Brussels, Belgium is responsible for managing the INO's custom feed business outside Canada. Custom feed, or
third-party primary smelter production (matte) and secondary raw materials, provides a significant source of feed to the Sudbury Smelter and the Nikkelverk refinery. The availability of and profit
margins associated with the secondary raw materials processed at the Sudbury Smelter and the Nikkelverk refinery are largely a function of metal grade and the level and relationship of nickel, copper,
cobalt, silver, gold and platinum group metals prices.

12

---

The
custom feed processed at the Sudbury Smelter consists largely of nickel/copper/cobalt secondary raw materials. Most secondary raw materials are sourced on a spot basis or under
contracts of one to three years' duration. In 2002, Sudbury Smelter's output from secondary raw materials included 4,400 tonnes of nickel, 2,700 tonnes of copper and 900 tonnes of
cobalt.

In
1985, FIL entered into a long-term agreement with BCL to treat complex nickel/copper matte from BCL's smelter in Botswana. The BCL matte represented
approximately 49% of the nickel and copper-bearing custom feeds processed at the Nikkelverk refinery in 2002. Under the agreement, which was extended in 1998 to at least the end of 2010, BCL has
agreed to deliver approximately 13,000 to 16,000 tonnes of nickel in matte per year to the Nikkelverk refinery.

In
2002, custom feed represented approximately 25% of the nickel, 42% of the copper and 76% of the cobalt output at the Nikkelverk refinery.

Kidd Creek Operations

The Kidd Creek Operations consist of the Kidd Mining Division and the Kidd Metallurgical Division.



The Corporation has been mining the Kidd Creek copper/zinc deposits in Timmins, Ontario since 1966. The Kidd Mining Division's principal copper/zinc properties in
the Timmins area are located in Kidd Township, Porcupine Mining Division, Ontario. The properties owned by the Corporation comprise 14 patented half lots covering 896 hectares of freehold mining land.

The
Kidd Creek deposits are mined through two separate shafts, accessing mining areas known as the No. 1, 2 and 3 mines, which access progressively deeper levels. In 2002, the
No. 1 mine accounted for 40%, the No. 2 mine accounted for 10% and the No. 3 mine accounted for 50% of the Kidd Mining Division's mine ore production.

Ore
production has been decreasing as mining has progressed to deeper levels of the orebody. The Corporation anticipates that the Kidd Mining Division's annual ore production will
increase slightly from approximately 2.2 million tonnes in 2002 to approximately 2.4 million tonnes in 2003, 2004 and 2005.

In
2000, the Corporation approved the development of Mine D, the depth extension of the Kidd Creek orebody beyond the limits of the No. 3 mine at 6,800 feet (2,070 metres) to a
depth of 10,200 feet (3,100 metres). Production from Mine D is scheduled to begin in 2004 and production is expected to reach 550,000 tonnes in 2005.

In
2002, the Kidd Mining Division substantially completed the development of the second phase of its No. 3 mine. Production, which began late in 2001, contributed 490,000 tonnes
in 2002 and is expected to contribute 600,000 tonnes of ore annually when full production levels are reached in 2004.

The
Kidd Creek orebody is intersected by a number of major faults and other discontinuities. Mining and the resulting stress redistribution cause periodic ground adjustment along these
faults resulting in seismic activity. The Corporation has taken steps to minimize the impact of seismic activity on its Kidd Creek mining operations. These steps include the use of seismic monitoring
equipment and the development and use of safe and cost-effective mining systems and procedures. On occasion, a seismic event will occur which has the potential to cause personal injury,
equipment damage or production interruption. Such events have been infrequent.

13

---

The
Kidd Mining Division's annual production for the two years ended December 31, 2002 was as follows:

|                           |  |           |                   | 2002      |           | 2001   
|-------------------------- |  | --------- | ----------------- | --------- | --------- | -------
|
|Ore hoisted                |  | 2,230,000 |                   | 1,977,000
|Mine output in concentrate |  |  copper  |                   | 45,400    |           | 42,300 
|                           |  |           |                   |  zinc    |           | 104,100
|                           |  |           |  silver (ounces) |           | 3,671,000 |        

In
November 2002, the Corporation plead guilty and was fined $225,000 for a charge under the Occupational Health and Safety Act (Ontario) in connection with a
September 2000 accident at the Kidd mine site where an employee, who was part of a four-person underground crew, was fatally injured during the removal and
re-installation of a section of pressurized air pipes.



The Kidd Mining Division's mineral reserves and mineral resources as at December 31, 2001 and December 31, 2002 were as follows:

|                                                   |  |        |  |      |  |      |  |    |  | Changes in 2002 (tonnes) |   |      |   |        |  |      |  |     
|-------------------------------------------------- |  | ------ |  | ---- |  | ---- |  | -- |  | ------------------------ | - | ---- | - | ------ |  | ---- |  | ----
|
|
|
|
|Mineral Reserves(1)                                |  |        |  |      |  |      |  |    |  |                          |   |      |   |        |  |      |  |     
|Proven                                             |  | 14,697 |  | 2.17 |  | 5.85 |  | 77 |  | (2,202                   | ) | 914  |   | 13,409 |  | 2.01 |  | 5.77
|Probable                                           |  | 10,285 |  | 2.25 |  | 6.98 |  | 54 |  |                         |   |     |   | 10,285 |  | 2.25 |  | 6.98
|                                                   |  |        |  |      |  |      |  |    |  |                          |   |      |   |        |  |      |  |     
|Total                                              |  | 24,982 |  | 2.20 |  | 6.32 |  | 68 |  | (2,202                   | ) | 914  |   | 23,694 |  | 2.11 |  | 6.30
|                                                   |  |        |  |      |  |      |  |    |  |                          |   |      |   |        |  |      |  |     
|Mineral Resources(in addition to Mineral Reserves) |  |        |  |      |  |      |  |    |  |                          |   |      |   |        |  |      |  |     
|Indicated                                          |  | 348    |  | 2.06 |  | 6.69 |  | 30 |  |                         |   | (248 | ) | 100    |  | 2.96 |  | 6.79
|Inferred                                           |  | 14,150 |  | 3.35 |  | 4.90 |  | 91 |  |                         |   | (50  | ) | 14,100 |  | 3.4  |  | 4.9 

---

Note:

At planned operating rates, the mineral reserves at Kidd Mining Division are equal to approximately 10 years of production. The proposed
development of Mine D is expected to extend the life of the Kidd Mining Division beyond 10 years.



The ore from the Kidd Mining Division is transported by a company-owned railway to the Kidd Metallurgical Division's mineral processing facilities located
27 kilometres southeast of the minesite. These facilities include a concentrator, a copper smelter and refinery, a zinc plant, a cadmium plant, a dust treatment plant (which recovers indium,
copper and zinc) and two sulphuric acid plants. The Kidd Metallurgical Division also operates, on a cost plus basis, a liquid sulphur dioxide plant in a joint venture with Chemtrade Ltd.

14

---

The
concentrator produces copper and zinc concentrates and treats all ores from the Kidd Mining Division in two of four available grinding/flotation circuits. The remaining two circuits
are available to process custom ore.

The
copper concentrate produced at Kidd, together with that shipped from the Sudbury Strathcona mill and other copper custom feeds, are fed into the smelter, which has the capacity to
produce 150,000 tonnes of blister copper per year. Custom feeds originating outside of the Corporation's Ontario operations comprised approximately 50% of copper smelter feed in 2002 and are expected
to be at a similar level in 2003.

The
blister copper produced at the smelter is either treated in the refinery, which currently has the capacity to produce 147,000 tonnes of copper cathode per year, or sold to outside
refineries, including Noranda. In addition to copper, the refinery produces substantial amounts of silver containing anode slimes that are further toll refined by outside refineries, including
Noranda's CCR refinery for precious metal recovery.

The
zinc plant has the capacity to produce 147,000 tonnes of zinc per year. This capacity is sufficient to process the Kidd Metallurgical Division's zinc concentrates and custom feed
from other sources. Custom feed comprised approximately 30% of the total zinc plant feed in 2002 and is expected to comprise approximately 40% in 2003.

The
Corporation has an agreement with Noranda, whereby Noranda acts as the sales agent for all products, other than sulphuric acid, anode slimes and indium, produced by the Kidd
Metallurgical Division. Under this agreement, which may be terminated on 12 months' notice, an annual marketing fee is paid. In addition, all of the sulphuric acid produced by Kidd
Metallurgical Division is purchased for resale by a subsidiary of Noranda (which is partly owned by Falconbridge).

In
June 2002, the Corporation plead guilty to four charges laid under the Environmental Protection Act (Ontario) and agreed to a fine of $16,000. The charges relate to effluent
discharge limits for zinc, copper and suspended solids that were exceeded in 1999. A total of 12 other charges were withdrawn.



The Kidd Metallurgical Division purchases a variety of primary and secondary copper and zinc-bearing materials on both a long and
short-term basis. Suppliers of these materials include the Noranda group of companies.

The
Corporation has an agreement for the supply of zinc concentrate from Billiton Metals Canada Inc.'s Selbaie mine/mill facility in northern Quebec and sources additional zinc
concentrates from other suppliers. The Kidd Metallurgical Division also has agreements to process copper concentrate shipped from Collahuasi, and sources additional concentrates from Minera Escondida
Limitada, Minera Alumbrera Limitada and others. These shipments, together with concentrates produced from the Kidd Mining Division's ores, should enable the zinc and copper plants to operate at
capacity.

Both
copper and zinc operations of the Kidd Metallurgical Division evaluate the economics of custom feeds on an ongoing basis to ensure financial viability as part of the process to
determine, confirm or modify annual operating plans. In addition, copper and zinc concentrates are sometimes sold when overall economics are favorable.

The
Kidd Metallurgical Division's production for the two years ended December 31, 2002 was as follows:

|                                 |  | 2002    |  | 2001   
|-------------------------------- |  | ------- |  | -------
|
|Zinc refinery output             |  | 145,300 |  | 140,100
|Copper cathode  refinery output |  | 146,500 |  | 127,800
|Blister copper                   |  | 144,100 |  | 132,100
|Sulphuric acid                   |  | 584,200 |  | 514,300

Production
records were established for refined zinc production, blister copper and copper cathode production in 2002 and the smelter also achieved its best ever on-line
time. The copper smelter conducted a

15

---

shortened
7-day maintenance shutdown in September 2002 and deferred some repairs to a 3-week maintenance shutdown planned for the second quarter of 2003. Zinc operations
undertook a 12-day maintenance outage in 2002.

In
April 2003, the Corporation announced that the zinc refinery operations will shut down for 13 weeks during the summer as a result of persistently low treatment charges
combined with recent changes in currency exchange rates and higher costs relative to Falconbridge's concentrate purchase and metal sales positions. This represents an extension to the shutdown of
eight weeks previously announced in February 2003. The Corporation will continue to re-evaluate market forecasts and the profitability of the Kidd Metallurgical Division's zinc
business.

Falcondo

The Corporation owns 85.26% of the outstanding shares of Falcondo. Of the balance, the Government of the Dominican Republic owns approximately 10%, Redstone
Resources Inc. owns approximately 4.1% and various individuals own the remainder. Falcondo holds a mining concession and owns mining and mineral processing facilities for the production of
ferronickel located near the town of Bonao, approximately 80 kilometres northwest of Santo Domingo, Dominican Republic.



Falcondo has been mining and processing nickel laterite ore in the Dominican Republic since 1971. Falcondo's mining concession covers approximately 24,100
hectares. Falcondo owns 4,831 hectares, 4,771 of which are inside the mining concession and include the mining areas and the mineral processing facilities, and 60 of which are outside the mining
concession and include the townsite at Bonao. The term of the mining concession is for an unlimited period.

Mining
at Falcondo is carried out from the surface using bulldozers, loaders and trucks. Falcondo's total mine production for the year ended December 31, 2002, as obtained through
a metallurgical balance calculation, was 3,040,600 tonnes of ore at an average nickel grade of 1.23%.



Falcondo's mineral reserves and mineral resources as at December 31, 2001 and December 31, 2002 were as follows:

|                                                   |  | December 31, 2001 |  | Changes in 2002 (tonnes) |  | December 31, 2002
|-------------------------------------------------- |  | ----------------- |  | ------------------------ |  | -----------------
|
|
|
|Mineral Reserves(1)                                |  |                   |  |                          |  |                  
|Proven                                             |  | 48,982            |  | 1.18                     |  | (3,041           
|Probable                                           |  | 11,716            |  | 0.96                     |  |                 
|                                                   |  |                   |  |                          |  |                  
|Total                                              |  | 60,698            |  | 1.14                     |  | (3,041           
|                                                   |  |                   |  |                          |  |                  
|Mineral Resources(in addition to Mineral Reserves) |  |                   |  |                          |  |                  
|Indicated                                          |  | 13,840            |  | 1.53                     |  |                 
|Inferred                                           |  | 6,400             |  | 1.41                     |  |                 

---

Note:

At planned operating rates, mineral reserves at Falcondo are equal to approximately 15 years of production.

16

---



The ore mined at Falcondo is milled, smelted and refined at Falcondo's mineral processing facilities which have a capacity of approximately 29,000 tonnes of
nickel contained in ferronickel per year. The facilities include a metallurgical treatment plant, a crude oil processor and a 200 megawatt thermal power plant. In 2002, Falcondo sold 62,138 megawatts
of excess power produced at the power plant through the national electricity grid. Falcondo has dock facilities and a crude oil tank farm at the port of Haina (near Santo Domingo) and a
70-kilometre crude oil pipeline from the port to its mineral processing facilities. Falcondo's production of nickel in ferronickel for the two years ended December 31, 2002 and 2001
was 23,303 tonnes and 21,662 tonnes, respectively.

As
a result of declining ferronickel prices and the high price of crude oil Falcondo was shutdown from October 2001 to January 2002. General maintenance work on the plant
facilities was carried out during the shutdown.

In
December 2002, production at Falcondo was restricted because of required maintenance at the power plant and a shortage of oil caused by the Venezuelan national strike. Falcondo
secured new oil supplies and the restriction in production was limited to a few days in January 2003 after which full production resumed.

Marketing
and sales of ferronickel produced at Falcondo are conducted through Falconbridge U.S., Inc., Falconbridge Europe S.A. and Falconbridge (Japan) Ltd.

Collahuasi



Falconbridge and Anglo American Plc each own a 44% interest in Collahuasi. A Japanese consortium of Mitsui and Co., Nippon Mining and
Metals Co. and Mitsui Mining and Smelting Co. holds the remaining 12% interest.

Capital
expenditures of U.S.$l,792 million were required to bring the Collahuasi operation into commercial production. Total capital requirements incurred at Collahuasi, including
working capital, were approximately U.S.$1,870 million. These expenditures were financed through a combination of third party debt and equity and subordinated loans from Collahuasi's
shareholders.



The Collahuasi property covers 380 exploitation concessions over 110,710 hectares and 85 exploration concessions over 41,800 hectares. The property is located in
northern Chile, about 180 kilometres southeast of the port of Iquique. The Collahuasi operation sites are serviced by an airstrip and roads linking them to Calama and Iquique.

The
Collahuasi property contains two separate porphyry copper deposits known as Ujina and Rosario, each with important secondary enrichment zones, and the exotic copper deposit
Huinquintipa located downstream from the Rosario deposit. In addition to the porphyry copper deposits, which have not been delineated at depth, the property contains high grade copper/silver vein
systems at the adjacent deposit of La Grande.

The
Collahuasi facilities include a 60,000 tonne per day concentrator at Ujina, a copper oxide leaching plant, an oxide solvent extraction/electrowinning plant, a concentrate pipeline,
dewatering plant and port at Punta Patache, 65 kilometres south of Iquique, and other project infrastructure. Production will average 350,000 tonnes per year of copper in concentrate and 50,000
tonnes per year of copper cathode during the initial 10 years of mine life. The mine site is serviced under a 20-year power supply contract with Empresa Nacional de
Electricidad S.A., a Chilean electric utility company, which has constructed a 150 megawatt coal-fired generating station at Punta Patache and 180 kilometres of high voltage
transmission lines to the Ujina site.

The
Collahuasi property is located in a high altitude desert area, or Altiplano, 4,300 metres above sea level. Collahuasi holds licences which permit it to extract and use the 850 litres
of water per second required for production from two nearby subterranean reservoirs at Coposa and Michincha.

17

---



Commercial production at the Collahuasi operation began in 1999.

During
2002, 130.2 million tonnes of raw material was mined, 25.2 million tonnes of ore was milled at the concentrator and 5.4 million tonnes of ore was processed at
the copper oxide leaching plant. Falconbridge's share of the copper produced by Collahuasi during 2002 was 26,700 tonnes of cathode copper and 158,300 tonnes of copper in concentrate. A new SAG mill
pebble crushing plant was successfully commissioned in 2001. This facility significantly mitigates the effect of hard ore on concentrator throughput rates.

In
2001, a bankable feasibility study relating to the transfer in 2004 of mining activities from the Ujina orebody to the Rosario orebody and the expansion of the concentrator milling
capacity to 110,000 tonnes per day was completed. The transition to Rosario includes the construction of an overland conveyor to transport sulphide ore to the concentrator. A final decision on the
expansion of the concentrator was made and detailed engineering commenced in May 2002. Construction activities at the site began in November 2002. Prestripping at the Rosario pit began
in July 2002. The Rosario infrastructure facilities, including offices, maintenance workshop and dewatering pumps, were completed by year end. Total capital expenditures associated with the
transition and the concentrator expansion project were estimated to be U.S.$654 million, with Falconbridge's 44% share of this cost totalling U.S. $288 million.



Collahuasi's mineral reserves and mineral resources as at December 31, 2001 and December 31, 2002 were as follows:

|                                                   |  |           |  |      |  | Changes in 2002 (tonnes) |   |          |   |          
|-------------------------------------------------- |  | --------- |  | ---- |  | ------------------------ | - | -------- | - | ---------
|
|
|
|
|Mineral Reserves                                   |  |           |  |      |  |                          |   |          |   |          
|Proven                                             |  | 321,508   |  | 1.05 |  | (22,097                  | ) | 10,843   |   | 310,254  
|Probable                                           |  | 1,546,150 |  | 0.90 |  | (8,593                   | ) | (9,063   | ) | 1,528,494
|                                                   |  |           |  |      |  |                          |   |          |   |          
|Tota1(2)                                           |  | 1,867,658 |  | 0.93 |  | (30,690                  | ) | 1,780    |   | 1,838,748
|                                                   |  |           |  |      |  |                          |   |          |   |          
|Mineral Resources(in addition to Mineral Reserves) |  |           |  |      |  |                          |   |          |   |          
|Measured                                           |  | 203,215   |  | 0.70 |  |                         |   | (155,010 | ) | 48,205   
|Indicated                                          |  | 275,853   |  | 0.57 |  |                         |   | 153,913  |   | 429,766  
|                                                   |  |           |  |      |  |                          |   |          |   |          
|Total                                              |  | 479,068   |  | 0.63 |  |                         |   | (1,097   | ) | 477,971  
|                                                   |  |           |  |      |  |                          |   |          |   |          
|Inferred                                           |  | 1,840,000 |  | 0.72 |  |                         |   |         |   | 1,840,000

---

Notes:

At planned operating rates, mineral reserves at Collahuasi are equal to approximately 44 years of production.

Lomas Bayas

In 2001, Falconbridge acquired 100% of the Lomas Bayas copper mine and adjacent Fortuna de Cobre copper deposit from Boliden Limited for a cash payment of
$100.7 million. Falconbridge will also pay

18

---

U.S.$15 million
if it exercises its right to retain the Fortuna de Cobre deposit before the fifth anniversary of closing.

Property and Mines

The Lomas Bayas mine comprises seven exploitation concessions covering approximately 2,022 hectares. The Fortuna de Cobre deposit comprises 11 exploitation
concessions covering approximately 1,217 hectares. Falconbridge also holds 20 exploitation concessions and six exploitation concession applications covering approximately 4,933 hectares between the
Lomas Bayas mine and the Fortuna de Cobre deposit, as well as 53 exploration concessions covering an area around the Fortuna de Cobre deposit.

The
Lomas Bayas mine is located in the Second Region of Chile, approximately 110 kilometres northeast of the port city of Antofagasta. The mine is situated at an altitude of 1,500
metres in the Atacama desert. The Fortuna de Cobre deposit is situated 3 kilometres to the south of the Lomas Bayas mine.



Lomas Bayas currently operates one open pit mine. Heap leach grade ore is crushed and then placed on leach pads by a series of portable conveyors and a stacking
system. Lower grade ore that does not economically justify the cost of crushing and additional handling is placed directly on separate leach pads by mine haulage trucks. Solutions containing sulphuric
acid are then applied to leach the ores and copper recovery occurs by a solvent extraction-electrowinning process. The copper cathode is transported by truck and rail to the port at Antofagasta and
shipped to customers overseas. Lomas Bayas is serviced by the electrical grid of northern Chile under long-term contracts with a local electricity supplier.

In
2002, Lomas Bayas mined 26.7 million tonnes of ore from which 59,300 tonnes of copper cathode were produced.



Lomas Bayas' mineral reserves and mineral resources as at December 31, 2001 and December 31, 2002 were as follows:

|                                                   |  |         |  |      |  | Changes in 2002(1) (tonnes) |   |         |   |        
|-------------------------------------------------- |  | ------- |  | ---- |  | --------------------------- | - | ------- | - | -------
|
|
|
|
|Mineral Reserves                                   |  |         |  |      |  |                             |   |         |   |        
|Proven                                             |  | 90,904  |  | 0.37 |  | (8,556                      | ) | (4,434  | ) | 77,914 
|Probable                                           |  | 354,659 |  | 0.30 |  | (14,986                     | ) | (20,238 | ) | 319,435
|                                                   |  |         |  |      |  |                             |   |         |   |        
|Total                                              |  | 445,563 |  | 0.32 |  | (23,542                     | ) | (24,672 | ) | 397,349
|                                                   |  |         |  |      |  |                             |   |         |   |        
|Mineral Resources(in addition to Mineral Reserves) |  |         |  |      |  |                             |   |         |   |        
|Measured                                           |  | 11,741  |  | 0.28 |  |                            |   | 2,013   |   | 13,754 
|Indicated                                          |  | 140,247 |  | 0.28 |  |                            |   | 17,360  |   | 157,607
|                                                   |  |         |  |      |  |                             |   |         |   |        
|Total                                              |  | 151,988 |  | 0.28 |  |                            |   | 19,373  |   | 171,361
|                                                   |  |         |  |      |  |                             |   |         |   |        
|Inferred                                           |  | 73,500  |  | 0.26 |  | (3,160                      | ) | 3,060   |   | 73,400 

---

Note:

At planned operating rates, mineral reserves at Lomas Bayas are equal to approximately 14 years of production.

19

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Corporate

Exploration

The Falconbridge and Noranda exploration groups have been combined. The integrated team conducts worldwide exploration on behalf of Noranda and Falconbridge with
the focus of exploration for Falconbridge consisting of nickel and platinum group metals.

The
Falconbridge exploration group is organized around four activities:



The
mandate of the exploration group for Falconbridge is to:



Exploration
in support of existing operations in Canada is conducted from offices in Sudbury and at the Kidd Creek mine site and from a field office at the Raglan site. Greenfield
exploration in North America is carried out from offices in Laval, Quebec. International greenfield exploration is conducted from the Corporation's Toronto office and from offices in Brisbane,
Australia, Belo Horizonte, Brazil and Pretoria, South Africa and from a field office in Abidjan, Côte d'Ivoire. Administration, accounting, legal and technical support is provided from
the Toronto corporate office.

At
December 31, 2002, Falconbridge had a permanent exploration staff of 67, including 54 geologists and geophysicists.

Falconbridge's
exploration expenditures for the two years ended December 31, 2002 and its planned exploration expenditures for 2003 are as follows:

|                                     |       | 2003 |    | 2002 |    | 2001
|------------------------------------ | ----- | ---- | -- | ---- | -- | ----
|
|
|Support of core operations in Canada |       | 19   |    | 19   |    | 22  
|Exploration projects in Canada       |       | 4    |    | 5    |    | 5   
|Collahuasi                           |       |     |    |     |    | 1   
|Exploration projects outside Canada  |       | 6    |    | 10   |    | 12  
|                                     |       |      |    |      |    |     
|                                     | Total |      | 29 |      | 34 |     
|                                     |       |      |    |      |    |     



The Sudbury area is one of the world's largest sources of nickel and contains significant copper, cobalt, silver, gold and platinum group metals. In addition to
its operating mines, the Corporation has large property holdings covering favourable geology of the Sudbury Igneous Complex.

Exploration
programs conducted in 2001 and 2002 have resulted in the discovery of a new mineral resource at Nickel Rim South located 2.7 kilometres north of the airport at a depth
of approximately 1600 metres. Surface drilling to-date has defined an inferred resource consisting of 6.3 million tonnes of 1.7% nickel, 3.4% copper, 2.2 grams per tonne
platinum, 2.5 grams per tonne palladium and 1.5 grams per tonne gold. A decision whether or not to proceed with an underground exploration program will be made in 2003.

20

---

The
Corporation spent $11.9 million in 2002 on exploration in support of the Sudbury Operations and plans to spend $12.5 million in 2003. In addition, diamond drilling and
other exploration was carried out on certain
of the Corporation's properties by option and joint venture partners, who also have exploration programs planned for 2003.



A reduced exploration program in 2002 resulted in the discovery of approximately 250,000 tonnes of mineral reserves in two individual lenses at Zone 2 and
Katinniq. When added to the mining gains and losses, these discoveries replaced part of the annual production of 869,000 tonnes. In combination with production and other reserve write-downs the
overall mineral reserves decreased by 1.4 million tonnes in 2002.

The
Corporation spent $2.6 million in 2002 on exploration in support of the Raglan operation and plans to spend $4.4 million in 2003.



Exploration in the Timmins region in support of the Kidd Creek Operations focuses primarily on two areas: within the immediate area of the mine and in a 150
square kilometre area in the townships located north of Kidd mine. In addition, the Corporation conducts copper-zinc exploration joint ventures with other companies and focuses on areas
within 200 kilometres of the Kidd Metallurgical Division's facilities.

The
Corporation spent $2.7 million on its Timmins region exploration program in 2002 and plans to spend approximately $1.0 million in 2003. Regional exploration programs
are supplemented by additional funds supplied through joint venture initiatives with other companies.



Falconbridge is the operator of a joint venture with La Société pour le Développement Minier de la
Côte d'Ivoire, the state mining company of the Côte d'Ivoire, encompassing four significant nickel/cobalt bearing laterite deposits (Sipilou North, Foungouesso, Moyango
and Viala) and three other occurrences (Sipilou South, Yamatoulo and Touoba). The Corporation has an 85% interest in the project.

Exploration
work has identified an indicated resource of 123.9 million tonnes of 1.57% nickel and 0.10% cobalt plus an inferred resource of 134.2 million tonnes of 1.39%
nickel and 0.12% cobalt. Hydrometallurgical exploitation of the resources is potentially viable provided several key requirements can be satisfied, such as the development of a rail link to the coast.

Following
a coup d'état in December 1999, there has been a period of political turmoil in the Côte d'Ivoire that has included several changes in the
composition of the Cabinet, including three changes in the position of Minister of Mines and Energy. A civil war is presently being waged and the future political situation in the country continues to
be uncertain.



Greenfield exploration activity for nickel sulphide and platinum group metals ("PGMs") extends worldwide. The preferred exploration target is a
high-grade deposit with significant by-product credits. Joint venturing to spread risk and cost and to increase the level of focused activity is a continuing strategy.
Falconbridge and Impala Platinum Holdings Limited have formed a strategic alliance to jointly explore for PGMs. Under the terms of this five-year agreement, Falconbridge will
conduct grassroots exploration for new high quality PGM projects worldwide.

Exploration
efficiency continues to be improved by cost sharing arrangements with Noranda with respect to several offices. In addition to the exploration programs at the Corporation's
current operations, exploration projects are in progress in Canada, Africa, Australia, and Brazil.

21

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Koniambo Project, New Caledonia

In 1998, Falconbridge entered into a joint venture agreement with Société Minière du Sud Pacifique S.A. and
its controlling shareholder, Société de Financement et d'Investissement de la Province Nord, for the evaluation and development of a 60,000 tonne per year nickel in
ferronickel mining and smelting complex. The project is based on the Koniambo deposit located in the Northern Province of New Caledonia near the provincial capital of Kone. Falconbridge
has a right to earn a 49% interest in the project.

A
work program leading to the production of a bankable feasibility study began in the fourth quarter of 1998. The prefeasibility study was completed by the second half of 2002 and is
currently under review. Further geological drilling has been undertaken in order to delineate a minimum of 10 years of measured resources and 15 years of indicated resources at a 2.0%
nickel cut-off grade. This drilling was completed in February 2003 and analysis of the new data is expected to be completed in May 2003. An environmental impact assessment is
also expected to be issued by the end of the second quarter of 2003.

U.S.$20.3 million
was spent on the program in 2002, bringing the total expenditure to date to U.S.$87.5 million. It is expected that work on the bankable feasibility study
will begin in the second half of
2003 and be completed by mid-2004. Total project cost through to the completion of the bankable feasibility study is expected to be U.S.$123 million.

Montcalm Project, Canada

A feasibility study for the Montcalm nickel-copper property located near Timmins, Ontario is now underway and is tentatively scheduled for completion during the
second quarter of 2003. The study is based on an indicated mineral resource of 7.0 million tonnes grading 1.36% nickel and 0.67% copper and an inferred mineral resource of 0.7 million
tonnes grading 1.7% nickel and 0.70% copper. Montcalm has the potential to produce 5 million tonnes at a rate of 750,000 tonnes annually. The ore would be milled and concentrated at the Kidd
Metallurgical Division, and could contribute up to 8,000 tonnes annually to nickel output from the Sudbury smelter.

Business Development

The Falconbridge and Noranda business development groups have been combined. The group assesses new business opportunities worldwide on behalf of Falconbridge and
Noranda with the focus for Falconbridge on nickel, platinum group metals and advanced copper projects.

Technology



Falconbridge participates in a number of exploration research projects designed to decrease the cost of mineral exploration. Projects cover the areas of
geophysics, geology, geochemistry and remote sensing. The primary research thrust is to improve the radius of detection surrounding a drill hole, and this is being accomplished by financial support
for the development of the Lamontagne Geophysics UTEM IV high powered transmitter. The development of this instrument was completed in 2002 and field trials were carried out at exploration projects in
the Sudbury area. Final testing and optimization of the instrument prior to full production usage will be done early in 2003.

Investigations
into improving the detection of massive sulphide nickel deposits from the surface have continued with the development of innovative electromagnetic techniques. These
techniques have led to improved discrimination of targets in support of the Raglan operation. In addition, work on improved computer modelling and 3-D visualization of geophysical and
geological models continues.

Remote
sensing investigations continue to be focused on the use of hyperspectral imaging for direct nickel exploration and satellite multispectral imaging for regional geological
compilations. A large scale airborne hyperspectral survey was flown over projects in the Canadian Arctic during the 2002 summer field season.

Work
continues on application development for an exploration intranet designed to streamline management, administrative and clerical tasks.

22

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Falconbridge has metallurgical technology facilities in Sudbury, the Nikkelverk refinery, the Kidd Metallurgical Division and Falcondo. Research is conducted at
these facilities to provide mineral analyses, to develop new methods for treating ores and custom feeds, to improve nickel, copper, cobalt and zinc products and to develop environmentally sensitive
production technologies. The primary focus of research at Sudbury is on developing new technologies in hydrometallurgy and pyrometallurgy for both nickel laterites and sulphides. Pilot plant
facilities for metallurgical testing are located at Sudbury, the Nikkelverk refinery, the Kidd Metallurgical Division and Falcondo.

In
late 2002, the metallurgical technology groups of Noranda (Pointe-Claire, Quebec) and Falconbridge (Sudbury, Ontario) were brought closer together in order to benefit from all
available synergies. The primary technology site is located in Sudbury with a focus on the needs of the Nickel and the Copper South American business units. Other business units will receive support
on an as-needed basis. A financial structure has been set up to recover the project costs incurred by an operating site directly according to the resources provided by Falconbridge and
Noranda.

Expenditures
on research and process development for the two years ended December 31, 2001 and 2002 were $16.9 million and $12.9 million, respectively.

Employees

At December 31, 2002, Falconbridge employed 6,457 people, including 3,574 in Canada, 1,354 in the Dominican Republic, 511 in Norway, 417 at the Collahuasi
operation in Chile (which is 44% of the total employees at Collahuasi), 466 at Lomas Bayas in Chile and 135 in other countries.

Falconbridge
is a party to collective agreements with unions representing employees at a number of its operations, as described below:

|Operation                   |  | Employees Represented                                                                                             |  | Expiry Date       
|--------------------------- |  | ----------------------------------------------------------------------------------------------------------------- |  | ------------------
|Sudbury Operations          |  | Production and maintenance (National Automobile, Aerospace, Transportation and General Workers of Canada ("CAW")) |  | January 31, 2004  
|                            |  | Office, clerical and technical (United Steelworkers of America)                                                   |  | February 28, 2004 
|Kidd Metallurgical Division |  | Production and maintenance (CAW)                                                                                  |  | September 30, 2005
|Raglan                      |  | Production and maintenance (Syndicat de Métallos (FTQ), United Steelworkers of America)                           |  | April 30, 2006    
|Nikkelverk                  |  | Substantially all groups                                                                                          |  | May 31, 2004      
|Falcondo                    |  | Production and maintenance                                                                                        |  | November 30, 2005 
|Collahuasi                  |  | Production                                                                                                        |  | June 30, 2004     
|Lomas Bayas                 |  | Production (Operators)                                                                                            |  | April 30, 2006    
|                            |  | Supervisory, Technical, Professional, Administrative*                                                             |  | June 30, 2003     

---

*The Supervisory, Technical, Professional and Administrative employees at Lomas Bayas are not represented by a union but
have historically acted collectively when renegotiating their individual contracts of employment.

All other Falconbridge employees, including those at the Kidd Mining Division, are not represented by a union.

23

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PRINCIPAL PRODUCTS

Falconbridge's principal products are nickel, ferronickel, copper, zinc and cobalt. Other products include silver, gold, platinum group metals, cadmium, indium
and sulphuric acid.

Production,
consumption and inventory data relating to Falconbridge's principal products, end-uses of its products and the global markets for those products have been derived
from a number of sources:



Average
LME and Comex settlement prices for nickel, copper and zinc, and average prices for cobalt and other metals and products, are based on data published in Metal Bulletin or Metals
Week.

Although
Falconbridge believes that the published data reported in this annual information form, and the other information that formed the basis of its estimated statistical data
described above, is accurate, Falconbridge makes no representation as to the completeness, accuracy or currency of such information. In
particular, although data concerning the metals and stainless steel markets in the CIS, the People's Republic of China and other Eastern Bloc countries have become more readily available in recent
years, historical statistics in those markets tend to be less complete and, as a result, estimates based thereon are susceptible to variation.

Nickel

Nickel is a metal with characteristics of corrosion resistance, high strength over a wide range of temperatures and high ductility. The principal uses for nickel
are stainless steel, nickel-based alloys, electroplating, low alloy steel, foundry products and copper-based alloys, as well as miscellaneous uses such as batteries and catalysts.

Falconbridge
sells a wide range of nickel products, which satisfy almost all end-uses. Falconbridge produces a number of high purity forms of nickel at its Nikkelverk
refinery, including full plate cathode, cut cathode, SUPERELECTRO, crowns, D-crowns, microcrowns and D-microcrowns. It also produces a ferronickel cone product at
Falcondo.

In
2002, Falconbridge sold nickel and ferronickel to customers in 31 countries. The largest markets for these products are Western Europe, the United States and Asia/Pacific,
which in 2002 accounted for 58%, 18% and 22%, respectively, of Falconbridge's total nickel deliveries.

There
were 33 refined nickel producers of a significant size worldwide in 2002. RAO Norilsk Nickel and Inco Limited were the first and second-largest producers, respectively in
2002. Falconbridge believes that it was the third largest, accounting for approximately 8% of refined nickel production. Other major primary producers are Sté Eramet-SLN,
Billiton Plc, WMC Limited, Sumitomo Metal Mining Co. Limited, OM Group Inc., Pacific Metals Company Limited, and the Cmdte. Rene Ramos Latour Enterprise and Cmdte.
Ernesto Che Guevara Enterprise operations of Union del Niquel. Falconbridge believes that it was the third largest integrated producer of ferronickel in the world in 2002, after Sté
Eramet-SLN and Billiton Plc.

On
the basis of improved fundamentals, the nickel price rose 25% from the end of 2001 to reach U.S.$3.22 per pound at the end of 2002. World supply of refined nickel is estimated to have
grown by 3.3% in 2002, an increase of 38,000 tonnes. This was mainly the result of a return to normal output for some producers and

24

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continued
ramp-up of brownfield projects. World nickel consumption increased by 5.4% compared to 2001 as a result of growth in stainless steel production partly due to restocking and a
tight scrap supply. The positive effects of these two factors offset a decrease of 1.5% in the non-stainless sector. Western World stainless steel production growth of 5.3% was basically
at the long-term growth trend. Each of the stainless steel market areas experienced a turnaround in 2002. The non-stainless steel sectors were quite weak in 2002. In
particular, the high nickel alloy and battery markets were very weak due to not only poor demand, but also a destocking of inventory which was necessary to realign sales with production. Both the
aerospace and land based gas turbine markets have experienced a severe downturn, particularly in the United States. Consequently, the nickel market was in a slight deficit for 2002, as demand
growth caught up with supply. In addition, the nickel market was supported by Norilsk choosing to collaterize 60,000 tonnes of nickel it held in inventory for a period of three years as part of a loan
agreement. LME stocks ended the year at 21,972 tonnes, which the Corporation believes are quite low by historical standards.

World
nickel production, consumption and the resulting supply-demand balance for the three years ended December 31, 2002 were as follows:

|                                 |  | 2002  |   | 2001(1) |  | 2000(1) |  
|-------------------------------- |  | ----- | - | ------- |  | ------- | -
|
|World nickel production          |  | 1,184 |   | 1,146   |  | 1,096   |  
|Sales from government stockpiles |  | 0     |   | 0       |  | 0       |  
|                                 |  |       |   |         |  |         |  
|Total world supply               |  | 1,184 |   | 1,146   |  | 1,096   |  
|Less world nickel consumption    |  | 1,190 |   | 1,129   |  | 1,107   |  
|                                 |  |       |   |         |  |         |  
|Surplus (deficit)                |  | (6    | ) | 17      |  | (11     | )
|                                 |  |       |   |         |  |         |  

---

Note:

For 2003, the nickel market is forecast to continue in a deficit position. Western World stainless steel production growth is expected to be
slightly lower at 4.7%, as production rates moderate, particularly in the U.S., but new expansions scheduled to come on-line in 2003 will require more nickel units to fill pipeline
inventories. The non-stainless steel sectors are expected to experience a modest recovery, as many industries are believed to have bottomed in 2002.

Falconbridge's
production and purchases, sales of nickel in all forms, and the changes in Falconbridge's inventory of nickel for the three years ended December 31, 2002, were as
follows:

|                                 |  | 2002 |   | 2001 |  | 2000 |  
|-------------------------------- |  | ---- | - | ---- |  | ---- | -
|
|Production and purchases         |  | 92.3 |   | 89.8 |  | 88.9 |  
|Sales                            |  | 92.8 |   | 89.8 |  | 90.3 |  
|                                 |  |      |   |      |  |      |  
|Increase (decrease) in inventory |  | (0.5 | ) | 0.0  |  | (1.4 | )
|                                 |  |      |   |      |  |      |  
|Closing inventory                |  | 11.4 |   | 11.9 |  | 11.9 |  
|                                 |  |      |   |      |  |      |  

In
the nickel market, the LME settlement price is the benchmark for negotiating with customers. Premiums above the LME settlement price are negotiated based on product form and quality,
packaging, delivery terms, supply commitments, delivery location and current availability of the desired product. The highest premiums are generally secured from the plating industry for Falconbridge
crown products. While the LME settlement price is a reference price when negotiating ferronickel prices, the availability of external scrap and the value of iron credits also impact the outcome of
price negotiations.

25

---

The
average LME settlement prices and the average prices realized by Falconbridge for nickel for the three years ended December 31, 2002 were as follows:

|                                        |             | Average nickel prices
|--------------------------------------- | ----------- | ---------------------
|
|
|Average LME settlement price            |             | 3.07                 
|Average price realized by Falconbridge: |             |                      
|                                        | Nickel      |                      
|                                        | Ferronickel |                      

The
closing LME settlement price for nickel on December 31, 2002 was U.S.$3.22 per pound.

Copper

Copper is utilized in a number of major industry sectors, including building, construction, electrical and electronics, industrial machinery, transportation and
consumer products. The primary use of copper is for electrical and electronic applications across all industry sectors because of copper's excellent electrical conductivity, durability, malleability
and resistance to corrosion.

Falconbridge
is not a major supplier of copper, accounting for approximately 2% of total refined Western World production in 2002. The Kidd Metallurgical Division's copper production is
marketed and sold throughout the world by Noranda. In Europe, all of the copper cathode produced at the Nikkelverk refinery is marketed and sold by Falconbridge. In Chile, Falconbridge operates the
100% owned Lomas Bayas copper mine, and has a 44% equity interest in the Collahuasi copper operation. Lomas Bayas contributed 59,300 tonnes of refined copper cathode for 2002. Total 2002 production at
Collahuasi was 420,500 tonnes of contained copper, mainly in the form of concentrate, which is sold by Collahuasi's marketing department. Falconbridge's proportionate share of this production was
approximately 185,000 tonnes.

Approximately
45% of Falconbridge's 2002 combined refined copper and copper in concentrate sales were to customers in North America, 36% to customers in Europe and the balance to
customers in Japan, Taiwan and South America.

Western
World refined copper production and consumption, net trade with the Eastern Bloc and the resulting supply/demand balance for the three years ended December 31, 2002 were
as follows:

|                                        |  | 2002(1) |   | 2001(2) |  | 2000(2) |  
|--------------------------------------- |  | ------- | - | ------- |  | ------- | -
|
|Western World refined copper production |  | 11,702  |   | 12,149  |  | 11,592  |  
|Net trade with the Eastern Bloc         |  | (2      | ) | 192     |  | 584     |  
|                                        |  |         |   |         |  |         |  
|Total supply                            |  | 11,700  |   | 12,341  |  | 12,176  |  
|Less Western World copper consumption   |  | 11,553  |   | 11,690  |  | 12,686  |  
|                                        |  |         |   |         |  |         |  
|Surplus (deficit)                       |  | 147     |   | 651     |  | (510    | )
|                                        |  |         |   |         |  |         |  

---

Notes:

The Western World supply and demand for refined copper was generally balanced in 2002, as mine production cuts announced by various producers late
in 2001 flowed through directly to lower metal production in 2002. The decrease in mine production resulted in a decline in the supply of copper concentrate towards the end of 2002. Western World
refined metal production fell in 2002 corresponding to the lower availability of concentrates and a shortage of scrap, which resulted in a significant reduction in the surplus supply of refined

26

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copper
that existed in 2001. The large influx of copper metal from the Eastern Bloc seen in previous years disappeared in 2002 due to a combination of record imports of refined copper into China, and
lower exports of copper metal by Russia. Imports into China were augmented by a reported build-up in official stockpiles.

The
copper market moved closer to a balanced market in 2002 due to mine production cuts, rather than a recovery in demand. Western World demand for copper generally remained weak in
2002. European and American demand recovery failed to occur and, in Japan, the deteriorating economic outlook has translated into continued poor demand for copper. However, demand for copper in Asia
increased in 2002 compared
to 2001 partly due to improved economic activity and hence domestic demand, and partly due to an increase in exports, particularly to China. LME inventories increased by 56,400 from the end of last
year, ending 2002 at 855,625 tonnes. On the basis of improved supply fundamentals, the LME cash settlement price for copper was U.S.$0.70 per pound at the end of December 2002, compared to
U.S.$0.66 per pound at the end of December 2001.

For
2003, Western World copper mine production is expected to increase by approximately 4.5%. As a result, the concentrate market is expected to rebalance into a slight surplus. The bulk
of the increase is anticipated to come from the Phase IV expansion at the Escondida mine, located in Chile. For 2003, refined copper production is expected to rise modestly, as the balance of
the mine production increase is expected to alleviate the concentrates deficit that existed at the end of 2002. While strong Chinese buying is expected to continue in 2003, it is not expected to reach
the record level of 2002, and net trade of copper metal from the East into the West is expected to return. A 3.9% growth rate in demand is expected for 2003, which should be sufficient to move the
copper market into a deficit position.

Falconbridge's
copper is sold on the basis of the Comex High Grade settlement price in North America and the LME Grade A settlement price in Europe and the Far East. The average Comex
High Grade and LME Grade A settlement prices and the average prices realized by Falconbridge for copper for the three years ended December 31, 2002, were as follows:

|                                          |  | Average copper prices
|----------------------------------------- |  | ---------------------
|
|
|Average Comex High Grade settlement price |  | 0.72                 
|Average LME Grade A settlement price      |  | 0.71                 
|Average price realized by Falconbridge    |  | 0.72                 

The
closing Comex High Grade and LME Grade A settlement prices for copper on December 31, 2002 were both U.S.$0.70 per pound.

Zinc

Zinc, like copper, is used in a wide range of industries. Its major use, accounting for approximately 51% of total Western World consumption, is for galvanizing
steel, which is sold to the automobile and construction industries. Galvanizing consists of coating steel with zinc to protect the steel from corrosion. Other applications include the production of
die cast alloys used to manufacture precision machine parts, brass alloys used to manufacture a wide range of industrial parts and household hardware, chemicals and zinc dusts used in the manufacture
of pigments and rubber tires.

Falconbridge
is not a major supplier of zinc, accounting for approximately 2% of total Western World refined production in 2002. In 2002, Falconbridge sold 100% of its zinc production in
North America. Falconbridge's zinc production is marketed and sold by Noranda.

27

---

Western
World refined zinc production and consumption, net trade with the Eastern Bloc and the resulting supply/demand balance for the three years ended December 31, 2002, were as
follows:

|                                         |  | 2002(1) |  | 2001(2) |  | 2000(2) |  
|---------------------------------------- |  | ------- |  | ------- |  | ------- | -
|
|Western World refined zinc production    |  | 6,551   |  | 6,253   |  | 6,138   |  
|Net trade with the Eastern Bloc          |  | 713     |  | 863     |  | 851     |  
|Sales from U.S. Defence Logistics Agency |  | 20      |  | 24      |  | 39      |  
|                                         |  |         |  |         |  |         |  
|Total supply                             |  | 7,284   |  | 7,140   |  | 7,028   |  
|Less Western World zinc consumption      |  | 6,938   |  | 6,785   |  | 7,036   |  
|                                         |  |         |  |         |  |         |  
|Surplus (deficit)                        |  | 346     |  | 355     |  | (8      | )
|                                         |  |         |  |         |  |         |  

---

Notes:

Over-supply continued to dominate the zinc market in 2002. New mine operations and restarts of old facilities offset the significant
volume removed as a result of mine closures and production reductions initiated in the latter part of 2001. Growth in smelter production led to reduced availability of zinc concentrate. Continued
ramp-up of brownfield expansions saw smelter production grow approximately 4.8% in 2002 compared to 2001. The tight concentrate market in 2002 had an effect on Chinese smelters, with
production, and hence exports of refined metal, falling. Demand for zinc metal was disappointing in 2002, with an expected Western World growth of 2.3% compared to 2001. In the U.S., there was
underlying improvement in demand for zinc metal. In Europe, both the automotive and construction sectors were weak. Demand for zinc from the Asian galvanized steel industry, especially in South Korea,
was strong in 2002. The increase in refined zinc supply, compounded by continued weak demand, maintained the zinc market balance in a significant surplus with the result that reported stocks increased
over levels at the end of 2001. LME stocks alone have increased by over 200,000 tonnes, since December 31, 2001, to end 2002 at 651,050 tonnes.

As
of December 31, 2002, the Asia-Pacific region was expected to be a key driver of demand increase in 2003. The outlook for the U.S. is mixed as there are
concerns as to whether the automotive and construction sectors will be able to maintain demand rates in 2003. Consumer buying in Europe is anticipated to remain lackluster. The tight concentrate
market, low zinc prices and lower treatment charges have led to conjecture of smelter cutbacks/closures in 2003. However, any reductions in smelter production would largely have the effect of reducing
the expected market surplus of refined zinc.

Falconbridge's
zinc is sold on the basis of the LME Special High Grade settlement price. The average LME Special High Grade settlement prices and the average prices realized by
Falconbridge for zinc for the three years ended December 31, 2002 were as follows:

|                                                |  | Average zinc prices
|----------------------------------------------- |  | -------------------
|
|
|Average LME Special High Grade settlement price |  | 0.35               
|Average price realized by Falconbridge          |  | 0.39               

The
closing LME Special High Grade settlement price for zinc on December 31, 2002 was U.S.$0.34 per pound.

28

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Cobalt

Cobalt is a metal used in the production of high temperature and wear-resistant alloys, in magnetic alloys and as the binder in diamond tools and
tungsten carbide. It is also used in various chemicals for the production of catalysts, pigments, batteries and other miscellaneous products.

Falconbridge
markets and sells its cobalt production principally in the United States, Europe and Japan.

Global
demand for cobalt grew 6.6% in 2002 despite the lack of demand from the major end-use super alloys market. The aerospace industry is in the midst of a cyclical
downturn and is not expected to improve until 2004. Overestimation of demand for land-based turbines by manufacturers, as well as the financial crisis in the energy sector created by the
bankruptcy of Enron Corp., have resulted in significant reductions of production schedules. Other cobalt-consuming end-uses performed well and contributed to growth in demand for cobalt in
2002, including the tool steels sector, the electronics sector and cobalt chemicals.

Despite
the growth in demand, the cobalt market remained in a surplus position in 2002. In 2003, cutbacks by existing producers are expected, but these will likely nearly be offset by
greater output from OM Group Inc.'s Big Hill project and higher capacity as a result of modernization at the Anglovaal's Chambishi plant in Zambia. In addition, Defence Logistics Agency
stockpile sales are expected to nearly double in 2003. However, we expect stronger demand growth for cobalt to move the cobalt market into a deficit position in 2003.

The
Metal Bulletin average prices, 99.8% low and 99.3% low (which are important as the industry reference prices), and the average prices realized by Falconbridge for cobalt for the
three years ended December 31, 2002, were as follows:

|                                         |  | Average cobalt prices
|---------------------------------------- |  | ---------------------
|
|
|Metal Bulletin average price (99.8% low) |  | 6.96                 
|Metal Bulletin average price (99.3% low) |  | 6.76                 
|Average price realized by Falconbridge   |  | 7.02                 

The
closing Metal Bulletin average prices, 99.8% low and 99.3% low, for cobalt on December 31, 2002 were U.S.$6.50 and U.S.$6.00 per pound, respectively.

Other Metals and Products

Other metals and products produced and sold by Falconbridge include silver, gold, platinum group metals, cadmium, indium and sulphuric acid.

Falconbridge's
Nikkelverk refinery treats the silver, gold and platinum group metals contained in the matte produced by the Sudbury Operations and in the custom feed from other sources.
The annual revenues from sales of the silver, gold and platinum group metals produced at the Nikkelverk refinery for the three years ended December 31, 2002 were as follows:

|                                |       | 2002   |         | 2001   |         | 2000  
|------------------------------- | ----- | ------ | ------- | ------ | ------- | ------
|
|Sudbury ore                     |       | 41,467 |         | 65,017 |         | 42,293
|Raglan ore                      |       | 38,812 |         | 90,566 |         | 33,347
|Custom feed and purchased metal |       | 36,787 |         | 35,470 |         | 77,677
|                                |       |        |         |        |         |       
|                                | Total |        | 117,066 |        | 191,053 |       
|                                |       |        |         |        |         |       

In
addition, the Kidd Metallurgical Division produces anode slimes containing 4.4 million ounces of silver, which are toll refined by Noranda or other companies and returned or
sold in the open market.

29

---

Cadmium
is a minor metal with a wide range of applications. Its major use, accounting for over 70% of total world consumption, is in the production of nickel cadmium batteries. Other
uses include the manufacture of paint pigments, coatings, plastics and alloys.

Another
minor metal, indium, is recovered from the smelter dust at the Kidd Metallurgical Division. Indium's end uses include consumer electronics such as flat bed display devices and
semiconductors, window glass coatings, windshield coatings for cars and aircraft, and bearings.

Sulphuric
acid is used in the manufacture of fertilizer, synthetic fibres, pigments, explosives, plastics, rubber and catalysts. Sulphur dioxide gas is a by-product of
Falconbridge's smelting and refining operations. Most of the sulphur dioxide gas produced at the Corporation's Canadian smelters is captured before stack emission and converted into sulphuric acid or
liquid sulphur dioxide in order to comply with limits on the quantity of sulphur dioxide which can be emitted from Falconbridge's smelters and refineries (See "Environment, Safety and
Health  Environment  Air, Water and Soil Quality"). The Corporation's Canadian sulphuric acid production accounts for
approximately 92% of Falconbridge's total production and is purchased for resale in North America by a subsidiary of Noranda. The balance of Falconbridge's sulphuric acid production is from the
Nikkelverk refinery and is sold in Europe.

Sales Volumes, Average Prices and Revenue

Falconbridge's sales volumes by product (including purchased material) for the three years ended December 31, 2002 were as follows:

|                         |  |                                 |  | 2002    |  | 2001    |  | 2000   
|------------------------ |  | ------------------------------- |  | ------- |  | ------- |  | -------
|Nickel (tonnes)          |  | 71,327                          |  | 65,269  |  | 62,055 
|Ferronickel (tonnes)     |  | 21,446                          |  | 24,572  |  | 28,220 
|Copper                   |  |  metal (tonnes)                |  | 270,831 |  | 204,548 |  | 180,775
|                         |  |  metal in concentrate (tonnes) |  | 142,028 |  | 154,382 |  | 166,011
|Zinc                     |  |  metal (tonnes)                |  | 145,411 |  | 141,671 |  | 138,125
|                         |  |  metal in concentrate (tonnes) |  | 3,007   |  |        |  | 99     
|Cobalt (tonnes)          |  | 2,932                           |  | 2,316   |  | 2,614  
|Gold (ounces)            |  | 50,311                          |  | 42,331  |  | 24,183 
|Silver (thousand ounces) |  | 4,490                           |  | 3,611   |  | 2,653  
|Platinum (ounces)        |  | 47,112                          |  | 54,126  |  | 38,662 
|Palladium (ounces)       |  | 97,434                          |  | 142,859 |  | 114,365
|Rhodium (ounces)         |  | 5,942                           |  | 5,760   |  | 1,979  
|Cadmium (tonnes)         |  | 493                             |  | 523     |  | 560    
|Indium (ounces)          |  | 880,878                         |  | 153,747 |  | 567,940
|Sulphuric acid (tonnes)  |  | 972,325                         |  | 851,407 |  | 852,771

30

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The
average prices, by product, and the average exchange rates realized by Falconbridge for the three years ended December 31, 2002 were as follows:

|                                                 |  | 2002 |  | 2001  |  | 2000 
|------------------------------------------------ |  | ---- |  | ----- |  | -----
|
|Nickel                                           |  | 3.14 |  | 2.79  |  | 4.09 
|Ferronickel                                      |  | 3.16 |  | 2.85  |  | 3.98 
|Copper metal                                     |  | 0.72 |  | 0.70  |  | 0.84 
|Zinc metal                                       |  | 0.39 |  | 0.44  |  | 0.55 
|Cobalt                                           |  | 7.02 |  | 9.66  |  | 13.71
|Gold (per ounce)                                 |  | 312  |  | 276   |  | 287  
|Silver (per ounce)                               |  | 4.61 |  | 4.39  |  | 5.03 
|Platinum (per ounce)                             |  | 526  |  | 530   |  | 536  
|Palladium (per ounce)                            |  | 338  |  | 552   |  | 623  
|Rhodium (per ounce)                              |  | 791  |  | 1,341 |  | 1,894
|Cadmium                                          |  | 0.23 |  | 0.10  |  | 0.14 
|Indium (per ounce)                               |  | 2.43 |  | 2.68  |  | 4.26 
|Average exchange rate realized U.S.$1.00 = Cdn.$ |  | 1.56 |  | 1.52  |  | 1.49 

The
revenues by product received by Falconbridge for the three years ended December 31, 2002 were as follows:

|            |       | Year ended December 31,
|----------- | ----- | -----------------------
|
|
|Nickel      |       | 776                    
|Ferronickel |       | 234                    
|Copper      |       | 970                    
|Zinc        |       | 197                    
|Cobalt      |       | 71                     
|Palladium   |       | 53                     
|Other(1)    |       | 93                     
|            |       |                        
|            | Total |                        
|            |       |                        

---

Note:

Nickel in all forms and copper represented 42% and 41%, respectively, of total revenues for the year ended December 31, 2002.

31

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ENVIRONMENT, SAFETY AND HEALTH

The mining and mineral processing operations of Falconbridge are subject to extensive government regulations relating to the protection of the environment,
including those relating to air and water quality, solid and hazardous waste handling and disposal, mine reclamation and closure, and occupational safety and health. In addition to mandated
environmental safeguards, Falconbridge has many initiatives to improve both the internal and external environment, such as health research, auditing and risk management programs.

In
2002, the Falconbridge and Noranda environment, safety and health functions were combined, which the Corporation believes provides positive benefits to environmental, health and
safety programs for Falconbridge. Best practices from both corporations are being applied in the areas of environmental management, assurance programs, safety performance, industrial hygiene and
occupational health, among other pertinent aspects. Designated environment, health and safety ("EHS") representatives from each of the six Noranda/Falconbridge business units assist in implementing
corporate-wide EHS programs throughout all operations. This management framework not only provides open communication among all business units, but is designed to ensure that EHS issues
are managed effectively.

Environment



Falconbridge has in place a comprehensive environmental management system consisting of a sustainable development policy, codes of practice, audits, job
descriptions and procedures, roles and responsibilities, employee training, public and employee reporting, emergency prevention and response, risk management and community awareness. Falconbridge has
developed a Risk Management Guideline and is implementing a Risk Management Program at all business units.

Falconbridge's
objective is to meet or surpass environmental standards set by relevant legislation, through the application of innovative and technically-proven economic measures in
advance of prescribed deadlines. In addition, Falconbridge incurs substantial waste removal and site restoration costs on an ongoing basis, which it believes will minimize future liabilities for site
closure.

Falconbridge
has adopted the ISO14001 Environmental Management System standard and is currently implementing the ISO standard into existing environmental management systems at each of
its operations. To date, Falcondo, Nikkelverk, Kidd Mine, Raglan and Collahuasi have received ISO14001 certification.

The
Corporation produces an annual sustainable development report which reports on the Corporation's initiatives toward sustainable development and the accomplishments made to date.



Rehabilitation programs are continuing at all operations, including reforestation at Falcondo and rehabilitation at the Sudbury Operations. Rehabilitation
research and development programs to reduce costs and to ensure closure effectiveness are being pursued. Falconbridge incurs substantial site restoration costs annually, which it believes will reduce
future restoration costs. These include tailings and land reclamation, revegetation, decommissioning and demolition of plant and buildings, and waste management. Based on currently available
information, preliminary closure plans, currently applicable regulations, planned annual spending on site restoration, and the remaining life of Falconbridge's ore reserves, Falconbridge believes that
its site restoration costs will be manageable and will not have a material adverse impact on its earnings or competitive position.

Environmental
closure plans have been submitted for the Sudbury Mines/Mill, the Kidd Mining Division and the Kidd Metallurgical Division. Exploration properties across Canada continue to
be rehabilitated and restoration has commenced on the Nickel Rim and Errington West properties in Sudbury. The Manibridge site in Manitoba and the Cam Chib site near Timmins are the subject of study
with rehabilitation work planned for 2003-2004. The Marbridge site in Quebec was rehabilitated in 2002.

The
total liability for future site restoration costs in relation to Falconbridge's worldwide operations, which will be incurred primarily after the cessation of operations, is estimated
to be $225 million at December 31, 2002.

32

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This
estimate is based on information currently available, including preliminary closure plans and alternatives, applicable regulations, planned spending on site restoration and the remaining life of
Falconbridge's mineral reserves. At December 31, 2002, Falconbridge had provided for $93.3 million, in addition to ongoing capital and operating expenditures. The remaining balance will
be accrued and expensed over the remaining lives of the operations.

In
view of the uncertainties concerning future removal and site restoration costs, the ultimate costs to Falconbridge could differ materially from the amounts estimated by Falconbridge.
Falconbridge's estimate for the future liability is subject to change based on amendments to applicable laws and legislation, the nature of ongoing operations and technological innovations. Future
changes, if any, due to their nature and unpredictability, could have a significant impact and would be reflected prospectively in the financial statements as a change in an accounting estimate.



In April 2002, approximately 2,300 barrels of crude oil was spilled from the Falcondo oil pipeline in the Dominican Republic as a result of a pipeline
rupture. Prompt and efficient cleanup of the affected waterways, vegetation and land in accordance with an order from the Dominican Department of Environment and Natural Resources resulted in the
collection of over 95% of the spilled oil. Oil-saturated soil was removed, bio-remediated and used on the Falcondo reforestation property. Oil which spilled into different
waterways was collected and separated to be refined into naphtha, diesel and fuel oil for use at the operation. Ecological life affected by the spill has since recovered naturally. Claims for
compensation by several parties have been addressed. Legal action has also been taken by one municipality and claims for additional costs by the Santo Domingo water authority remain outstanding.

A
full analysis was conducted on the integrity, operating and maintenance protocol and safe operating procedures of the Falcondo pipeline, and corrective actions are being implemented.
Independent evaluations on the environmental impacts of the spill and recommended remediation plans have also been conducted.

Falconbridge
was charged with two offences under the Ontario Environmental Protection Act relating to an alleged sulphur dioxide emission at the Sudbury Smelter in June of 2000. A trial
on these charges is scheduled for June of 2003. In March of 2003, Falconbridge was charged with one offence under the Ontario Water Resources Act in relation to an alleged zinc discharge into Three
Nations Creek at its Kidd Metsite. Disclosure has not yet been received from the Crown on this charge.

The
Sudbury Smelter continues to maintain its sulphur dioxide emissions to levels substantially below the limits established under the Province of Ontario's Countdown Acid Rain Program
Regulation. Sulphur dioxide emissions at the Falconbridge smelter were 38,300 tonnes in 2002, 62% below the provincially regulated limit of 100,000 tonnes per year.

In
February 2002, the Sudbury Smelter was issued a new sulphur dioxide control order effective December 31, 2006 limiting annual emissions to 66 kilotonnes from the
current limit of 100 kilotonnes. Hourly ground level concentrations have been limited to 0.34 ppm for sulphur dioxide emissions as of April 1, 2002.

To
further reduce emissions, a continuing program of higher degrees of concentrate roasting in smelting is in place at the Sudbury Smelter. The substantial decrease in sulphur dioxide
emissions at the Falconbridge smelter is illustrated in the following table:

|     |  | Kilotonnes of sulphur dioxide per year |  |    
|---- |  | -------------------------------------- |  | ---
|
|1970 |  | 340.0                                  |  | 340
|1980 |  | 123.0                                  |  | 154
|1990 |  | 70.0                                   |  | 154
|2000 |  | 27.7                                   |  | 100
|2001 |  | 29.6                                   |  | 100
|2002 |  | 38.3                                   |  | 100

33

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The
variance in sulphur dioxide emissions between 2000 and 2002 is mainly due to decreased production over the strike period in 2000 and 2001, and also the nature of the custom feed product mix.

The
Kidd Metallurgical Division and the Nikkelverk refinery treat almost all process gases carrying sulphur dioxide for the production of marketable sulphuric acid and liquid sulphur
dioxide and achieve greater than
98% sulphur fixation. Sulphur dioxide emissions at the Kidd Metallurgical Division and the Nikkelverk refinery are below regulatory limits. Nikkelverk's use of hydrochloric acid rather than liquid
chlorine in its process has reduced liquid chlorine used by over 95% between 1994 and the end of 2002.

In
2001, a comprehensive soil study involving various metals was initiated by the Corporation in the community of Falconbridge near Sudbury, Ontario. This was part of a broader
on-going soil testing program within the Sudbury Basin involving the Ontario Ministry of the Environment ("MOE").

In
order to determine whether the metal levels detected in the soil study have any impact on human health, the Corporation is participating in a human health risk assessment for the
community, in consultation with the MOE, the Sudbury Medical Officer of Health and Inco Limited. This assessment is scheduled to be completed and publicly released in 2004.



Falconbridge has an active environmental product stewardship program. This includes providing customers with advice on the safe handling of products and disposal
of metal wastes and the development of the capability to accept a wide range of metal-bearing materials for recycling at its facilities. Falconbridge is currently researching possible uses for some of
its slag, a by-product of the smelting process, in commercial applications.



Environmental protection and pollution prevention are priorities at all new projects. The environmental baseline studies serve as the basis for ongoing
environmental activities. The environment baseline report on the Koniambo project in New Caledonia was released in 2001. The environmental impact assessment is expected to be released in 2003.



Future regulations may place lower limits on allowable emissions of all kinds, including air, water, waste and hazardous materials and spills. Also, requirements
for site rehabilitation may become more demanding. Falconbridge's policies and programs of pollution prevention, continuous improvement and emphasis on innovation have enabled it to develop and
implement effective and relatively low-cost measures to meet or maintain emissions below regulatory requirements.

The
toxicity of certain metals in the workplace and the environment is of continuing concern to the mining industry. New standards and intergovernmental accords are being considered by
the Ontario Ministry of Labour, Environment Canada, the United States Occupational Safety and Health Administration, the American Conference of Governmental Industrial Hygienists and the
Commission of European Communities. Falconbridge is not able to assess the overall financial impact of potential new standards. Falconbridge is continuing to make engineering improvements each year
with a view to improving the working environment of its operations.

The
business conducted by Falconbridge has been, and may in future be, affected by changes in environmental legislation and other requirements including those related to future removal
and site restoration costs. Because Falconbridge operates in many countries, both the likelihood of changes in legislation and their impact upon Falconbridge are not predictable.

Safety and Health

Falconbridge has decreased lost-time accident frequencies from 2.12 per 200,000 hours worked in 1992, to 1.36 per 200,000 hours worked
in 2002. Safety and health policies are in place at all Falconbridge operations and safety responsibilities are part of all job descriptions, job procedures and performance reviews. Key safety

34

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priorities
include emphasis on internal responsibility, joint health and safety committees and internal loss control management. Improvement programs in hazard analysis, risk assessment and emergency
prevention and response are on-going.

TRENDS, RISKS AND UNCERTAINTIES

Fluctuating Metal Prices

As substantially all of Falconbridge's revenues are derived from the sale of nickel, copper, cobalt and zinc, its earnings are directly related to fluctuations in
the prices of these metals. The prices of these metals are subject to volatile price movements over short periods of time. Falconbridge generally does not hedge prices of the metals it produces.
Market prices can be affected by numerous factors beyond Falconbridge's control, including expectations for inflation, speculative activities, relative exchange rates to the U.S. dollar,
production activities of Falconbridge's competitors, global and regional demand and supply, political and economic conditions and production costs in major producing regions. The prices for nickel,
copper or other metals produced by Falconbridge may decline significantly from current levels. A reduction in the prices of
one or more of these metals could materially adversely affect the value and amount of Falconbridge's reserves and its business, financial condition, liquidity and operating results.

Mining and Processing Risks

The business of mining and processing of metals is generally subject to a number of risks and hazards, including unusual or unexpected geological conditions,
ground conditions, phenomena such as inclement weather conditions, floods and earthquakes and the handling of hazardous substances and emissions of contaminants. Such occurrences could result in
personal injury or death, damage to, or destruction of, mineral properties, processing or production facilities or the environment, monetary losses and possible legal liability. Falconbridge's
business, financial condition, liquidity and operating results could be materially adversely affected if any of these developments were to occur.

Although
Falconbridge maintains insurance to cover some of these risks and hazards to the extent available that Falconbridge believes is consistent with the industry practice, no
assurance can be given that such insurance will continue to be available, or that it will be available at economically feasible premiums. Falconbridge's property, business interruption and liability
insurance may not provide sufficient coverage for losses related to these or other risks or hazards. In such event, Falconbridge's business, financial condition, liquidity and results of operations
could be materially adversely affected.

Environmental Risks

Environmental legislation affects nearly all aspects of Falconbridge's operations worldwide. This type of legislation requires Falconbridge to obtain operating
licenses and imposes standards and controls on activities relating to mining, exploration, development, production, closure and the refining, distribution and marketing of nickel and other metals
products. Environmental assessments are required before initiating most new products or undertaking significant changes to existing operations. Compliance with environmental legislation can require
significant expenditures, including expenditures for clean up costs and damages arising out of contaminated properties. In addition to current requirements, Falconbridge expects that additional
environmental regulations will likely be implemented to protect the environment and quality of life, given issues of sustainable development and other similar requirements which governmental and
supragovernmental organizations and other bodies have been pursuing. Some of the issues currently under review by environmental regulatory agencies include reducing or stabilizing various emissions,
including sulphur dioxide and greenhouse gas emissions, mine reclamation and restoration, and water, air and soil quality.

Canada
ratified the Kyoto Protocol to the United Nations Framework Convention on Climate Change in late 2002. The protocol has not entered into force but may do so in the future. Various
levels of governments in Canada are developing a number of policy measures in order to meet Canada's emission reduction obligations under the protocol. While the impact of the protocol and measures
cannot be quantified at this time, the likely effect will be to increase costs for fossil fuels, electricity and transportation, restrict industrial emission levels, impose added costs for emissions
in excess of permitted levels and increase costs for monitoring and reporting.

35

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Compliance
with these initiatives could have a material adverse effect on Falconbridge's business, financial condition, liquidity and operating results.

Further
changes in environmental laws, new information on existing environmental conditions or other events, including legal proceedings brought based upon such conditions or an
inability to obtain necessary permits, could have a material adverse effect on product demand, product quality and methods of production and distribution or could require increased financial reserves
or compliance expenditures or otherwise have a material adverse effect on Falconbridge's business, financial condition, liquidity and operating results.

Failure
to comply with environmental legislation may result in the imposition of fines and penalties, liability for clean up costs, damages and the loss of important permits. There can
be no assurance that Falconbridge will at all times be in compliance with all environmental regulations or that steps to bring Falconbridge into compliance would not materially adversely affect
Falconbridge's business, financial condition, liquidity or operating results.

In
view of the uncertainties concerning future removal and site restoration costs on Falconbridge's properties, the ultimate costs for future removal and site restoration to Falconbridge
could differ from the amounts estimated by Falconbridge. The estimate for this future liability is subject to change based on amendments to applicable laws and legislation, the nature of ongoing
operations and technological innovations. Future changes, if any, due to their nature and unpredictability, could have a significant impact and would be reflected prospectively as a change in an
accounting estimate.

In
addition, regulatory authorities in various jurisdictions around the world may require Falconbridge to post financial security to secure in whole or in part future reclamation and
restoration obligations in such jurisdictions. In some instances, Falconbridge has already provided this security. In other instances, such security may be required to be posted upon the occurrence of
certain events including if Falconbridge ceases to maintain a minimum investment grade credit rating, if the regulatory authority ceases to accept alternative forms of comfort to secure the obligation
or as a property nears the end of its operation. Although the posting of this security does not increase the future reclamation and restoration costs (other than costs associated with posting such
security), a portion of Falconbridge's credit may be required to back up these commitments, which could affect Falconbridge's liquidity.

Labour Relations

Collective agreements covering Falconbridge's hourly rated employees at Falconbridge's Sudbury operations, Nikkelverk operations, Collahuasi operations, Kidd
metallurgical division, Raglan mine, Falcondo operations and Lomas Bayas operations are currently in place. Falconbridge's collective agreements with unionized workers at Falconbridge's Sudbury,
Nikkelverk and Collahuasi operations remain in effect until 2004. The supervisory, technical, professional and administrative employees at Lomas Bayas are not represented by a union but have
historically acted collectively when renegotiating their individual contracts of employment each of which expires in June, 2003. Collective agreements covering Falconbridge's unionized workers at the
Kidd metallurgical division, Raglan mine, Falcondo operations and Lomas Bayas operations will expire between 2005 and 2006. Falconbridge cannot predict at this time whether it will be able to reach
new agreements with these employees upon expiry of their current agreements without a work stoppage. Any lengthy work interruptions could materially adversely affect Falconbridge's business, financial
condition, liquidity and results of operations.

Uncertainty of Reserve Estimates and Production Estimates

Falconbridge's reported ore reserves as of year-end 2002 are estimated quantities of proven and probable ore that under present and anticipated
conditions can be legally and economically mined and processed by the extraction of their mineral content. Falconbridge determines the amount of its ore reserves in accordance with the requirements of
the applicable Canadian securities regulatory authorities and established mining standards. Falconbridge does not use outside sources to verify its reserves. The volume and grade of reserves actually
recovered and rates of production from Falconbridge's present ore reserves may be less than geological measurements of the reserves. Market price fluctuations in nickel, copper, other metals and
exchange rates, and changes in operating and capital costs may in the future render certain ore reserves uneconomic to mine. In addition, short-term operating factors relating to the
mineral reserves, such as the need for orderly development

36

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of
ore bodies or the processing of new or different ore grades, may cause mineral reserves to be modified or Falconbridge's operations to be unprofitable in any particular fiscal period.

No
assurance can be given that the indicated amount of ore will be recovered or that it will be recovered at the prices assumed by Falconbridge in determining ore reserves. Ore reserve
estimates are based on limited sampling and, consequently, are uncertain because the samples may not be representative of the entire ore body. As more knowledge and understanding of the ore body is
obtained, the reserve estimates may change significantly, either positively or negatively.

Falconbridge
prepares estimates of future production for particular operations. These production estimates are based on, among other things, reserve estimates; assumptions regarding
ground conditions and physical characteristics of ores, such as hardness and presence or absence of particular metallurgical characteristics; and estimated rates and costs of mining and processing.
Falconbridge's actual production may vary from estimates for a variety of reasons, including actual ore mined varying from estimates of grade, tonnage, dilution and metallurgical and other
characteristics; short-term operating factors relating to
the ore reserves, such as the need for sequential development of ore bodies and the processing of new or different ore grades; risks and hazards associated with mining, natural phenomena, such as
inclement weather conditions, floods, and earthquakes; and unexpected labor shortages or strikes. No assurance can be given that production estimates will be achieved. Failure to achieve production
estimates could have a material adverse impact on Falconbridge's future cash flows, earnings, results of operations and financial condition.

Exchange Rate Fluctuations

Fluctuations in currency exchange rates, principally the Canadian/U.S. dollar exchange rate and, to a lesser extent, Norwegian Kroner, Euros, Yen and other
exchange rates, can significantly impact Falconbridge's earnings and cash flows. These exchange rates have varied substantially over time, including over the last five years. Most of Falconbridge's
revenues and debt are denominated in U.S. dollars, whereas most of the operating costs at its Canadian sites are incurred in Canadian dollars. The costs at Falcondo, Lomas Bayas, and Collahuasi
are incurred principally in U.S. dollars while Nikkelverk's costs are incurred in Norwegian Kroner. Falconbridge's consolidated financial statements are expressed in Canadian dollars.
Fluctuations in exchange rates between the U.S. dollar and the Canadian dollar and between the Canadian dollar and other currencies may give rise to foreign currency exposure, either favorable
or unfavorable, which have materially impacted and may in the future materially impact Falconbridge's financial results. Falconbridge from time to time hedges a portion of its U.S. dollar and
other currency requirements to limit any adverse effect of exchange rate fluctuations with respect to Falconbridge's Canadian dollar and other costs, but such hedges have not eliminated the potential
material adverse effect of such fluctuations.

Interest Rate and Counterparty Risk

Falconbridge's exposure to changes in interest rates results from investing and borrowing activities undertaken to manage its liquidity and capital requirements.
Falconbridge has entered into interest rate swap agreements to manage the interest rate risk associated with a portion of its fixed-rate debt. The interest rate swap changes Falconbridge's
exposure to interest risk by effectively converting a portion of Falconbridge's fixed-rate debt to a floating rate. At March 31, 2003, approximately $1,223 million, or
63 per cent of Falconbridge's total debt of $1,939 million was subject to variable rates. Falconbridge may elect in the future to enter into interest rate swaps to effectively convert
floating-rate debt to fixed-rate debt and enter into additional fixed-rate to floating-rate swaps. There can be no assurance that Falconbridge will not
be materially adversely affected by interest rate changes in the future, notwithstanding its use of interest rate swaps.

In
addition, Falconbridge's interest rate swaps, metals hedging and foreign currency and energy risk management activities expose Falconbridge to the risk of default by the
counterparties to such arrangements. Any such default could have a material adverse effect on Falconbridge's business, financial condition and results of operation.

37

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Energy Supply and Prices

Falconbridge's operations and facilities are intensive users of natural gas, electricity and oil. Procurement of these types of energy sources can be affected by
numerous factors beyond Falconbridge's control, including global and regional supply and demand, political and economic conditions and problems related to local production and delivery conditions.
Falconbridge's supply contracts typically provide that suppliers may be released from their delivery obligations to Falconbridge if certain "force majeure" events occur. Falconbridge's business
operations could be adversely affected, including loss of production and damage to Falconbridge's plants and equipment, if, even temporarily, the supply of energy to one or more of its facilities was
interrupted.

A
prolonged shortage of supply of energy used in Falconbridge's operations could materially adversely affect its business, financial condition, liquidity and results of operations. As a
significant portion of Falconbridge's costs relate to energy consumption, its earnings are directly related to fluctuations in the cost of natural gas, electricity and oil. Energy prices can be
affected by numerous factors beyond Falconbridge's control, including global and regional demand and supply, and applicable regulatory regimes. The prices for various sources of energy Falconbridge
uses may increase significantly from current levels. An increase in energy prices could materially adversely affect Falconbridge's business, financial condition, liquidity and operating results.

Foreign Operations

Some of Falconbridge's activities and related assets are located in countries outside North America, some of which may be considered to be, or may become,
politically or economically unstable. Exploration or development activities in such countries may require protracted negotiations with host governments, international organizations and other third
parties, including non-governmental organizations, and are frequently subject to economic and political considerations, such as taxation, nationalization, inflation, currency fluctuations
and governmental regulation and approval requirements, which could adversely affect the economics of projects. These projects and investments could be adversely affected by war, civil disturbances and
activities of foreign governments which limit or disrupt markets, restrict the movement of funds or supplies or result in the restriction of contractual rights or the taking of property, without fair
compensation.

Falconbridge
performs a thorough risk assessment on a country by country basis when considering foreign activities and attempts to conduct its business and financial affairs so as to
protect against political, legal, regulatory and economic risks applicable to operations in the various countries where it operates, but there can be no assurance that Falconbridge will be successful
in so protecting itself. These projects and investments could also be adversely affected by changes in Canadian laws and regulations relating to foreign trade, investment and taxation.

Treatment and Refining Charges

Falconbridge receives fees (treatment and refining charges) calculated in U.S. dollars for processing concentrate into refined metal. Fluctuations in these
treatment and refining charges result primarily from changes in the supply of, and demand for, concentrate, finished metal and by-products, all of which are beyond Falconbridge's control.
A shortage in the supply of concentrate will generally have a negative impact on the treatment and refining charges Falconbridge realizes.

Legal Proceedings

The nature of Falconbridge's business subjects it to numerous regulatory investigations, claims, lawsuits and other proceedings in the ordinary course of
Falconbridge's business. The results of these legal proceedings cannot be predicted with certainty. There can be no assurance that these matters will not have a material adverse effect on
Falconbridge's results of operations in any future period, and a substantial judgment could have a material adverse impact on Falconbridge's business, financial condition, liquidity and results of
operations.

38

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SELECTED CONSOLIDATED FINANCIAL INFORMATION

The following table includes consolidated financial information of the Corporation for the financial years indicated:

|                                                            |  | Year Ended December 31
|----------------------------------------------------------- |  | ----------------------
|
|
|Revenues                                                    |  | $                     
|Operating income  total                                    |  |                       
|Operating income per common share  basic and fully diluted |  |                       
|Total assets                                                |  |                       
|Long-term debt                                              |  |                       
|Net income  total                                          |  |                       
|Net income per common share  basic and fully diluted       |  |                       
|Dividends declared  per preferred share, Series 2          |  |                       
|Dividends declared  per common share                       |  |                       

For
a discussion of the comparability of the foregoing numbers, including discussions of discontinued operations, changes in accounting policies, significant acquisitions and major
changes in the direction of the business, please see Falconbridge's management's discussion and analysis for the year ended December 31, 2002 and the notes to the Corporation's financial
statements for the year ended December 31, 2002, each of which is included in the Corporation's 2002 Annual Report and each of which is incorporated herein by reference.

DIVIDEND POLICY

The Corporation views common share dividends as an important part of a shareholder's return on investment. As a result, the Corporation attempts to pay a common
share dividend at all points of the economic cycle, so long as the payment does not impair the Corporation's financial position. It is expected that the common share dividend will increase or decrease
to reflect the Corporation's operating results and financial position.

The
preferred shares of each series issued by the Corporation rank in priority to the common shares with respect to the payment of dividends.

MANAGEMENT'S DISCUSSION AND ANALYSIS

See pages 17 to 30 of the Corporation's 2002 Annual Report, which are incorporated herein by reference. Any statement contained therein is modified
or superseded for the purposes of this Annual Information Form to the extent that a statement contained in this Annual Information Form modifies or supersedes that statement.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

In the management's discussion and analysis contained in the Corporation's 2002 Annual Report and in the management's discussion and analysis contained in the
Corporation's quarterly report for the three months ended March 31, 2003, the ratio of net debt to net debt plus equity is presented. Net debt as well as the ratio of net debt to net debt plus
equity are not financial measures recognized by Canadian generally accepted accounting principles ("GAAP"). Net debt is defined as debt minus cash and cash equivalents. The most directly comparable
financial measure calculated and presented in accordance with GAAP to net debt is total debt which is comprised of long term debt, current portion of long term-debt and Collahuasi project
debt. The table below reconciles net debt to total debt and the related ratio described above using total debt instead of net debt.

Effective
January 1, 2003, the Corporation changed its accounting policies for interest and costing of inventory. The first reported amounts as at December 31, 2000, 2001
and 2002 are those reported in the Company's 2002 Annual Report and do not contemplate any restatements required for comparative purposes to

39

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reflect
these changes in accounting policy. The equity figure for December 31, 2002 in the fourth column has been restated for comparative purposes to reflect these changes in accounting
policies.

|                                                 |  | December 31, |  |           |  |          
|------------------------------------------------ |  | ------------ |  | --------- |  | ---------
|
|
|
|
|
|Total debt (a)                                   |  | 1,462,012    |  | 1,867,321 |  | 2,022,534
|Cash and cash equivalents                        |  | 250,438      |  | 198,315   |  | 259,933  
|                                                 |  |              |  |           |  |          
|Net debt (b)                                     |  | 1,211,574    |  | 1,669,006 |  | 1,762,601
|                                                 |  |              |  |           |  |          
|Equity (c)                                       |  | 2,346,964    |  | 2,280,008 |  | 2,285,301
|                                                 |  |              |  |           |  |          
|Net debt plus equity (d)                         |  | 3,558,538    |  | 3,949,014 |  | 4,047,902
|                                                 |  |              |  |           |  |          
|Net debt to net debt plus equity (b/d)           |  | 0.34         |  | 0.42      |  | 0.44     
|Total debt to total debt plus equity (a / (a+c)) |  | 0.38         |  | 0.45      |  | 0.47     

In
the management's discussion and analysis contained in the Corporation's 2002 Annual Report, the Corporation presents an average of the net debt to net debt plus equity ratios for the
last eight years since the Corporation's initial public offering in 1994. This average of net debt to net debt plus equity is not a financial measure recognized by GAAP. The most directly comparable
financial measure derived from financial measures calculated and presented in accordance with GAAP is the average of total debt to total debt plus equity for the same period. The table below
reconciles (x) the average of net debt to net debt plus equity to (y) the average of total debt to total debt plus equity.

|                                                       |  | Average Since Initial Public Offering
|------------------------------------------------------ |  | -------------------------------------
|Net debt to net debt plus equity (x)                   |  | 31%                                  
|Dilution impact of excluding cash and cash equivalents |  | 5%                                   
|Total debt to total debt plus equity (y)               |  | 36%                                  

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MARKET FOR SECURITIES OF THE CORPORATION

The common shares and cumulative preferred shares, series 2, of the Corporation are listed and posted for trading on The Toronto Stock Exchange.

DIRECTORS AND EXECUTIVE OFFICERS

Set out below are the names, municipalities of residence, office and principal occupations of the directors of the Corporation.

|Name and Municipality of Residence   |  | Office                                          |  | Principal Occupation                                                            
|------------------------------------ |  | ----------------------------------------------- |  | --------------------------------------------------------------------------------
|ALEX G. BALOGHOakville, Ontario      |  | Director                                        |  | Corporate Director                                                              
|JACK L. COCKWELLToronto, Ontario     |  | Director                                        |  | Group Chairman, Brascan Corporation                                             
|ROBERT J. HARDINGToronto, Ontario    |  | Director                                        |  | Chairman, Brascan Corporation                                                   
|DAVID W. KERRToronto, Ontario        |  | Director, Chairman of the Board                 |  | Chairman, Noranda Inc.                                                          
|G. EDMUND KINGToronto, Ontario       |  | Director                                        |  | Deputy Chairman, Rockwater Capital Corporation                                  
|NEVILLE W. KIRCHMANNToronto, Ontario |  | Director                                        |  | President and Chief Executive Officer,
The Princess Margaret Hospital Foundation
|MARY A. MOGFORDNewcastle, Ontario    |  | Director                                        |  | Corporate Director and Partner, Mogford Campbell Inc.                           
|DEREK G. PANNELLToronto, Ontario     |  | Director, Deputy Chairman of the Board          |  | President and Chief Executive Officer, Noranda Inc.                             
|DAVID H. RACEToronto, Ontario        |  | Director                                        |  | Corporate Director                                                              
|AARON W. REGENTToronto, Ontario      |  | Director, President and Chief Executive Officer |  | President and Chief Executive Officer of the Corporation                        
|JAMES D. WALLACESudbury, Ontario     |  | Director                                        |  | President, Pioneer Construction Inc.                                            

All
of the directors of the Corporation have held the principal occupation identified above for not less than five years, except for Mr. Cockwell, who was Co-Chairman,
Brascan Corporation from February 2002 to February 2003 and President and Chief Executive Officer, Brascan Corporation prior thereto; Mr. Kerr, who was Executive Chairman,
Noranda Inc. from April 2002 to February 2003, Chairman and Chief Executive Officer, Noranda Inc. from September 2001 to April 2002 and President and Chief
Executive Officer, Noranda Inc. prior thereto; Mr. King, who was Deputy Chairman, McCarvill Corporation prior to July 2002; Mr. Kirchmann, who was Chairman and Chief
Executive Officer, Koo Koo Roo Canada Limited prior to March 1999;Mr. Pannell, who was President and Chief Executive Officer,
Falconbridge Limited from February 2002 to June 2002, President and Chief Operating Officer, Noranda Inc. from September 2001 to April 2002, Vice President,
Operations, Compañia Minera Antamina from December 1998 to September 2001 and Senior Vice President, Copper, Noranda Inc. prior thereto; Mr. Race, who was
Chairman of CAE Inc. prior to June 1999; and Mr. Regent, who was Executive Vice-President and Chief Financial Officer, Noranda Inc. from May 2000 to
May 2002, and Senior Vice President Corporate Development, Brascan Corporation prior thereto.

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Set
out below is the period during which each director has served, and those directors who are currently members of the Audit Committee and the other committees of the board of
directors.

|Name                             |  | Period During Which a Director
of the Corporation
|-------------------------------- |  | -------------------------------------------------
|Alex G. Balogh (2) (3)           |  | Since September 1989                             
|Jack L. Cockwell (4)             |  | Since December 1995                              
|Robert J. Harding (2) (4) (6)    |  | Since July 2000                                  
|David W. Kerr (7)                |  | Since September 1989                             
|G. Edmund King (2) (4) (5) (6)   |  | Since June 1994                                  
|Neville W. Kirchmann (1) (4) (5) |  | Since December 1997                              
|Mary A. Mogford (1) (2) (3) (5)  |  | Since December 1995                              
|Derek G. Pannell (3) (4)         |  | Since April 2001                                 
|David H. Race (1) (3) (5)        |  | Since April 1994                                 
|Aaron W. Regent (7)              |  | Since February 2002                              
|James D. Wallace (1) (4) (5) (6) |  | Since January 2001                               

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Notes:

The Corporation does not have an Executive Committee. The term of office for each director is from the date of the meeting at which he or she is
elected until the next annual meeting of shareholders of the Corporation or until his or her successor is elected or appointed, unless his or her office is vacated before that time in accordance with
the by-laws of the Corporation.

In
April 2002, the Corporation and Noranda agreed to integrate certain of their respective management functions. As a result there are a number of officers of the Corporation who
are also officers of Noranda.

Set
out below are the names, municipalities of residence, office and principal occupations of the executive officers of the Corporation.

|Name and Municipality of Residence     |  | Office                                               |  | Principal Occupation                                                        
|-------------------------------------- |  | ---------------------------------------------------- |  | ----------------------------------------------------------------------------
|M. BRENT CHERTOWNewmarket, Ontario     |  | President, Canadian Copper and Recycling             |  | President, Canadian Copper and Recycling of the Corporation and Noranda Inc.
|FERNANDO E. PORCILESantiago, Chile     |  | President, Copper                                    |  | President, Copper of the Corporation and Noranda Inc.                       
|JOSEPH LAEZZAOakville, Ontario         |  | President, Nickel                                    |  | President, Nickel of the Corporation                                        
|SERGIO CHAVEZBonao, Dominican Republic |  | President and General Manager, Ferronickel Operation |  | President and General Manager,
Falconbridge Dominicana,
C. por A.           
|MICHAEL F. DOOLANMississauga, Ontario  |  | Senior Vice President and Chief Financial Officer    |  | Senior Vice President and Chief Financial Officer of the Corporation        
|                                       |  |                                                      |  |                                                                             

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|ANTHONY L. HANNAFORDOakville, Ontario |  | Senior Vice President, Technology                                                      |  | Senior Vice President, Technology of the Corporation and Noranda Inc.                                                     
|------------------------------------- |  | -------------------------------------------------------------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------
|PETER KUKIELSKIToronto, Ontario       |  | Senior Vice President, Projects                                                        |  | Senior Vice President, Projects of the Corporation and Noranda Inc.                                                       
|THOMAS F. PUGSLEYOakville, Ontario    |  | Senior Vice President, Projects and Engineering                                        |  | Senior Vice President, Projects and Engineering of the Corporation                                                        
|KATHERINE RETHYToronto, Ontario       |  | Senior Vice President, Procurement, Logistics, Transportation and Information Services |  | Senior Vice President, Procurement, Logistics, Transportation and Information Services of the Corporation and Noranda Inc.
|PAUL W. A. SEVERINOakville, Ontario   |  | Senior Vice President, Exploration                                                     |  | Senior Vice President, Exploration of the Corporation and Noranda Inc.                                                    
|MARTIN SCHADYMississauga, Ontario     |  | Senior Vice President, Business Development                                            |  | Senior Vice President, Business Development of the Corporation and Noranda Inc.                                           
|JEFFERY A. SNOWToronto, Ontario       |  | Senior Vice President and General Counsel                                              |  | Senior Vice President and General Counsel of the Corporation and Noranda Inc.                                             
|DENIS COUTUREToronto, Ontario         |  | Vice President, Communications and Public Affairs                                      |  | Vice President, Communications and Public Affairs of the Corporation and Noranda Inc.                                     
|JOHN M. DOYLEPickering, Ontario       |  | Vice President, Taxation                                                               |  | Vice President, Taxation of the Corporation and Noranda Inc.                                                              
|ALLEN G. HAYWARDLively, Ontario       |  | Vice President, Nickel Mining                                                          |  | Vice President, Nickel Mining of the Corporation                                                                          
|OLLE JOHANSSONOakville, Ontario       |  | Vice President, Marketing and Sales                                                    |  | Vice President, Marketing and Sales of the Corporation                                                                    
|ANDRÉ JORONMarkham, Ontario           |  | Vice President, Human Resources                                                        |  | Vice President, Human Resources of the Corporation and Noranda Inc.                                                       
|ROBERT TELEWIAKOakville, Ontario      |  | Vice President, Environment, Safety and Health                                         |  | Vice President, Environment, Safety and Health of the Corporation and Noranda Inc.                                        

All
of the executive officers of the Corporation have held management or senior positions with the Corporation or its associated companies for the past five years except for
Mr. Couture, who has served as Vice-President, Communications and Public Affairs, Noranda Inc. since October 1999, Vice-President, Communications and
Government Relations, Domtar Inc. prior to October 1999; Mr. Doolan, who was Senior Vice-President, Financial Planning, Noranda Inc. from April 2001 to
July 2002, Vice-President, Financial Planning, Nexfor Inc. from February 1999 to March 2001 and Assistant Vice-President, Taxation,
Nexfor Inc. prior thereto; Mr. Joron, who has served as Vice-President, Human Resources, Noranda Inc. since April 2001, Senior Director, Human Resources,
Noranda Inc. from May 2000 to April 2001 and Vice-President, Human Resources, Hudson's Bay Company prior thereto; Mr. Kukielski who has served as Senior
Vice-President, Projects, Noranda Inc. since September 2001, Engineering Manager and Commissioning Manager, Antamina

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Project,
Rio Algom Limited prior to August 2001; Mr. Porcile who has served as President, Copper, Noranda Inc. since April 2002, Vice-President Project
Development, BHP-Billiton from August 2001 to March 2002, President Compañía Minera Cerro Colorado Billiton from January 2000 to
July 2001 and Vice-President Engineering & Development, Rio Algom Limited prior thereto; Ms. Rethy who has served as Senior Vice-President, Procurement,
Logistics & Information Systems, Noranda Inc. since April 2002, Senior Vice-President, Shared Business Services prior thereto; and Mr. Schady who has served as
Senior Vice-President, Noranda Inc. since 1998.

As
at December 31, 2002, the directors and executive officers of the Corporation, as a group, beneficially owned, directly or indirectly, or exercised control or direction over
32,764 common shares, representing less than 0.1% of the Corporation's outstanding common shares, and no voting securities of any subsidiary of the Corporation. The information as to securities
beneficially owned or over which control or direction is exercised is not within the knowledge of the Corporation and has been furnished by the directors and officers individually.

ADDITIONAL INFORMATION

Upon request to the Secretary and Assistant General Counsel of the Corporation at the Corporation's executive offices, BCE Place, Suite 200, 181 Bay
Street, Toronto, Ontario M5J 2T3, the Corporation will provide any person with a copy of:



A
copy of any of these documents may be obtained without charge at any time when a preliminary short form prospectus has been filed in respect of a distribution of any securities of the
Corporation or any securities of the Corporation are in the course of a distribution pursuant to a short form prospectus. At any other time, any document referred to in (a) to (c) above
may be obtained by security holders of the Corporation without charge and by any other person upon payment of a reasonable charge.

Additional
information including directors' and executive officers' remuneration and indebtedness, principal holders of the Corporation's securities, options to purchase securities and
interests of insiders in material transactions, where applicable, is contained in the management information circular prepared by the Corporation in connection with its annual meeting of shareholders
held on April 17, 2003. Additional financial information is provided in the Corporation's comparative consolidated financial statements for the year ended December 31, 2002, which are
included in the annual report of the Corporation for 2002.

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