A bone resection apparatus and its method of use for knee surgery are presented. In one aspect of the invention, the apparatus includes a spacer and a tibial cut guide. The spacer has a first surface engageable with the cut distal femoral bone and a second surface opposite the first surface engageable with the uncut proximal tibial bone in joint articulating relationship. The spacer further includes a cut guide support. The tibial cut guide has a cutter guide defining a cut plane and a support engaging element engageable with the cut guide support. The cut guide support and support engaging element cooperate to position the cut plane in relative to the first surface.