First Nickel Inc.

First Nickel Inc.

December 21, 2007 10:00 ET

First Nickel Announcement

TORONTO, ONTARIO--(Marketwire - Dec. 21, 2007) - First Nickel Inc. (TSX:FNI) reports that its main underground crusher was out of service for mechanical problems for a week in mid-December, with consequent loss of production for that period. The company now expects the year end figure for production will be approximately 125,000 tonnes, or about 3.3 million pounds payable nickel, compared to the guidance issued September 6, 2007 of 136,000 tonnes and 3.9 million pounds respectively.

William Anderson, President & CEO commented "It's unfortunate that this unforeseen problem came up, but our crews have worked hard to bring things on line again. There will be no impact on our production plans in 2008, and I look forward to a strong start to the year".

This news release may contain forward-looking statements, which are subject to certain risks, uncertainties and assumptions. A number of factors could cause actual results to differ materially from the results discussed in such statements, and there is no assurance that actual results will be consistent with them. Such forward-looking statements are made as at the date of this news release, and the company assumes no obligation to update or revise them, either publicly or otherwise, to reflect new events, information or circumstances.

First Nickel is a Canadian mining and exploration company. Its current activities are primarily focused on the Sudbury Basin in northern Ontario, the location of the company's producing property (the Lockerby Mine) and four of its exploration properties. First Nickel also has two exploration properties in the Timmins region of northern Ontario. The Company's shares are traded on the TSX under the symbol FNI.

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