First Nickel Inc.

First Nickel Inc.

August 11, 2008 09:52 ET

First Nickel Reports Further High Grade Copper Intersection in the Footwall on the Morgan-Lumsden Property Grading 20.0% Cu Over 0.40 Metres

TORONTO, ONTARIO--(Marketwire - Aug. 11, 2008) - First Nickel Inc. (TSX:FNI) reports the intersection of massive sulphide veins in the footwall units on the Morgan-Lumsden Property. The massive sulphide veins consisting of mainly chalcopyrite and pyrrhotite were intersected over a 10.15 metre section of drill core approximately 1460 metres below surface and range in width from 0.05 to 0.40 metres.

The current diamond drill program began in June with the deepening of hole M-059 testing an anomaly identifie below the bottom of the hole by the RIM geophysical survey completed in 2007. The anomaly was interpreted to be approximately 300 metres into the footwall below the Sudbury Igneous Complex contact. The drill hole intercepted a well developed Sudbury Breccia unit that hosts the massive sulphide veining over a 10.15 metre intersection that grades 1.41% Cu including 40 centimetres of 20.0% Cu. Assay results from the deepened portion of M-059 have been summarized in the following table:

Please note: To view the Photo of massive sulphide vein in borehole M-059 grading 20.0% Cu over 0.40 metres. (NQ diamond drill core with a diameter of approximately 5 cm), please visit the following link:

From To Length Ni Cu Pt Pd Au Ag
Hole ID (m) (m) (m) (%) (%) (ppm) (ppm) (ppm) (ppm)
M-059 1455.85 1466.00 10.15 0.03 1.41 0.02 0.09 0.04 6.17
incl. 1455.85 1456.05 0.20 0.28 9.87 0.20 0.27 0.09 37.9
incl. 1459.70 1459.90 0.20 0.13 11.00 0.06 0.29 0.19 41.1
incl. 1460.35 1460.65 0.30 0.09 3.52 0.05 0.12 0.19 12.3
incl. 1465.60 1466.00 0.40 0.29 20.0 0.28 1.79 0.16 89.7

All assay intervals reported are core length and do not represent true
widths (defined as being measured at right angles to the direction of
extension of the sulphide body). All other assay samples are pending

A borehole UTEM survey completed by Lamontagne Geophysics and interpreted by Xstrata Nickel has identified two small, high conductance plates that correspond with the observed mineralization at 1475 metres depth and a third larger, low conductance plate in the vicinity of this prospective area that correlates with the UTEM borehole survey completed on M-066 in 2007. The plates have been interpreted as trending up-dip towards the northwest, away from the property boundary. Diamond drilling is currently in progress on this area testing this up-plunge trend for both contact-style and footwall-style mineralization.

"The high grade footwall-style mineralization intersected on the Morgan-Lumsden Property has similar characteristics to known footwall hosted zones within the Sudbury Basin and represents an attractive exploration target for FNI" states Paul Davis, Vice President Exploration. "The significance of this drill intercept is uncertain at this time and further drilling will be required to define the size and orientation of the mineralized system. Drilling is scheduled to continue throughout the remainder of 2008 testing the up-dip potential to the northwest, as well as exploring the basal contact of the Sudbury Igneous Complex to the east."

The Morgan-Lumsden property is located on the North Range of the Sudbury Basin approximately 12 kilometres to the east of Xstrata Nickel's Strathcona Mill Complex. First Nickel has an option from Xstrata to earn a 50% interest in the Morgan-Lumsden Property on terms previously announced in First Nickel's Management Discussion and Analysis Document posted on SEDAR on May 13, 2008.

The exploration program on the Morgan-Lumsden property is being carried out under the direction of Xstrata Nickel's Project Geologist, Christine Champagne, who is responsible for the program, and under the Management and direction of Xstrata Nickel's Regional Geologist Nic Fenner, P.Geo., and Gary Potts, Manager of Geology, Sudbury Operations, both of whom are "qualified persons" as defined in National Instrument 43-101. Xstrata Nickel employs a QA/QC protocol on all aspects of the sampling and analytical procedures.

The information in this release was prepared under the direction of Paul Davis, P.Geo., Vice President of Exploration for First Nickel Inc., a "qualified person" as defined by National Instrument 43-101.

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 three of its exploration properties. First Nickel also has exploration properties in the Timmins region of northern Ontario and southeastern Ontario. First Nickel's shares are traded on the TSX under the symbol FNI.

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.

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