Fletcher Nickel Inc.
TSX : FL

Fletcher Nickel Inc.

October 04, 2007 17:29 ET

Fletcher Nickel Inc. Closes Private Placement, Obtains Extension of TSX Conditional Listing Approval

TORONTO, ONTARIO--(Marketwire - Oct. 4, 2007) - Fletcher Nickel Inc (TSX:FL) announces that it has closed a non-brokered unit private placement raising an aggregate of $330,400 through the sale of 472,000 units at a price of $0.70 per unit. Each unit consisted of one "flow-through" special warrant and one special warrant. Each flow-through special warrant entitles the holder thereof to acquire, for no additional consideration, one common share of Fletcher. Each special warrant entitles the holder to acquire, for no additional consideration, one-half of one common share purchase warrant of Fletcher. Each whole common share purchase warrant entitles the holder to acquire one common share of Fletcher at a price of $1.00 until Mach 19, 2009. The flow-through special warrants and the special warrants may be exercised at any time, but shall in any event be automatically exercised immediately after the earlier of (i) the third business day following the issuance of a receipt for a prospectus qualifying, among other things, the securities issuable upon exercise of the flow-through special warrants and the special warrants and (ii) January 29, 2008. The proceeds of the private placement will be used to fund exploration expenditures currently being incurred at Fletcher's properties.

Fletcher also announces that the Toronto Stock Exchange has extended its conditional listing approval respecting Fletcher's common shares to December 28th, 2007 and reserved "FL" as the trading symbol for Fletcher's common shares upon completion of Fletcher's proposed initial public offering ("IPO").

Fletcher's IPO was originally scheduled to close during late August, 2007, but was postponed due to turbulent market conditions. Fletcher anticipates filing an amended and restated prospectus to complete the IPO and to qualify the securities underlying the flow-through special warrants and special warrants issued in the private placement in the near future.

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