International Nickel Ventures Corporation
TSX : NVC

International Nickel Ventures Corporation

May 15, 2006 17:00 ET

International Nickel Ventures Corporation First Quarter 2006 Results

TORONTO, ONTARIO--(CCNMatthews - May 15, 2006) - International Nickel Ventures Corporation ("INV") (TSX:NVC) reports its results for the first quarter ended March 31, 2006 (See INV's first quarter 2006 financial statements and MD&A filed on SEDAR at www.sedar.com and on the Company's website at www.nickelventures.com).

INV is a Canadian mineral resource company focused on the acquisition, exploration and development of nickel projects in Brazil. Its primary asset is an option to acquire, with partner and operator Teck Cominco Limited ("Teck Cominco"), a 75% interest in two advanced-stage nickel laterite deposits, the Santa Fe and Ipora, in the Goias nickel camp of Brazil. In addition, INV has 100% ownership in an extensive land package of prospective nickel properties in Goias and Para States.

As the Company's mineral properties are at the exploration stage and are not in production, INV did not have any operating revenues and incurred a loss of $675,626 or $0.05 per share for the three months ended March 31, 2006. This compares to a loss of $76,077 or $0.17 in the corresponding period of 2005. General and administration expenses ($436,602), as well as general exploration ($96,688) and stock-based compensation expenses ($159,569) accounted for most of the quarter's expenses. General and Administration costs were unusually high for the quarter, including a substantial amount for shareholder information and regulatory compliance ($191,305), as INV became a public company.

On March 17, 2006, INV completed an initial public offering (IPO) and became listed on the Toronto Stock Exchange under the trading symbol "NVC". In connection with the IPO, and after the exercise of the over-allotment option subsequent to quarter end on April 6, 2006, INV issued 21,120,000 common shares for gross proceeds of $25,344,000. As at March 31, 2006, INV had 34,452,300 common shares issued and outstanding, an increase of 22,919,900 common shares from year end 2005.

The net change in cash balances as a result of operating, financing and investing activities was a net inflow of $20,336,169 compared to $425,595 in 2005. Cash flow from operating activities was $297,296 during the first quarter of 2006, compared to $438,125 in 2005. Financing activities from common share issuances in 2006 saw a net cash inflow of $20,523,728 compared to $845,000 in 2005. A $1,562,490 promissory note with Teck Cominco was converted into 1,299,800 common shares of INV on March 17, 2006. Investing activities in the first quarter of 2006 resulted in a net cash outflow of $484,855, compared to $879,112 in 2005, on mineral property and deferred exploration costs and investment in the Santa Fe/Ipora joint venture.

Working capital at the end of the quarter was significantly higher at $19,327,568 versus a shortfall of $199,574 for the same period last year (excluding non-interest bearing promissory notes with Teck Cominco) as a result of the proceeds from the IPO in March 2006.

2006 Outlook

Teck Cominco has budgeted a $10.0 million work program for the Santa Fe and Ipora properties in 2006, INV's share of which is $2.7 million. This work program is over one-third complete with 10 drills currently working on the properties. An update on this work program will be provided shortly. In addition, INV has budgeted approximately $1.3 million for the acquisition of additional mineral properties and/or the exploration of its other mineral properties in 2006. Pursuant to the Financing and Rights Agreement, Teck Cominco is to subscribe for additional shares of INV in the amounts needed to fund the Santa Fe/Ipora option payments in 2006. INV is well positioned to conduct all of its currently planned business activities in 2006.

The Company's annual report, information circular and associated material have been mailed to shareholders and are also available on SEDAR and INV's website (www.nickelventures.com). INV's Annual Meeting will be held on Friday, June 2, 2006 at 11:00 a.m. at the Toronto Stock Exchange Gallery, 130 King St. West, Exchange Tower, Toronto, Ontario.

Forward-Looking Statement

This press release contains certain forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond the Company's ability to control or predict which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. In this release the section entitled "2006 Outlook" contains forecasts subject to various risks. Accordingly, readers should not place undue reliance on forward-looking statements. For a more detailed discussion of such risks and other factors, refer to INV's filings with Canadian securities regulators available on www.sedar.com or the Company's website at www.nickelventures.com.

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