Pure Nickel Inc.
OTC Bulletin Board : PNCKF

Pure Nickel Inc.

November 06, 2007 06:30 ET

Pure Nickel Grants Option on Quebec Properties to Manicouagan Minerals

TORONTO, ONTARIO--(Marketwire - Nov. 6, 2007) - Pure Nickel Inc. ("Pure Nickel") (TSX:NIC)(OTCBB:PNCKF) is pleased to announce that it has entered into an Option Agreement with Manicouagan Minerals Inc. ("Manicouagan Minerals") (TSX VENTURE:MAM). Pursuant to the agreement, Pure Nickel has granted Manicouagan Minerals an option (the "Option") to earn up to a 70% interest in 39 mining claims comprising the Forgues and Haut Plateau East project in Quebec.

General terms and conditions of the Option Agreement are as follows:

1. Manicouagan Minerals will pay a cash payment of Cdn$30,000 to Pure Nickel to secure the Option Agreement and as long as the Agreement remains in effect, $25,000 on the first and second anniversary.

2. Manicouagan Minerals will grant Pure Nickel 250,000 common share purchase warrants (each, a "Warrant"), each Warrant entitling Pure Nickel to acquire a common share of Manicouagan Mineral at a price of $0.40 per share. The Warrants shall vest and become exercisable immediately and have a term of two years.

3. Manicouagan Minerals will earn 50% interest in the Forgues and Haut Plateau East properties by spending a minimum of Cdn$750,000 on the property on or before the second anniversary date.

4. Manicouagan Minerals can earn an additional 20% if within 60 days of the second anniversary of the Option Agreement Manicouagan Minerals elects to carry Pure Nickel during the next 12 months by expending an additional $1,500,000 in the same manner as during the earn in period.

Pure Nickel also announces it has decided to discontinue its exploration efforts in the Fox River area. After reviewing the recent results of the 2007 drilling program Pure Nickel has decided to concentrate its resources on more advanced properties which will provide the Company with greater opportunity for discovery. Dr. Larry Hulbert, Chief Exploration Officer for Pure Nickel said "the 2006-07 Pure Nickel -Xstrata joint venture program in the Fox River belt was a technical success in that it considerably advanced our geological and geophysical understanding of this promising, but extremely challenging exploration terrain. Although the geological similarities between the Raglan nickel camp and the Fox River belt are compelling it is believed that commercial success in the Fox River belt will only be achieved by a long term exploration commitment to the area. Since the acquisition of the Xstrata package of properties the company has more immediate needs, and will thus re-direct its Fox River resources to these new properties".

In line with Pure Nickel focusing on its primary properties it has also allowed its claims on the Florence Lake, Labrador property to lapse.

About Pure Nickel Inc.:

Pure Nickel is a mineral exploration Company with multiple, advanced nickel sulphide and PGE projects in Canada and Alaska. The Company's 2007 exploration program is underway on multiple properties and is fully funded.

Total Shares Outstanding: 67.766 million

Fully Diluted: 92.410 million

52-Week Trading Range: C$0.58 - $1.65

The TSX Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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