First Nickel Inc.

First Nickel Inc.
Jaguar Nickel Inc.

Jaguar Nickel Inc.

June 12, 2006 17:05 ET

First Nickel and Jaguar Nickel Agree Not to Proceed with Business Combination

TORONTO, ONTARIO--(CCNMatthews - June 12, 2006) - First Nickel Inc. (TSX:FNI) ("First Nickel") and Jaguar Nickel Inc. (TSX:JNI) ("Jaguar") today announced they have mutually agreed not to proceed with the business combination previously announced on May 2, 2006.

Each of First Nickel and Jaguar consider it to be in their respective best interests not to enter into a definitive merger agreement and negotiations have ended on amicable terms. As there were no technical or financial findings identified in the mutual due diligence which led to the decision not to proceed, each of First Nickel and Jaguar have agreed that no termination fees shall be payable as a result of the termination of the proposed combination.

About First Nickel

First Nickel is an operational Canadian mining and exploration company. Its current activities are focused primarily on the Sudbury basin in northern Ontario, where its producing mine, the Lockerby Mine, its feasibility stage Premiere Ridge Project, and three additional exploration properties are located. First Nickel also holds two exploration properties in the Timmins region of northern Ontario. First Nickel's shares are traded on the TSX under the symbol FNI.

About Jaguar Nickel

Jaguar Nickel is a well funded Canadian mineral exploration and development company. It has entered into an exploration alliance with BHP Billiton for the exploration and development of nickel mining properties in Canada, Alaska, the mid-continental United States and Greenland, excluding certain properties currently held by BHP Billiton. Jaguar's shares are traded on the TSX under the symbol JNI.

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