First Nickel Inc.
TSX : FNI

First Nickel Inc.

September 27, 2011 08:00 ET

First Nickel Commences Production and Delivers Ore From Lockerby Mine in Sudbury, Ontario

TORONTO, ONTARIO--(Marketwire - Sept. 27, 2011) - First Nickel Inc. ("First Nickel" or the "Company") (TSX:FNI) is pleased to announce that it has commenced ore production at the Lockerby nickel-copper mine and made its first delivery of ore from the mine to Xstrata Nickel. The mine is expected to produce an average of 400 tonnes per day during the fourth quarter of 2011, ramping up to commercial production at the annual rate of 10 million pounds of nickel and 7 million pounds of copper by mid-2012.

The Lockerby capital development program is being completed as planned, remains on budget and has achieved several significant milestones as summarized below:

  • Production has begun with delivery of Ore to Xstrata Nickel's Strathcona Mill Facility
  • All production-maintenance and office–clerical-technical employees have been recalled
  • The main haulage ramp has advanced towards 65 Level
  • Lateral development work has advanced on the 65-3 and 65-2 Levels
  • Key infrastructure improvements have been completed
  • Several major elements of the underground mobile fleet have been replaced

"The Lockerby Mine Team has taken full ownership of this project and has been instrumental in bringing the mine back into production," says Gerry Bilodeau, First Nickel's Chief Operating Officer. "Looking forward, I am confident we will achieve our production milestones given the hard work and dedication of our employees, managers and contractors here at the Lockerby Mine."

About First Nickel

First Nickel is a Canadian mining and exploration company that is in production at its Lockerby nickel / copper mine in the Sudbury Basin in northern Ontario. Once the Lockerby Mine reaches full production (expected in 2012), it will produce approximately 10 million pounds of nickel and approximately 7 million pounds of copper annually, providing a strong base of cash flow from which to grow the Company. In addition to the Lockerby nickel mine, the Company owns exploration properties in the Sudbury Basin, the Timmins region of northern Ontario, and the Belmont region of Eastern Ontario. First Nickel's shares are traded on the TSX under the symbol FNI.

Some of the statements contained in this news release are forward-looking statements, such as statements that describe First Nickel's future plans, intentions, objectives or goals, and specifically include but are not limited to production at the Lockerby Mine. In certain cases, forward-looking statements can be identified by the use of words such as "expects", "will", "enable", "anticipates", "estimated" or words of similar effect. Since forward-looking statements are not statements of historical fact and address future events, conditions and expectations, forward-looking statements inherently involve unknown risks, uncertainties, assumptions and other factors well beyond the Company's ability to control or predict. Actual results and developments may differ materially from those contemplated by such forward-looking statements depending on, among others, such key factors as fluctuating metal prices, maintaining operating and exploration teams, and other factors described in the Company's most recently filed Annual Information Form under the heading "Risk Factors" which has been filed electronically by means of the System for Electronic Document Analysis and Retrieval ("SEDAR") located at www.sedar.com. The forward-looking statements included in this document represent First Nickel's views as of the date of this document and subsequent events and developments may cause First Nickel's views to change. These forward-looking statements should not be relied upon as representing First Nickel's views as of any date subsequent to the date of this document. Although First Nickel has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on any forward-looking statements.

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