First Nickel Inc.
TSX : FNI

First Nickel Inc.

November 30, 2006 14:50 ET

First Nickel Completes First Stage of Drilling at Lockerby Depth Zone; Intersects 28.96 Metres of 2.34% Ni and 1.70% Cu

TORONTO, ONTARIO--(CCNMatthews - Nov. 30, 2006) - First Nickel Inc. (TSX:FNI) reports the completion of the first stage of a drill program on the Lockerby Depth Zone that is designed to provide the basis for a new resource calculation from the 64 level to the 72 level.

A total of forty additional diamond drill holes (6,427 metres) have been completed between the 64 and 67 levels. This stage of the drill program was designed to infill the existing resource model and facilitate the calculation of mineral reserves to the 67 Level for detailed mine planning.

The drill results to date have met or exceeded management's expectations for this phase of the work. Assay results have been received for 25 holes and are summarized in the following table. Examples of highlights to date include FNI6363, which intersected a core length of 28.96 metres grading 2.34% Ni and 1.70% Cu including 13.26 metres of 3.95% Ni and 1.81% Cu; and FNI6364, which intersected a core length of 47.62 metres grading 1.51% Ni and 0.90% Cu including 11.45 metres grading 3.34% Ni and 1.32% Cu. All assay intervals reported are core length and do not represent true widths (defined as being measured at right angles to the direction of extension of the sulphide body). A long section with the distribution of drill intercepts received to date is provided in Figure 1. The results for the remaining 15 holes of this first stage of drilling will be reported once the assay data has been received.

Diamond drilling has now progressed directly into a second stage of definition drilling on the Lockerby Depth Zone. This stage is designed to infill the central portion of the deposit between the 67 and 72 levels to increase geological confidence in the continuity of the mineralization and facilitate long term mine planning. Stage 2 diamond drilling is expected to be completed by the end of February.

The diamond drilling program was carried out under the supervision of First Nickel's Chief Mine Geologist, Stephen Conquer, P.Geo., a "qualified person" as defined by National Instrument 43-101. The information in this release was prepared under the direction of Paul Davis, P.Geo., Vice President of Exploration for First Nickel Inc., a "qualified person" as defined by National Instrument 43-101. First Nickel Inc. follows a rigorous QA/QC protocol on all of its exploration projects. Whole drill core is sampled and sent to a commercial laboratory, SGS Laboratories in Garson for preparation and specific gravity measurements and shipped internally by SGS to Toronto for assay. A rigorous quality assurance/quality control program is employed which includes the insertion of standards and blanks for each batch of samples. Historic analytical work completed by Falconbridge was completed by a commercial laboratory, Lakefield Laboratories.



Lockerby Depth Zone: Summary of Assay Results

Hole ID From To Core Length Ni Cu Co
(m) (m) (m) (%) (%) (%)
FNI6358 139.65 141.30 1.65 3.03 0.75 0.11
FNI6359 149.75 151.55 1.80 1.57 0.79 0.06
FNI6360 164.00 167.83 2.88 2.89 2.55 0.11
FNI6361 182.00 183.40 1.40 1.09 2.33 0.05
FNI6362 192.58 205.64 13.06 2.49 1.71 0.09
incl. 194.03 199.80 5.81 3.36 2.45 0.12
FNI6363 182.30 211.26 28.96 2.34 1.70 0.09
incl. 198.00 211.26 13.26 3.95 1.81 0.15
FNI6364 130.65 136.10 5.45 3.56 1.30 0.13
FNI6365 160.83 208.45 47.62 1.51 0.90 0.06
incl. 197.00 208.45 11.45 3.34 1.32 0.13
FNI6366 163.80 169.33 5.53 1.31 2.06 0.06
FNI6367 146.23 154.63 8.40 2.17 1.81 0.08
FNI6368 135.80 138.30 2.50 2.96 0.89 0.12
FNI6369 139.30 161.40 22.10 1.67 1.13 0.07
incl. 152.80 159.65 6.85 2.83 0.92 0.11
FNI6370 201.70 220.50 18.80 2.46 1.59 0.10
incl. 202.65 213.15 10.50 3.29 1.50 0.13
FNI6371 178.50 184.50 6.00 3.08 1.19 0.12
FNI6372 164.95 171.50 6.55 2.30 2.90 0.10
FNI6373 128.90 141.90 13.00 1.64 1.32 0.07
incl. 139.15 141.90 2.75 3.29 0.58 0.13
FNI6374 150.10 154.00 3.10 2.24 0.94 0.09
FNI6401 52.50 63.03 10.53 3.34 1.60 0.11
incl. 55.87 63.03 7.16 4.45 1.76 0.15
FNI6402 44.95 59.90 14.95 1.27 1.40 0.04
incl. 52.50 57.15 4.65 1.99 1.28 0.06
FNI6403 35.90 53.00 17.10 1.89 1.93 0.06
incl. 47.60 53.00 5.40 3.16 2.32 0.10
FNI6404 41.62 48.70 7.08 1.98 1.92 0.07
Incl. 44.52 47.66 3.14 3.60 1.22 0.12
FNI6405 72.66 80.85 8.19 2.51 2.38 0.09
FNI6406 106.96 114.58 7.62 3.95 2.24 0.13
FNI6407 132.29 140.08 7.79 2.85 1.22 0.09
incl. 132.29 137.00 4.71 4.01 1.87 0.13
FNI6408 140.65 149.90 9.25 1.57 1.52 0.06
incl. 146.85 149.90 3.05 3.84 1.68 0.13


First Nickel is a Canadian mining and exploration company. Its current activities are primarily focused on the Sudbury Basin in northern Ontario, the location of the company's producing property (the Lockerby Mine) and four of its exploration properties. First Nickel also has two exploration properties in the Timmins region of northern Ontario. First Nickel's shares are traded on the TSX under the symbol FNI.

This news release may contain forward-looking statements, which are subject to certain risks, uncertainties and assumptions. A number of factors could cause actual results to differ materially from the results discussed in such statements, and there is no assurance that actual results will be consistent with them. Such forward-looking statements are made as at the date of this news release, and the company assumes no obligation to update or revise them, either publicly or otherwise, to reflect new events, information or circumstances.

To view a copy of the "Lockerby Depth Drill Hole Long Section", click the link below:

http://www.ccnmatthews.com/docs/fni_map.pdf

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