First Nickel Inc.
TSX : FNI

First Nickel Inc.

April 05, 2007 09:24 ET

First Nickel Inc. Announces Bought Deal Financing

TORONTO, ONTARIO--(CCNMatthews - April 5, 2007) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

First Nickel Inc. (TSX:FNI) (the "Company") confirms an agreement with a syndicate of underwriters led by Desjardins Securities Inc. (collectively, the "Underwriters) to raise $15,000,025 on a bought deal basis consisting of a private placement of 13,043,500 Common Shares at a price of $1.15 per Common Share.

The Underwriters have also been granted an option to place, prior to closing, up to an additional 1,956,500 Common Shares at a price of $1.15 per Common Share for further gross proceeds of $2,249,975 for aggregate gross proceeds of $17,250,000.

Closing of the transaction is expected to occur on or about April 24th, 2007 and is subject to normal regulatory approvals. The net proceeds of the Offering will be used for the repayment of debt and for general working capital purposes.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

About First Nickel Inc.

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.

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