First Nickel Inc.

First Nickel Inc.

March 07, 2005 16:29 ET

First Nickel Inc. Announces Year-End Results; Restates Q3 2004 Results




MARCH 7, 2005 - 16:29 ET

First Nickel Inc. Announces Year-End Results; Restates
Q3 2004 Results

TORONTO, ONTARIO--(CCNMatthews - March 7, 2005) - First Nickel Inc.
(TSX:FNI) ("First Nickel" or the "Company") has announced its audited
results for its financial year ended October 31, 2004 ("Fiscal 2004").
All results are reported in Canadian dollars.

The Company reported a loss of $109,801 ($0.0076 per share) for Fiscal
2004. As the Company was incorporated in November 2003, no comparative
results are available. Operating expenses during Fiscal 2004 totalled
$254,225, and were composed primarily of legal and audit fees of
$59,643, regulatory filing fees of $13,209, salaries and benefits of
$87,874, and investor relations costs of $30,022. Interest income earned
by the Company during the period on its cash and cash equivalents
totalled $88,424. The Company carried on no revenue-generating
operations during Fiscal 2004.

As at October 31, 2004, the Company had $11,480,187 in cash and cash
equivalents, and working capital of $11,372,714. The Company had no
long-term debt as at October 31, 2004.

First Nickel is a junior mining exploration and development company
engaged in the acquisition, exploration and development of mineral
prospects in Canada. Pursuant to an agreement with Falconbridge Limited
("Falconbridge") dated January 9, 2004, as amended, the Company has
acquired a 100% interest in the Dundonald Property located 60 kilometers
east of Timmins, Ontario (subject to the terms and conditions described
in the Company's Press Release dated June 28, 2004), the right to earn
up to a 50% interest in 12 unpatented mining claims located in the
Kamiskotia area, northwest of Timmins, Ontario, and has formed a
strategic alliance with Falconbridge for the exploration and development
of nickel properties located in the western Abitibi Belt. On June 28,
2004 First Nickel completed an initial public offering (the "IPO"),
raising gross proceeds of $11,500,000 for the drilling and underground
exploration of the Dundonald Property, for the first round of drilling
of the Kamiskotia prospects and for the strategic alliance with
Falconbridge. As at February 21, 2005, the Company had completed
approximately 16,800 meters of diamond drilling on the Dundonald
Property and continues to evaluate the economic potential of the nickel
deposits on the property.

Elizabeth J. Kirkwood, the President, Chief Executive Officer and a
director of the Company, stated "We are pleased with the results which
demonstrate First Nickel's strategy to deploy its cash resources into
exploration and development activities and minimize general and
administrative expenses."

The Company also announced that it has amended and restated its interim
financial statements for the three-month period ended July 31, 2004 (the
"Q3 2004 Financials"). The Q3 2004 Financials were amended by the
Company to properly capitalize certain professional fees relating to the
IPO totalling $154,117. The Q3 2004 Financials were further amended to
recognize a $46,000 reduction in the Company's future corporate income
tax liability. As a result, the Q3 2004 Financials, as amended, now
reflect a net loss for the period of $9,812 ($0.003 per share) as
opposed to a net loss of $209,930 ($0.012 per share). The Company has
re-filed its Q3 2004 Financials, as amended, via SEDAR.

First Nickel's common shares trade on the Toronto Stock Exchange under
the symbol "FNI". As at February 21, 2005, a total of 44,058,013 common
shares of the Company were issued and outstanding.


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