First Nickel Inc.

First Nickel Inc.

October 26, 2005 16:22 ET

First Nickel Inc. Completes CDN$6M Flow-Through Private Placement: Also Announces Change in Financial Year End

TORONTO, ONTARIO--(CCNMatthews - Oct. 26, 2005) - First Nickel Inc. (TSX:FNI) ("First Nickel") today completed its previously announced private placement offering of up to 4,615,385 flow-through shares at the subscription price of $1.30 per share (the "Offering"). The Offering, announced in First Nickel's September 29, 2005 press release, was fully subscribed, resulting in gross proceeds to First Nickel of $6,000,000.

MGI Securities Inc. ("MGI") acted as lead Agent under the Offering and was paid a cash commission of 7% of the gross proceeds raised under Offering. MGI and the sub-agents assisting in the Offering also received broker warrants to acquire in the aggregate that number of common shares of First Nickel equal to 5% of the total number of flow-through shares sold under the Offering exercisable at $1.30 per share, expiring twenty four (24) months from the date of closing of the Offering.

The proceeds from the sale of the flow-through shares will be used by FNI to fund its ongoing exploration programs at the Bowell, Foy Mouth and Morgan-Lumsden Properties (located in the North Range of the Sudbury Basin, the West Graham Property (located adjacent to FNI's Lockerby Mine), and the Dunadonald Property (located near Timmins, Ontario).

First Nickel also today announced the change of its financial year end from October 31 to December 31 in each year. The change in financial year end comes as a result of First Nickel's recent shift in focus from being primarily an exploration company to becoming an operational mining, development and exploration company, and the desire to harmonize its financial reporting with the majority of other issuers engaged in these areas.

As at October 26, 2005 First Nickel had a total of 58,868,633 common shares issued and outstanding.

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