First Nickel Inc.

First Nickel Inc.

August 02, 2006 16:30 ET

First Nickel Inc.: Extension Granted for Premiere Ridge Feasibility Study

TORONTO, ONTARIO--(CCNMatthews - Aug. 2, 2006) - First Nickel Inc. (TSX:FNI) ("First Nickel") is pleased to announce that Falconbridge Limited has granted an extension to January 31, 2007, on the delivery of a Feasibility Study for the Premiere Ridge deposit. This extension will allow time for further metallurgical test-work needed for establishing processing terms.

First Nickel also wishes to announce the filing, at , of an independent NI43-101 Technical Report prepared by Scott Wilson Roscoe Postle Associates Inc. (Scott Wilson RPA) in support of the June 8, 2006 press release of the Premiere Ridge Resource Estimate. The Premiere Ridge deposit was estimated to have Indicated Resources of 1.59 million tonnes grading 1.36% Ni, 0.52% Cu, 0.046% Co, 0.10 gpt Pt, 0.13 gpt Pd, 0.075 gpt Au and 1.64 gpt Ag using a 0.8% nickel equivalent cutoff grade (nickel equivalent equals Ni% +(0.3 x Cu%)). This Technical Report, prepared by Scott Wilson RPA, will provide the basis of a Feasibility Study to be completed prior to January 31, 2007.

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, except as may be required under applicable securities law.

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