First Nickel Inc.

First Nickel Inc.

December 12, 2006 16:44 ET

First Nickel Inc.: New Collective Agreements Signed

TORONTO, ONTARIO--(CCNMatthews - Dec. 12, 2006) - First Nickel Inc. (TSX:FNI) ("First Nickel") is pleased to announce that it has signed new collective agreements covering its hourly workers at Lockerby Mine.

The agreement between FNI and Local 598, Sudbury Mine, Mill, & Smelter Workers (CAW) covering the company's Production and Maintenance employees has a three year term ending December 1, 2009, while that between the Company and Local 2020, Unit 64 of the United Steelworkers of America, covering the Office, Technical, and Clerical employees extends through to December 15, 2009.

William Anderson, President, notes "we are pleased that the unions and our bargaining team have achieved this milestone. We look forward to working together to advance the Lockerby operation into a successful and profitable business".

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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