First Nickel Inc.

First Nickel Inc.

June 08, 2006 08:00 ET

First Nickel Inc.: Premiere Ridge Resource Estimate: 1.59 Million Tonnes at a Grade of 1.36% Ni and 0.52% Cu

TORONTO, ONTARIO--(CCNMatthews - June 8, 2006) - First Nickel Inc. (TSX:FNI) is pleased to report the initial mineral resource estimate for the Premiere Ridge Deposit on the North Range of the Sudbury Basin.

The total in situ Indicated Mineral Resource estimate is tabulated as follows:

Deposit Tonnes Ni Cu Co Pt Pd Au Ag
Indicated (%) (%) (%) (gpt) (gpt) (gpt) (gpt)
in situ
Ridge 1,590,000 1.36 0.52 0.046 0.10 0.13 0.075 1.64
0.8% nickel equivalent (NiEq) cut-off grade (NiEq equals Ni grade +
(0.3 X Cu grade)).

The Mineral Resource model was prepared by the FNI Technical Team. The model and modelling procedures have been reviewed by Roscoe Postle Associates Inc. (RPA), an independent, geological and mining consulting firm. In RPA's opinion the Mineral Resource Modeling and the Mineral Resource estimation, supporting the results reported in this release conform to NI 43-101 standards. In RPA's opinion, the density of drilling and continuity of mineralization is sufficient to classify the estimated resources as Indicated Mineral Resources. This resource estimate will form a portion of a more comprehensive Technical Report being prepared by RPA. The Technical Report will provide the basis of a Feasibility Study to be completed later this year.

The Premiere Ridge property is located 13.5 kilometres east of the Falconbridge's Strathcona Mill Complex in southwest Bowell Township. Approximately 1.8 km of favourable Sudbury Igneous Complex (SIC) contact is present on the property with known nickel-copper sulphide showings. The Premiere Ridge property is under Option from Falconbridge Limited (FL). FNI has the right to vest 100% interest in the property under the terms of the Option Agreement that was previously announced in FNI's press release dated March 22, 2005.

First Nickel is pleased with the results of this resource estimate as it represents an increase in the nickel grade of approximately 10% to 15% while maintaining approximately the same tonnage as the historical resource estimate previously completed by Falconbridge Limited. The completion of FNI infill drilling returned better than anticipated widths and grades in several key areas of the deposit resulting in this increased nickel grade.

The deposit has dimensions approximating 300 metres in strike, up to 325 metres in dip, and varies from 5 to 40 metres in true thickness, averaging 10-15 metres thick. The main Contact component of the deposit dips 30-35 degrees to the southeast, and the western Footwall component plunges 30-40 degrees to the west-southwest. The deposit subcrops and extends to 200 metres vertical depth. The main contact mineralization is open down plunge to the southeast and the western footwall mineralization is interpreted to continue across the property boundary to the west.

A total of 99 drill holes representing 13,726 metres of diamond drill core have been completed within the Premiere Ridge Deposit. A total of 1,605 assay samples were used in the resource estimate. The Mineral Resource estimate for the Premiere Ridge Deposit was derived from a block model created with Datamine(c) software, applying industry standard resource modelling procedures. Grade was interpolated into the blocks using Ordinary Kriging, and results were compared to that derived from Inverse Distance Squared weighting (ID2) and Nearest Neighbour methodologies. Multiple iterations of the model were completed with varying input criteria and compared for accuracy and reproducibility. A cut-off value of 0.8% NiEq was selected as a base case for the Premiere Ridge model.

The exploration program and Mineral Resource modelling was carried out under the supervision of First Nickel's Sudbury Exploration Manager, Phil Vicker, PGeo, a "qualified person" as defined by National Instrument 43-101. The information in this release was prepared under the direction of Paul Davis, PGeo, Vice President of Exploration for First Nickel Inc., a "qualified person" as defined by National Instrument 43-101. First Nickel Inc. follows a rigorous QA/QC protocol on all of its exploration projects.

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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