First Nickel Inc.
TSX : FNI

First Nickel Inc.

July 11, 2005 10:57 ET

First Nickel Inc. Receives Lockerby Mine 43-101 Technical Report And Enters Into Collective Bargaining Agreements With Mine, Mill & Smelter Workers 'CAW' And United Steelworkers Unions

TORONTO, ONTARIO--(CCNMatthews - July 11, 2005) - First Nickel Inc. (TSX:FNI) ("First Nickel") is pleased to announce the completion by Roscoe Postle Associates Inc. ("RPA") of a technical report dated June 30, 2005 prepared in accordance with National Instrument 43-101 on the Lockerby Mine property (the "Technical Report") and the filing thereof with the relevant authorities via the System for Electronic Document Analysis and Retrieval. The Technical Report confirms that the Lockerby Mine has been well maintained and that it will be ready to resume production with a minimum of preparation.

See press release dated June 1, 2005 for particulars of the acquisition of the Lockerby Mine from Falconbridge Limited (Falconbridge). Recent underground production by Falconbridge from the Depth and East Zones averaged 220,000 tonnes per year, at a grade of 2.0% Ni and 1.1% Cu. RPA has reported MR 223,000 tonnes averaging 1.90% NI, 1.00% Cu, and 0.06% Co, and Inferred Mineral Resources of 892,000 tonnes averaging 2.4% Ni, 1.43 % Cu and 0.07%Co.

First Nickel currently has crews on site refurbishing the mobile equipment and re-establishing the surface and underground services needed to resume operations, which is expected to occur later in the summer.

First Nickel is also pleased to announce that it has entered into definitive collective agreements regarding the operation of the Lockerby Mine with the Sudbury Mine, Mill & Smelter Workers Union Local 598 and United Steel Workers of America Local 2020, which agreements were previously announced in principle in First Nickel's release dated June 1, 2005.

At June 30, 2005 First Nickel had working capital of approximately $20,200,000 and 53,395,598 common shares issued and outstanding.

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