First Nickel Intersects 1.04% Ni and 0.70% Cu Over 8.6 Metres on Link Zone

TORONTO, ONTARIO--(Marketwire - Aug. 8, 2012) - First Nickel Inc. ("First Nickel", "FNI" or the "Company") (TSX:FNI) reports the results of the 2012 surface exploration diamond drill program consisting of 3 holes representing 2,700 metres of drilling on the Link Zone in Sudbury, Ontario. The assay results within this press release include both new diamond drill holes and previously reported drill holes completed in 2009 on the same area. Assay results have been received for all drilling completed on the Link Zone in 2012.

The surface drill program on the Link Zone was completed on FNI's wholly owned patented mining claims in Graham Township testing an area located between the Lockerby East Zone and the Conwest Deposit. Eight FNI drill holes have been completed on the Link Zone since 2009 intersecting mainly norite hosted disseminated sulphide mineralization with similar characteristics to the Conwest Deposit. Borehole geophysics was completed on selected drill holes in 2009.

The following table summarizes the significant assay results received for the Link Zone area from the 2012 and 2009 diamond drill programs.

Holes FNI4006 and FNI4007 tested previously unexplored portions of the Sudbury Igneous Complex basal contact to the east of the mineralized trend and did not intersect any significant, additional mineralization.

Paul Davis, First Nickel's Vice President, Exploration states "These drill results confirm that the mineralized system associated with the Lockerby East and Conwest deposits extends through the Link Zone and has expanded the overall area of the higher grade mineralization intercepted in the 2009 program. We are going to interpret these results and determine the next phase of exploration on the area to define the economic potential of the Link Zone."

To view the map "Link Zone Drilling 2012 - Longitudinal", please visit the following link: http://media3.marketwire.com/docs/first_nickel_fig01_aug8.pdf

The diamond drilling program was designed and carried out under the supervision of First Nickel's Sudbury Geology Manager, Philip Vicker, P.Geo. a "qualified person" as defined by National Instrument 43-101. The information in this release was prepared under the direction of Paul Davis, P.Geo., Vice President of Exploration for First Nickel Inc., a "qualified person" as defined by National Instrument 43-101. First Nickel Inc. follows a rigorous quality assurance/quality control ("QA/QC") protocol on all of its exploration projects. Drill core of interest is sawn in half, with one half retained for future reference and one half sent to a commercial laboratory, SGS Laboratories in Garson, Ontario. The company's QA/QC protocol includes the insertion of standards and blanks for each batch of samples.

About First Nickel Inc.

First Nickel is a Canadian mining and exploration company. The Company's mission is to be the most dynamic North American emerging base metal mining company in which to work and invest and to be respected in the communities in which we operate. FNI is in the process of ramping up production at its Lockerby nickel / copper mine in the Sudbury Basin in northern Ontario. Once the Lockerby Mine reaches full production (expected by end of 2012), it is expected to produce at a rate of approximately 10 million pounds of nickel and approximately 7 million pounds of copper annually, providing a strong base of cash flow from which to grow the Company. In addition to the Lockerby nickel mine, the Company owns exploration properties in the Sudbury Basin, the Timmins region of northern Ontario, and the Belmont region of Eastern Ontario. First Nickel's shares are traded on the TSX under the symbol FNI.