First Nickel Inc.
TSX : FNI

First Nickel Inc.

May 12, 2008 10:00 ET

First Nickel Intersects 12.35 Metres of 1.90% Ni and 0.93% Cu on First Exploration Target Tested on the Lockerby Main Zone

TORONTO, ONTARIO--(Marketwire - May 12, 2008) - First Nickel Inc. (TSX:FNI) is pleased to report the results of 32 diamond drill holes representing 6,539 metres of diamond drilling to the west of the Lockerby Main Zone, approximately 1,300 metres above our current mining areas on the Lockerby Depth Zone. Drilling was completed from a platform on the previously mined 17 Level and was testing our first high priority target identified by our geological modeling of the Lockerby Mine. A total of 58 holes have been completed in this drill program and assay analyses are pending on the remaining 26 holes.

This initial phase of drilling has intersected numerous significant zones of mineralization including 17.50 metres grading 1.36% Ni and 0.84% Cu in FNI1704; 12.35 metres grading 1.90% Ni and 0.93% Cu in FNI1714; 3.25 metres grading 2.35% Ni and 0.58% Cu in FNI1715; and 7.00 metres grading 1.48% Ni and 1.63% Cu in FNI1734.

Paul Davis, Vice President Exploration for the Company states: "These results continue to validate our exploration strategy and methodology at the Lockerby Mine. Through systematic compilation and geological modeling of historical Falconbridge data into a modern digital database, we have identified a pipeline of highly prospective exploration target areas on the mine property. The current drilling represents our first exploration target to be tested on the sparsely explored areas flanking the Lockerby Main Zone, within 100 metres of the #1 Shaft. These results, coupled with our previous exploration successes expanding both the Lockerby East and Lockerby Depth Zones, reinforces my confidence that we will have continued exploration success on targets that have been identified throughout the Lockerby Mine."

The drill program is testing three separate horizons that include a hanging wall and contact trends between the 17 and 19 levels and the footwall trend between the 19 and 23 levels. These mineralized trends are associated with an embayment feature at the basal contact of the Sudbury Igneous Complex that has only had limited historic exploration work. The exploration program has intersected nickel-copper sulphide mineralization in each of these horizons between 50 and 100 metres from existing mine infrastructure.

The footwall mineralized trend is associated with a planar structure that extends to the west from the norite-basalt contact. The structure is comprised of varying proportions of sulphide, dark norite breccias and quartz-carbonate veining and is open in three directions. The sulphide associated with the footwall mineralization is composed of sulphide mineralization with characteristics similar to the contact style mineralization.

Drilling will continue to define the continuity of these horizons and may, if warranted, eventually be converted to resources. The following table summarizes the significant assay intervals from the first quarter of 2008.



Drill
From Length Ni Cu Co Pt Pd Au Ag
Hole ID (m) To(m) (m) (%) (%) (%) (ppm) (ppm) (ppm) (ppm)
FNI1703 67.25 68.40 1.15 1.51 0.29 0.07 0.45 0.22 0.02 3.85
and 77.40 83.20 5.80 1.16 0.93 0.05 0.24 0.12 0.05 8.54
and 88.50 89.70 1.20 1.67 0.51 0.08 0.06 0.10 0.02 5.84
FNI1704 46.80 64.30 17.50 1.36 0.84 0.06 0.24 0.15 0.06 6.50
and 85.10 90.45 5.35 1.35 0.85 0.06 0.26 0.16 0.09 7.53
FNI1705 98.00 104.45 6.45 1.00 1.27 0.05 0.57 0.15 0.08 9.06
incl. 102.50 104.45 1.95 1.53 0.72 0.07 0.19 0.13 0.04 7.45
FNI1706 113.90 116.10 2.20 2.04 1.24 0.10 0.48 0.34 0.10 8.28
FNI1708 155.60 157.15 1.55 1.51 0.42 0.07 0.10 0.20 0.06 7.17
FNI1711 44.30 46.80 2.50 1.22 1.48 0.05 0.31 0.10 0.15 10.64
FNI1712 70.20 71.40 1.20 1.59 0.31 0.08 0.18 0.20 0.02 5.91
FNI1713 45.00 50.30 5.30 1.23 0.57 0.06 0.23 0.15 0.03 7.04
FNI1714 55.75 68.10 12.35 1.90 0.93 0.08 0.23 0.15 0.06 5.69
and 90.90 92.85 1.95 1.01 1.13 0.04 0.17 0.47 0.12 7.87
FNI1715 102.85 106.10 3.25 2.17 0.58 0.09 0.14 0.28 0.06 8.59
FNI1716 118.85 124.20 5.35 0.94 1.87 0.05 0.18 0.19 0.04 11.05
FNI1718 50.00 52.60 2.60 1.11 0.73 0.06 0.34 0.14 0.06 7.48
FNI1719 58.90 63.10 4.20 1.04 0.49 0.11 0.15 2.07 0.09 6.68
and 92.45 95.20 2.75 1.16 0.46 0.06 0.03 0.22 0.06 5.68
FNI1720 43.20 45.00 1.80 1.07 1.18 0.05 0.00 0.30 0.16 7.99
and 86.90 88.30 1.40 1.28 0.28 0.07 0.08 0.08 0.01 5.23
FNI1721 91.60 98.15 6.55 1.14 0.82 0.06 0.18 0.18 0.10 5.94
FNI1723 89.00 91.70 2.70 1.10 0.80 0.05 0.18 0.18 0.09 9.74
FNI1728 100.20 105.00 4.80 0.55 3.19 0.04 0.32 0.08 0.12 26.64
FNI1732 65.20 67.55 2.35 1.10 0.59 0.06 0.27 0.10 0.05 5.26
FNI1733 92.00 94.05 2.05 1.99 0.73 0.10 1.44 0.29 0.05 5.71
FNI1734 47.15 54.15 7.00 1.48 1.63 0.06 0.32 0.12 0.17 10.29
and 85.60 86.95 1.35 1.09 0.69 0.05 0.25 0.20 0.06 5.38

All assay intervals reported are core length and do not represent true
widths (defined as being measured at right angles to the direction of
extension of the sulphide body). All other assay samples are pending
analysis.


The diamond drilling program was designed by First Nickel's Sudbury Geology Manager Phil Vicker, P.Geo. and is carried out under the supervision of First Nickel's Senior Geologist, Scot Halladay, P.Geo., both "qualified person(s)" 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 QA/QC protocol on all of its exploration projects. Drill core of interest (NQ size) is sawn in half, with one half retained for future reference and one half sent to a commercial laboratory, Accurassay Laboratories in Lively, Ontario. A rigorous quality assurance/quality control program is employed which includes the insertion of standards and blanks for each batch of samples.

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.

Contact Information