First Nickel Inc.

First Nickel Inc.

November 03, 2006 14:00 ET

First Nickel Reports 2.98% Copper, 2.85 gpt Platinum, 4.85 gpt Palladium, 4.66 gpt Gold and 58.9 gpt Silver Over 0.30 Metres in Footwall at Premiere Ridge

TORONTO, ONTARIO--(CCNMatthews - Nov. 3, 2006) - First Nickel Inc. (TSX:FNI) reports the intercept of Platinum Group Element (PGE)-rich mineralization in the footwall rocks below the Premiere Ridge Deposit.

FNI-57, the final hole of the 2006 exploration program, intersected 0.21% Ni, 2.98% Cu, 2.85 gpt Pt, 4.85 gpt Pd, 4.66 gpt Au and 58.9 gpt Ag over a 30 centimetre section from 361.20 metres to 361.50 metres. FNI-57 was drilled sub-parallel to the basal contact of the Sudbury Igneous Complex (SIC) along the trend of the main Premiere Ridge Deposit. The PGE-rich sample is associated with a chalcopyrite vein hosted in a weakly developed Sudbury Breccia unit approximately 150 metres stratigraphically below the SIC contact. This result indicates the potential for a second style of PGE-rich footwall hosted mineralization on the Premiere Ridge Property. Follow-up diamond drilling is scheduled for 2007.

In September, First Nickel commenced a 20,000 metres diamond drilling program on the West Graham, Foy Mouth and Morgan-Lumsden properties. The Foy Mouth and Morgan-Lumsden properties exploration programs are operated by Xstrata Nickel. The diamond drill programs have been designed to test for all types of sulphide mineralization including contact, footwall and off-set dyke hosted deposits.

The diamond drilling program was carried out under the supervision of First Nickel's Sudbury Exploration Manager, Phil Vicker, P.Geo "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 QA/QC protocol on all of its drilling projects. Exploration drill core of interest (NQ size) is sawn in half, with one half retained for future reference and one half shipped to a commercial laboratory, SGS Laboratories in Garson for preparation and specific gravity measurements and shipped internally by SGS to Toronto for assay. The quality assurance/quality control program 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.

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