First Nickel Inc.

First Nickel Inc.

March 29, 2005 08:30 ET

First Nickel Reports Additional Favorable Nickel Results From Dundonald South Zone


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: FIRST NICKEL INC.

TSX SYMBOL: FNI

MARCH 29, 2005 - 08:30 ET

First Nickel Reports Additional Favorable Nickel
Results From Dundonald South Zone

TORONTO, ONTARIO--(CCNMatthews - March 29, 2005) - First Nickel Inc.
(TSX:FNI) is pleased to announce that it has completed approximately
19,600 metres ("m") of diamond drilling on the Dundonald nickel property
near Timmins in northeastern Ontario and is pleased to release results
for the next 14 diamond drill holes on the Dundonald South zone as
follows



---------------------------------------------------------------------
Hole From To Core Ni % Pt+Pd+Au Zone
No. (m) (m) Length (gpt)
---------------------------------------------------------------------
S05-30 123.5 126.5 3.0 11.19(a) 2.39 G
---------------------------------------------------------------------
Incl. 125.2 126.5 1.3 23.74(a) 5.12 G
---------------------------------------------------------------------
219.1 233.15 14.05 1.59(C) (b) E
---------------------------------------------------------------------
Incl 219.1 225 5.9 2.13 (b) E
---------------------------------------------------------------------
231.4 233.15 1.75 2.54 (b) E
---------------------------------------------------------------------
S05-31 193.5 194.7 1.2 4.10 F
---------------------------------------------------------------------
Incl. 194 194.2 0.2 23.95 F
---------------------------------------------------------------------
S05-33 28.2 29.5 1.3 1.51 G
---------------------------------------------------------------------
S05-34 53.5 56.1 2.6 0.86 G
---------------------------------------------------------------------
S05-35 111 114 3.0 0.90 G
---------------------------------------------------------------------
S05-37 82 83.2 1.2 5.30 1.24 G
---------------------------------------------------------------------
Incl. 82.5 83.2 0.7 8.60 2.01 G
---------------------------------------------------------------------
S05-38 57.7 58.7 1.0 1.22 G
---------------------------------------------------------------------
S05-41 59.9 60.4 0.5 2.51 G
---------------------------------------------------------------------
111.8 116.15 4.35 2.17 F
---------------------------------------------------------------------
Incl 114 115.65 1.65 4.17 1.44 F
---------------------------------------------------------------------
S05-42 103.3 105 1.7 1.84 F
---------------------------------------------------------------------
S05-44 64.4 65.8 1.4 1.48 G
---------------------------------------------------------------------
S05-45 74.8 75.8 1.0 13.1 (b) G
---------------------------------------------------------------------
S05-46 106 116 10.0 0.69 G
---------------------------------------------------------------------
S05-48 45.4 46.4 1.0 2.62 H
---------------------------------------------------------------------
136 137.5 1.5 6.04 F
---------------------------------------------------------------------
S05-49 45.5 51.5 6.0 0.64 H
---------------------------------------------------------------------

a) Ni % previously reported
b) PGE values pending
c) Encountered in extension of Hole S05-30


First Nickel is encouraged by the G zone intersections of 5.30% Ni over
1.2 m and 13.1% Ni over 1.0 m in holes S05-37 and 45, as they occur at
shallow depths (35 and 60 m respectively) and suggest that the zone
extends upward to the bedrock-overburden interface. In light of these
results, First Nickel is continuing with plans for a major surface
stripping program on the east portion of the Dundonald South zone this
summer.

The area west of the wide E zone intersection of 1.59% Ni over 14.05
metres in hole S05-30 is untested by diamond drilling and further
drilling is planned here.

Drilling has commenced on the Dundeal nickel zone, located 1.2 km north
of Dundonald South.

The surface drilling program is being supervised by Kevin Montgomery,
PGeo, of MPH Consulting Limited, a qualified person under National
Instrument 43-101 guidelines. Drill core of interest (NQ size) is sawed
in half, with one-half sent to a commercial laboratory, Expert
Laboratory of Rouyn-Noranda, Que., and the other half retained for
future reference. A rigorous quality assurance/quality control program
is employed which includes the insertion of standards, blanks and
duplicates for each batch of samples.

Core samples are routinely analyzed for nickel, copper and cobalt by
aqua regia digestion, atomic absorption techniques. Those samples
returning greater than 5,000 parts per million (0.5 per cent) nickel are
re-assayed by total digestion atomic absorption and their value reported
as a per cent. Selective assays for gold and platinum group elements on
the higher-grade nickel samples are carried out by standard fire assay
techniques.

The Dundonald property is located east of Timmins in Northeastern
Ontario, approximately 25 kilometres by road from the Falconbridge
Limited's Kidd Creek metallurgical facility. The Dundonald property was
acquired from Falconbridge as part of First Nickel's formative
transaction whereby Falconbridge now owns 16.4 per cent of the issued
and outstanding shares of First Nickel.

As at January 31, 2005 First Nickel had a working capital of $10,618,318
a total of 44,093,013 common shares ere issued and outstanding.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    First Nickel Inc.
    Elizabeth Kirkwood
    President and CEO
    (416) 364-6928
    (416) 364-0618 (FAX)
    ekirkwood@firstnickel.com