First Nickel Inc.
TSX : FNI

First Nickel Inc.

July 25, 2005 08:30 ET

First Nickel Reports Continued High Grade Nickel Intercepts From Dundonald South Zone Including 18.7% Ni Over 1.1 Metres

TORONTO, ONTARIO--(CCNMatthews - July 25, 2005) - First Nickel Inc. (TSX:FNI) today announced it has completed an additional 52 diamond drill holes representing 8,309 metres of drilling on the Dundonald nickel property since the last update in February 2005.

The Dundonald South area continues to yield numerous high grade nickel intersections associated with a number of distinct mineralized horizons including Hole S05-73 that intersected 18.7% Ni, 0.4% Cu and 0.2% Co over 1.1 metres (PGE's pending). These high grade intersections are beginning to define a number of distinct pods or lenses that may have economic potential. Recent high grade nickel intercepts are summarized below and a complete table of results can be viewed on the Company's website at www.firstnickel.com.



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Hole No. From To Intersection Ni (%) Pt+Pd+Au Zone
(m) (m) Width (m) (gpt)
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Dundonald
South
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S05-60 78.0 79.7 1.7 4.7 n/a G
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S05-68 56.0 56.8 0.8 9.9 4.0 G
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S05-70 269.7 271.0 1.3 4.7 n/a E
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S05-70 288.5 289.5 1.0 4.6 n/a E
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S05-71 284.5 286.5 2.0 2.3 n/a E
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S05-73 162.9 164.0 1.1 18.7(a) n/a G
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D05-47 62.0 64.0 2.0 2.5 n/a A
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D05-49 111.8 114.5 2.7 2.5 0.8 A
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Dundeal
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T05-8 103.0 105.2 2.2 1.9 n/a Dundeal
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T05-12 302.0 305.0 3.0 1.8 0.5 Dundeal
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T05-13 303.5 311.5 8.0 1.6 n/a Dundeal
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(a) 0.4% Cu and 0.2% Co, PGE's pending


The Dundonald South nickel sulphide mineralization is hosted in a series of east-west striking komatiitic peridotites, pyroxenites and basalts with an identified minimum mineralized strike extent of 800 metres.

Recently completed magnetic and TEM surveys over the 1.2 kilometre eastern extension of the host ultramafic stratigraphy to the Dundonald South Nickel Zone have identified 5 strong conductors which will be drill tested in late July or early August.

The Dundeal Nickel Zone and adjoining Terminus base metals zone, located approximately 1.3 kilometres north of Dundonald South along the north limb of a large fold, were tested by 13 diamond drill holes. There were no significant base metal intersections in the Terminus Zone. Notable intersections on the Dundeal zone have been summarized in the table above. A characteristic of the Dundeal nickel zone is wider intercepts of moderate grade nickel sulphide mineralization. No further work on either of these zones is contemplated at this time.

First Nickel has spent in excess of the required $1.75 million in exploration expenditures on the Dundonald Property and has therefore earned a 100% interest in the property from Falconbridge.

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.

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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