First Nickel Inc.
TSX : FNI

First Nickel Inc.

August 18, 2005 08:30 ET

First Nickel Reports Some of the Highest Nickel Grades Yet From Dundonald South Including 7.6% Ni over 5.7 Metres in Hole 79 and 5.9% Ni over 3.6 Metres in Hole 75

TORONTO, ONTARIO--(CCNMatthews - Aug. 18, 2005) - First Nickel Inc. (TSX:FNI) ("First Nickel") today announced additional high grade nickel results from the ongoing diamond drill program on the Dundonald nickel property.

The G-Zone continues to yield extremely high grade nickel intercepts including 25.6% Ni over 0.8 metres in hole 79 and 20.9% Ni over 0.8 metres in hole 75. Associated with the high grade nickel mineralization is a marked increase in the precious metals contents. Analytical results are summarized in the table below:



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Hole No. From To Intersection Ni (%) Pt+Pd+Au
(m) (m) Width (m) (gpt)
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G-ZONE
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S05-75 149.0 152.6 3.6 5.9 1.55
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Incl. 151.5 152.3 0.8 20.9 (a) 4.97
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S05-76 118.6 119.8 1.2 1.4 n/a
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S05-76 123.7 125.2 1.5 1.8 n/a
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S05-76 129.0 131.0 2.0 2.3 n/a
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S05-77 53.0 55.8 2.8 1.6 n/a
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S05-77 75.7 76.5 0.8 3.3 n/a
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S05-78 149.5 153.7 4.2 2.0 n/a
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S05-79 156.0 161.7 5.7 7.6 (b) 2.02
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Incl. 158.6 161.7 3.1 12.1 3.08
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Incl. 160.9 161.7 0.8 25.6 (c) 6.68
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F-ZONE
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S05-72 188.0 189.4 1.4 4.34 2.13
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E-ZONE
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S05-76 234.8 236.2 1.4 2.6 n/a
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S05-77 206.0 208.0 2.0 1.3 n/a
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S05-77 232.4 234.8 2.4 2.4 n/a
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a) 0.31% Cu and 0.25% Co
b) 0.12% Cu and 0.10% Co
c) 0.27% Co


Diamond drilling has defined an area of high grade nickel sulphides within the G-Zone that continues to be open to depth. Drilling continues on 12.5 metres centres in this immediate area to better define the extent of the high grade nickel zone.

The present plan for Dundonald is to complete a further 5000 metres of drilling, focused mainly on this G-Zone area, to be followed by a major project evaluation this fall. One possible outcome of this evaluation could be a decision to mount an underground exploration program on Dundonald South next year. Environmental permitting to accommodate such an undertaking has commenced.

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 Falconbridge's Kidd Creek metallurgical facility. The Dundonald property was acquired from Falconbridge as part of First Nickel's formative transaction whereby Falconbridge now owns 21.9 per cent of the issued and outstanding shares of First Nickel.

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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