First Nickel Inc.

First Nickel Inc.

September 06, 2005 08:30 ET

First Nickel Signs Option Agreements with Falconbridge on Bowell and Foy Mouth Properties

TORONTO, ONTARIO--(CCNMatthews - Sept. 6, 2005) - First Nickel Inc. (TSX:FNI) is pleased to announce it has entered into definitive option agreements with Falconbridge Limited with respect to the Bowell and Foy Mouth exploration properties, located on the North Range of the Sudbury Basin.

Terms of the Bowell and Foy Mouth options were announced by First Nickel in March 2005. Finalization of the definitive option agreement in respect of the Morgan-Lumsden exploration property, the proposed terms of which were disclosed in the same announcement, is scheduled for the first week of September.

"With the north range properties now secured, First Nickel has a solid foothold in the Sudbury Basin," said Elizabeth Kirkwood, President & CEO of First Nickel. "The Lockerby Mine is to commence production in the first week of October 2005 and an aggressive exploration program is getting under way in both in the Lockerby Mine and on the north range properties. First Nickel is achieving its commitment for growth."

As Falconbridge is a "related party" of First Nickel under Toronto Stock Exchange rules, First Nickel has obtained the written consent of a majority of its common shareholders, excluding Falconbridge, to the terms of the Bowell, Foy Mouth and Morgan-Lumsden options. Such disinterested shareholders have further authorized First Nickel to enter into three separate definitive agreements with Falconbridge in respect of such options. The details of the consent provided by the disinterested shareholders were announced by First Nickel in August 2005.

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