Pure Nickel Inc.
OTC Bulletin Board : PNCKF
TSX : NIC

Pure Nickel Inc.

September 20, 2007 10:31 ET

Pure Nickel Acquires Key Exploration Ground in the Thompson Nickel Belt Through Option Agreement with Exploration Syndicate Inc.

TORONTO, ONTARIO--(Marketwire - Sept. 20, 2007) - Pure Nickel Inc. (the "Corporation")(TSX:NIC)(OTCBB:PNCKF) is pleased to announce that it has entered into an option agreement with Exploration Syndicate, Inc., a private company, ("Exploration Syndicate") dated September 18, 2007. Pursuant to the agreement, Exploration Syndicate has granted to the Corporation an option (the "Option") to earn up to a 100% interest in 6 mining licenses and 5 claims comprising the William Lake Extension project in Manitoba (the "Mineral Rights"). The William Lake Extension project covers 160,000 hectares of prospective property, north east and west of the existing, 100% Corporation owned, William Lake claim block, and more than quadruples Pure Nickel's exploration potential in the prolific Thompson Nickel Belt. The licenses effectively cover all of the land between Pure Nickel's William Lake property and the Corporation's Manibridge Property, a former operating mine.

A highly sophisticated airborne geophysics survey of approximately 9000 line km of VTEM and deep imaging was completed in late 2006 on the majority of the Mineral Rights. Interpretation of that data is largely complete and Pure Nickel has over nine drill ready locations. Pursuant to our recent drilling contracts and a full permitted site, Pure Nickel intends to deploy drilling crews to the mineral properties as soon as possible.

"We consider ourselves to be fortunate to have struck a joint venture with the claim holder. This acquisition is consistent with the Company's strategy to search for nickel and base metals in the best geological setting. Road access and power infrastructure on the William Lake trend enhance the exploration features for this area play" said Jay Jaski, Chairman and CEO of Pure Nickel.

As consideration for granting the Option, the Corporation has agreed to issue to Exploration Syndicate 500,000 non-transferable common share purchase warrants (each, a "Warrant"), each Warrant entitling Exploration Syndicate to acquire a common share of the Corporation (each, a "Share") at a price of $2.00 per Share. The Warrants shall vest and become exercisable on the date that the Corporation earns a 50% interest in the Mineral Rights and shall, subject to an acceleration right; such right to expire on the date that is five years from the date of the Option Agreement.

To earn a 50% interest in the Mineral Rights, the Corporation must incur an aggregate of $3,000,000 of expenditures during the first two years of the Option Agreement, of which at least $2,000,000 must be incurred in the first year thereof.

If the Corporation incurs the foregoing expenditures, the Corporation shall earn a 50% interest in the Mineral Rights and has one year to exercise its right to earn an additional 15% interest in the Mineral Rights (the "Additional 15% Option") by (i) incurring an aggregate of $2,000,000 of additional expenditures on the Mineral Rights within two years from the date the Corporation notifies Exploration Syndicate of its intention to exercise the Additional 15% Option; and (ii) issue to Exploration Syndicate 500,000 Shares.

If the Corporation exercises the Additional 15% Option, the Corporation has 180 days to exercise its right to earn an additional 10% interest in the Mineral Rights (the "Additional 10% Option"), by completing and delivering a feasibility study to Exploration Syndicate within 2 years from the date the Corporation notifies Exploration Syndicate of its intention to complete the Feasibility Study. In the event that the Corporation exercises the Additional 10% Option, the Corporation shall have the right to purchase the remaining 25% interest in the Mineral Rights held by Exploration Syndicate by paying to Exploration Syndicate an amount equal to 110% of the fair market value of such interest.

If the Corporation determines not to continue to earn-in on the Mineral Rights at any time after the Corporation has earned a 50% interest in the Mineral Rights, the Corporation and Exploration Syndicate will then enter into an industry standard joint venture agreement.

About Pure Nickel Inc.:

Pure Nickel is a mineral exploration Company with multiple, advanced nickel sulphide and PGE projects in Canada and Alaska. The Company's 2007 exploration program is underway on multiple properties and is fully funded.

Total Shares Outstanding: 67.766 million

Fully Diluted: 92.410 million

52-Week Trading Range: C$0.58 - $1.65

The TSX Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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