Pure Nickel Inc.
OTC Bulletin Board : PNCKD

Pure Nickel Inc.

April 30, 2007 14:02 ET

Pure Nickel Inc. Announces Acquisition of 100% Interest in Fond du Lac Property and Commencement of Drilling Program

TORONTO, ONTARIO--(CCNMatthews - April 30, 2007) - Pure Nickel Inc. ("Pure Nickel") (TSX VENTURE:NIC)(OTCBB:PNCKD) and Red Dragon Resources Corp.("Red Dragon") (TSX VENTURE:DRA) announced today they have reached agreement ("Agreement") for Pure Nickel to acquire the remaining 49% it did not own of Red Dragon's ownership position in the Saskatchewan, Fond du Lac property on the northern edge of the Athabascan Basin, 20 kilometers NW of Stony Rapids. Following its completion of the terms of the Agreement, Pure Nickel will own 100% of the property. The purchase price is satisfied in its entirety as follows: Cash of C$100,000 and the granting of 1,000,000 restricted common shares of Pure Nickel. Both Companies' have approved the Agreement, subject to TSX Venture Exchange approval.

"I am pleased we were able to reach agreement with Red Dragon on the Fond du Lac property. Pure Nickel's ownership immediately increases to 100%; it brings in a new, long-term shareholder and now enhances Pure Nickel's exploration inventory with three 100% owned properties; Fond du Lac, Saskatchewan, the MAN property in Alaska, and the Salt Chuck palladium-copper property also in Alaska. In addition, Pure Nickel operates in the Fox River Belt its 50:50 joint venture with Xstrata Nickel." stated Jay Jaski, Chairman and CEO of Pure Nickel.

Pure Nickel also announced today, it had commenced its 2007 diamond drilling program on the Fond du Lac property.

The 2007 Fond du Lac drill program is the second phase of a drill program commenced in July 2006 by Pure Nickel and suspended in the summer of 2006 due to forest fire. During the 2006 exploration phase seven drill holes were completed for a total of 2,258 meters. Nickel mineralization was present in seven of the seven drill holes, including an intersection grading up to 1.86% Ni and 0.45% Cu.

The 2007 Fond du Lac drill program is contracted to be 3,000 meters and will complete the deferred 2006 drill program and test new targets in the Rea Lake and Rea Lake South extension area. Airborne geophysics and ground geochemical analysis from exploratory work conducted in late 2006, has confirmed new prospective areas for drilling and formed the basis for the 2007 drilling program. This new drill program will also test a newly discovered, highly magnetic anomaly located approximately 2.2 kilometers south of the summer 2006 drill holes at Axis Lake.

Cyr Drilling International Limited of Winnipeg, Manitoba has been selected as the contractor to carry out the drilling program at Fond Du Lac, Saskatchewan. "Pure Nickel now has two simultaneous drilling programs underway in Canada, the other being, the Fox River joint venture with Xstrata Nickel, in Manitoba. The Fox River project is in the early phases of an expandable, multi-year, diamond drilling program" said Dr. Larry Hulbert, Chief Exploration Officer of Pure Nickel. Dr. Hulbert went on to say "For a relatively young Company, I am pleased with the progress in all aspects of our property acquisition and exploration program, and, I am encouraged by our ability to attract new talent to the Pure Nickel exploration team."

Dr. Larry Hulbert, P.Geo. is a qualified person as defined by National Instrument 43-101 and is responsible for reviewing the technical disclosure in this press release.

About Pure Nickel:

Pure Nickel is a mineral exploration company with multiple, advanced nickel sulphide and PGE projects in Canada and Alaska. The Company's C$8.0 million, 2007 exploration program is now underway, is fully funded and drill ready.

This release was prepared by management of Pure Nickel Inc. who take full responsibility for its contents. Neither the TSX Venture Exchange nor the OTC Bulletin Board have reviewed or accept responsibility for the adequacy of this news release.

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