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

Pure Nickel Inc.

July 10, 2007 13:17 ET

Pure Nickel Inc. Completes $27.5 Million Private Placement

TORONTO, ONTARIO--(Marketwire - July 10, 2007) -

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES. NOTHING CONTAINED HEREIN CONSTITUTES AN OFFERING OF SECURITIES OF THE CORPORATION IN THE UNITED STATES.

Pure Nickel Inc. (the "Corporation") (TSX VENTURE:NIC)(OTCBB:PNCKF) is pleased to announce that, further to its news release of July 3, 2007, it has closed the last tranche of its $27.5 million offering (the "Offering") of subscription receipts of the Corporation (the "Receipts") and has issued an additional 6,640,000 Receipts for aggregate gross proceeds of $8.3 million.

Each Receipt will be deemed to be exercised without the payment of additional consideration into one unit of the Corporation (each a "Unit") upon the earlier to occur of: (i) the Corporation obtaining TSX Venture Exchange ("TSXV") conditional approval of the Xstrata transaction announced on May 15, 2007 (the "Xstrata Acquisition"); or (ii) the common shares in the capital of the Corporation (each a "Share") becoming listed and posted for trading on the Toronto Stock Exchange (each an "Exercise Event"). Upon the occurrence of an Exercise Event, the proceeds of the Offering, plus any accrued interest thereon (less any applicable taxes), shall be released to the Corporation.

In the event that an Exercise Event does not occur by September 27, 2007, the proceeds of the Offering, plus any accrued interest thereon (less any applicable taxes), will be returned to the purchasers and the Receipts will expire without exercise. Each Unit shall be comprised of one Share and one half of one common share purchase warrant (each whole warrant, a "Warrant"), each Warrant entitling the holder thereof to purchase one Share upon the payment of $1.75 per Share until January 9, 2009. All Receipts issued pursuant to the Offering, and all Shares and Warrants underlying the Receipts, are subject to a four month statutory hold period.

In connection with the Offering, which remains subject to the approval of the TSXV, the Corporation also plans to issue a maximum of 990,000 compensation warrants (each a "Compensation Warrant") and to pay a maximum of $1.25 million (the "Finder's Fee") to certain persons as finder's fees payable in connection with the Offering. Each Compensation Warrant shall be exercisable upon the occurrence of an Exercise Event into one Unit at an exercise price of $1.25 per Unit until January 9, 2009. If no Exercise Event occurs, the Compensation Warrants shall expire unexercised. It is expect that the Corporation will issue the Compensation Warrants and pay the Finder's Fee within the coming week.

The Corporation intends to use $15.25 million of the proceeds of the Offering to fund the proposed Xstrata Acquisition, which was originally scheduled for completion on July 9, 2007. The Corporation and Xstrata Nickel, however, have agreed to extend the closing date of such transaction until July 17, 2007 pending satisfaction of regulatory requirements, including the approval of the TSXV. The Corporation also intends to use the balance of the proceeds of the Offering to fund the Corporation's ongoing exploration and drilling programs on its properties and for general working capital purposes.

About Pure Nickel Inc.:

Pure Nickel is a mineral exploration company with multiple, advanced nickel sulphide and PGE projects in Canada and Alaska. The Corporation has recently signed an agreement to acquire ten nickel exploration properties from Xstrata Nickel. This dramatically expands Pure Nickel's potential as it moves into the ranks of North America's largest nickel exploration companies. The agreement significantly increases Pure Nickel's property portfolio from its current three high calibre projects (Fond du Lac Project (Saskatchewan); the Fox River Project (Manitoba); and the MAN Project (Alaska)) for which an $8.0 million fully-funded exploration program for 2007 is underway.

This document may contain or refer to forward-looking information based on current expectations. Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. These forward-looking statements are made as of the date hereof and we assume no responsibility to update or revise them to reflect new events or circumstances.



Total Shares Outstanding: 44.765 million
Fully Diluted: 53.515 million
52-Week Trading Range: C$0.58 - $1.65

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

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