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

Pure Nickel Inc.

August 20, 2007 16:55 ET

Pure Nickel Presents Exploration Results From Its Fox River Project

TORONTO, ONTARIO--(Marketwire - Aug. 20, 2007) - Pure Nickel Inc. ("Pure Nickel") (TSX:NIC)(OTCBB:PNCKF) would like to present the results from the 2007 drilling program on its 50% option and joint venture agreement with Xstrata Nickel in the komatiitic Fox River Belt, northern Manitoba. In 2007 a total 3,506 metres in 10 holes were completed in an area south of the Fox River Sill. The results of the 2007 drill program are presented.

Highlights of the program include:

- The best Cu-Ni-PGE mineralization was found to be associated with large mafic-ultramafic sills flanking the Hayes River approximately 1.8 kilometres south of the Fox River Sill. Copper, nickel and palladium values up to 2.38 %, 0.43 % and 1033 ppb, respectively were recorded.

- 392 core samples submitted for assay and geochemical analyses were also utilized as exploration tools and suggest an earlier and potentially proximal segregation of Ni-rich sulphides similar to those in counterparts at Raglan and Thompson.

- The 2007 drill program also demonstrated that previously interpreted metasedimentary iron formations are large ultramafic centres. Such centres in komatiite terrains are commonly associated with Ni-Cu sulphide mineralization.

Diamond drill hole FXPNI07-40 intersected a gabbro that contained coarse magmatic sulphides grading 1.93 % Cu and 0.19 % Ni over narrow intervals (0.24 metres) in the middle of the intrusion. Additional mineralization was intersected in the marginal gabbro at the base of the same intrusion. It returned values ranging from 0.10% to 2.38% copper over 2.3 metres. The footwall quartzite returned 0.24% to 3.22% Cu over 2 metres.

FXPNI07-37 returned the highest Ni assay of 0.43% Ni over 0.15 metres in altered ultramafic rock.

Previous drilling in the proximity to the above two holes by Falconbridge in 2001 intersected 0.20 metres of 0.90% Ni and 0.86% Cu.

Hole FXPNI07-38 intersected 0.8 metres of pyrrhotite-rich argillites containing 6214 ppb of gold.

The technical results of the 2007 program on the Fox River property increased the understanding of the geology and geophysics of this complex, deeply glacial covered exploration terrain.

A complete listing of the Ni-Cu-PGE and Au assays and drillhole location map from the 2007 program can be found at the Company's website: www.purenickel.com.

The Fox River Belt Ni-Cu-PGE Project

The Fox River Belt is an extensive Paleoproterozoic volcanosedimentary sequence lying on the northwest margin of the Archean Superior Province. It forms a segment of the Circum-Superior Belt with nickel-rich magmatic rocks of a komatiitic affinity. Less than 1% of the rocks within the belt are exposed however based on regional and detailed airborne magnetic surveys and past exploration drilling the only discernable geological difference between this area and the Raglan Belt in Ungava is the presence of the large Fox River ultramafic sill. This sill-like body is detected as a prominent regional magnetic feature and reflects the presence of one of the largest layered ultramafic intrusions in North America. It has economic potential to host stratiform PGE mineralization in its layered sequence similar to that in the Bushveld Complex of South Africa, Great Dyke of Zimbabwe and Stillwater Complex, U.S.A. The basal portion or marginal series of this sill complex has potential to give rise to semi-massive and massive Ni-Cu-PGE sulphides like those discovered in the KO Zone in 1999.

South of the Fox River Sill numerous sub-volcanic magma chambers associated with the enclosing and overlying komatiitic volcanics are reflected by strong linear magnetic features. These bodies, and their associated volcanic counterparts, and the marginal zone of the Fox River Sill are the focus of Pure Nickel's exploration program in the belt.

Due to its close resemblance to the nickel-rich Thompson and Raglan mining camps, the Fox River area has been considered prime hunting grounds for nickel sulfide deposits for over forty years. However near-total coverage by glacial deposits, locally over 100 metres thick, has hindered previous exploration programs since traditional mapping and prospecting cannot be carried out due to the lack of outcrop, and the thick cover has complicated both geochemical- and geophysical-based exploration methods.

Pure Nickel has optioned Falconbridge Limited's (now Xstrata Nickel) Fox River property covering over 1200 square kilometres of favorable stratigraphy. Multiple conductors and target areas have been identified from Xstrata's previous exploration work. Detailed 3D inversion magnetic studies, new detailed VTEM B-field geophysical surveys, and application of a proprietary soil geochemistry over known conductors and areas of interest enhance Pure Nickel's opportunities for discovery in this promising but challenging terrain.

Quality Control

Aurora Geosciences Ltd., Yellowknife is the project operator for Pure Nickel. Drill core is logged on site by Aurora's geologist. Core is then cut, one half is retained and stored on site for reference, and one half is sent for analysis. Blanks and CANMET certified reference material are inserted at regular intervals as quality control. Additional standards, blanks and duplicate analyses are also employed by the analytical laboratory.

Core samples are delivered to Acme Analytical Laboratories' Vancouver preparation facility for crushing and pulverizing. Pulps are analysed for multiple trace elements by ICP-MS using a four acid digestion (method Group 1DX). Samples exceeding 1.0% copper or nickel are assayed using a hot 4-acid digest and ICP-ES (method Group 7TD). Major elements are also determined for the selected samples by fusion-ICP-MS (method code 4A-B).

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 2007 exploration program is underway on multiple properties and is fully funded.

Total Shares Outstanding: 67.766 million

Fully Diluted: 93.760 million

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

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

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