First Nickel Inc. FNKLF

First Nickel Provides Update on Lockerby Restart

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Press release from Marketwire

First Nickel Provides Update on Lockerby Restart

Monday, March 07, 2011

TORONTO, ONTARIO--(Marketwire - March 7, 2011) - First Nickel Inc. ("First Nickel" or the "Company") (TSX:FNI)is pleased to report that it is making excellent progress in its plansto resume production at its Lockerby nickel / copper mine, located inSudbury. Both financing and project schedules are on track forcommencement of production in the third quarter of this year and aramp-up to full production of 10 million pounds per year of nickel and 7million pounds per year of copper by mid 2012.

In October 2010, the Company launched itsrecommissioning capital program at the Lockerby mine after receiving abridge facility of US$5M from Resource Capital Fund IV L.P. Followingcompletion of a $28M equity financing in November 2010, the program wasaccelerated and the following activities are underway or completed:

• Detailed engineering began in November
• Rehab work on various conveyances and mobile equipment is well-advanced and on target
• The supplier for the mobile equipment lease has been chosen, and delivery of the first 42T truck was made the past week
• The Company anticipates selecting the mining contractor for the ramp development program very shortly with mobilization planned in April.
• The Company is actively recruiting for a number of key staff positions
• Twenty-eight P&M employees have been recalled to date.

On March 1st, the Company announced thatanother milestone was achieved toward the securing of a $30M debtfinancing required to complete the funding of the development project.

"There has been a great deal of concentrated effortby our team to ensure a successful restart of the Lockerby mine. Ourschedules and restart budgets are on track, and we continue to focus allplanning, engineering and recommissioning activities on meeting 2011objectives. I am very pleased with the energy and drive everyone hasshown, and I am confident we will meet our goal of initial productionbeginning in the third quarter of 2011", said William Anderson,President & CEO.

About First Nickel

First Nickel is a Canadian mining and explorationcompany that has recently commenced restart activities at its Lockerbynickel / copper mine in the Sudbury Basin in northern Ontario. Once theLockerby mine reaches full production (expected in 2012), it willproduce approximately 10 million pounds of nickel and approximately 7million pounds of copper annually. In addition to the Lockerby nickelmine, the Company owns exploration properties in the Sudbury Basin, theTimmins region of northern Ontario, and the Belmont region of EasternOntario. First Nickel's shares are traded on the TSX under the symbolFNI.

Some of the statements contained in this news releaseare forward-looking statements, such as statements that describe FirstNickel's future plans, intentions, objectives or goals, and specificallyinclude but are not limited to future production and the completion ofthe Facility. Actual results and developments may differ materially fromthose contemplated by such forward-looking statements depending on,among others, fluctuating metal prices, completion of additionalfinancing initiatives, maintaining operating and exploration teams,continued care and maintenance of the Lockerby Mine, and other factorsdescribed in the Company's most recently filed Annual Information Formunder the heading "Risk Factors" which has been filed electronically bymeans of the System for Electronic Document Analysis and Retrieval("SEDAR") located at www.sedar.com.The forward-looking statements included in this document representFirst Nickel's views as of the date of this document and subsequentevents and developments may cause First Nickel's views to change.Readers should not place undue reliance on any forward-lookingstatements.

FOR FURTHER INFORMATION PLEASE CONTACT:

William Anderson  

First Nickel Inc.  

President & CEO  

[phone]  

[phone] (FAX)  

[e-mail]