First Nickel Secures Commitments for C$30 Million Senior Secured Project Loan Facility

TORONTO, ONTARIO -- (Marketwire) -- 03/01/11 -- First Nickel Inc. ('First Nickel' or the 'Company') (TSX: FNI) is pleased to announce that it has received and accepted commitments from Societe Generale (Administrative and Technical Agent) and Commonwealth Bank of Australia (Documentation Agent) (collectively, the 'Lenders') for a senior debt facility totaling C$30 million. The proceeds from this facility when closed will be used to partially fund the development and working capital costs at the Company's Depth Project at the Lockerby Mine in Sudbury. In connection with receiving the commitments, the Company issued 6,155,986 common share purchase warrants to the Lenders as part of the arrangement fee. The warrants are exercisable at $0.12 per share and expire March 31, 2015.

Drawdown of the Facility will be subject to a number of conditions precedent, including completion of satisfactory legal documentation, implementation of a hedging program and expenditure by FNI of its required equity contribution. Under the Facility documents, FNI will be required to enter into direct agreements with several stakeholders to establish satisfactory collateral arrangements covering the Company's assets.

The Commitment to underwrite the Facility follows an extensive due diligence review by both the Lenders and their Independent Engineer, Roscoe Postle Associates Inc. (RPA).

'This is a very important milestone in securing funding for the Lockerby Depth Project. We are very pleased to have the support of these two major international resource banks and look forward to our relationship in bringing the project to completion. I see this as confirmation that we have a robust mining project, but equally important, an endorsement of the caliber and strength of our operating team', said William Anderson, President & CEO of First Nickel Inc.

About First Nickel

First Nickel is a Canadian mining and exploration company that has recently commenced restart activities at its Lockerby nickel mine in the Sudbury Basin in northern Ontario. Once the Lockerby mine reaches full production (expected in 2012), it will produce approximately 10 million pounds of nickel and approximately 7 million pounds of copper annually. In addition to the Lockerby nickel mine, the Company owns exploration properties in the Sudbury Basin, the Timmins region of northern Ontario, and the Belmont region of Eastern Ontario. First Nickel's shares are traded on the TSX under the symbol FNI.

Some of the statements contained in this news release are forward-looking statements, such as statements that describe First Nickel's future plans, intentions, objectives or goals, and specifically include but are not limited to future production and the completion of the Facility. Actual results and developments may differ materially from those contemplated by such forward-looking statements depending on, among others, fluctuating metal prices, completion of additional financing initiatives, maintaining operating and exploration teams, continued care and maintenance of the Lockerby Mine, and other factors described in the Company's most recently filed Annual Information Form under the heading 'Risk Factors' which has been filed electronically by means of the System for Electronic Document Analysis and Retrieval ('SEDAR') located at www.sedar.com. The forward-looking statements included in this document represent First Nickel's views as of the date of this document and subsequent events and developments may cause First Nickel's views to change. Readers should not place undue reliance on any forward-looking statements.

Contacts:

First Nickel

William Anderson

President & CEO

(416) 362-7050

(416) 362-9050 (FAX)
wanderson@firstnickel.com