First Nickel Intersects 2.28 %Ni And 2.74% Cu Over 48.2 Feet '14.7 Metres' In Footwall To Premiere Ridge Deposit 'Formerly Named Bowell'.

TORONTO -- First Nickel Inc. (TSX:FNI) ("First Nickel") today announced continued encouragement from the Premiere Ridge property (formerly named Bowell property) under option from Falconbridge Limited ("Falconbridge") on the North Range of the Sudbury Basin. Assay results have been received for the first 5 holes from the property (FNI-01 was previously reported in press release on Oct. 24, 2005). To date, First Nickel has completed 29 diamond drill holes totalling 6,351 metres. Further assay results are pending.

The near surface footwall zone on the western portion of the known deposit continues to return significant intersections of nickel and copper mineralization. Hole FNI-04 intersected 14.70 metres (48.2 ft) of 2.28% Ni and 2.74% Cu within a broader zone of 38.2 metres (125.3 ft) of 1.33% Ni and 2. 26% Cu. This intersection is associated with the transitional sulphide zone previously reported in hole FNI-01, however, appears to be hosted entirely within Sudbury Breccia. The sulphide mineralization is open to the west, towards the property boundary (- 20 metres). This area will be subjected to further definition drilling in the first quarter of 2006. Please refer to table 1 for a summary of the significant drill results (not converted to true width).

Table 1: First Nickel 2005 Drill Results: Premiere Ridge Property

              From    To          Core    Ni    Cu  Pt+Pd+Au
Drill Hole       m     m        Length     %     %       ppb
                                m (ft)

Footwall
Style

FNI-04       59.3   97.5  38.2 (125.3)  1.33  2.26       678
incl         60.3   75.0   14.7 (48.2)  2.28  2.74       729

FNI-05       71.6  75.65   4.05 (13.3)  1.13  1.27   pending
             84.0   85.5    1.50 (4.9)  2.08  2.48   pending
Contact
Style

FNI-03     150.65  164.5  13.85 (45.4)  1.88 0.57    pending
incl.       154.4  159.0   4.60 (15.1)  2.14 0.29    pending
incl.       159.6  163.0   4.15 (13.6)  2.17 1.05    pending

Hole FNI-03, drilled in an area of the main deposit with limited drill information, intersected well developed contact style sulphide mineralization that graded 1.88% Ni and 0.57% Cu over 13.85 metres (45.4 ft) including higher grade intercepts of 2.14% Ni and 0.57% Cu over 4.60 metres (15.1 ft) and 2.17% Ni and 1.05% Cu over 4.15 metres (13.6 ft). Infill drilling is being completed systematically on the main deposit as part of the ongoing drill program.

Falconbridge had recorded a number of significant nickel-copper drill intersections on the property prior to it being optioned by First Nickel, at the basal contact of the Sudbury Igneous Complex  (SIC) (Contact style), transgressing the footwall contact (Transitional Style) and within underlying Sudbury Breccia (Footwall style). Historic holes before BO-72 were completed prior to the implementation of National Instrument 43-101 and cannot be considered NI 43-101 compliant. Table 2 summarizes some of the significant drill intercepts (not converted to true width) reported by Falconbridge prior to 2005:

Table 2: Falconbridge Historic Drill Results (selected): Premiere Ridge Property

From      To          Core    Ni    Cu  Pt+Pd+Au    Ag
Drill Hole    m       m        Length     %     %       g/t   g/t
                               m (ft)

Footwall
Style

BO-144    95.35  125.00  29.65 (97.3)  1.32  1.59      0.72  5.51
Incl.     95.35  105.50  10.15 (33.3)  1.70  2.17      1.03  7.98

Transitional
Style

BO-105    44.10   64.50  20.40 (66.9)  1.79  1.11      0.82  3.56
Incl.     51.50   55.00   3.50 (11.5)  2.53  1.37      0.92  5.49

Contact
Style

BO-26     51.50   60.40   8.90 (29.2)  1.90  2.24      1.49  5.70
Incl.     56.00   60.40   4.40 (14.4)  2.29  2.46      1.87  6.10

BO-78     85.40   98.60  13.20 (43.3)  1.70  0.39      0.19  4.75

BO-89     77.00   83.70   6.70 (22.0)  2.68  0.25      0.16  0.40

BO-90     56.50   63.50   7.00 (23.0)  2.40  0.32      0.16  0.59
Incl.     60.00   62.50   2.50 (8.2)   3.33  0.23      0.12  0.25

BO-94     65.50   76.00  10.50 (34.4)  2.27  0.27      0.13  0.78

BO-115    35.50   51.39  15.89 (52.1)  1.42  1.14      0.81  8.61

BO-123    47.50   56.60   9.10 (29.9)  1.95  0.30      0.41  1.44
Incl.     52.00   56.60   4.60 (15.1)  2.59  0.24      0.52  1.19

BO-130    23.74   29.00   5.26 (17.3)  1.98  0.17      0.09 27.23

BO-135   103.18  124.70  21.52 (70.6)  1.41  0.37      0.17  3.42

The Company is currently conducting conceptual mine planning work focused on selective underground mining of higher grade areas with access via a ramp from surface. This work along with an updated resource calculation, further metallurgical work and economic evaluations, will be included in a Pre-Feasibility Study scheduled for completion in the spring of 2006.

Drilling will restart by January 15th on the western portion of the property. The drilling program will continue to infill and define the existing deposit with a further investigation of the underlying footwall environment. A number of high priority geophysical targets further to the east will be tested in the course of this drilling campaign.

The surface drilling program is being supervised by Phil Vicker, PGeo, of First Nickel Inc, a qualified person under National Instrument 43-101 guidelines. First Nickel Inc. follows a rigorous QA/QC protocol for the Premier Ridge Project. Drill core of interest (NQ size) is sawn in half, with one half retained for future reference and one half sent to a commercial laboratory, SGS  Laboratories in Garson for preparation and specific gravity  measurements and shipped internally by SGS to Toronto for assay. A rigorous quality assurance/quality control program is employed which includes the insertion of standards and blanks for each batch of samples. Historic analytical work completed by Falconbridge was completed by a commercial laboratory, Lakefield Laboratories.

First Nickel is a Canadian mining and exploration company. Its current activities are primarily focussed on the Sudbury Basin in northern Ontario, the location of the company's producing property (the Lockerby Mine) and four of its exploration properties. First Nickel also has two exploration properties in the Timmins region of northern Ontario. First Nickel's shares are traded on the TSX under the symbol FNI.

This news release may contain forward-looking statements, which are subject to certain risks, uncertainties and assumptions. A number of factors could cause actual results to differ materially from the results discussed in such statements, and there is no assurance that actual results will be consistent with them. Such forward-looking statements are made as at the date of this news release, and the company assumes no obligation to update or revise them, either publicly or otherwise, to reflect new events, information or circumstances.

First Nickel Inc. (TSX:FNI)