First Nickel Inc. Announces Repayment of Debentures

First Nickel Inc. (TSX: FNI) ("First Nickel" or the "Company") is pleased to announce that the 11% Series A Debentures issued in conjunction with the acquisition of the Lockerby Mine in 2005 having a face value of $14,500,000, were fully repaid on their due date of June 1, 2007. In addition, all accrued and unpaid interest on these debentures was also paid.

William Anderson, President and CEO of the Company comments "This is a major milestone in the Company's short history. The Company is now in a positive working capital position, and with cash flow coming from the Lockerby Mine along with potential cash inflow from unexercised warrants, the Company is in a strong financial position to satisfy its current plans and maintain aggressive exploration and development programs on our pipeline of projects".

About First Nickel

First Nickel is a Canadian mining and exploration company. Its current activities are primarily focused 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.

Contacts: First Nickel Inc. William Anderson President & CEO (416) 362-7050 or Toll Free: 1-888-362-7050 (416) 362-9050 (FAX) Email: wanderson@firstnickel.com