FIRST NICKEL INC.

First Nickel announced an update of the economic model of the feasibility study on the development and mining of the Lockerby Depth from GENIVAR Limited Partnership, a consulting engineering firm based in Quebec City, Quebec, Canada. Assuming average metal prices of US$8.00/lb nickel, US$2.75/lb copper, and US$15.00/lb cobalt, and an exchange rate of US$0.85/$C, the Update indicates that the project has an internal rate of return of 74.0% and would generate an undiscounted pre-tax, pre-finance cumulative cash flow of $112.2 million after capital recovery. Based on a 10% discount rate the project has a $66.8 million net present value as calculated by GENIVAR.