Nickel Production At 80% of Full Production Rate

TORONTO - First Nickel Inc. reported its preliminary third quarter production numbers for the Lockerby Mine in Sudbury, Ontario.

FNI produced approximately 2.0 million pounds of payable nickel and 1.4 million pounds of payable copper in the third quarter of 2012, an increase of 25% and 17%, respectively, over the prior quarter. Year to date, the Company has produced 4.9 million pounds of payable nickel and 3.4 million pounds of payable copper. In the third quarter of 2012, nickel production was at 80% of the full production rate forecasted for the Lockerby Mine.

Ore production during the third quarter of 2012 was 60,060 dry metric tonnes (653 tonnes per day), or 82% of the planned full production rate of 800 tonnes per day. The third quarter ore production rate was the highest achieved at Lockerby since 2002.

As previously disclosed, the Company expects to be at or near the full production rate of 10 million pounds of payable nickel per annum in the fourth quarter of 2012.

The 120 Front Street East, Suite 206, Toronto, ON M5A 4L9, 416-362-7050, fax: 416-362-9050, email: [email protected].