First Nickel Intersects 34.15 Metres of 3.15% Ni and 1.73% Cu at Lockerby Depth

First Nickel Inc. (TSX: FNI) reports additional high grade nickel-copper results on the remaining fifteen holes from the first stage of a drill program on the Lockerby Depth Zone. These results in combination with the 25 drill holes announced on November 30, 2006, will form the basis of a resource/reserve estimate to be completed on the Lockerby Depth Zone to the 67 Level.

Examples selected from the drill results include FNI6412 which intersected a core length of 34.15 metres grading 3.15% Ni and 1.73% Cu including 12.00 metres grading 4.38% Ni and 1.45% Cu, and FNI6414 which intersected a core length of 32.30 metres of 3.19% Ni and 1.82% Cu including 12.90 metres grading 4.20% Ni and 1.46% Cu. Assay results for all 15 holes are summarized in the following table and the spatial distribution of drill intercepts is provided in Figure 1. All assay intervals reported are core length and do not represent true widths (defined as being measured at right angles to the direction of extension of the sulphide body).

A preliminary review of the drill results appears to indicate a significant increase in the resources to the 67 Level compared to the NI 43-101 compliant Resource Estimate reported on July 11, 2005. Drilling continues to focus on the Lockerby Depth Zone below the 67 Level. Definition drilling to the 72 Level is scheduled for completion in late February.

“Drill results from the Lockerby Depth Zone continue to demonstrate the upside potential of the Lockerby Mine and we are confident that they have added to the long term viability of the mine.” states William Anderson, President and CEO of First Nickel Inc. “Exploration at the Lockerby Mine has been very successful and continues to be one of First Nickel’s priorities in 2007. The potential of the Lockerby Mine when combined with our ongoing activities in the Sudbury Basin should lead to an exciting year for First Nickel.”

The diamond drilling program was carried out under the supervision of First Nickel’s Chief Mine Geologist, Stephen Conquer, P.Geo., a “qualified person” as defined by National Instrument 43-101. The information in this release was prepared under the direction of Paul Davis, P.Geo., Vice President of Exploration for First Nickel Inc., a “qualified person” as defined by National Instrument 43-101. First Nickel Inc. follows a rigorous QA/QC protocol on all of its exploration projects. Whole drill core is sampled and 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 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.

A map of the Lockerby Depth Drill Hole Long Section, is available on CCNMatthew’s website at the following address:

http://www.ccnmatthews.com/docs/Lockerby-depth.pdf

Contacts: First Nickel Inc. William Anderson President & CEO (416) 362-7050 (416) 362-9050 (FAX)

Email: wanderson@firstnickel.com