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Re: News Release - Tuesday, March 25, 2008
First Nickel Intersects 86.70 Metres of 0.55% Ni and 0.43% Cu on
West Graham
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News Release No. 2008-03

March 25, 2008 - Toronto, Ontario - First Nickel Inc. (FNI-TSX) is
pleased to report the results of 22 diamond drill holes representing
5,469 metres of diamond drilling on the West Graham Property during the
2007 exploration program and the first two holes of the 2008
exploration program (see the attached plan map for drill hole
locations). The West Graham property is under option from Landore
Resources Canada Inc. and the details of the option agreement were
provided in a press release dated August 4, 2005.

The current drill program has been designed to provide the drill
density required to complete an NI 43-101 compliant Resource Estimate
on the Conwest Deposit (which forms part of the West Graham Property)
in 2008. The drill program has been expanded to a total of 10,000
metres based on the results to date and is scheduled for completion in
June 2008. The new NI 43-101 Resource Estimate will be completed after
all analytical results have been received and modeled for 2007-2008
drill program.

Results to date have met expectations based on the previous exploration
programs completed by First Nickel. Highlights of the drill program
include FNI2045 with 0.59% Ni and 0.44% Cu over 70.20 metres, including
1.14% Ni and 0.60% Cu over 10.50 metres; and FNI2050 with 0.55% Ni and
0.43% Cu over 86.70 metres, including 1.15% Ni and 0.71% Cu over 12.70
metres. The following table summarizes the significant analytical
results from the ongoing drill program.

The Conwest Deposit was estimated in the 1960's to have a mineral
inventory of 4.3 million tons grading 0.53% nickel and 0.33% copper.
This historic resource predates the implementation of NI 43-101
standards and guidelines and should be considered non-compliant. At
depth the Conwest Deposit is interpreted to be contiguous with the
Lockerby East zone.

The diamond drilling program is being carried out under the supervision
of First Nickel's Senior Geologist, Scot Halladay, 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.
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.

Drill
Hole ID From To Length Ni Cu Co Pt Pd Au Ag
(m) (m) (m) (%) (%) (%) (ppm) (ppm) (ppm) (ppm)

FNI2031 396.00 450.00 54.00 0.59 0.39 0.02 0.17 0.03 0.06 3.18
FNI2032 45.00 71.15 26.15 0.41 0.21 0.01 0.09 0.03 0.04 2.13
FNI2034 103.50 114.00 10.50 0.46 0.31 0.01 0.06 0.03 0.03 2.47
FNI2035 108.00 114.00 36.50 0.61 0.34 0.02 0.07 0.03 0.03 3.46
incl. 124.70 131.80 7.10 1.16 0.50 0.04 0.08 0.04 0.03 3.65
FNI2039 96.00 159.00 63.00 0.40 0.24 0.01 0.07 0.03 0.03 2.27
FNI2040 139.50 148.50 9.00 0.43 0.35 0.02 0.06 0.02 0.03 4.38
FNI2041 118.50 180.00 61.50 0.46 0.35 0.01 0.06 0.03 0.02 2.69
incl. 168.00 177.00 9.00 1.03 0.53 0.03 0.11 0.04 0.03 4.69
FNI2043 138.30 201.00 62.70 0.39 0.32 0.01 0.08 0.02 0.03 3.18
FNI2044 153.10 207.15 54.05 0.45 0.25 0.01 0.06 0.03 0.04 2.83
Incl. 192.90 195.15 2.25 1.76 0.30 0.05 0.06 0.08 0.03 3.55
FNI2045 239.90 310.10 70.20 0.59 0.44 0.01 0.12 0.03 0.05 5.92
incl. 279.00 289.50 10.50 1.14 0.60 0.03 0.13 0.05 0.06 4.44
FNI2046 246.90 333.00 86.10 0.45 0.28 0.01 0.11 0.03 0.03 3.29
incl. 294.85 295.55 0.70 5.81 0.10 0.12 0.10 0.04 0.00 4.62
FNI2047 330.00 339.00 9.00 0.70 0.58 0.03 0.22 0.04 0.09 4.93
FNI2048 233.00 246.50 13.50 0.49 0.32 0.02 0.22 0.04 0.05 2.89
FNI2049 237.70 259.20 21.50 0.40 0.26 0.01 0.07 0.03 0.03 3.20
FNI2050 280.90 367.60 86.70 0.55 0.43 0.02 0.14 0.03 0.05 4.75
incl. 316.70 329.40 12.70 1.15 0.71 0.04 0.15 0.05 0.05 5.74
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). All other assay samples are pending
analysis.

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.

For further information contact:

First Nickel Inc.
William Anderson, President & CEO
Toll Free: (888)-362-7050
Telephone: (416) 362-7050
Fax: (416) 362-9050
Email: wanderson@firstnickel.com

or

Forbes West, Investor Relations Advisor
416-203-2200 / 1-888-655-5532 / forbes@sherbournegroup.ca

View Figure 1: Surface Plan and Geology Map of West Graham Property
http://www.firstnickel.com/i/maps/2008-03-25_NRM.gif

View News Release in PDF Format:
http://www.firstnickel.com/i/pdf/2008-03-25_NR.pdf
269 KB in size, approx. 51 seconds to download at 56.6Kbps

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Copyright (c) 2008 FIRST NICKEL INC. (FNI) All rights reserved. For
more information visit our website at http://www.firstnickel.com/ or
send mailto:info@firstnickel.com
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