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Re: News Releases - Thursday, September 06, 2007
First Nickel 2007 Update
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September 6, 2007 -- Toronto, Ontario -- First Nickel Inc. (FNI-TSX) is
pleased to provide an update and revised outlook on its operations.

Production at the Lockerby Mine is currently from stopes on the 64
level and the 35-1 level in the Depth and East zones, respectively. The
main ramp on the Depth is 50m from the 65 Level where most of 2008
production has been scheduled. Production has continued to ramp up,
with an estimate of 12,857 tonnes shipped to Strathcona Mill at an
estimated grade of 1.86% Ni for August. The mine is now targeting
13,500 tonnes per month for the balance of the year, a rate which is in
excess of the original plan. This will lead to full year output of
136,100 tonnes, or 90% of the original forecast of 152,000 tonnes.
Payable nickel is estimated at 3.9 million pounds compared to the
original forecast of 4.7 million. The difference is largely
attributable to the decision taken earlier in the year to mine lower
grade ore at the start of production on the 64 Level which was ore that
would have otherwise been abandoned, and also allowed for the
development of the western portion of the 64 Level and the continuation
of the main ramp toward the 65 Level without interruptions to
production.

Drilling continues to define and extend the resources in the Depth
orebody, as well as investigating opportunities for short term
production and development in areas adjacent to existing
infrastructure. Exploration targets identified in the upper portion of
the Lockerby orebody will be tested later in the year from underground
and surface drill platforms. Updates on these activities are expected
later in the Fall as program results are received.

Engineering studies that will lead to a new life of mine plan along
with the economic evaluation of the proposal to extend one of the
surface shafts were launched in the summer. A prefeasibility level
report should be available by the end of Q4.

Work is continuing on the Premiere Ridge project to tighten up the
capital and operating estimates and optimize the off-take agreement
with Xstrata Nickel in order for the Company to make a production
decision later this Fall.
"I am very pleased to see the progress and continued improvement in our
operating performance at Lockerby," states William Anderson, President
and CEO of First Nickel. "Our people have been working hard to increase
production levels and lower costs. With the mine now providing a steady
cash flow, coupled with excellent drill results, the mine is starting
to match our expectations, and with more hard work and dedication, is
set to become the operation we knew it could be."

Joseph Del Campo, the Company's Chief Financial Officer, adds, "the
Company has a healthy balance sheet and treasury, and combined with
current cash flow can easily meet all of its short term funding
requirements for capital and exploration. Therefore, there is no
immediate need to access the capital markets in the current volatile
environment. In addition, I wish to emphasize that we have zero
exposure to any form of commercial paper instruments."
Paul Davis, P.Geo., Vice President Exploration of First Nickel Inc., is
the designated "qualified person" as defined by National Instrument
43.101 and responsible for the verification and quality assurance of
First Nickel's exploration data and analytical results. Samuele
Renelli, P.Eng., Lockerby's Chief Mine Engineer, oversees mine
engineering activities on behalf of First Nickel Inc.

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,
except as may be required under applicable securities law.


For further information contact:
First Nickel Inc.
William Anderson, President & CEO
Telephone: (416) 362-7050
Fax: (416) 362-9050
Email: wanderson@firstnickel.com

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Copyright (c) 2007 FIRST NICKEL INC. (FNI) All rights reserved. For
more information visit our website at http://www.firstnickel.com/ or
send mailto:info@firstnickel.com
Message sent on Thu Sep 6, 2007 at 11:39:23 AM Pacific Time
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