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First Nickel Inc.: First Nickel Discovers a New Platinum and Palladium Zone on Raglan Hills Joint Venture Property

TORONTO, ONTARIO--(Marketwire - Aug. 5, 2009) - First Nickel Inc. ("First Nickel" or the "Company") (TSX:FNI) is pleased to report the discovery of a new zone of platinum ("Pt") and palladium ("Pd") mineralization and the confirmation of nickel ("Ni") and copper ("Cu") mineralization on the Raglan Hills Joint Venture property. The Raglan Hills property is a joint venture with Pacific North West Capital Corp., the details of the joint venture agreement were provided in a press release dated December 11, 2007.

First Nickel has tested seven airborne electromagnetic targets with 29 drill holes (4,616 metres) between February and May, 2009. Targets were selected based on the presence of coincident magnetic and electromagnetic anomalies and known Ni-Cu sulphide mineralization. Assay results for 19 of the 29 diamond drill holes completed have been received to date.

First Nickel has discovered a new zone of Pt and Pd mineralization hosted in a previously unexplored mafic intrusive body within Raglan Township. The Pt and Pd mineralization has been identified in two separate areas within the mafic intrusive, close to the contacts with the host sediments. FNB009 intersected 5.05 metres grading 0.762 gpt Pt and 1.216 gpt Pd and FNB010 intersected 2.7 metres grading 0.659 gpt Pt and 1.052 gpt Pd. A table of the significant assay results from this discovery has been summarized as follows:

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 ML North Target
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Hole ID From To Width Pt (gpt) Pd Pt+Pd
 (m) (m) (m) (gpt) (gpt)
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FNB009 9.95 15.00 5.05 0.762 1.216 1.978
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 and 41.70 43.00 1.30 0.812 1.276 2.008
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FNB010 137.90 140.60 2.70 0.659 1.052 1.711
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 and 144.60 150.60 6.00 0.508 0.829 1.337
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FNB011 134.00 134.80 0.80 0.490 0.706 1.196
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FNB012 128.00 129.40 1.40 0.420 0.675 1.095
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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.

Paul Davis, Vice President of Exploration states "The discovery of a new zone of Pt and Pd mineralization within the first phase of our drill program demonstrates the great exploration potential of this area. The presence of Pt and Pd mineralization indicates that the sulphide mineralization has interacted with the mafic intrusive unit and may potentially be a vector to more extensive Ni, Cu, Pt and Pd mineralization. We have secured a large land package along this prospective trend and are confident in our continued success and further discoveries of additional Ni-Cu and platinum group element ("PGE") mineralization in this under-explored part of Ontario."

Drilling completed on the historic Raglan Nickel Showing, in Raglan Township, also confirms the presence of Ni and Cu sulphide mineralization below the surface exposures. FNB004 intersected 5.8 metres grading 0.47% Ni and 0.64% Cu and FNB005 intersected 1.0 metre grading 0.86% Ni and 2.50% Cu. Sulphide mineralization is associated with a more mafic portion of the Raglan metagabbro complex and may be related to a feeder to the main intrusive body.

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 Raglan Nickel Showing
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Hole ID From To (m) Width Ni (%) Cu (%) Pt (gpt) Pd Pt+Pd
 (m) (m) (gpt) (gpt)
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FNB004 24.00 29.80 5.80 0.47 0.64 0.037 0.168 0.205
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FNB005 19.40 20.40 1.00 0.86 2.50 0.020 0.315 0.335
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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.

Borehole UTEM geophysical surveys have been completed on all of the drilling on the Raglan Hills JV property by Lamontagne Geophysics Ltd. First Nickel has submitted the results to an independent geophysical consultant for interpretation. A follow-up exploration program will be designed after receipt of the remaining assays from the drill program and a review of the borehole geophysical interpretation.

The diamond drilling program was designed and 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 quality assurance/quality control ("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 Lakefield, Ontario. The company's QA/QC protocol includes the insertion of standards and blanks for each batch of samples.

Some of the statements contained in this press release are forward-looking statements, such as statements that describe First Nickel's future plans, intentions, objectives or goals. In certain cases, forward-looking statements can be identified by the use of words such as "expects", "will", "enable", "anticipates", "estimated" or words of similar effect. Since forward-looking statements are not statements of historical fact and address future events, conditions and expectations, forward-looking statements inherently involve unknown risks, uncertainties, assumptions and other factors well beyond the Company's ability to control or predict. Actual results and developments may differ materially from those contemplated by such forward-looking statements depending on, among others and other factors described in the Company's Annual Information Form under the heading "Risk Factors" which has been filed electronically by means of the System for Electronic Document Analysis and Retrieval ("SEDAR") located at [ www.sedar.com ]. The forward-looking statements included in this document represent First Nickel's views as of the date of this document and subsequent events and developments may cause First Nickel's views to change. These forward-looking statements should not be relied upon as representing First Nickel's views as of any date subsequent to the date of this document. Although First Nickel has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on any forward-looking statements.