140 million pounds of nickel

5 high quality exploration projects + Lockerby Mine, Sudbury On

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Schedule “A”

FIRST NICKEL INC.

FOR IMMEDIATE RELEASE

First Nickel Inc. and Falconbridge sign Letter of Intent

On Lockerby Mine in the Sudbury Basin

November 29, 2004 – Toronto, Ontario – First Nickel Inc. (FNI-TSX) today announced that it has

entered into a non-binding letter of intent with Falconbridge Limited outlining the principal

business terms on which First Nickel may acquire a 100% interest in the Lockerby Mine located

in the South Range of the Sudbury Basin, Ontario for which Falconbridge has no current mining

or development plans.

The completion of the proposed transaction is subject to a number of conditions, including the

completion of full due diligence, the negotiation and execution of a definitive Purchase

Agreement and the receipt of all required regulatory approvals. The Purchase Agreement shall

provide that First Nickel may acquire a 100% interest in the Lockerby Mine, including all surface

and mineral rights to the lands and the onsite facilities and assets (the “Property”), on the

following terms, among others:

•

First Nickel pays to Falconbridge the sum of $1,500,000 for the structures, equipment

and materials located on the Property on the closing of the Purchase Agreement (the

“Closing”);

•

First Nickel issues to Falconbridge such number of common shares that would result in

Falconbridge owning 19.9% of the issued and outstanding common shares of First

Nickel on the day of Closing and agrees to issue 19.9% of such securities that may be

issued by First Nickel to finance any exploration and development activities on the

Property during the first eighteen month period after Closing. Falconbridge currently

owns 7,209,713 (17.2%) common shares of First Nickel. Falconbridge will continue to

maintain its pre-emptive right to maintain a 19.9% equity interest in First Nickel if First

Nickel makes any private or public offerings of First Nickel securities

•

First Nickel assumes the sole responsibility and shall indemnify Falconbridge in

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