FNI Arranges US$5.0 Million Loan Facility

FNI Arranges US$5.0 Million Loan Facility 
TORONTO, ONTARIO -- (Marketwire) -- 01/16/13 -- First Nickel Inc.
("First Nickel" or the "Company") (TSX:FNI) announces that it has
entered into a loan facility with Resource Capital Fund V L.P.
("RCF") in the aggregate principal amount of US$5.0 million (the
"Facility"). The Facility matures on December 31, 2013 and the
proceeds will be used for working capital and corporate requirements.
The Facility closed on January 15, 2013 and is subject to the
satisfaction of certain post-closing conditions. 
Description of the Loan Facility 
The Facility will bear an interest rate of 12.0% per annum, paid
quarterly in cash or, at RCF's option, common shares of the Company
valued at the volume weighted average market price for the five days
prior to the date the payment is due. The Facility will be secured by
a first ranking perfected encumbrance over all assets associated with
the Company's projects, all shares or equity interests of the Company
and all intercompany debt. In connection with the Facility, a 3.0%
Establishment Fee will be paid to RCF in common shares of the Company
valued at the volume weighted average market price for the five days
prior to the closing date. 
Lockerby Development Rationalization 
In response to the production shortfall coupled with the lower than
anticipated grades and recoveries from material processed by Xstrata
in the fourth quarter as described in the press release dated January
3, 2013, and to conserve working capital, the Company has rescheduled
underground development priorities at Lockerby to focus on currently
active mining horizons to ensure that production is maintained. The
Company is reviewing its working capital position, as well as its
planned capital expenditures with respect to its operations, and
anticipates that it will be seeking additional, longer-term sources
of financing in order to continue the build-out of the Lockerby Mine. 
About FNI 
FNI is a Canadian mining and exploration company. The Company's
mission is to be the most dynamic North American emerging base metal
mining company in which to work and invest and to be respected in the
communities in which we operate. FNI is in the process of ramping up
production at its Lockerby nickel / copper mine in the Sudbury Basin
in northern Ontario. In addition to the Lockerby Mine, the Company
owns exploration properties in the Sudbury Basin, the Timmins region
of northern Ontario, and the Belmont region of Eastern Ontario. FNI's
shares are traded on the TSX under the symbol FNI.  
Forward-Looking Statements 
This news release contains forward-looking statements, which are
subject to certain risks, uncertainties and assumptions, including
the cash flows, working capital, metal prices, costs, output, grades,
expected development and production, and expected exploration
expenditures. 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 factors include fluctuating metal prices, lower unit costs
and other factors described in the Company's most recent 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. 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. 
CHF Investor Relations
Robin Cook
Senior Account Manager
416 868 1079 x 228
First Nickel Inc.
Paul Davis
VP, Exploration
416 362 7050 x 226
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