First Nickel Inc. ("FNI") announces that it has entered into agreements with its lenders to increase the amount available under the company's existing credit facilities (the "Transaction"). The Transaction involves an increase in the principal amount of the revolving credit facility (the "BNS Facility") with The Bank of Nova Scotia ("BNS") from U.S.$15 million to U.S.$18 million and a corresponding increase to the standby letter of credit posted by Resource Capital Fund V L.P. ("RCF V") from U.S.$7.5 million to U.S.$10.5 million.

As a result, the Company also amended its credit facility with RCF V that backstops the RCF V Letter of Credit. Further details of the Company's credit facilities are contained in the Company's press release dated April 1, 2013.

The increased financing will provide the Company with liquidity that will enable it to fund capital expenditures at the Lockerby Mine.

FNI is a Canadian mining and exploration company.