First Nickel Inc. announced preliminary production results for the year ended December 31, 2012. The company reported that during 2012, it shipped approximately 205,000 tonnes of Lockerby ore to Xstrata and achieved commercial production on July 1, 2012. The company made steady progress on the Lockerby Depth Project by increasing production through the first three quarters of 2012 but realized a shortfall in planned production in the fourth quarter. Fourth quarter production was primarily impacted by slower than planned development preparation and unplanned rehabilitation work on the main ramp. As a result, Lockerby produced approximately 5.8 million pounds of payable nickel, approximately 90% of 2012 guidance, and 4.6 million pounds of payable copper which achieved the lower end of the 2012 guidance. The actual development rate at the Lockerby Mine for 2012 was 6.2 metres per day versus an originally planned 10.5 metres per day. The expected average development rate was adjusted to 8.8 metres per day in the fourth quarter to be more reflective of anticipated development performance at the Lockerby Mine.

The company also provided production and capital expenditures guidance for the year 2013. For the year 2013, the company expected production of between 9.0 million to 10.0 million pounds of payable nickel, 6.1 million to 6.7 million pounds of payable copperand full production by the end of first quarter of 2013. Capital expenditures for 2013 are anticipated to be approximately $16.4 million, of which, $11.2 million relates to development programs.