Fort St. James Nickel Corp. announced that it is issuing the update to its shareholders on the status of the company's 100% owned Kilometer 26 Nickel/Gold exploration project located in central British Columbia. The Kilometer 26 project proposes an innovative new mine deposit model which would apply the well-established technologies of open pit copper (sulfide) mining to a deposit which is nickel (sulfide) dominant and possesses similar gross in situ metal values. Kilometer 26 is predicated on a model which would exploit a very large surface mineable quantity of lower grade nickel sulfide mineralized rock to produce a large quantity of nickel sulfide concentrate at a conceptually competitive price. Kilometer 26 is located approximately 50 kilometers northwest of the community of Fort St. James in central British Columbia, and 21/2 hours by vehicle from the regional center of Prince George, BC. The property consists of twenty-seven claims totaling 12,070 hectares (29,825 acres) with most claims having sufficient assessment work credits to hold the claims until 2017 (extendable beyond 2017 with additional work). The entire claim group occupies a gentle to undulating landscape on government land. The Kilometer 26 target is a 7,000 meter long north south trending magnetic and "IP" chargeable feature extending to the west for plus or minus 600 metres. The area of the anomalous feature is low lying and completely overburden covered. The target area was tested in 2011 and 2012 with six diamond drill holes. All the holes, spaced an average of 400 meters apart, intersected nickel mineralized ultramafic rock from their bedrock interface to their bottom. Five of the six hole returned total nickel values in excess of 0.20% over their full lengths with preliminary metallurgical work indicating that greater than 65% of the nickel in the higher grade intervals is in the form of extractable nickel sulfide (plus or minus0.15% Ni) which would predictably report to a very high grade nickel sulfide concentrate which would contain 35% to 40% nickel. Kilometer 26 shares many characteristics with the Dumont Project located in Quebec, owned by Royal Nickel Corp. Nickel mineralization at Dumont, which is at the feasibility stage, is likewise hosted in serpentinized ultramafic rocks. Recoverable nickel at Dumont is stated as plus or minus 0.11% Ni recoverable from plus or minus 0.27% total nickel, occurring as an intermixed combination of nickel sulfide and awaruite. Both the nickel sulfide and awaruite (nickel alloy) are proposed to be recovered using conventional floatation
techniques.

The company also announced that Bill Morton is stepping down as a director of the company but will remain as a technical advisor. J.W. (Bill) Morton, PGeo, a qualified person for the purposes of National Instrument 43-101, has read and taken responsibility for this technical component.