Mr. Mark Selby reports

ROYAL NICKEL ANNOUNCES YEAR END 2014 RESULTS

Royal Nickel Corp. has provided a review of its activities and financial results for the year ended Dec. 31, 2014. All amounts are expressed in Canadian dollars, unless otherwise noted, and are based on the audited financial statements for the year ended Dec. 31, 2014, unless otherwise noted.

Mark Selby, president and chief executive officer, commented: "Two thousand fourteen saw RNC strengthen its position as a nickel-focused [Toronto Stock Exchange]-listed stock through the addition of interests in two advanced nickel-copper-[platinum group element] exploration properties -- West Raglan in Quebec and Aer-Kidd in the Sudbury basin. These properties, along with RNC's flagship Dumont nickel project, leave RNC well positioned to benefit from what I believe will be an exciting period for the nickel market, beginning as supply deficits are expected to emerge and support a strong price environment. RNC is currently focused on its near-term goals of securing the main environmental permit, and advancing ongoing partnership and financing discussion for the Dumont project."

2014 highlights:

• On March 24, 2014, RNC reported that Tsingshan Holding Group, a party with which RNC entered an alliance in March, 2013, is currently constructing the world's first integrated nickel pig iron (NPI) plant to utilize nickel sulphide concentrate as part of the stainless-steel production process. The plant is expected to begin operation this year. This significant innovation represents the first time that nickel sulphide concentrate will be directly used to create stainless steel. This innovation offers significant potential benefits to the producers of suitable nickel sulphide concentrate feed, including lower costs due to simpler processing compared with traditional smelting and refining, and greater flexibility for more potential partners and customers. This plant is also expected to be possibly capable of handling nickel sulphide concentrate anticipated to be produced from the Dumont nickel project.
• On April 2, 2014, RNC announced the publication of the Dumont nickel project's environmental and social impact assessment (ESIA) by the Quebec Ministry of Sustainable Development, Environment, Wildlife and Parks through the agency of the Bureau d'audiences publiques sur l'environnement (BAPE). This was an important step in the permitting process. The BAPE's public information and consultation processes were completed in May and June.
• On April 14, 2014, RNC announced it had gained exposure to the highly prospective Aer-Kidd nickel-copper-platinum-group-metals project in Sudbury through the acquisition of a 25-per-cent interest in Sudbury Platinum Corp. (SPC) for cash consideration of $1.5-million.
• On June 18, 2014, RNC announced that it had closed the transaction to acquire an approximate 56-per-cent interest in True North Nickel Inc. (TNN), a private company the main asset of which is a 100-per-cent interest in the West Raglan nickel sulphide project in Quebec.
• On July 11, 2014, RNC announced that it had closed its previously announced public offering of units. Pursuant to the offering, RNC issued 8.34 million units at a price of 60 cents per unit for aggregate gross proceeds of $5-million. Each unit comprises one common share of RNC and one-half of one common share purchase warrant.
• On July 17, 2014, RNC announced that the underwriters of its public offering of 8.34 million units that closed on July 11, 2014, had exercised their overallotment option and have purchased an additional 1,251,000 units at a purchase price of 60 cents per unit. The gross proceeds to RNC resulting from the exercise of the overallotment option are $750,000, for total gross proceeds from the offering of $5.75-million.
• On July 29, 2014, RNC announced that the National Instrument 43-101-compliant technical report for the West Raglan project had been filed under RNC's profile on SEDAR. On Aug. 26, 2014, RNC announced that SPC, a private company in which RNC has an interest in, had completed the purchase of a 100-per-cent interest in the mineral rights of the Aer-Kidd project from CaNickel Mining Co. Ltd.
• On Sept. 25, 2014, RNC announced the publication of a report from the BAPE that concludes that the development of the Dumont nickel project is acceptable, provided adequate mitigation measures are implemented.
• On Oct. 14, 2014, RNC announced that TNN, 100-per-cent owner of the West Raglan nickel project, and SPC, 100-per-cent owner of Aer-Kidd, have successfully raised $800,000 and $2.0-million, respectively. The financing completed by TNN was provided by its shareholders, RNC (as to 56 per cent) and Dundee Resources Ltd. (as to 44 per cent).

Targeted future milestones

Royal Nickel has the following targeted key milestones to achieve the development of the Dumont nickel project:

• Completion of partnership and financing arrangements;
• Receipt of main permit during the first quarter of 2015;
• Estimated construction schedule of 24 months after successful permitting and securing financing, and completion of detailed engineering;
• Project commissioning is expected to begin in 10 to 11 quarters after permits and financing are in place. Assuming permits and financing are in place by the end of the first quarter of 2015, commissioning is targeted to begin by the end of 2017, followed by production ramp-up in 2018.

Financial results

For the three months ended Dec. 31, 2014, RNC incurred a net loss of $3.0-million (four cents per share), compared with a net loss of $1.6-million (two cents per share) in the same period last year. The net loss increase of $1.4-million is due primarily to higher mineral property interests writedown ($1.3-million), and general and administrative expenses ($1.1-million), partially offset by lower deferred income tax expense ($500,000), a gain on dilution of associate ($200,000) and unrealized gain on derivative financial instruments ($200,000).

RNC incurred a net loss of $10.0-million (10 cents per share) for the year ended Dec. 31, 2014, compared with a net loss of $6.7-million (seven cents per share) for the same period in 2013. The net loss increase of $3.3-million is due primarily to higher general and administrative expenses ($3.0-million), and mineral property interests writedown ($1.3-million) partially offset by a lower deferred income tax expense ($800,000) and gain on dilution of associate ($200,000).

RNC's ability to operate as a going concern is dependent on its ability to raise financing. While management has been successful in securing financing in the past, there can be no assurance that adequate or sufficient financing will be available in the future, or available under terms acceptable to RNC.

We seek Safe Harbor.