Mr. Terry Lynch reports

POWER NICKEL CLOSES FINAL TRANCHE OF FINANCING AND RELEASES RESULTS OF THE FIRST HOLE OF THE CURRENT CAMPAIGN

Power Nickel Inc. has closed the previously announced private placement of non-flow-through units at a price of 25 cents per unit. In connection with closing the offering, the company issued an aggregate of 2.82 million units for gross proceeds of $705,000. Each unit comprises one common share of the company and one-half of one share purchase warrant. Each warrant is exercisable to acquire one common share of the company at a price of 50 cents per share for a period of three years from the date of issuance (subject to acceleration, as described below).

At any time starting four months and one day from the date of issuance of the warrants, the expiry date of the warrants can be accelerated at the election of the company if the closing price of the common shares of the company on the TSX Venture Exchange is equal or greater than $1 for 10 consecutive trading days. If the company elects to accelerate the expiry date of the warrants, the company will provide notice to the holders of the warrants, following which the warrants will expire if not exercised within 30 days from the date of the notice.

All securities issued in connection with the offering are subject to a statutory hold period of four months and one day.

Assay results

Power Nickel is pleased to release the assay results for the stepout hole testing the Nisk Main deposit 300 metres to the south and east of previous drilling. The overall 19.5-metre interval, starting at a downhole distance of 463.5 m, includes:

• 1.75 m of 1.10 per cent nickel, 4.54 per cent copper, 0.06 per cent cobalt along with 0.87 part per million palladium and 0.19 ppm platinum;
• Six m of 0.86 per cent Ni, 0.54 per cent Cu, 0.04 per cent Co along with 1.57 ppm Pd and 0.45 ppm Pt.

The hole, also referred to as PN-23-036, is testing at depth an area to the east of two of the best holes, PN-22-009 and PN-23-035.

"A great start to the fall campaign. This was a big stepout hole almost 300 metres below the nearest successful hole on that side of the fault. So will ring up some solid resource with this, we are with all the tools we have employed getting a much better understanding of the orebody ... It appears now to us that the west side of Nisk Main contains the higher-grade material and we have seen that again in our two holes with pending results, it looks like Nisk Main West is open at depth and the remaining holes up to Christmas will focus on large stepouts in this area. The hole we announced today is very productive addition to Nisk Main East which has slightly less but still excellent grade," commented Power Nickel chief executive officer Terry Lynch.

"This hole was the first that used the ambient noise tomography (ANT) data we collected this summer. We drilled into a area previously considered to be low grade and had a quite positive result. As noted below it has given us some important new targets on Nisk Main but also in completely unexplored areas called ANT 1 and 2 to the east of Nisk Main," commented vice-president, exploration, Kenneth Williamson.

The hole was drilled in the eastern portion of the Nisk Main mineralized zone, in vicinity of an interpreted fault corridor, which is believed to have displaced the eastern portion of the deposit approximately 500 m to the east-southeast, and at greater depths; an area that is now called ANT2.

Qualified person

Mr. Williamson, Geo, MSc, vice-president, exploration, at Power Nickel, is the qualified person who has reviewed and approved the technical disclosure contained in this news release.

About Power Nickel Inc.

Power Nickel is a Canadian junior exploration company focusing on developing the high-grade Nisk project into Canada's first carbon-neutral nickel mine.

We seek Safe Harbor.