First Nickel Inc. announced that it has completed an updated Lockerby Mine Plan which incorporates an optimized mining method and updated costing. Significant reduction of more than 100,000 waste tonnes, or 21%, through the elimination of more than 3,000 metres of lateral development in waste. The reduction in volume of waste through the materials handling system results in fewer ore-waste changeovers, and lower spending on fixed plant maintenance. The new Mine Plan provides additional operational flexibility with multiple mining fronts and flexible panel lengths. 10 million lbs Nickel, 7 million lbs Copper average annual production; $5.56 average cash cost per pound of nickel; $28 million LOM Capex (including $17 million in development); and 58 month mine life from July 1, 2012. The prior method of transverse mining has been changed to a longitudinal mining method. This change in mining method, together with optimizing the design of each level (eliminating crosscuts and lateral development, etc.) reduces required development, decreasing the tonnes of waste in the Mine Plan and supports opening multiple levels allowing a second bottom up mining front to be established. Costs in the previous FNI Lockerby Mine studies were determined based on assumptions made in 2008 and 2009. Cost assumptions in this Optimization Study, are based on the past nine months of operating experience and improvements identified in the new Mine Plan, all of which have been reviewed by external consultants. Average cash cost per pound from July 2012 forward remained unchanged as compared to the previous FNI Lockerby Mine studies. The cost increases, generally being experienced by the mining industry globally, were primarily offset in the Optimization Study by increased byproduct credits and costs savings relating to the reduction in development waste tonnes.