First Nickel Inc. announced that it continues to make steady progress on the Lockerby Depth Project, which was launched in 2011, and delivered ore to Xstrata on-schedule in September 2011. During fourth quarter of 2011, the company shipped 21,717 tonnes of Lockerby ore to Xstrata. As reported in the company's 2011 third quarter MD&A, FNI expected to produce approximately 400 tonnes per day during the last two months of 2011. November production exceeded this expectation at an average 433 tonnes per day. December production averaged of 209 tonnes per day. This shortfall was primarily the result of the loss of a 6 yard scooptram which is scheduled to be replaced in first quarter. The company announced that capital expenditures for 2012 is expected to be $16.2 million, of which, $9.7 million relates to development programs as work continues to push the ramp down to the 68 level. Exploration expenditures for 2012 is expected to be $1.9 million and include 6,000 meters of diamond drilling at four of the company's properties, to assess potential growth opportunities, with the objective of increasing mineral resources for the company.