First Nickel Inc. announced unaudited earnings and production results for the first quarter ended March 31, 2015. For the quarter, the company reported revenue of CAD 9,708,599 against CAD 16,787,275 a year ago. Loss from operations was CAD 11,796,888 against CAD 4,993,538 a year ago. Loss before taxes was CAD 17,011,431 against CAD 9,254,003 a year ago. Net loss and comprehensive loss was CAD 17,011,431 or CAD 0.02 per basic and diluted share against CAD 9,254,003 or CAD 0.01 per basic and diluted share a year ago. Lower revenues in the first quarter were driven by lower nickel market prices (approximately a CAD 4.0 million impact) and lower production and GMV-net payable nickel (approximately a CAD 3.0 million impact). Contained-nickel production in the first quarter of 2015 was 20% lower than the 2.7 million pounds produced in the first quarter of 2014, reflecting a 15% decrease in ore tonnes produced combined with a 5% decrease in average nickel grades mined. Contained nickel production in the first quarter was also below the levels reflected in the Lockerby Restructuring Plan for the first three months of the year. Lower tonnes mined in the first quarter mainly reflect the impact of challenges experienced with the implementation of the Lockerby Restructuring Plan, which included lower equipment availabilities experienced, and the assumption of new tasks by FNI personnel, where the work had been formerly performed by contracted labour. Nickel grade was also below expected levels, reflecting stope sequencing considerations and slightly higher ore dilution experienced.

As a result of lower production realized in the first quarter, the Corporation's production outlook for 2015 is expected to change. Exploration expenditures are projected to be approximately CAD 0.9 million, respectively, in 2015. The increase in expected exploration expenditures is a result of the restart of exploration diamond drilling at Lockerby as part of the Lockerby Restructuring Plan.