First Nickel Inc. announced unaudited earnings and production results for the first quarter ended March 31, 2014. For the quarter, the company reported revenue of CAD 16,787,275 against CAD 26,772,605 a year ago. Operating loss was CAD 4,993,538 against income of CAD 164,693 a year ago. Loss before taxes was CAD 9,254,003 against CAD 895,415 a year ago. Net loss and comprehensive loss was CAD 9,254,003 or CAD 0.01 per basic and diluted share against CAD 895,415 or nil per basic and diluted share a year ago.

In the three months ended March 31, 2014, the Lockerby Mine produced 2.7 million pounds of contained nickel and 1.7 million pounds of contained copper. Contained-nickel production in the first quarter of 2014 is below the first quarter of 2013 by 26% mainly reflecting a 21% reduction in average nickel head grades mined during the respective periods, combined with a 6% drop in ore tonnes produced. The variations in tonnes and grade mainly reflect grade variations for stopes within the Depth Zone and lower scheduled ore tonnage from one year to the next; however, tonnes mined during the first quarter of 2014 were affected by poor in-stope ground conditions that affected blast-hole drilling. Average nickel grade in the first quarter of 2014 was affected by final results from definition drilling, which resulted in additional tonnes from a primary stope but a corresponding reduction in the associated ore grade. Revenues in the first quarter of 2014 show a significant decrease over the prior-year period partly reflecting lower nickel production, with contained nickel pounds produced approximately 26% below the prior-year period, combined with lower average realized nickel prices in the first quarter of 2014 (by approximately 15%). The impact of lower realized nickel prices was partially offset by foreign -currency translation gains related to weaker average Canadian-US dollar exchange rates, which lead to higher values for revenues presented in Canadian dollars. The decrease in first-quarter revenues compared to the prior year also includes the impact of accounting changes under the GMV Agreement, which affect the comparability to prior-period revenues and result in lower current-year values for revenue recorded under the GMV Agreement compared to higher gross revenues recorded under the Original Agreement in the first quarter of 2013. The company made capital expenditures of CAD 3.0 million in the three months ended March 31, 2014, mostly representing underground development costs at the Lockerby Mine.

The first and second quarters of 2014 are expected to have lower production than the second half of the year, based on the planned sequencing of stopes for later in 2014.

First Nickel Inc. announced unaudited earnings and production results for the first quarter ended March 31, 2014. For the quarter, the company reported revenue of CAD 16,787,275 against CAD 26,772,605 a year ago. Operating loss was CAD 4,993,538 against income of CAD 164,693 a year ago. Loss before taxes was CAD 9,254,003 against CAD 895,415 a year ago. Net loss and comprehensive loss was CAD 9,254,003 or CAD 0.01 per basic and diluted share against CAD 895,415 or nil per basic and diluted share a year ago.

The company expects contained nickel of 13.5 lbs million to 15.1 lbs million, contained copper of 7.2 lbs million to 8.0 lbs million, GMV net payable nickel of 6.8 lbs million to 7.6 lbs million, GMV net payable copper 3.6 lbs million - 4.0 lbs million, mine site operating costs of CAD 58.1 million to CAD 61.0 million and cash production cost per GMV-net pound of nickel produced of CAD 5.22 to CAD 5.74. Production of nickel and copper is expected to be in the lower ends of the respective ranges based on the company's 2014 guidance.

Capital expenditures for 2014 are projected to be approximately CAD 7.2 million, including approximately CAD 3.5 million related to underground development. Financing costs and exploration expenditures are projected to be approximately CAD 1.8 million and CAD 0.4 million, respectively, in 2014.