First Nickel Inc. reported production results for the third quarter and nine months ended September 30, 2012. For the quarter, the company produced approximately 2.0 million pounds of payable nickel and 1.4 million pounds of payable copper in the third quarter of 2012, an increase of 25% and 17%, respectively, over the prior quarter. Ore production during the third quarter of 2012 was 60,060 dry metric tons (653 tons per day), or 82% of the planned full production rate of 800 tons per day. The third quarter ore production rate was the achieved at Lockerby since 2002. In the third quarter of 2012, nickel production was at 80% of the full production rate forecasted for the Lockerby Mine.

For the nine months, the company has produced 4.9 million pounds of payable nickel and 3.4 million pounds of payable copper. Ore production was 150,601 dry metric tons.

The company affirmed production guidance for the second half and fourth quarter ending December 31, 2012. For the second half, the company expects nickel payable of 3.8 million pounds - 4.5 million pounds, copper payable of 2.7 million pounds - 3.0 million pounds and total cash production costs of $28.4 million - $31.2 million.

For the fourth quarter, the company expects nickel payable of 2.1 million pounds – 2.5 million pounds, copper payable of 1.4 million pounds – 1.6 million pounds and total cash production costs of $15.1 million - $16.6 million. As previously disclosed, the company expects to be at or near the full production rate of 10 million pounds of payable nickel per annum in the fourth quarter of 2012.