Nearctic Nickel Mines Inc. Announces That Arbitration Decision of April 1, 2009 May Not Be the Final Word



    
    Issued and Outstanding
    29,211,290 Common Shares
    

    TORONTO, April 3 /CNW/ - Nearctic Nickel Mines Inc. (Pink Sheets:   NNMIF)
(the "Company"). The Company announces that a decision released April 1, 2009,
in the arbitration between the Company and Canadian Royalties Inc. ("CRI")
regarding the vesting of an additional 10% interest in the Expo Ungava
Property ("the Property") may not be the final word. The arbitrator ruled that
CRI has satisfied the requirements of the Option Agreement of January 12, 2001
("the Agreement") and accordingly is entitled to a further 10% right, title
and interest in the Property. During the course of the hearing, it was the
submission of the Company that the arbitrator made certain erroneous decisions
wherein he exceeded his jurisdiction. The Company accordingly has given notice
that it will apply to Quebec Superior Court in this matter. The hearing of
such application is set for three days in September 2009.
    Additionally, it was discovered in the course of the arbitration that CRI
had halted mine building on the Property at the beginning of May 2008. This
was caused by the melting of the lake on which CRI had been landing Hercules
aircraft. Xstrata had informed CRI in the summer of 2007 that it would no
longer permit CRI access to the Donaldson Airport near the Property owned and
operated by Xstrata, since CRI intended to become a producer/competitor. This
fact was never disclosed in the feasibility study finalized in the summer of
2007, the "BFS" for CRI. In fact, the BFS asserts that CRI has contractual
access to use the Donaldson Airport. When Mr. Faucher was recalled as a
witness August 20, 2008, he disclosed that management of Xstrata had
personally informed him about the decision to withdraw airport access. CRI
therefore proceeded on the basis that it would land on a frozen lake near the
Property while it awaited contractual access to use the Donaldson Airport
which is thought would result from Quebec Ministry persuasion, which to date
has apparently not been successful. In the arbitration, the Company had
pleaded that the BFS was invalid because of the non-disclosure of the lack of
airport access necessary to build and operate a mine on the co-owned Property.
The Decision does not mention any of these matters, nor is there any
adjudication in this regard. The Company submits that a feasibility study
fundamentally flawed in this way cannot be the BFS called for in the
Agreement, nor can the Company be prejudiced in any way for failing to
contribute to the costs of "mine building" which were incurred by CRI in such
circumstances.
    The Decision will be appended to the Material Change Report to be filed
in respect of this Press Release.

    Caution Concerning Forward-Looking Statements

    The information in this news release includes certain information and
statements about management's view of future events, expectations, plans and
prospects that constitute forward looking statements. These statements are
based upon assumptions that are subject to significant risks and
uncertainties. Because of these risks and uncertainties and as a result of a
variety of factors, the actual results, expectations, achievements or
performance may differ materially from those anticipated and indicated by
these forward looking statements. Although Nearctic Nickel Mines Inc. believes
that the expectations reflected in forward looking statements are reasonable,
it can give no assurances that the expectations of any forward looking
statements will prove to be correct. Except as may be required by applicable
securities laws, Nearctic Nickel Mines Inc. disclaims any intention and
assumes no obligation to update or revise any forward looking statements to
reflect actual results, whether as a result of new information, future events,
changes in assumptions, changes in factors affecting such forward looking
statements or otherwise.

    %SEDAR: 00003850E




For further information:

For further information: Paul Vorvis, President, Nearctic Nickel Mines
Inc., Telephone No: (647) 345-6394

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NEARCTIC NICKEL MINES INC.

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