Resource Capital Fund IV L.P. Acquires Additional Shares of First Nickel Inc.

DENVER, Jan. 21 /CNW/ - Resource Capital Fund IV L.P. ("RCF IV") reports that further to its press release dated November 16, 2010, it has exchanged the remaining US$1,828,941 (CDN$1,947,090) of its US$5,000,000 (CDN$5,323,000) bridge loan with First Nickel Inc. ("First Nickel") for 16,225,753 units ("Units") of First Nickel at a price of CDN$0.12 per Unit. Each Unit is comprised of one Common Share in the capital of First Nickel and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the holder thereof to acquire one Common Share at a price of CDN$0.17 until November 12, 2012. Pursuant to the exchange, RCF IV acquired 16,225,753 common shares ("Common Shares"), representing approximately 3.6% of First Nickel's outstanding Common Shares, and 8,112,876 Warrants.

As a result of the transaction noted above, RCF IV and Resource Capital Fund V L.P. ("RCF V") affiliated entities by way of a common management company (RCF Management LLC), will, on a combined basis, own 100,455,118 Common Shares, representing approximately 22.0% of the issued and outstanding Common Shares of First Nickel and 41.3% on a fully diluted basis (assuming conversion of an existing convertible loan between RCF IV and First Nickel and exercise of their outstanding Warrants, but no conversion or exercise of any other outstanding securities of First Nickel).

The securities were acquired for investment purposes. RCF IV and RCF V will evaluate their investment in First Nickel from time to time and may, based on such evaluation of market conditions and other circumstances, increase or decrease shareholdings in First Nickel as circumstances require.

For further information and to obtain a copy of the early warning report filed under applicable Canadian securities laws in connection with the transactions hereunder, please see First Nickel's profile on the SEDAR website www.sedar.com.

SOURCE Resource Capital Fund IV L.P.

For further information:

Resource Capital Fund IV L.P.
1400 Sixteenth Street, Suite 200,
Denver, CO, 80202,
Telephone: (720) 946-1444

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Resource Capital Fund IV L.P.

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