News Release of The Howard Group's Client

Pure Nickel Inc. (TSX-Venture NIC, OTCBB-PNCKF) is pleased to announce it has reached agreement with Xstrata Nickel to acquire ten (10) Canadian nickel exploration properties for a total consideration of C$15,250,000 and the issuance of 4,000,000 warrants to purchase shares in Pure Nickel at a cost of $2.00 per share. Pure Nickel will acquire a 100% interest in nine separate properties and Xstrata Nickel’s 50% joint venture interest in one property, all located in Central and Eastern Canada.

“This agreement with Xstrata Nickel, in a single transaction, elevates Pure Nickel to one of North America’s largest nickel exploration companies. We have acquired ten select nickel properties with the following characteristics:

Two projects in the Thompson Nickel Belt. Firstly, the advanced William Lake project with its promising existing drill intercepts and numerous infill drill targets, and secondly, the former operating mine at Manibridge.
The Company also acquired three distinct properties in the prolific Raglan Belt.
In addition, new target rich claims were acquired in Nunavut, Labrador and Central Quebec.

Coupled with Pure Nickel’s existing drill ready exploration projects, NIC has markedly increased the opportunity for discovery as well as mitigating the exploration risk to shareholders by dramatically expanding the Company’s portfolio”, said Jay Jaski, Chairman and CEO.

“We are extremely pleased to have obtained the Xstrata Nickel package of Nickel-Copper properties”, said Dr. Larry Hulbert, Chief Exploration Officer of Pure Nickel. Dr. Hulbert went on to say “these premier properties nicely round out our continent-wide portfolio of Nickel-Copper-PGE projects. The acquisition of William Lake and Manibridge in the Thompson Nickel Belt, the Pure Nickel–Xstrata joint venture in the Fox River Belt in Manitoba, and the newly acquired Ungava properties in Quebec, confirms our position in the renowned Circum-Superior Belt, one of the most productive and prospective nickel belts in the world.”

“In addition to having properties in these prolific komatiite-hosted Nickel-Copper-PGE magmatic terrains in Manitoba and Quebec, similar properties with high-grade Nickel mineralization are being acquired under this agreement in Labrador and Nunavut. Two mineralized gabbro-norite-hosted intrusions in Quebec and one in Labrador complete the property package. The very large Harp Lake intrusion property in Labrador has potential for Voisey’s Bay type Nickel-Copper deposits whereas the remaining two properties in Quebec have attractive metal grades and are close to tide-water or road and railway access. This acquisition along with Pure Nickel’s existing, advanced, Fond Du Lac (Saskatchewan) Nickel-Copper project, the MAN (Alaska) Nickel-Copper-PGE project and the Salt Chuck PGE-Copper-Gold-Silver past producer place the company at a distinct strategic advantage since all of the properties lie in some of the most favourable geological environments for Nickel and PGE’s in the world. Nickel and PGE exploration properties are very scarce and getting more precious by the day”.

In addition to the cash and stock option component of the purchase price, Pure Nickel will:

Grant Xstrata an NSR of 2% on each property with Pure Nickel having the right to reacquire 1% by payment of C$1,000,000

Grant Xstrata off-take and marketing rights for all concentrate or product produced from the Properties

Grant Xstrata the right to retain one back-in right to 50% for any one (only) of any mining project with an economic threshold of 15,000,000 tonnes of resources.

Pure Nickel retains the right to joint venture any or all Properties to interested third parties.

Pure Nickel will immediately pay C$2,500,000 to Xstrata Nickel pursuant to the Letter of Intent.

The Parties will diligently and in good faith work toward execution of the definitive agreement by June 15th, 2007 with the closing of the transaction hereby contemplated occurring on or about July 9th, 2007. Pure Nickel will pay C$12,750,000 cash on the Closing date.

Completion of the letter of intent agreement is conditional upon regulatory approval.

Pure Nickel is a mineral exploration company with multiple, advanced nickel sulphide and PGE projects in Canada and the United States. The Company's C$8.0 million, 2007 exploration program is well underway, is fully funded and drill ready. Information on all of Pure Nickel’s properties can be found at www.purenickel.com.

This release was prepared by management of Pure Nickel Inc. who take full responsibility for its contents. Neither the TSX Venture Exchange nor the OTC Bulletin Board have reviewed or accept responsibility for the adequacy of this news release.