Pure Nickel Inc. Completes $19.2 Million First Tranche of Private Placement

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.  NOTHING CONTAINED HEREIN CONSTITUTES AN OFFERING OF SECURITIES OF THE CORPORATION IN THE UNITED STATES.

TORONTO, ON, July 3, 2007: Pure Nickel Inc. (the "Corporation") (TSX-Venture: NIC, OTCBB: PNCKF) is pleased to announce that it has closed the $19.2 million first tranche of its proposed $27.5 million offering (the"Offering") of subscription receipts of the Corporation (the "Receipts") announced by press releases dated June 12, June 21, and June 26, 2007.  Each Receipt will be deemed to be exercised without the payment of additional consideration into one unit of the Corporation (each a "Unit") upon the earlier to occur of: (i) the Corporation obtaining TSX Venture Exchange ("TSXV") conditional approval of the Xstrata transaction announced on May 15, 2007; or (ii) the common shares in the capital of the Corporation (each a "Share") becoming listed and posted for trading on the Toronto Stock Exchange (each an "Exercise Event").

Upon the occurrence of an Exercise Event: (i) each holder of Receipts shall receive one Unit for each Receipt held; and (ii) the proceeds of the Offering, plus any accrued interest thereon (less any applicable taxes), shall be released to the Corporation.  Each Unit shall be comprised of one Share and one half of one common share purchase warrant (each whole warrant, a "Warrant"), each Warrant entitling the holder thereof to purchase one Share upon the payment of $1.75 per Share for a period of 18 months from closing.  In the event that an Exercise Event does not occur within 90 days of the closing, the proceeds of the Offering, plus any accrued interest thereon (less any applicable taxes), will be returned to the purchasers and the Receipts will expire without exercise. 

Although the Corporation originally intended to issue Units to purchasers pursuant to the Offering, the Corporation decided to issue Receipts in place of Units to satisfy investor and regulatory requirements.  The Corporation expects to complete the remaining tranches of the Offering within the next two weeks.  The Offering remains subject to the approval of the TSXV.

About Pure Nickel www.purenickel.com

Pure Nickel is a mineral exploration company with multiple, advanced nickel sulphide and PGE projects in Canada and Alaska.  The Company has just signed an agreement to acquire ten, nickel exploration properties from Xstrata Nickel.  This dramatically expands Pure Nickel’s potential as it moves into the ranks of being one of North America’s largest nickel exploration companies.  The agreement significantly increases Pure Nickel’s property portfolio from its current three high caliber projects (Fond du Lac Project (Saskatchewan); the Fox River Project (Manitoba); and the MAN Project (Alaska)) for which a C$8.0 million fully funded exploration program for 2007 is underway and drill ready.

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The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This press release contains information that is forward-looking information within the meaning of applicable securities laws.  In some cases, forward-looking information can be identified by the use of terms such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “estimate”, “predict”, “potential”, “continue”, or the negative of these terms or other similar expressions concerning matters that are not historical facts.

Forward –looking information by its nature necessarily involves risks and uncertainties including, without limitation, the difficulty of predicting the current regulatory and supervisory environment, the timing and conditions to obtaining any regulatory or other requisite approvals, market acceptance and demand for existing and new products and services, the Company’s ability to maintain and service new and existing customers, the protection of intellectual property associated with the Company’s products and services, the impact of competition generally and new competitive products, currency and foreign exchange fluctuations, risks associated with the Company’s customer care solutions facility, and related risks and uncertainties.  Additional risks and uncertainties affecting the Company can be found in the Company’s Annual Information Form available on SEDAR at www.sedar.com.  If any of these risks or uncertainties were to materialize, or if the factors and assumptions underlying the forward-looking information were to prove incorrect, actual results could vary materially from those that are expressed or implied by the forward-looking information contained therein.  The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.