Pure Nickel Inc. Completes Acquisition of Xstrata Nickel Exploration Properties

TORONTO, ONTARIO--(CCNMatthews - Aug. 2, 2007) - Pure Nickel Inc. (the "Corporation") (TSX VENTURE:NIC)(OTCBB:PNCKF) is pleased to announce that it has completed the acquisition of ten nickel exploration properties (the "Acquisition") from Xstrata Nickel ("Xstrata") previously announced in a news release date May 15, 2007. The Corporation acquired a 100% interest in nine separate properties and Xstrata's 50% joint venture interest in one property, all located in central and Eastern Canada (the "Properties").

The Corporation paid C$15,250,000 and issued 4,000,000 warrants (each a "Warrant") to Xstrata in consideration for the Properties, each Warrant exercisable into one common share in the capital of the Corporation upon the payment of $2.00 per share at any time for a period of three years from closing. In addition, the Corporation granted to Xstrata (i) a 2% NSR on each Property (Pure Nickel having the right to reacquire 1% thereof for C$1,000,000); (ii) off-take and marketing rights for all concentrate or product produced from the Properties; and (iii) 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. The Corporation, however, retained the right to joint venture any or all Properties to interested third parties.

The Corporation is also pleased to announce that, further to its press releases of July 3 and 10, 2007 announcing the closing of its $27.5 million offering (the "Offering") of subscription receipts (the "Receipts"), each Receipt was deemed to be exercised without the payment of additional consideration into one unit of the Corporation (each a "Unit") as of August 2, 2007. Each Unit is comprised of one common share plus one-half warrant (each whole warrant exercisable at $1.75 for a period 18 months), The deemed exercise occurred as the Corporation obtained TSX Venture Exchange (the "TSXV") conditional approval of the Acquisition, which remains subject to the final approval of the TSXV. The proceeds of the Offering were released to the Corporation and the Corporation used $15.25 million thereof to fund the Acquisition. The Corporation intends to use the balance of the proceeds to fund its ongoing exploration and drilling programs and for general working capital purposes.

About Pure Nickel Inc.:

Pure Nickel is a mineral exploration company with advanced nickel sulphide and platinum group element projects in Canada and Alaska. The acquisition of the Properties significantly expands Pure Nickel's portfolio increasing its exploration potential. The Corporations 2007 exploration program is underway on multiple properties and is fully funded. With the closing of the Offering, Pure Nickel's cash balance stands at CDN $17.0 million.

This document may contain or refer to forward-looking information based on current expectations. Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. These forward-looking statements are made as of the date hereof and we assume no responsibility to update or revise them to reflect new events or circumstances.

Total Shares Outstanding: 67.765 million

Fully Diluted: 92.4 million

52-Week Trading Range: C$0.58 - $1.65

For further information contact:

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