Fletcher Nickel Acquires Texmont Mine

16.03.06

Toronto, Canada – Fletcher Nickel Inc., a closely-held issuer, yesterday completed its purchase of the Texmont Mine from New Texmont Explorations Ltd. and Sheridan Geophysics Limited.  The underground nickel mine, 42 km. south of Timmins on the west bank of the Redstone River, was operated by Sheridan Geophysics under a lease from New Texmont Explorations Ltd. until December 1972.  At that time the mine, flotation mill and hydrometallurgical recovery plant were temporarily shut down and put on a care-and-maintenance basis.  A combination of historically low nickel prices, coupled with a newly-imposed surtax on the diesel fuel used to generate electricity for the facilities, rendered the operation uneconomic.  The 3,190,000 ton deposit has an average grade of 0.91% nickel, as reported in an ore reserve calculation completed by Orville Leigh, P. Eng., of Derry Michener Booth, and filed with the Ontario Securities Commission in 1971.

To complete the transaction Fletcher obtained an assignment and surrender of the Sheridan Geophysics lease interests and paid New Texmont $10 million, of which $1 million was subscribed to Fletcher’s treasury for 1,000,000 common shares and $8 million was subscribed to Fletcher’s treasury for 8,000,000 non-voting redeemable preferred shares yielding a 5% annual dividend, payable quarterly and maturing in eight years.  To secure payment of the dividends and redemption of the preferred shares, the Company has issued a debenture in favour of the vendor.  The Company has also deposited a re-conveyance of the mineral leases with an escrow agent.  Should it elect to abandon the property, the escrow agent may deliver the reconveyance upon receipt of the preferred shares for cancellation.  Should the holder of the preferred shares deliver notice that a default in payment of the dividends has not been cured, the escrow agent may release the reconveyance upon receipt of the preferred shares for cancellation.

Fletcher Nickel Inc. now has 9,163,600 common shares outstanding, a $750,000 debenture convertible into 1,500,000 additional shares, 300,000 warrants exercisable at $0.50, 300,000 warrants exercisable at $0.75 and 3,000,000 warrants exercisable at $0.65.

For further information:

Douglas M. Flett President (416) 708-6180

Thomas H. Poupore Director (705) 522-2163

Frank C. Smeenk Managing Director (416) 888-4790