Its Initial Public Offering

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TORONTO, ONTARIO--(Marketwire - Jan. 13, 2011) -



NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.


Royal Nickel Corporation (TSX:RNX) ("Royal Nickel" or the "Company") is pleased to announce today that it has completed the sale of 2,925,000 units (the "Units") at a price of $2.25 per Unit, each Unit consisting of one common share and one‐half of one common share purchase warrant, pursuant to the exercise of an over-allotment option (the "Over-Allotment Option") by an underwriting syndicate co-led by RBC Capital Markets and UBS Securities Canada, and including Scotia Capital, Desjardins Securities, Haywood Securities and Raymond James. The Over-Allotment Option was granted by the Company in connection with the Company's initial public offering, which was completed on December 16, 2010 (the "Offering"). The aggregate gross proceeds received by the Company from the Offering and the full exercise of the Over-Allotment Option are approximately $51.7 million.


Royal Nickel's principal asset is the 100% owned Dumont nickel project strategically located in the established Abitibi mining camp, 25km northwest of Amos, Quebec. Royal Nickel intends to use the net proceeds from the Offering and the exercise of the Over-Allotment Option to fund its work plan for its 2011 and 2012 program of exploration and drilling, metallurgical testing, preparation of a preliminary feasibility study, commencement of a feasibility study and for general and administrative costs.


This news release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the ordinary shares in any state in which such offer, solicitation or sale would be unlawful. The securities have not been registered and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws. Accordingly, the securities may not be offered or sold in the United States or to U.S. persons (as such terms are defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws or an exemption from the registration requirements is available.