Company Information for European Nickel Plc

AIM-ENK

www.enickel.co.uk

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AIM; ENK

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Company Statement

European Nickel is an emerging mid-tier nickel laterite producer focused on growth.

With over 1 million tonnes attributable, JORC classified nickel resources, assets in Turkey, the Philippines and Albania and an identified pipeline of growth, European Nickel is targeting 50,000 tonnes of annual nickel production within five years.

The Caldag project in Turkey is the Company's flagship asset, with near-term production of 20,000tpa nickel and will be the world's first commercial scale nickel laterite heap leach operation.

Current Operations

Caldag – Turkey

Key Features

Forestry permit approved
Signed financing framework agreement with Chinese partners for provision of a guaranteed US$350 million debt facility
JXTC to acquire 20% of the Caldag project for US$20 million
Total development cost US$428 million
JORC proven reserve of 33.2Mt at 1.13% with 375,160t contained nickel
Nickel production target 20,000tpa
Life of mine 14 years

European Nickel’s flagship project is the Caldag mine, located near the deep port of Izmir in western Turkey. This will be the world’s first commercial nickel laterite heap leach operation, using the Company’s simple, low cost heap leach technology and represents the largest foreign direct investment in Turkey’s mining industry.

The project has received the green light for development, following approval of the forestry permit. Caldag is a low cost, open pit operation, which will produce 20,000tpa of nickel and 1,000tpa of cobalt in a mixed hydroxide product (MHP), which will be sold 50:50 to BHP Billiton and Jiangxi Rare Earth and Rare Metals Tungsten Group Company Limited (“JXTC”). Subject to completion of project financing, construction on the project is targeted to start during the second half of 2009, with first production expected to commence 13 months later. China Tianchen Engineering Corporation (“TCC”) will be the project’s EPC contractor.

Acoje JV – The Philippines

Key Features – Highlights from the Pre- Feasibility Study

JORC Indicated Resource of 34.41Mt at 1.09% nickel from an Inferred plus Indicated Resource of 50.14Mt at 1.06% nickel, using a 0.8% cut off grade
Annual nickel production estimated at 24,500t at a cash cost of US$3.10/lb nickel
Total development forecast at US$498 million, including port & infrastructure upgrades
Estimated capital cost per annual pound of nickel of US$7.84
Post-tax project NPV US$375 million and IRR 28.3%

Acoje is a joint venture project with Rusina Mining (ASX:RML, AIM:RMLA). The JV was signed in mid-2007 with European Nickel agreeing to fund the first US$10 million of the feasibility study costs to earn a 40% interest in the project. Rusina will dilute down to 40% with the outstanding 20% held by Rusina’s local partners.

Heap leach trials at the Acoje site will begin during Q2 2009 and a definitive feasibility study is expected to complete by early 2010.

Berong & Ipilan – The Philippines

Key Features

19.3% strategic stake in Toledo Mining plc
Berong JORC resource 150,000 tonnes contained nickel
Ipilan JORC resource 417,000 tonnes contained nickel
MOU with JXTC to jointly develop a processing plant

In late 2008, European Nickel completed a positive concept study on the Berong nickel deposit using its heap leach technology. It was based on a pre-JORC resource of 275 million tonnes at around 1.13% nickel to produce 25,000 tonnes per annum of nickel in a mixed hydroxide product at a cash cost of US$2.99/lb of nickel, including cobalt by-product credits, over a 33 year life of mine. Capital costs, including port and infrastructure upgrades, have been estimated at US$420 million, which equates to a competitively priced capital cost of US$7.62 per annual pound of nickel. A pre-feasibility study is due to commence during 2009.

Toledo Mining has also signed a MOU with JXTC to jointly develop a processing plant at the Ipilan deposit. This MOU is due to be converted into a legally binding agreement during the first half of 2009.

Devolli/Koko Joint Venture – Albania

Key Features

Devolli JORC resource of 427,000t contained nickel (35.6Mt at 1.2% Ni)
Koko historic resource of approximately 30Mt at approximately 1.2% Ni
Nickel production potential 15-20,000tpa

European Nickel entered in to a joint venture with Balkan Resources Inc to jointly develop Balkan’s Kokogllave (“Koko”) and the Company’s contiguous Devolli nickel laterite deposits in Albania. Under the terms of the agreement, Balkan will earn its 50% interest in the JV by contributing the Koko deposit and funding, through to completion, a pre-feasibility study (PFS) on the combined Koko/Devolli deposits to Canadian NI 43–101 standards. European Nickel will earn its 50% interest by contributing the Devolli deposit and granting access, via a licence agreement, to its heap leach technology, knowledge and experience.

Balkan has commenced work on the PFS, and is expected to spend between US$5–7 million. An extensive drilling programme will be conducted to bring sufficient tonnes into the Indicated resource category to support a proposed production of 15,000–20,000 tonnes a year of contained nickel over a mine life of 15 to 20 years.

Geographical Spread

Western Turkey, near Izmir, the Çaldag deposit The Balkans, including Serbia, Bosnia, Albania and Kosovo

Board of Directors and Key Management

David Whitehead	Non Executive Chairman
Simon Purkiss	Managing Director
Andrew Lindsay	Finance Director

Euan Worthington	Non Executive Director
Sir David Logan	Non Executive Director
Paul J Lush	Non Executive Director
Chris Pointon	Non Executive Director

Robert McClearon	Company Secretary
Mike Oxley	Business Development Manager
Kemal Yildirim	General Manager, Çaldag)

Company Address

49 Albemarle Street
London, United Kingdom W1S 4JR


Telephone:	+44 20 7290 3130
Facsimile:	+44 20 7290 3149
Email:	info[at]enickel.co.uk
Website:	http://www.enickel.co.uk

Additional Address/Key Contact

Turkey Office
Sardes Nikel Madencilik A.S.
Akdeniz Caddesi
No: 14 Birsel Is Merkezi
Kat: 5 D. 502
35210 Konak
Izmir
Tel: +90 232 455 0030
Fax: +90 232 489 8060
www.sardesnikel.com.tr

Serbia Office
Chris Masurenko - Regional Geologist
European Nickel d.o.o.
Beogradska 27
1100 Belgrade
Serbia
Tel : +381 11 323 4652
Fax: +381 11 323 8896

Albania Office
Adriatic Nickel Resources Sh.p.k.
Rruga " Vaso Pasha "
Pallati 13/1 , Kati i 2
Ap. 6 Tirane
Albania
Tel + 355 4 268 133
Fax +355 4 268 133

Philippines Office
Asian Nickel Research & Technology Corp.
10/F SSHG Law Centre
105 Paseo de Roxas, Makati City
1226 Metro Manila
Tel: +632 667 6700
Fax: +632 667 6710

Capital

384,727,857 shares in issue

Annual General Meeting

April, London

Year End

30 September

Nominated Brokers

Canaccord Adams Limited
Cardinal Place
7th Floor
80 Victoria Street
London, SW1E 5JL

Nominated Advisors