NEWS

Advancing Dumont Nickel Project, one of the World's Largest Undeveloped
    Nickel Sulphide Deposits

TORONTO, Sept. 21 /CNW/ - Royal Nickel Corporation ("Royal Nickel" or "the Company") is pleased to announce changes to its Board of Directors and Management, and the investment by Ningbo Sunhu Chemical Products Co., Ltd. ("Sunhu") of C$21.8 million in Royal Nickel, for which it will receive a 15.6 per cent equity interest in the Company.

"Royal Nickel is taking the necessary steps to allow us to realize the tremendous potential of the Dumont Nickel Project, which is one of the largest undeveloped nickel sulphide projects in the world," said Scott Hand, who assumes the role of Chair of the Board of Directors, effective immediately. "The addition of both new capital and new management capability are instrumental in advancing our development plans, which include the initiation of a pre-feasibility study at Dumont in 2010, and also for growing the company beyond the Dumont project."

Mr. Hand has over 30 years of global experience at the most senior levels of the nickel business having served as Chairman and CEO of Inco Limited. Hand takes over as Chairman from Tom Griffis, founder of Royal Nickel, who becomes Deputy Chair.

Tyler Mitchelson joins Royal Nickel as President, CEO and Director having worked at Vale Inco (previously Inco Ltd.) since 1995, with progressive management positions, most recently as Vice-President, Strategy, Business Planning and Brownfield Exploration. Mr. Mitchelson will join the company in mid-October.

Mr. Mitchelson replaces Roland Horst as President and CEO. The Board of Royal Nickel would like to thank Roland for his commitment and contributions to the company and for the excellent work he and his team conducted in advancing the Dumont Project to its current state of development. "It has been my privilege to work with an excellent team at Royal Nickel and with the supportive Amos community to advance the Dumont nickel project to this stage. I wish Royal Nickel every success in the future," said Mr. Horst.

"Royal Nickel's Board of Directors is excited to have been able to attract Tyler Mitchelson, who possesses the experience and talent to successfully lead Royal Nickel at such a pivotal time in our company's development," said Tom Griffis, Deputy Chair. "Further, we are delighted that Scott Hand has become Chair of an already strong Board of Directors. The changes announced today build on the nickel industry strengths that already exist on the Board."

Mr. Weifang Yuan, the Chief Executive of Sunhu, will join the Board of Directors once the investment is made. The investment is subject to required government approvals in China. Sunhu is a major distributor of nickel and other metals and chemicals in China and also has investments in other mining interests. Sunhu wishes to be supportive of the Company's plans to develop the Dumont deposit in Quebec and the Company's objectives to acquire other interests in nickel and possibly other metals. "The Dumont Nickel Project is a very promising development project led by an experienced and capable Board and management team. We are fully supportive of the company's direction and encouraged by the potential we see in Royal Nickel," said Mr. Yuan.

The Dumont Nickel Project, one of the largest undeveloped nickel sulphide projects in the world, is 100 percent owned by Royal Nickel. Located 25 kilometres west of Amos, Quebec in the established Val d'Or / Rouyn-Noranda mining camp, Dumont is well positioned in an area of excellent infrastructure within a politically stable and mining-friendly jurisdiction. The property holds approximately 1.2 million tonnes of contained nickel in indicated resources and 0.8 million tonnes of contained nickel in inferred resources and is expected to reach full production in 2014 with a 21-year mine life. Deposit characteristics and initial metallurgical testing indicate low-cost, low-risk development in an open-pit using conventional processing methods, while the large scale of the deposit permits various development strategies.

Short-term work plans for the project include a new 43-101 Resource report to be completed before the end of 2009 and continued metallurgical testing and process development. In 2010, Royal Nickel anticipates the initiation of a Pre-feasibility Study and Environmental Impact study, as well as a continuation of resource/reserve drilling and metallurgical testing and process development.

About Royal Nickel Corporation
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Royal Nickel Corporation is a private nickel development company which owns 100% of the Dumont nickel sulphide deposit in the Val D'Or/Amos mining region of Quebec. For more information about Royal Nickel Corporation please visit our website at: http://www.royalnickel.com