Fort St. James Nickel Corp. Engages SGS Laboratories for Metallurgical Testing

Fort St. James Nickel Corp. (the "Company") (TSX VENTURE:FTJ) is pleased to
announce that it has engaged SGS Laboratories of Burnaby B.C. to initiate
metallurgical testing on samples collected from the Kilometer 26 Project in
2011. SGS Laboratories, headquartered in Geneva Switzerland, is one of the
largest full service metallurgical and testing organizations in the world with
approximately 67,000 employees worldwide. SGS has been retained due to their
expertise in designing processes for the recovery of nickel alloy and sulphide
from ultramafic rock. Fort St. James Nickel will use this research to develop a
testing strategy for the Kilometer 26 Project and, if the exploration phase is
successful an operational extraction routine that could form part of a
commercial process. Magnetic separation techniques will be integral to the
current work. Results announced earlier in the year on the Decar Project,
located 30 kilometres to the west of the Kilometer 26 Project, and being
explored by Cliffs Natural Resources Inc. and First Point Minerals Corp.,
indicate that similar rocks can yield a concentrate by crushing to 600 microns
(roughly 35 mesh) and using only magnetic separation techniques. The resulting
concentrate (upgraded by a factor of approximately 20:1) grades approximately
2.6% nickel, 2.2% chrome and 55% iron and would be suitable as a direct feed
supply into a steel mill producing a stainless steel product. Payable metals in
the concentrate include nickel, iron and chrome.


The Company has started its Fall drill program that is expected to complete a
total of 12 drill holes totaling approximately 2,000 metres. Drill targets were
established following the completion of approximately 65 line kilometers of
ground-based geophysical surveys (particularly magnetic and induced
polarization).


Due to the relatively low elevation of the Kilometre 26 property and its
excellent access, exploration programs can be carried out year-round. Kilometre
26 is accessed by an all-season arterial logging road.


The Kilometer 26 Project encompasses 9,819 hectares (24,263 acres), located in
the Omineca Mining Division of British Colombia. It is centered on a strong
magnetic anomaly indicated on the Quest West helicopter-borne magnetic and
electromagnetic survey flown for the British Columbia government (Geoscience
B.C.) and published January, 2009. The magnetic anomaly is circular in feature
and is more than five kilometers in diameter, suggesting a large ultramafic
body. Geological reconnaissance and prospecting over the last two summers have
discovered an area of nickel mineralized serpentinite over an area of five
kilometers by three kilometers (outcrop, subcrop and rubble) within this
feature. The setting and nature of the nickel mineralization are believed to be
similar to what occurs at the Decar Project (Cliffs Natural Resources Inc.),
located 30 kilometers to the west. The property is easily accessible by a major
industrial road and logging roads, is bisected by a power line that forms part
of the British Columbia power grid, and is adjacent to a branch line of the
Canadian National Railway.


Further detail with respect to recent exploration work conducted on the Property
is available in the Company's website www.fortstjamesnickel.com.


This news release contains certain statements that may be deemed
"forward-looking statements. Forward looking statements are statements that are
not historical facts and are generally, but not always, identified by the words
"expects", "plans", "anticipates", "believes", "intends", "estimates",
"projects", "potential" and similar expressions, or that events or conditions
"will", "would", "may", "could" or "should" occur. Although Fort St James Nickel
believes the expectations expressed in such forward-looking statements are based
on reasonable assumptions, such statements are not guarantees of future
performance and actual results may differ materially from those in forward
looking statements. Forward looking statements are based on the beliefs,
estimates and opinions of Fort St James management on the date the statements
are made. Fort St James Nickel Corp. undertakes no obligation to update these
forward-looking statements in the event that management's beliefs, estimates or
opinions, or other factors, should change, except as required by law.