Royal Nickel Confirms Potential to Produce By-product Iron Ore Concentrate from Dumont Nickel Project

(All amounts expressed in US dollars unless otherwise indicated)

TORONTO, April 16, 2012 /PRNewswire/ – Royal Nickel Corporation (“RNC”) (TSX:
RNX) is pleased to announce the completion of additional metallurgical
testwork on production of by-product iron ore (magnetite) concentrate
from the Dumont Nickel Project (“Dumont”) and an initial assessment of
the marketability of the concentrate completed by CRU Strategies. This
additional work confirms the potential to produce an iron ore
by-product from the existing magnetic tailings stream in the Dumont
pre-feasibility nickel recovery flowsheet. Results of these studies
will be incorporated into a revised pre-feasibility study expected to
be released in May 2012.

“Our additional testwork confirms that iron ore concentrate is expected
to be a valuable by-product from Dumont,” said Tyler Mitchelson,
President and CEO of Royal Nickel Corporation. “I look forward to
seeing the impact of the addition of an iron ore by-product on our
upcoming revised pre-feasibility study along with anticipated
improvements in nickel recoveries, use of trolley assist in our open
pit mine and an updated resource.”

Metallurgical testwork was completed on five different composite samples
from across the Dumont deposit. These samples produced iron ore
concentrate grading an average of 63.5% iron, while recovering an
average of 2.6% of total ore feed. The test results produced iron ore
concentrates that had iron values ranging from 61% to 69% at recoveries
that ranged from 1.8% to 3.9% of the total ore feed.  Because iron ore
concentrate is not typically produced from ultramafic nickel deposits,
the resulting concentrate had very low levels of typical iron ore
impurities like phosphorous <0.01% and silica (SiO(2)) and alumina (Al(2)O(3)) while having much higher concentrations of impurities like chrome and
magnesia (MgO). The summary of the test results from the testwork can
be found in Table 1 below.

The initial marketability assessment indicated that the FOB Quebec City
price is estimated to be $94 per tonne based on the 3-year average iron
ore price of $131 per tonne for IODEX 62% sinter prices CFR China from
2009 through 2011. At a long-term benchmark iron ore price of $100 per
tonne, the FOB Quebec City price would be approximately $62 per tonne.

RNC engaged CRU Strategies to complete an initial assessment of the
marketability of the iron ore concentrate based on an initial set of
target specifications. Based on the results of the tests, the iron
content, phosphorous, silica, alumina, and sulphur content of the
target specifications met or exceeded those of the IODEX benchmark 62%
iron sinter fines delivered to China. The report noted that “The levels
of chrome and nickel result in this material only being suitable for
blending ahead of the blast furnace. As such, the material will likely
be sold via a trader. The chrome content of the ore made it suitable
for widespread use only in the Chinese market.” The CRU results,
showing a net cash FOB Quebec City price (allowing for value-in-use
adjustments, freight costs, and trader discounts) through 2021 can be
found in Table 2 below.

RNC will conduct further testwork during the planned Feasibility Study
to determine the optimal trade-off for the iron ore concentrate between
grade and recovery and will begin discussions with traders in China to
determine potential offtake terms.

Table 1:

Dumont Deposit Composite Sample Metallurgical Testwork*

(All values expressed as percentages)

     _______________________________________________________________________
    |        |Outcrop|Composite|Composite|Composite|Composite|Average|      |
    |        |Sample |Sample 2 |Sample 3 |Sample 4 |Sample 5 | Test  |      |
    |        |   1   | (1298)  | (1376)  | (1377)  | (1318)  |Result |Dumont|
    |        |(1375) |         |         |         |         |       |Target|
    |________|_______|_________|_________|_________|_________|_______| Spec |
    |Recovery|       |         |         |         |         |       |      |
    |(% of   |   1.8 |    2.3  |    3.9  |    2.7  |    2.1  |   2.6 |      |
    |feed)   |       |         |         |         |         |       |      |
    |________|_______|_________|_________|_________|_________|_______|______|
    |Fe      |  66.7 |   61.0  |   64.3  |   65.9  |   59.4  |  63.5 | 63.5 |
    |________|_______|_________|_________|_________|_________|_______|______|
    |P       |< 0.01 |   <0.01 |   <0.01 |   <0.01 |   <0.01 | <0.01 |<0.01 |
    |________|_______|_________|_________|_________|_________|_______|______|
    |SiO2    |  1.57 |   4.65  |   2.64  |   2.33  |   5.83  |  3.40 | 4.00 |
    |________|_______|_________|_________|_________|_________|_______|______|
    |Al2O3   |  0.07 |   0.06  |   0.19  |   0.05  |   0.09  |  0.09 | 0.10 |
    |________|_______|_________|_________|_________|_________|_______|______|
    |MgO     |  1.71 |   7.12  |   3.55  |   3.32  |   8.41  |  3.92 |  6.0 |
    |________|_______|_________|_________|_________|_________|_______|______|
    |CaO     |  0.02 |   <0.01 |   <0.01 |   <0.01 |   <0.01 |       | 0.01 |
    |________|_______|_________|_________|_________|_________|_______|______|
    |TiO2    |  0.03 |   0.04  |   0.05  |   0.03  |   0.03  |  0.04 | 0.04 |
    |________|_______|_________|_________|_________|_________|_______|______|
    |Na2O    |< 0.01 |   <0.01 |   <0.01 |   <0.01 |   <0.01 | <0.01 |<0.01 |
    |________|_______|_________|_________|_________|_________|_______|______|
    |K2O     |< 0.01 |   <0.01 |   <0.01 |   <0.01 |   <0.01 | <0.01 |<0.01 |
    |________|_______|_________|_________|_________|_________|_______|______|
    |S       |  0.03 |   0.04  |   0.02  |   0.02  |   0.03  |  0.03 | 0.02 |
    |________|_______|_________|_________|_________|_________|_______|______|
    |Mn      |  0.21 |   0.11  |   0.19  |   0.11  |   0.11  |  0.14 | 0.16 |
    |________|_______|_________|_________|_________|_________|_______|______|
    |Cr      |   0.4 |    0.2  |    1.6  |    0.3  |    0.5  |   0.6 |  0.6 |
    |________|_______|_________|_________|_________|_________|_______|______|
    |V       |< 0.01 |   <0.01 |   0.02  |   <0.01 |   <0.01 | <0.01 |<0.01 |
    |________|_______|_________|_________|_________|_________|_______|______|
    |Ni      |  0.36 |   0.10  |   0.10  |   0.13  |   0.10  |  0.16 | 0.40 |
    |________|_______|_________|_________|_________|_________|_______|______|

    * The magnetic concentrate feed for these lab scale tests was generated
      from processing approximately 200-400 kilograms of each composite
      through the RNC miniplant in 2011.

Table 2:

CRU Strategies Price Forecast Incorporating Value-in-use Calculations -
Real 2011$

April 12, 2012 (using March 2012 CRU price forecast, capesize vessels)

                Average                                 Forecast

    All       2009-2011   2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
    prices
    $/dmt

    Net
    Price,
    FOB
    Quebec         94     111  114  104   95   90   67   57   52   49   47
    City
    (net of
    trader
    discount)

About Royal Nickel Corporation

Royal Nickel Corporation is a mineral resource company focused primarily
on the exploration, evaluation, development and acquisition of base
metal and platinum group metal properties. RNC’s principal asset is the
100% owned Dumont Nickel Project strategically located in the
established Abitibi mining camp, 25 kilometres northwest of Amos,
Quebec. RNC has a strong management team and Board with over 100 years
of mining experience in the nickel business at Inco and Falconbridge.
RNC’s common shares and warrants trade on the TSX under the symbols RNX
and RNX.WT.

The Technical Information contained in this news release has been
prepared under the supervision of Alger St-Jean, P. Geo., Vice
President Exploration of the Company and Johnna Muinonen, Vice
President Operations of the Company, both Qualified Persons under NI
43-101.

Cautionary Statement Concerning Forward-Looking Statements

This news release contains “forward-looking information” including
without limitation statements relating to (i) the timing of the release
of the updated pre-feasibility study, (ii) the anticipated results to
be contained in the updated pre-feasibility study, (iii) metal prices
and FOB Quebec City prices and other adjustments and forecasts
contained in the CRU results, (iv) the value and sale-ability of the
by-product iron ore concentrate, and (v) completion of further testwork
and completion of a planned feasibility study. Often, but not always,
forward-looking information can be identified by the use of words such
as “plans”, “expects”, “is expected”, “budget”, “scheduled”,
“estimates”, “forecasts”, “intends”, “anticipates”, or “does not
anticipate” or “believes” or variations (including negative variations)
of such words and phrases, or state that certain actions, events or
results “may”, “could”, “would”, “might” or “will” be taken, occur or
be achieved. Readers should not place undue reliance on forward-looking
information..

Forward-looking information involves known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of RNC to be materially different from any
future results, performance or achievements expressed or implied by the
forward-looking information. The forward-looking information contained
in this news release assumes that the by-product iron ore concentrate
achieved from the testwork samples will be consistently achieved for
all Dumont ore feed. Until the updated pre-feasibility study has been
completed, and even with the completion of a positive updated
pre-feasibility study, there is no assurance that any by-product iron
ore concentrate will be produced from Dumont ore feed or that there
will be any production from Dumont. Factors that could affect the
outcome include, among others: the actual results of development
activities; project delays; inability to raise the funds necessary to
complete development; general business, economic, competitive,
political and social uncertainties; future prices of metals;
availability of alternative nickel sources or substitutes; actual
nickel recovery; conclusions of economic evaluations; changes in
project parameters as plans continue to be refined; accidents, labour
disputes and other risks of the mining industry; political instability,
terrorism, insurrection or war; delays in obtaining governmental
approvals, necessary permitting or in the completion of development or
construction activities. For a more detailed discussion of such risks
and other factors that could cause actual results to differ materially
from those expressed or implied by such forward-looking statements,
refer to RNC’s filings with Canadian securities regulators available on
SEDAR at www.sedar.com.

Although the RNC has attempted to identify important factors that could
cause actual actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors
that cause actions, events or results to differ from those anticipated,
estimated or intended. Forward-looking information contained herein are
made as of the date of this news release and RNC disclaims any
obligation to update any forward-looking information, whether as a
result of new information, future events or results or otherwise,
except as required by applicable securities laws.

SOURCE Royal Nickel Corporation