Operational and Corporate Update

19 January 2011 - LONDON: European Nickel PLC ("ENK" or the "Company") (AIM,
PLUS, ASX: ENK) is pleased to provide a brief operational update.

Philippines
On 10 December 2010 the Company announced that it has resolved to focus its
resources and expertise on fast tracking the Definitive Feasibility Study
("DFS") at its Acoje project on the island of Luzon.

A positive Pre-Feasibility Study ("PFS"), released in November 2008, confirmed
an economically viable nickel heap leach project. The base case scenario is an
operation producing 24,500 tonnes of nickel metal per annum in a mixed hydroxide
product over an initial 10 year life of mine.

Acoje offers attractive project returns, based on the PFS, as demonstrated by
the project's NPV of US$586 million, at a discount rate of 10% and an project
IRR of 37.2% using a long term nickel price of US$7 per pound and cobalt at
US$10 per pound.

There is significant potential to extend the existing ten year mine life by
converting the JORC Inferred Acoje and Zambales Chromite Mining Corporation
("ZCMC") resources to JORC Indicated status. The current Acoje indicated
resource used in the PFS is 34.41 million tonnes ("Mt") @ 1.09% nickel.[1]
There is 15.94Mt @1.01% nickel of inferred resource at Acoje, and 23.5Mt[2]
@1.15% nickel of ZCMC inferred resource that was not used in the PFS.  This
inferred material could increase the mine life to in excess of 20 years if it
were upgraded to indicated category. There is also further potential to add
presently undrilled ore to the resource. This includes the untested saprolite
horizon of the ZCMC tenement.

A detailed diamond drilling program comprising 293 drill holes (approximately
3,200m) has been prepared for Acoje and ZCMC to bring the drill spacing to a
minimum of 100m by 100m, and some areas 50m by 50m.

The Acoje and ZCMC drilling programs are scheduled to commence in late May
2011, with preparatory work beginning immediately.

As mentioned in the previous announcement, the Çaldag technical team will be
transferred to the Acoje project.  A significant amount of metallurgical and
engineering data is readily transferable from Çaldag to the Acoje DFS giving the
project a rapid start-up. The process of identifying principal consultants for
the study has commenced and it is hoped that many of the groups that were
involved in Çaldag can also be used for Acoje. Realistically, the study should
be complete by the middle of 2012. The actual DFS can occur mostly in parallel
with remaining test work being undertaken at the Heap Leach Trial ('HLT') and
Acoje Test Centre ('ATC').  All data required for the DFS from the HLT will be
complete within 12 months.

Acoje Test Centre and Heap Leach Trial
The ATC is a custom built metallurgical laboratory which has been in operation
for some 30 months. With six metallurgists and two chemists, substantial
progress has been made in the areas of agglomeration, heap leaching, wet weather
mitigation measures, downstream nickel and cobalt recovery processing, nickel
and cobalt product enhancement, and environmental issues specific to Acoje ore
and conditions. The scale (four - six metre height leach columns used in the ATC
are the same height as full scale heaps) and exhaustiveness of the ATC tests
have provided ENK with a high degree of confidence in the suitability of
commercially exploiting the Acoje and ZCMC ore deposits using ENK's low cost
heap leach technology specifically developed for Acoje.

The HLT facility is a 2,500 tonne heap leach and integrated downstream nickel
and cobalt recovery process plant which has been constructed and is ready to
commence operation. Various equipment vendors have provided equipment that is
purpose built to gather operating and design data, thereby allowing a high
degree of confidence in the scalability from HLT to commercial production scale
of operation. The HLT will allow various nickel and cobalt flow-sheet options to
be tested and compared. Tests conducted at the ATC show that it may be possible
to increase nickel and cobalt recoveries and to produce a higher value end-
product than assumed for the base case flow-sheet used in the PFS. The
incorporation of the operation of the HLT into the DFS will allow the optimum
flow-sheet to be selected and allow accurate process and equipment design data
to be obtained.

Turkey
The Çaldag project is going through a process of winding down and implementing
the care and maintenance process as announced on 10 December 2010. There are a
number of ongoing commitments for the company including completion of
rehabilitation of the direct shipping waste dump.

The Company has had continuous discussions with the Turkish government over the
reissuance of the forestry permit however this has not yet occurred. It appears
that the forthcoming elections in June are a significant factor in obtaining the
necessary permit. The Company has now formally applied for a refund for the
previously paid forestry permit fee (c. US$3.5m) which must be returned within
60 days as no trees have yet been cut.

A significant inventory of long lead item equipment is in storage in Turkey and
other locations around the world.  Some of this equipment may be suitable for
Acoje should the Çaldag project not proceed.

Directors and Management
Simon Purkiss has tendered his resignation as Executive Deputy Chairman and as a
director of the Company effective 31 January 2011. Simon was one of the original
founders of the Company, however he will continue with ENK in a technical
consulting role through the Acoje DFS process. The Managing Director, Robert
Gregory will take over Mr Purkiss's executive functions.

The Company would like to thank Simon for his dedication and enthusiasm in being
integral to the development an alternative technology for processing nickel
laterites which is low cost, environmentally friendly and applicable to smaller
scale deposits.  We wish him every success with his future ventures.

ENK's Chairman, David Whitehead, has also informed the board that he will be
stepping down as Chairman at the next Annual General Meeting of the Company,
which is expected to be held in August 2011. The search for a new Chairman will
ensue over the coming months. David has been a director and Chairman of ENK
since 2006.

Ric Burns, previously senior project manager at Çaldag, has been appointed as
Chief Operating Officer, effective from 1 January 2011.  He has over 35 years
experience in project and construction management, site supervision and
commissioning of large mining and industrial projects across Asia, Africa,
Europe, South America, Middle East, and China. Ric has managed greenfield mining
projects, extensions to existing ore processing plants and the recommencing of
projects across the nickel, copper, gold, lead, zinc and tin industries. Ric
will be responsible for all operational aspects of the Company including the
wind down of Turkey operations and overseeing the Acoje DFS. He will be based in
the Philippines.

Disposal of Assets
Following on from the merger with Rusina Mining NL the Company is currently
finalising the disposal of certain exploration properties that are not core to
the group's strategy. The Company has entered into Heads of Agreement and is
presently finalising legal contracts to sell/assign exploration properties at
Barlo, Abogado, Pan de Azucar and Guimeras. The disposal proceeds will exceed
the book value of these assets.

Albania
The joint venture partner, Balkan Resources, have failed to raise the funds
required to fulfill their obligations in respect of the joint venture agreement.
As a result, the tenement now is now wholly owned by ENK.

The Company's preference is to find a new joint venture partner for the
development of the Devolli deposit and it is currently in discussions with a
number of interested parties.

Berong Nickel Corporation
The Company holds an 18.7% project level interest in Berong Nickel Corporation
("BNC") as well as a 5.9% interest in Toledo Mining Corporation ("Toledo"),
BNC's parent entity.

ENK remains committed to BNC, however the Company would like to note that it has
been in discussions with Toledo over the validity of certain cost claims
incurred by BNC and other operational aspects of the company.

ENK continues to advocate that heap leaching is the most appropriate way to
exploit the nickel laterite ore at Berong and is supportive of advancing the use
of its technology in this regard.


For more information, please visitwww.enk.co.uk or contact:
Mark Hanlon, Finance Director, ENK Tel: 61 (0)8 9226 1111

Robert Gregory, Managing Director, ENK Tel: 63 917 513 4970

Matthew Tyler or Robert Collins, Evolution Securities Tel: 44 (0)20 7071 4300

Alex Buck, BuckBias Tel: 44 (0)7932 740 452



The information in this report that relates to Mineral Resources is based on
information compiled by Mr Robert Gregory, who is a Member of The Australasian
Institute of Mining and Metallurgy. Mr Gregory is Managing Director of European
Nickel PLC, and has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the activity which
he is undertaking to qualify as a Competent Person as defined in the 2004
Edition of the "Australasian Code for Reporting of Exploration results, Mineral
Resources and Ore Reserves". Mr Gregory consents to the inclusion in this report
of the matters based on his information in the form and context in which it
appears

[1] For Acoje PFS resource details see RML.AX announcement 27/11/2008
[2] For ZCMC resource details see RML.AX announcement 21/12/2007







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Source: European Nickel PLC via Thomson Reuters ONE

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Unternehmen: European Nickel PLC - ISIN: GB00B3XPFJ68