PRESIDENT'S LETTER TO SHAREHOLDERS

Three years ago, your company bought the Lynn Lake mine property. In 2005, we quantified the property’s nickel resource. In 2006, we established positive economic parameters for the project and began exploration of the property for the first time in 30 years. This past year, however, has been our most successful year yet.

During 2007, we initiated a 20,000 metre drill program designed to identify new areas of nickel mineralization that can be prioritized for resource drilling from underground. We purchased the outstanding royalty on the Lynn Lake property. We also purchased the Net Smelter Royalty on the Minago nickel deposit, which represents future cash flow from another Manitoba nickel project. The Minago deposit will have a bankable feasibility study completed in the 4th quarter of 2008.

Finally, and most importantly, we completed a pre-feasibility study for opening the Lynn Lake nickel mine based on the current resource base. The results from the pre-feasibility study are very positive and can be summarized as follows:

• A pre-tax internal rate of return (“IRR”) of 29%;
• A pre-tax net present value (“NPV”) of $131 million using an 8% discount rate (net of CAPEX);
• A payback on mine costs of 3 years;
• Pre-tax profit over an initial 11 year mine life of $296 million;
• Pre-production capital cost of $148 million;
• Cash cost of producing refined nickel product of $4.90 per pound of nickel, net of byproduct sales;
• Production rate of 3,000 tonnes per day;
• Average annual nickel production of 11.2 million lbs. (5,090 tonnes);
• Average annual copper production of 6.2 million lbs. (2,817 tonnes).

During the fourth quarter of 2007, our exploration program really started to generate a strong flow of positive results and this has continued into 2008. This success is exemplified by the discovery of new mineralization – mostly outside of the current resources, but located close to the “N” orebody.

This ongoing success demonstrates that Lynn Lake has a lot of potential to grow its resource base. In turn, this growth potential is very positive for our company going forward. If new resources and reserves are found, they will enhance the mine economics at Lynn Lake.

As we look to 2008, we expect a major shift in the focus and efforts at Lynn Lake. It is now time to progress to a definitive feasibility study for Lynn Lake and start rehabilitating the underground infrastructure. We envision building a company which produces LME grade finished nickel. This would make your company only the 4th such operation in North America. Our plan would make the Lynn Lake mine one of the lowest cost, most technologically advanced and most environmentally progressive nickel producers in North America. The $150 million capital cost of the mine is substantially lower than most current nickel development projects globally.

Our efforts in the current year will focus on delivering value, as we continue to achieve milestones on the path to delivering a full feasibility study.

I look forward to continuing to build upon the asset base of your company through 2008. With our growing nickel asset base which includes not only 100% of the Lynn Lake project, but also the valuable Minago net smelter royalty, I remain confident that Independent Nickel Corp. will continue to represent one of the premier opportunities for Canadian nickel investment and value appreciation.

Richard Murphy
President and Chief Executive Officer
April 2008