Release: PT International Nickel Indonesia Tbk is experiencing falling reservoir levels

JAKARTA, December 14. 2006 -- PT International Nickel Indonesia Tbk (?PT Inco? or the ?Company?, JSX: INCO) today announced that lower than average rainfall since October, along with an apparent delay in the arrival of the rainy season which typically falls between December and March, has resulted in falling reservoir levels. Unless significant rainfall occurs within the next few days, the Company?s hydroelectric power generating capacity will be negatively affected and the Company?s nickel-in-matte production will need to be limited on or about December 20, 2006.

PT Inco is currently producing at a rate of about 1,400-1,500 tonnes of nickel-in-matte per week. Production cuts may result in PT Inco just missing its current production estimate for 2006 of approximately 71,000 tonnes (157 to 158 million pounds) of nickel-in-matte.

To help mitigate the impact of low reservoir levels on production for 2007, PT Inco will, where possible, bring forward certain maintenance activities originally scheduled to occur during a planned shutdown at the end of the first quarter of 2007. Given the unpredictability of weather patterns, it is not possible for PT Inco to estimate the production impact of current low reservoir levels at this time. If lower than average rainfall persists over a period of several weeks, the Company may need to make more significant production cuts in order to raise the levels of its reservoirs. (end of release)