Inco expects no immediate production impact as result of Voisey’s Bay strike

Toronto, July 28, 2006 -- Negotiations between the United Steelworkers (USW) Local 6480, representing 117 of the 420 employees at Inco’s Voisey’s Bay mine site in Labrador, and the Voisey’s Bay Nickel Company (VBNC), a wholly-owned subsidiary of Inco Limited, broke off at midnight on July 27th. The employees represented by the USW are now on strike.

Inco does not expect that the strike at the Voisey’s Bay site will have any immediate impact on its overall production of finished nickel, as the company has sufficient stocks of nickel concentrate available for processing at its smelting and refining operations in Sudbury, Ontario and Thompson, Manitoba.

VBNC remains firmly committed to getting back to the bargaining table and recommencing talks with the union as soon as possible, with the aim of reaching a fair and equitable agreement that works for employees and for VBNC.

Cautionary Statement Regarding Forward-Looking Statements

This news release contains forward-looking statements regarding the strike at Inco’s Voisey’s Bay mine site and its impact on Inco’s overall production of finished nickel. Actual results and developments may differ materially from those contemplated by these statements depending on, among others, the risk that the strike may continue for an extended period of time and other risk factors listed from time to time in Inco’s reports filed with Canadian or U.S. securities regulatory authorities. The forward-looking statements included in this release represent Inco’s views as of the date of this release. While Inco anticipates that subsequent events and developments may cause its views to change, it specifically disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing its views as of any date subsequent to the date of this release.

July 28, 2006
IN 06/42

Contact Information

Steve Mitchell

Media Relations

Inco Limited

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