Canada Nickel Confirms Large Scale Discovery at Reid and Provides Regional Exploration Update

• Current drilling confirms large scale discovery at Reid – delineated mineralized footprint already 90% of Crawford footprint of 1.6 km² which contains the fifth largest Measured & Indicated sulphide resource globally of 3.5 million tonnes of contained nickel
• Regional drilling continues to validate geophysical targeting approach highlighting potential from 42 km² of geophysical targets
• Latest assays from Deloro include DEL22-05 intersecting 394 metres of 0.26% nickel

Canada Nickel Company Inc. ("Canada Nickel" or the "Company" – https://www.commodity-tv.com/ondemand/companies/profil/canada-nickel-company-inc/) (TSXV: CNC) (OTCQX: CNIKF) today confirmed a large-scale discovery at its Reid property, and positive drilling results at other regional targets as a result of its ongoing regional exploration drilling campaign.

Mark Selby, Chair & CEO of Canada Nickel, “These results are very exciting for several reasons.  First, our current drilling has delineated a mineralized footprint at Reid already 90% of the size of Crawford, which we believe is the world’s fifth largest nickel sulphide resource. Second, the results at Reid, Deloro, and Reaume with 33 of 34 holes hitting target mineralization and the historic drilling at Bannockburn, continue to reinforce the success of our geophysical targeting approach and increase the probability of success at our other over 20 properties within the 42 km² of geophysical targets.”

The Company’s Reid, Deloro, Reaume and Bannockburn properties sit within a 100 km radius of the Company’s flagship Crawford Nickel-Sulphide project in the Timmins area. The Company has the right to earn a 100% interest in Reaume and has already acquired a 100% interest in Reid, Deloro and Bannockburn.

Reid Nickel Property

The Reid Property is located just 16 km southwest of Crawford, or 37 km northwest of Timmins, and contains an ultramafic target with a target geophysical footprint of 3.9 km² (see Figure 1). Our ongoing drilling program continues to successfully intersect mineralized dunite, helping define the boundary of the target, confirming a footprint that is already 90% of the footprint of the current Crawford resource (Figure 2), with remarkably similar lithology, mineralogy, and alteration. Partial assays results confirm expected Ni grades. Ni mineralization in serpentinized dunite has been found in all 16 holes drilled to date and stronger mineralization has been intersected in holes REI22-02, REI22-06, REI22-09, REI22-14, and REI22-16. The interpreted thickness of the dunite intersected by REI-22-16 and REI-22-14 at Reid appears to be thicker than the thickest intersection within the Crawford Resource (Figure 3).Three holes (REI22-12, REI22-13, REI22-15) were drilled in the north limb with all holes intersecting the targeted mineralized dunite. REI22-13 intersected the typical differentiation sequence, collaring in gabbro and followed by pyroxenite, peridotite and dunite. The hole finished in dunite.The 13 remaining holes were drilled in the central core of the anomaly, with all of them intersecting consistent moderate to strongly serpentinized dunite, and visible nickel mineralization (Figure 4). Dunite is the lithology predominant in the central core, with only an occasional occurrence of later dykes that crosscut the anomaly in a northwest and southeast direction (Table 1).The south limb of the anomaly remains to be drilled and over 50% of the geophysical target remains untested.Preliminary mineralogy results from first two holes at Reid indicate that mineralogy is consistent with well-serpentenized mineralization found at Crawford containing quantities of magnetite, brucite, and chrome minerals.  Nickel mineralization is largely in heazlewoodite and awaruite.

Deloro Nickel Property

The Deloro property is located 35 km south of Crawford and 8 km south Timmins and contains an ultramafic target that measures 1.4 km north-south by 450 metres east-west (see Figure 5). The exploration program consisted of 11 drillholes and succeeded at defining the continuity of the ultramafic lithologies and nickel mineralization throughout the target anomaly in all 11 holes.  Assays from an additional 4 holes are being released (Table 2).

DEL22-05 collared in dunite and was drilled to the northeast. The hole intersected 394 metres of 0.26% Ni and finished in dunite, only interrupted by minor dykes. Showing moderate to strong serpentinization and visible pentlandite-heazlewoodite mineralization with minor awaruite.

DEL22-04 collared in dunite near the center of the target and drilled to the northeast. The dunite is mineralized throughout, interrupted only by a few minor dykes. Dunite graded 0.26% Ni over 43 metres, and 0.26% Ni over 271 metres. The hole reached the east contact intersecting Peridotite and Mafic volcanics.

DEL22-08 collared in dunite and was drilled to the southwest. Dunite graded 0.22 % Ni over 156.5 metres at the top of the hole, and 0.25% Ni over 213 metres near the bottom and ended in dunite.

Hole DEL22-03 collared in dunite on the northern half of the target and was drilled to the southwest. The hole remained and finished in dunite except for a section of pyroxenite in the center. The dunite sections grading up to 0.24% Ni over 157.7 metres, and 0.22% Ni over 106.2 metres with visible pentlandite-heazlewoodite mineralization. Hole DEL22-02 drilled at the most northern edge of the target, intersected a sequence of pyroxenite, peridotite and dunite rocks with varying degrees of alteration and mineralization. Assays for this hole are pending.

Reaume Nickel Property

Reaume is located 20 km northeast of Crawford and contains an ultramafic target that measures 3 km east-west by 1.4 km north-south. The geophysical footprint indicates a highly folded structure, unlike the single differentiated sills observed at Dumont, Deloro, and other properties including Bannockburn, Sothman, and McCool among others. Drilling this summer successfully confirmed the presence of ultramafic rocks, dominated by peridotite with nickel mineralization in 6 of 7 drillholes. The peridotite intersected was generally lower grade than the peridotites at Crawford.  Minor pyroxenite and dunite were also intersected (Figure 6). The North half of the target remains untested, due to difficult access outside of winter. Assays are pending for 3 of the 7 holes. Hole REU22-01, REU22-02 and REU22-03 drilled a fan of drillholes from the same setup, located near the southwest of the target. REU22-01 drilled to the south-southeast, collaring on peridotite at 9.4 metres and stayed in peridotite for 327.7 metres grading 0.14% Ni. After a small gabbro section, the hole intersected and finished in dunite with an average grade of 0.21% Ni over 68.7 metres (Table 3).Hole REU22-02 drilled to the east, collaring, and finishing in peridotite averaging 0.13% Ni over 242.5 metres with the whole extent displaying moderate to strong serpentinization and minor pentlandite-heazlewoodite mineralization.Hole REU22-07 is located east of the previous holes and closer to the center of the target. The hole collared in a pyroxenite, continued into peridotite, and finished in peridotite averaging 0.16% Ni over 364.5 metres.Hole REU22-03 drilled to the northeast, and intersected a typical succession of ultramafic differentiation, drilling through peridotite, pyroxenite and gabbro. The pyroxenite here averaged 0.19 g/t Pd and 0.11 g/t Pt over a length of 23 metres.  

The drilling to date has intersected mostly weakly mineralized peridotite. The more mineralized dunite is expected to occur on the eastern edge of the property to which access is limited to winter months. This will be more directly targeted as exploration at Reaume continues. 

Bannockburn

Bannockburn was acquired by the Company on June 6, 2022 (see release June 7, 2022).  Drilling by the previous operator was consistent with our geophysical approach and further confirms our geophysical targeting model. 8 holes intersected 160.9 to 369.0 metres of mineralization and multiple holes (GBN21-01, GBN21-02, GBN21-03, GBN21-04, GBN21-06) intersected nickel grades in excess of 0.3%.  (See Figure 7 and Table 4 below).Future drilling will continue to expand the low-grade mineralization outlined by Grid Metals as well as target the high-grade nickel (up to 5% Ni) in the C-zone at shallow depths.

Assays, Quality Assurance/Quality Control and Drilling and Assay

Edwin Escarraga, MSc, P.Geo., a "qualified person" as defined by National Instrument 43-101, is responsible for the on-going drilling and sampling program, including quality assurance (QA) and quality control (QC). The core is collected from the drill in sealed core trays and transported to the core logging facility. The core is marked and sampled at 1.5 metre lengths and cut with a diamond blade saw. One set of samples is transported in secured bags directly from the Canada Nickel core shack to Actlabs Timmins, while a second set of samples is securely shipped to SGS Lakefield for preparation, with analysis performed at SGS Burnaby or SGS Callao (Peru). All are ISO/IEC 17025 accredited labs. Analysis for precious metals (gold, platinum and palladium) are completed by Fire Assay while analysis for nickel, cobalt, sulphur and other elements are performed using a peroxide fusion and ICP-OES analysis. Certified standards and blanks are inserted at a rate of 3 QA/QC samples per 20 core samples making a batch of 60 samples that are submitted for analysis. 

Qualified Person and Data Verification

Stephen J. Balch P.Geo. (ON), VP Exploration of Canada Nickel and a "qualified person" as is defined by National Instrument 43-101, has verified the data disclosed in this news release, and has otherwise reviewed and approved the technical information in this news release on behalf of Canada Nickel Company Inc. The magnetic images shown in this press release were created from Canada Nickel’s interpretation of datasets provided by the Ontario Geological Survey.

About Canada Nickel Company

Canada Nickel Company Inc. is advancing the next generation of nickel-sulphide projects to deliver nickel required to feed the high growth electric vehicle and stainless steel markets. Canada Nickel Company has applied in multiple jurisdictions to trademark the terms NetZero Nickel^TM, NetZero Cobalt^TM, NetZero Iron^TM and is pursuing the development of processes to allow the production of net zero carbon nickel, cobalt, and iron products. Canada Nickel provides investors with leverage to nickel in low political risk jurisdictions. Canada Nickel is currently anchored by its 100% owned flagship Crawford Nickel-Cobalt Sulphide Project in the heart of the prolific Timmins-Cochrane mining camp. For more information, please visit www.canadanickel.com.

Cautionary Statement Concerning Forward-Looking Statements

This press release contains certain information that may constitute "forward-looking information" under applicable Canadian securities legislation.  Forward looking information includes, but is not limited to, drill and exploration results relating to the target properties described herein (the "Properties"), the potential of the Crawford Nickel Sulphide Project and the Properties, timing of economic studies and mineral resource estimates, the ability to sell marketable materials, strategic plans, including future exploration and development results, and corporate and technical objectives.  Forward-looking information is necessarily based upon several assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information.  Factors that could affect the outcome include, among  others:  future prices and the supply of metals, the future demand for metals, the results of drilling, inability to raise  the money necessary to incur the expenditures required to retain and advance the property, environmental liabilities  (known  and  unknown), general business, economic, competitive, political and social uncertainties, results of  exploration programs, risks of the mining industry, delays in obtaining governmental approvals, failure to obtain  regulatory or shareholder approvals, and the impact of COVID-19 related disruptions in relation to the Company’s  business operations including upon its employees, suppliers, facilities and other stakeholders.  There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information.  Accordingly, readers should not place undue reliance on forward-looking information.  All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof.  Canada Nickel disclaims any intention or obligation to update or revise any forward-looking information, whether because of new information, future events or otherwise, except as required by law.