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Canada Nickel Announces Closing of Partial Exercise of Over-Allotment Option

Financings

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Canada Nickel Announces Closing of Partial Exercise of Over-Allotment Option

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE

UNITED STATES

TORONTO, March 7, 2023 – Canada Nickel Company Inc. ("Canada Nickel" or the "Company") (TSXV: CNC)

(OTCQX: CNIKF) is pleased to announce that, further to the closing of the Company's C$44.0 million public

offering and concurrent private placement on March 2, 2023 (collectively, the "Offering"), the syndicate of

underwriters led by Scotiabank, as lead underwriter and sole bookrunner, and including Red Cloud

Securities Inc., Cormark Securities Inc., Echelon Wealth Partners Inc., Haywood Securities Inc., and Research

Capital Corporation (collectively, the "Underwriters"), have partially exercised their over-allotment option

to purchase an additional 950,000 common shares of the Company (the "Common Shares") at a price of

C$1.77 per Common Share for aggregate gross proceeds of approximately C$1.7 million (the " Over-

Allotment Option").

The Underwriters received an aggregate cash commission of 6.0% of the gross proceeds raised from the

sale of the Common Shares in connection under the Over-Allotment Option.

The net proceeds raised under the Offering, including the net proceeds raised from the sale of the Common

Shares under the Over-Allotment Option, will be used primarily for the exploration and advancement of

the Company’s Crawford Nickel Project, repayment of the Auramet loan facility (made on March 3, 2023)

and for general working capital purposes. The Offering remains subject to the final acceptance of the TSX

Venture Exchange.

The securities offered in the Offering have not been, and will not be, registered under the United States

Securities Act of 1933, as amended (the "U.S. Securities Act") or any U.S. state securities laws, and may not

be offered or sold in the United States or to, or for the account or benefit of, United States persons absent

registration or any applicable exemption from the registration requirements of the U.S. Securities Act and

applicable U.S. state securities laws. This news release shall not constitute an offer to sell or the solicitation

of an offer to buy securities in the United States, nor shall there be any sale of these securi ties in any

jurisdiction in which such offer, solicitation or sale would be unlawful.

About Canada Nickel

Canada Nickel 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 has successfully registered

and applied for trademarks in various jurisdictions for NetZero Nickel ™, NetZero Cobalt ™ and NetZero

Iron™ and is pursuing the development of processes to allow the production of net zero c arbon nickel,

cobalt, and iron products. Canada Nickel provides investors with leverage to nickel and cobalt in low

political risk jurisdictions. Canada Nickel is currently anchored by its 100% owned flagship Crawford Nickel-

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Cobalt Sulphide Project in the heart of the prolific Timmins-Cochrane mining camp. For more information,

please visit www.canadanickel.com.

For further information, please contact:

Mark Selby,

Chair and CEO

Phone: 647-

256-1954

Email: [email protected]

Cautionary Statement Concerning Forward-Looking Statements

This press release contains certain information that may constitute "forward -looking information"

under applicable Canadian securities legislation. Generally, forward -looking information can be

identified by the use of forward -looking terminology such as "plans", "expects", or "does not expect",

"is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not

anticipate", or "believes" or variations of such words and phrases or state that certain actions, events

or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward

looking information includes, but is not limited to, th e use of proceeds of the Offering and the Over -

Allotment Option; the timing and ability of the Company, if at all, to obtain final approval of the Offering

from the TSX Venture Exchange; the ability of the Company to advance the Crawford Nickel -Cobalt

Sulphide Project; and statements regarding exploration results and exploration plans. Forward-looking

information is necessarily based upon a number of 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, pol itical 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 as a result of new information, future events or otherwise, except as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the

policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.