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Canada Nickel Announces Latest Drill Results at Midlothian Property Confirming Significant Discovery

Drill Results

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Canada Nickel Announces Latest Drill Results at Midlothian Property

Confirming Significant Discovery

Highlights

• All drill holes yielded long intervals grading 0.29% nickel and ending in mineralization.

All four holes collared in mineralization within 10 metres of surface

• Mineralization is delineated along 2.0 kilometres strike length and across a width of 250

metres within a target geophysical footprint 12% larger than the Crawford resource footprint

• Latest mineralogy results show significant brucite content, the mineral utilized by Canada

Nickel’s carbon storage process, nearly four times higher than Crawford average of 1.9%

TORONTO, July 11, 2023 – Canada Nickel Company Inc. ("Canada Nickel" or the "Company") (TSXV: CNC)

(OTCQX: CNIKF) today released assay results from the final three of four holes drilled on its Midlothian

Property. Canada Nickel can earn a 100% interest in the Property through a combination of cash payments,

share issuances, exploration expenditure requirements and a net smelter return s royalty as part of an

Option Agreement with Canadian Gold Miner Corp. and Laurion Mineral Exploration Inc.

Mark Selby, CEO of Canada Nickel commented , “These outstanding Midlothian results , with all holes

showing good nickel grades across long mineralized intervals of multi-hundred metres that start less than

ten metres from surface , confirm Midlothian as a significant discovery . Midlothian is one of our ten

properties with a target geophysical footprint larger than Crawford and these latest results further confirm

the success of our geophysical targeting approach. As well, these latest samples with high brucite content

also demonstrate the potential for substantial carbon storage at Midlothian utilizing the In-Process Tailings

(“IPT”) Carbonation process the Company is developing.”

Midlothian Property

The Midlothian property is located 70 kilometres south -southeast of Timmins, 25 kilometres west of

Matachewan and is directly accessible by r oad. Four drillholes were completed during the winter of 2023 .

All four holes intersected mineralized dunite at shallow depths (Figure 1). These holes were drilled on a

target measuring 2.7 kilometres long and 0.4 to 0.9 kilometres wide with a target footprint of 1.7 km2

(compared to Crawford resource of 1.5 km2). This release contains assay information on the last three holes.

(see MID23 -01 assay results on May 24, 2023 release, and nickel -bearing mineralogy on April 13, 2023

release for earlier results).

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Table 1: Midlothian drilling downhole composite

Hole ID From To Length Ni Co Pd Pt Cr Fe S

(m) (m) (m) (%) (%) (g/t) (g/t) (%) (%) (%)

MID23-01* 1.5 345.0 343.5 0.28 0.01 0.003 0.003 0.16 4.55 0.02

MID23-02 7.7 401.0 393.3 0.29 0.01 0.003 0.005 0.14 4.79 0.06

MID23-03 6.1 401.0 394.9 0.29 0.01 0.003 0.004 0.12 4.70 0.02

MID23-04 9.0 401.0 392.0 0.26 0.01 0.005 0.006 0.15 4.77 0.02

Including 80.0 401.0 321.0 0.29 0.01 0.003 0.005 0.11 4.22 0.01

*Assay results for MID23-01 were included in a previous release and are repeated here for completeness

Holes MID23-02 and MID23 -03 intercepted long, uninterrupted lengths of strongly serpentinized dunite,

starting close to surface at approximately six metres and still open at depth.

Hole MID23-04 collared on a serpentinized peridotite, followed by pyroxeni te and a long intersection of

mineralized dunite remaining open at depth.

Mineralogy Results

Mineralogical analysis from samples from hole MID23 -04 indicate awaruite and heazlewoodite being the

dominant nickel minerals, with awaruite representing approx imately 70% of the recoverable nickel

minerals. Brucite, the most reactive carbon storage mineral, averaged 7.2%, nearly four times the amounts

seen at Crawford which averages 1.9% brucite, with several individual samples over 11%. See table 2.

Table 2: QEMSCAN Mineralogy results

Hole ID From To Length (m) Brucite

(%)

Pentlandite

(%)

Awaruite

(%)

Heazlewoodite

(%)

MID23-04 120.5 122.0 1.5 0.58 0.00 0.10 0.12

MID23-04 138.5 140.0 1.5 4.55 0.00 0.26 0.09

MID23-04 150.5 152.0 1.5 7.44 0.00 0.26 0.05

MID23-04 159.5 161.0 1.5 11.50 0.00 0.34 0.15

MID23-04 170.0 171.5 1.5 7.42 0.00 0.14 0.16

MID23-04 180.5 182.0 1.5 11.80 0.00 0.30 0.05

Average 7.21 0.00 0.23 0.10

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Figure 1. Plan View of Midlothian drilling with assay results.

Table 3: Drillhole Orientation

Hole ID Zone Easting (mE) Northing (mN) Azimuth (⁰) Dip (⁰) Length (m)

MID23-01 Midlothian 499710 5303026 180 -50 345

MID23-02 Midlothian 499299 5303052 180 -50 401

MID23-03 Midlothian 498902 5303053 180 -50 401

MID23-04 Midlothian 500915 5303042 180 -50 401

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 co mpleted 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.

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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 n ews 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

IronTM and is pursuing the development of processe s 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.

For further information, please contact:

Mark Selby

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. Forward looking information includes, but is not limited to, drill

and exploration results relating to the Midlothian Property, strategic plans, including future exploration

and development results, and corporate and technical objectives. Readers should not place undue

reliance on forwardlooking statements. Forward -looking statements involve known and unknown risks,

uncertainties and other factors which may cause the actual results, performance or achievements of

Canada Nickel to be materially different from any future results, performance or achievements expressed

or implied by the forward -looking statements. The PEA results are estimates only and are based on a

number of assumptions, any of which, if incorrect, could materially change the projected outcome. There

are no assurances that Crawford will be placed into production. Factors that could affect the outcome

include, among others: the actual results of development activities; project delays; inability to raise the

funds necessary to complete development; general business, economic, competitive, political and social

uncertainties; future prices of metals or project costs could differ substantially and make any

commercialization uneconomic; availability of alternative nickel sources or substi tutes; actual nickel

recovery; conclusions of economic evaluations; changes in applicable laws; changes in project parameters

as plans continue to be refined; accidents, labour disputes, the availability and productivity of skilled

labour and other risks of the mining industry; political instability, terrorism, insurrection or war; delays in

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obtaining governmental approvals, necessary permitting or in the completion of development or

construction activities; mineral resource estimates relating to Crawford could prove to be inaccurate for

any reason whatsoever; additional but currently unforeseen work may be required to advance to the

feasibility stage; and even if Crawford goes into production, there is no assurance that operations will be

profitable. Although Canada Nickel has attempted to identify important factors that could cause actual

actions, events or results to differ materially from those described in forward -looking statements, there

may be other factors that cause actions, events or results to dif fer from those anticipated, estimated or

intended. Forward-looking statements contained herein are made as of the date of this news release and

Canada Nickel disclaims any obligation to update any forward-looking statements, whether as a result of

new information, future events or results or otherwise, except as required by applicable securities laws.

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

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