CNC.V · 2022-05-10 12:00:00

Canada Nickel Announces New Nickel Discovery at Reid with Larger Footprint than Flagship Crawford Property Main Zone; Provides Update on Regional Exploration

Exploration Programs

Canada Nickel Announces New Nickel Discovery at Reid with Larger Footprint than

Flagship Crawford Property Main Zone; Provides Update on Regional Exploration

Highlights

▪ Reid Property – second hole of new discovery intersected dunite across entire 354 metre

core length including an 84 metre highly mineralized interval.

▪ All 21 holes drilled at Deloro, Reaume, and Nesbitt properties intersected target

mineralization.

TORONTO, May 10, 2022 – Canada Nickel Company Inc. ("Canada Nickel" or the "Company") (TSXV: CNC) (OTCQX:

CNIKF) today announced a new nickel discovery at its Reid property, where two drill holes have been completed as

part of its regional exploration program. Drilling has commenced at Reid, as well as the Company’s Deloro and Reaume

properties, and assays from earlier drilling at Nesbitt have been received.

Mark Selby, Chair and Chief Executive Officer said, “ Our regional exploration program intended to highlight the

potential for multiple Crawford-sized discoveries has taken several big steps forward. At Reid, a target with a larger

footprint than Crawford, our second hole intersected dunite across the entire core length and contained an 84-metre

interval which was visibly mineralized to similar extent as Crawford Higher Grade Core. We extended the discovery at

Deloro and intersected target mineralization at Reaume – all of which confirm the success of our geophysical targeting

model. We are further encouraged by the se results as they represent targets we can easily access and are not our

highest potential targets. We expect to have access to the full target base through this year and we are looking forward

to exploring their potential.”

Reid Nickel Property

The Reid Property is located just 16 kilometres southwest of Crawford . The property contains a series of folded

ultramafic bodies that measure 3.3 kilometres north-south by 2.1 kilometres east-west based on the total magnetic

intensity (“TMI”) (see Figure 1). The Company has completed two holes both of which collared in dunite. Hole REI22-

01 was collared to intersect the south contact intersecting dunite, peridotite, pyroxenite and gabbro – the same

sequence on the north contact at Crawford. This sequence has the potential to host PGM mineralization. Hole REI22-

02 was drilled northwest toward the center of the intrusion and intersected dunite across the entire core length with

an interval of 84 metres, beginning at 292 metres, visibly mineralized to similar extent as Crawford Higher Grade

Core. Mineralogy completed on samples from these holes confirmed that they contain the same heazlewoodite -

pentlandite-awaruite minerals as Crawford. F our historic holes were drilled in the 1960’s and 1970’s into the Reid

ultramafic which intersected peridotite with up to 10% magnetite. No assays were available for these holes.

Additional drilling at Reid postponed until the spring thaw. Drilling will resume in late spring.

Figure 1 – Plan View of Reid – Lithologies Overlain on Total Field Magnetic Intensity.

Source: Abitibi GDS.

Figure 2 – Hole REI22-02 (240 metres).

Deloro Nickel Property

The Deloro property is located 8 kilometres south of Timmins and contains an ultramafic target measuring 1.4

kilometres long by 300 – 500 metres wide (see Figure 3). The Company has now completed seven holes at Deloro, all

on the northern half of the intrusion . The first five holes collared in mineralized dunite and stayed primarily in

dunite/peridotite. The last two holes (DEL22 -06 and DEL22-07) were collared closer to the west contact to test for

the presence of PGM in pyroxenite and for gold which was intersected in a historical hole. Mineralogy completed on

samples from these holes confirmed that they contain the same heazlewoodite -pentlandite-awaruite minerals as

Crawford.

DEL22-01, collared in the centre of the ultramafic target and drilled toward the west contact, intersected mineralized

dunite (including some narrow dykes) starting at 1.8 metres downhole. Holes DEL22-03, DEL22-04 and DEL 22-05 all

intersected thick dunite sequences with some peridotite. DEL22 -06 and DEL22 -07 intersected dunite followe d by

pyroxenite and then gabbro. Drilling will resume later this spring.

Figure 3 – Plan View of Deloro – Lithologies Overlain on Total Field Magnetic Intensity.

Source: Abitibi GDS.

Nesbitt Nickel Property

The Nesbitt Nickel Property is located just 9 kilometres north-northwest of Canada Nickel’s Crawford Nickel Sulphide

Property on patented mining claims acquired from Noble Mineral Exploration. The Property includes two ultramafic

sills that strike east-west, the larger sill being 3.7 kilometres long. Original estimates suggested a width of 100 to 300

metres. Preliminary drill results were previously announced for NES21-01 (please see press release dated June 29,

2021) and NES21 -02 and NES21 -03 (please see press release dated July 14, 2021). This release contains the assay

results for all eleven drillholes.

Nesbitt NES21-08 was collared over a strong magnetic high and drilled to the south to test for the presence of a

mineralized, dunitic core within the centre of the ultramafic sill. The hole encountered 336.5 metres (core length) of

0.27% nickel including 31 metres of 0.33% nickel.

Nesbitt NES21-09 was collared 250 metres west of NES21-09 to determine the consistency of mineralization farther

to the west. The hole intersected 415.3 (core length) metres grading 0.26% nickel including a higher -grade zone of

25.5 metres (core length) grading 0.31% nickel. The hole intersected a thick interval of peridotite grading to dun ite

from 41.7 to 459.0 metres, ending in peridotite.

Eight holes in total tested the western extent of the main ultramafic sill at Nesbitt with all holes intersecting

mineralization. Grades were lower near the end of the mineralization to the west. There appears to be a break in the

sill east of NES21-08 which has not yet been drill-tested. Farther east holes NES21-03 and NES21-11 intersected thick

sections of lower-grade mineralization.

NES21-06 was drilled in the northern sill and intersected lower-grade mineralization encountering 483.8 metres of

0.17% nickel within a peridotite sill containing minor dunite.

Figure 4 – Plan View of Nesbitt – Drill Results Overlain on Total Field Magnetic Intensity.

Source: Abitibi GDS.

Table 1: Nesbitt Exploration Drilling Results, Ontario.

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

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

NES21-01 315.5 447.0 131.5 84.5 0.23 0.010 0.007 0.007 0.18 5.38 0.13

including 412.5 447.0 34.5 22.2 0.25 0.011 0.007 0.008 0.18 5.31 0.11

NES21-02 133.5 430.0 296.5 190.6 0.23 0.010 0.005 0.006 0.16 5.79 0.07

including 151.0 193.0 42.0 27.0 0.26 0.011 0.005 0.008 0.22 5.75 0.09

NES21-03 135.0 440.0 305.0 196.1 0.20 0.011 0.011 0.008 0.35 6.78 0.07

including 366.0 393.0 27.0 17.4 0.26 0.010 0.005 0.005 0.16 5.15 0.06

NES21-04 229.5 402.0 172.5 110.9 0.21 0.010 0.010 0.008 0.21 5.74 0.06

including 280.5 310.5 30.0 19.3 0.29 0.012 0.017 0.008 0.13 5.09 0.11

NES21-05A 193.0 373.0 180.0 90.0 0.23 0.010 0.006 0.007 0.17 5.41 0.09

including 281.0 296.0 15.0 7.5 0.27 0.009 0.012 0.014 0.13 5.11 0.10

NES21-06 29.2 513.0 483.8 311.0 0.17 0.011 0.017 0.017 0.43 7.38 0.07

NES21-07 32.2 288.5 256.3 164.7 0.20 0.011 0.006 0.006 0.27 6.25 0.05

NES21-08 24.0 360.5 336.5 216.3 0.27 0.011 0.009 0.008 0.15 5.71 0.10

including 294.0 324.6 30.6 19.7 0.33 0.011 0.026 0.015 0.12 4.98 0.13

and 97.5 106.5 9.0 5.8 0.37 0.012 0.025 0.022 0.13 5.82 0.16

NES21-09 41.7 457.0 415.3 266.9 0.26 0.010 0.010 0.009 0.19 5.33 0.06

including 58.0 83.5 25.5 16.4 0.31 0.011 0.010 0.008 0.16 5.70 0.04

NES21-10 23.9 402.0 378.1 243.0 0.22 0.010 0.004 0.004 0.15 6.29 0.04

including 380.0 402.0 22.0 14.1 0.25 0.011 0.003 0.004 0.14 5.84 0.07

NES21-11 12.5 405.0 392.5 252.3 0.21 0.012 0.016 0.011 0.46 7.20 0.03

Reaume Nickel Property

The Reaume Property, located 19 kilometres northwest of Crawford, contains an ultramafic target of approximately

3 kilometres (east-west) by 1.8 kilometres (north-south) as defined by its magnetic footprint and historical drilling

(see Figure 5).

Canada Nickel has drilled three holes at Reaume into the ultrama fic intrusion, all three of which intersected

dunite/peridotite. REU22-01 intersected 410.6 metres of serpentinized peridotite, dunite and altered dunite below

9.4 metres of overburden. REU22 -02 intersected 242.5 metres of serpentinized peridotite below 4.5 metres of

overburden. REU22-03 intersected a series of ultramafic rocks including peridotite, pyr oxenite and gabbro through

what is considered the upper portion of the intrusion, typically where the PGM zone is situated. The peridotite

interval was 226.2 metres thick. It is interpreted that the hole location was at the southern contact and that the

ultramafics could be highly folded. All three holes were drilled from a single collar due to seasonal access difficulties

to the property. Drilling will resume later this year.

Figure 5 – Plan View of Reaume – Lithologies Overlain on Total Field Magnetic Intensity.

Source: Abitibi GDS.

Figure 6 – Size of Reid, Deloro, Nesbitt and Reaume Compared to Crawford on a Standardized Scale.

Source: Abitibi GDS.

Table 2 – Regional Drill Results – Selected Lithologies.

Note: contains minor dikes.

Hole ID From (m) To (m) Length (m) Rock Type

DEL22-01 1.8 200.0 198.2 Dunite

DEL22-01 200.0 214.3 14.3 Peridotite

DEL22-01 217.0 484.0 267.0 Dunite

DEL22-02 19.2 43.7 24.5 Ultramafics

DEL22-02 49.5 75.0 25.5 Pyroxenite

DEL22-02 75.0 127.8 52.8 Ultramafics

DEL22-02 133.5 263.0 129.5 Dunite

DEL22-02 270.0 374.1 104.1 Dunite

DEL22-02 374.1 392.6 18.5 Ultramafics

DEL22-03 9.0 88.9 79.9 Dunite

DEL22-03 92.4 151.8 59.4 Pyroxenite

DEL22-03 151.8 434.0 282.2 Dunite

DEL22-04 9.6 52.2 42.6 Dunite

DEL22-04 52.2 93.5 41.3 Mafic Intrusive

DEL22-04 112.1 357.5 245.4 Dunite

DEL22-04 366.5 383.7 17.2 Ultramafics

DEL22-05 7.0 328.5 321.6 Dunite

DEL22-05 328.5 398.1 69.6 Ultramafics

DEL22-06 5.6 30.0 24.4 Peridotite

DEL22-06 30.0 53.3 23.3 Pyroxenite

DEL22-06 53.3 128.2 74.9 Peridotite

DEL22-06 128.2 140.5 12.3 Mafic Intrusive

DEL22-06 140.5 244.4 103.9 Dunite

DEL22-06 248.3 281.9 33.6 Peridotite

DEL22-06 303.0 321.0 18.0 Pyroxenite

DEL22-07 3.1 27.0 23.9 Dunite

DEL22-07 27.0 51.6 24.6 Peridotite

DEL22-07 57.5 201.0 143.5 Dunite

DEL22-07 201.0 216.4 15.4 Peridotite

DEL22-07 219.5 237.0 17.5 Gabbro

REI22-01 51.0 109.0 58.0 Dunite

REI22-01 109.0 161.0 52.0 Peridotite

REI22-01 161.0 193.0 32.0 Pyroxenite

REI22-01 193.0 266.0 73.0 Peridotite

REI22-01 266.0 283.8 17.8 Pyroxenite

REI22-01 283.8 305.0 21.2 Gabbro

REI22-01 306.5 380.0 73.5 Peridotite

REI22-02 42.0 396.0 354.0 Dunite

REU22-01 9.4 337.1 327.7 Peridotite

REU22-01 337.1 351.3 14.2 Gabbro

REU22-01 351.3 395.0 43.7 Dunite

REU22-01 395.0 408.0 13.0 Ultramafics

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