CNC.V · 2021-11-22 12:00:00

Canada Nickel Expands Timmins Nickel District – Acquires 13 Additional Highly Prospective Nickel Properties in Timmins Region

Mergers & Acquisitions Property Options & Staking

Canada Nickel Expands Timmins Nickel District – Acquires 13 Additional

Highly Prospective Nickel Properties in Timmins Region

Highlights

• Acquisition of 13 additional target properties consolidates district scale potential.

• Combined target surface footprint of 37.7 square km – 40 times larger than current

Crawford Main Zone resource of 0.85 square km.

• Ten target properties have larger footprint than Crawford and nine confirmed to contain

the same host mineralization as Crawford.

• Sothman target property has historical higher grade, shallow resource of approximately

190,000 tons of 1.24% nickel (with 300 metres strike length)1; remaining 2.2 km of strike

length is largely untested.

• Four target areas have yielded drill intersections of > 0.3% nickel including:

‒ Sothman: 2.31% nickel and 0.19% copper over true width of 3.2 metres within

1.58% nickel and 0.12% copper over true width of 8.6 metres from 41 metres;

‒ Deloro: 0.38% nickel and 0.22 g/t PGM over core length of 15.5 metres within 0.28%

nickel and 0.09 g/t PGM over core length of 299 metres from 241 metres;

‒ Midlothian: 0.24% nickel over core length of 345 metres, including 0.30% nickel

over 42 metres;

‒ Mann Southeast: multiple 3 metre intervals grading 0.31 -0.33% nickel within 111

metres of dunite across entire core length

TORONTO, November 22, 2021 – Canada Nickel Company Inc. ("Canada Nickel" or the "Company")

(TSXV: CNC) (OTCQX: CNIKF) today announced that the Company has concluded 18 separate

transactions resulting in the outright acquisition or earn-in to 13 additional target properties within a

radius of 95 km of the Company’s flagship Crawford Nickel-Sulfide Project, consolidating Canada

Nickel’s position in the Timmins area. Each of the additional properties contains one or more

ultramafic targets based on combinations of historical geophysical work and drilling over the past 65

years. See transaction summary at the end of the release for a summary of the acquisition terms.

“The acquisition of these highly prospective target properties represents a transformational

milestone for Canada Nickel, on par with the initial discovery of our flagship property, Crawford. The

consolidation of these properties underscores our strong belief in the district-scale potential of the

Timmins region and in our journey to become a leader of the Next Generation of Nickel Supply – large,

scalable, low carbon nickel supply,” said Mark Selby, Chair & CEO of Canada Nickel. “These properties

have combined target structures 40 times the scale of the structure which hosts our current Crawford

Main Zone resource (contained nickel of 1.56 million tonnes M&I + 0.76 million tonnes inferred2), and

1 See Statement Regarding Historical Resource Estimates on page 27 of this press release.

2 See Preliminary Economic Assessment, titled "Crawford Nickel-Sulphide Project National Instrument 43-101

Technical Report and Preliminary Economic Assessment", with an effective date of May 21, 2021

like Crawford, all these target structures are near excellent infrastructure. Each target has had some

amount of historical work, and in some cases, much more than Crawford did initially, confirming these

targets contain the same serpentinized dunite and/or peridotite that hosts Crawford mineralization

and, as our last release reported, has the potential to permanently sequester CO2.”

Figure A – The Timmins Nickel District

The Company will host a conference call and webcast today, Monday, November 22, 2021, at 10:00 a.m.

EDT, to discuss the property acquisitions and answer questions related to the advancement of the

Timmins Nickel District (see details at the end of this announcement).

Sothman

Sothman is a property of approximately 1,000 ha located 70 km south of Timmins . The project was

acquired from Glencore.

The Sothman Property contains an ultramafic sill comprised mainly of dunite (see Figure 2) that is

estimated to be up to 200 -300 metres thick, 2.2 km long and open at depth. An unclassified historical

resource estimate reported as 189,753 tons grading 1.24% nickel (the Sothman West Zon e)3 is centred

500 metres west of the sill (the 2.2 km dunite sill is largely untested).

The Sothman West Zone occurs at the north ultramafic contact within a footwall embayment

approximately 300 metres wide and open at depth . The best historic al intersection was hole DG50-S04

with 1.58% nickel over 12.2 metres (8.6 metres estimated true width ) from 41.2 metres downhole

including 4.6 metres (3.2 metres estimated true width) of 2.31% nickel and 0.19% copper . A sample of

historical drill results is shown in Table 1 a and 1b . Two drillholes intersected a deeper pod of similar

sulphide mineralization (3.4 metres of 1.32% nickel from 398 metres in SM71-1 and 5.5 metres of 0.49%

nickel from 353.2 metres in SM71-2) outside of the resource during the last drill program in 1971.

The Sothman Main Zone has seen very limited exploration but is known to contain dunite and peridotite

and is similar in size to the East Zone at Crawford. For example, drillhole SM67-B25, SM67-B26 and SM67-

B27 all intersected peridotite below overburden intersecting 54.56 metres of peridotite from 36.6 metres,

112.47 metres of peridotite from 7.6 metres, and 109.43 metres of peridotite from 12.19 metres

respectively. All three holes ended in peridotite. Drillhole SM6 7-B28 was collared in peridotite

(intersecting 46.02 metres of ultramafics from 15.24 metres) and crossed the south contact into volcanics

at 61.26 metres, completing the only geologic section across the Sothman Main Zone.

Drillhole DG53-S41A is the only hole drilled in the eastern area of the Sothman Main Zone and intersected

60.1 metres of peridotite from 23. 8 metres downhole, ending in peridotite. The south contact of the

Sothman Main Zone has been intersected in three drillholes (DG51 -S09, DG51-S12 and SM67-B28) with

all holes starting in peridotite and ending in volcanics.

Table 1a – Historical Drilling – Sothman West Zone – Significant Intersections

Hole ID From (m) To (m) Length (m) Estimated True

Width (m) Ni % Cu %

SM56-K11 93.2 102.4 9.2 4.6 1.58 0.17

including 93.2 97.5 4.3 2.2 2.58 0.34

SM67-B06 28.7 40.5 11.8 8.4 1.57 0.11

including 28.7 33.8 5.1 3.6 2.28 0.16

DG50-S04 41.2 53.3 12.2 8.6 1.58 0.12

including 41.2 45.7 4.6 3.2 2.31 0.19

DG51-S20 89.9 95.8 5.9 4.0 1.56 0.13

DG50-S05 19.8 21.0 1.2 0.9 7.51 0.62

SM71-1 398.1 409.0 11.0 4.1 0.66 0.04

3 See Statement Regarding Historical Resource Estimates on page 27 of this press release.

Table 1a – Historical Drilling – Sothman West Zone – Significant Intersections (continued)

Hole ID From (m) To (m) Length (m) Estimated True

Width (m) Ni % Cu %

including 398.1 401.4 3.4 1.2 1.32 0.05

SM71-2 353.3 358.8 5.5 2.5 0.49 0.03

Table 1b – Historical Drilling – Sothman Property – Selected Lithologies

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

DG-50-S04 32.4 107.9 Ultramafics - Peridotite

DG-50-S05 22.9 82.0 Ultramafics - Peridotite

DG-51-S09 7.3 217.0 Ultramafics - Peridotite

DG-51-S12 7.0 111.4 Ultramafics - Peridotite

DG-51-S12 111.4 114.1 Ultramafics - Gabbro

DG-51-S12 114.1 118.3 Ultramafics - Peridotite

DG-51-S12 118.3 142.8 Ultramafics - Gabbro

DG-51-S20 19.8 96.9 Ultramafics - Peridotite

DG-53-S41A 23.8 83.8 Ultramafics - Peridotite

SM-56-K11 85.7 148.4 Ultramafics - Peridotite

SM-67-B06 25.5 101.8 Ultramafics - Peridotite

SM-67-B25 36.6 91.1 Ultramafics - Peridotite

SM-67-B26 7.6 120.1 Ultramafics - Peridotite

SM-67-B27 12.2 121.6 Ultramafics - Peridotite

SM-67-B28 15.2 47.7 Ultramafics - Peridotite

SM-71-01 394.0 426.7 Ultramafics - Peridotite

SM-71-02 351.1 366.7 Ultramafics - Peridotite

* Denotes ended in mineralization

Figure 1 – Sothman Property – Historical Drillholes Over Total Magnetic Intensity (“TMI”).

Deloro

Deloro is a property of approximately 1,800 ha located 10 km southeast of Timmins . It contains an

ultramafic unit 1.4 km in length and up to 450 metres wide, striking south-southeast identified by the high

magnetic intensity anomaly and historical drilling (see Figure 2). Six holes (FY-02-02, FY-02-06, FY-02-10,

FY-02-11, FY -02-12, FY -02-13) were drilled inside and on the edge of the anomaly. Five of six holes

intersected serpentinized dunite/peridotite with a core length of 24.2 metres in hole FY-02-10 up to 138.4

metres in hole FY-02-13, with four of five holes ending in serpentinized dunite/peridotite.

All five holes noted presence of magnetite (up to 20-25% magnetite in interval 39.4-89.5 metres from hole

FY-02-02) and disseminated sulphides. Only specific non-consecutive intervals were assayed. Two of the

four holes had nickel mineralization exceeding 0.40% nickel: FY02-02 with 0.42% nickel over a core length

of 4.2 metres, with up to 0.73 g/t Pd and 0.23 g/t Pt over 1.2 metres, and FY-02-10 with 0.48% nickel, 0.28

g/t Pd, and 0.14 g/t Pt over 2.8 metres. See Table 2a and 2b below.

Figure 2 – Deloro Property – Historical Drillholes Over TMI

Table 2a – Historical Drilling – Deloro Property – Significant Intersections*

Hole ID From (m) To (m) Length (m) Ni % Cu % Pd g/t Pt g/t

FY-02-02 241.0 314.5 73.5 0.28 0.03 0.06 0.03

Including 299.0 314.5 15.5 0.38 0.06 0.15 0.07

FY-02-02 324.2 345.0 20.8 0.24 0.03 0.03 0.01

including 342.8 343.1 0.4 0.74 0.23 0.16 0.17

FY-02-10 54.7 59.7 5.0 0.27 0.03 0.01 0.00

FY-02-10 95.8 98.6 2.8 0.48 0.03 0.28 0.14

FY-02-13 122.8 152.9 30.1 0.25 0.01 0.02 0.01

FY-02-13 177.5 200.5 23.0 0.24 <0.01 0.00 0.00

FY-02-13 298.0 318.0 20.0 0.26 <0.01 0.00 0.00

* Insufficient drilling completed to determine dip and true width of orebody

Table 2b – Historical Drilling – Deloro Property – Selected Lithologies

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

FY-02-01 4.0 11.0 7.0 Peridotite

FY-02-01 11.0 14.1 3.1 Serpentinite

FY-02-01 14.8 18.2 3.4 Serpentinite

FY-02-01 18.2 29.9 11.7 Peridotite

FY-02-01 29.9 31.3 1.4 Peridotite

FY-02-01 31.3 34.8 3.5 Peridotite

FY-02-01 36.5 98.5 62.0 Peridotite

FY-02-01 98.5 102.0 3.5 Serpentinite

FY-02-02 5.8 21.3 15.5 Peridotite/Dunite

FY-02-02 23.1 33.7 10.6 Peridotite/Dunite

FY-02-02 33.7 34.7 1.0 Serpentinite

FY-02-02 39.4 89.5 50.1 Peridotite/Dunite

FY-02-02 89.5 90.4 0.8 Pyroxenite

FY-02-02 92.1 117.1 25.0 Peridotite/Dunite

FY-02-02 117.1 120.7 3.6 Serpentinite

FY-02-02 132.5 134.4 1.9 Peridotite

FY-02-02 135.4 136.8 1.4 Pyroxenite

FY-02-02 137.1 138.6 1.5 Serpentinite

FY-02-02 138.6 149.8 11.2 Peridotite/Dunite

FY-02-02 151.7 206.1 54.4 Peridotite/Dunite

FY-02-02 210.6 217.9 7.2 Serpentinite

FY-02-02 219.3 314.7 95.4 Peridotite

FY-02-02 316.7 319.0 2.3 Pyroxenite

FY-02-02 319.0 319.7 0.7 Peridotite

FY-02-02 319.7 321.2 1.5 Peridotite/Dunite

FY-02-02 321.2 324.2 3.0 Peridotite

FY-02-02 324.2 324.8 0.6 Peridotite

FY-02-02 324.8 325.8 1.0 Peridotite

FY-02-02 325.8 332.2 6.4 Peridotite

FY-02-02 332.2 333.5 1.3 Serpentinite

FY-02-02 333.5 339.7 6.2 Peridotite

FY-02-02 339.7 365.7 26.0 Serpentinite

FY-02-02 373.5 381.1 7.7 Serpentinite

FY-02-06 25.0 110.3 85.3 Serpentinite

FY-02-06 110.9 208.9 98.0 Serpentinite

Table 2b – Historical Drilling – Deloro Property – Selected Lithologies (continued)

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

FY-02-06 211.2 301.0 89.8 Serpentinite

FY-02-10 31.7 50.0 18.3 Pyroxenite

FY-02-10 54.7 59.7 5.0 Pyroxenite

FY-02-10 69.9 73.8 3.8 Peridotite

FY-02-10 75.5 97.6 22.1 Pyroxenite/Peridotite

FY-02-10 97.6 113.5 15.9 Peridotite/Dunite

FY-02-10 113.5 121.9 8.4 Peridotite

FY-02-10 121.9 123.5 1.7 Serpentinite

FY-02-10 123.9 124.6 0.7 Serpentinite

FY-02-10 124.8 130.7 5.9 Peridotite

FY-02-10 130.7 135.0 4.3 Peridotite

FY-02-12 52.4 58.6 6.2 Pyroxenite

FY-02-12 58.6 64.7 6.1 Serpentinite

FY-02-12 75.3 79.1 3.8 Serpentinite

FY-02-12 80.0 80.3 0.3 Serpentinite

FY-02-12 80.3 82.3 2.0 Serpentinite

FY-02-12 85.6 86.2 0.6 Serpentinite

FY-02-12 86.2 97.3 11.1 Peridotite

FY-02-12 97.3 113.5 16.2 Pyroxenite

FY-02-12 113.5 118.2 4.7 Peridotite

FY-02-12 119.4 122.0 2.5 Peridotite

FY-02-12 122.0 133.3 11.3 Peridotite/Dunite

FY-02-12 133.3 146.4 13.2 Dunite

FY-02-12 146.6 272.0 125.4 Dunite

FY-02-13 114.3 156.0 41.6 Peridotite

FY-02-13 166.1 168.1 2.0 Peridotite

FY-02-13 168.1 171.9 3.8 Peridotite

FY-02-13 171.9 177.5 5.6 Dunite

FY-02-13 177.5 179.6 2.1 Peridotite

FY-02-13 179.6 318.0 138.4 Dunite

Mann

Mann is located 25 km east of Crawford and totals 7,800 ha. The ultramafic is estimated to be a combined

21 km in length with variable thickness and having at least three main dunitic cores like that at Crawford

(Mann Central, Mann Northwest, and Mann Southeas t). The Company has acquired the right to earn an

80% interest in the Mann Property from Noble by an initial payment of $ 100,000 in cash and 150 ,000

shares and paying a further $100,000 per year over the four-year Option Period (for a total cash payment

of $400,000) and issuing a further 250,000 common shares, and incurring total exploration expenditures

of $1.7 million, over the Option Period. Noble will retain a 2.00% Net Smelter Return (“NSR”) with a 1.00%

buy-back to Canada Nickel for $1 .0 million plus 50% of the buy -back provisions that total $4.5 million

($2.25 million to CNC).

Mann Central

The Mann Central Property area covers a single 4 km long by up to 1 km wide ultramafic intrusion (see

Figure 3) that is evident in TMI geophysical surveys. Historic al drilling has already delineated ultramafic

mineralization over a strike length of 2,700 metres and 690 metres wide. Only one historical hole had

assays – Falconbridge Ltd. intersected 79 metres (MAN43-03) of ultramafic which was intermittently

sampled - with the highest reported assay of 0.29% nickel over ~1 metre (See Table 3a below). Historical

drilling began in 1951 with seven of eight holes intersecting serpentinized peridotite containing

magnetite. The longest intersection occurred in hole M-1, with 212 metres of well serpentinized peridotite

along its entire core length. A 1976 drilling campaign reported wide intercepts of serpentinized ultramafic

intrusive with visible sulphides and pervasive magnetite. Hole MA5-2-76 was the longest at 114 metres of

serpentinized ultramafics along its entire core length (see Table 3a below).

Table 3a – Historical Drilling – Mann Central Property – Selected Lithologies

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

INCO-1 5.2 162.5 157.3 Peridotite

M-1 1.5 213.7 212.1 Peridotite

M-2 7.3 214.9 207.6 Peridotite

M-3 7.6 14.9 7.3 Peridotite

M-3 18.0 96.3 78.3 Peridotite

M-3 96.3 141.7 45.4 Pyroxenite

M-3 141.7 155.1 13.4 Peridotite

M-3 165.8 172.8 7.0 Pyroxenite

M-4 11.3 50.0 38.7 Dunite

M-4 50.0 54.6 4.6 Pyroxenite

M-4 54.6 88.4 33.8 Dunite

M-4 88.4 191.4 103.0 Peridotite

M-4 191.4 196.0 4.6 Pyroxenite

M-5 10.1 41.1 31.1 Pyroxenite

M-5 41.1 153.3 112.2 Peridotite

M-5 161.5 172.5 11.0 Pyroxenite

M-6 7.9 114.9 107.0 Peridotite

M-6 123.1 128.0 4.9 Pyroxenite

M-7 11.3 107.3 96.0 Peridotite

M-7 113.4 127.1 13.7 Peridotite

M-7 129.2 172.8 43.6 Peridotite

1A 0.9 7.0 6.1 Peridotite

1A 51.5 54.6 3.1 Peridotite

2A 2.4 8.7 6.3 Peridotite

2A 22.0 52.1 30.2 Peridotite

2A 83.8 111.3 27.4 Peridotite

3A 1.2 57.3 56.1 Peridotite

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