CNC.V · 2020-08-06 12:00:00

Infill Drilling Further Strengthens Higher-Grade Core at the Crawford Nickel-Cobalt Sulphide Project

Drill Results

Infill Drilling Further Strengthens Higher-Grade Core at the Crawford

Nickel-Cobalt Sulphide Project

Highlights

Hole CR20-56 extended the strike length of the Main Zone by 375 metres, and is expected to expand the 0.3% higher grade shell by 168 metres which

remains open along strike to the west.

All four infill holes in this release continued to extend and better define the higher grade resource shells and intersected thick intersections of nickel

mineralization, within the steeply dipping higher-grade core which varies in true thickness from

40 m

160 m

Hole CR20-44 returned 0.41% nickel over core length of 51 metres within 0.33 % nickel over core length of 118 metres which further expands width of

higher grade shells on this section.

TORONTO

Aug. 6, 2020

/CNW/ - Canada Nickel Company Inc. (TSXV: CNC) ("

Canada Nickel

" or the "

Company

") today announced additional

encouraging results from infill drilling on the Main Zone at its Crawford Nickel-Cobalt Sulphide project.

"Our infill drilling program continues to deliver outstanding results. Most importantly, the higher grade resource shell has been significantly extended

westward and establishes a second higher grade resource shell area in the western end of mineralization. The other three infill holes extended and will

help to better define the higher grade resource shells which will be the initial focus of the mine plan in the Preliminary Economic Assessment currently

underway and expected to be completed by year-end,"

said

Mark Selby

, Chair and CEO of Canada Nickel.

"Drier weather will allow us to resume drilling

this coming Monday. Once infill drilling is completed, we will also follow up on the previously reported excellent PGM results from hole CR20-32 (three

separate intersections including 2.6 g/t PGM over 7.5 metres) and several other prospective geophysical nickel targets on the several kilometres of the

Crawford structure which remain untested."

The Crawford Nickel-Cobalt Sulphide Project is located in the heart of the prolific

Timmins

Cochrane

mining camp in

Ontario, Canada

, and is adjacent to

well-established, major infrastructure associated with over 100 years of regional mining activity.

Main Zone Infill Results

Infill drilling on the Main Zone continued to focus on more clearly defining and upgrading the Higher-Grade Core resource, which was previously defined as

part of the resource estimate and dips steeply within the ultramafic unit and having a true thickness that varies from

40 m

160 m

All four infill holes contained in this release intersected thick intersections of nickel mineralization, and continue to extend and better define the higher grade

resource shells. Assays from the remaining 12 in-fill holes will be released over the next several weeks. See Table 1 and Figure 1 for results.

Highlights of the drilling include:

Infill hole CR20-56 will extend the strike length of the Main Zone by 375 metres and is expected to extend the 0.3% higher grade shell by 168 metres.

Mineralization remains open along strike to the west. 0.35% grade shell is expected to be created in western portion of mineralization as hole returned

0.42% nickel over core length of 31 metres from 186 metres, within 0.34% nickel over core length of 148 metres from 114 metres

Infill hole CR20-46 intersected thick intersections of nickel mineralization with 0.31% nickel across entire core length of 363 metres within the steeply

dipping higher-grade core which varies in true thickness from 40 to

160 m

Infill hole CR20-44 returned 0.41% nickel over core length of 52 metres from 350 metres, within 0.33% nickel over core length of 118 metres from 283

metres which further expand width of higher grade shells on this section

Table 1 – Main Zone Nickel – Drilling Results, Crawford Nickel-Cobalt Sulphide Project,

Ontario

DDH ID

From

Length

(m)

(%)

(g/t)

(%)

CR20-44

36.0

402.0

366.0

0.27

0.014

0.019

0.006

0.30

6.51

including

283.5

402.0

118.5

0.33

0.016

0.030

0.009

0.58

6.67

including

349.5

402.0

52.5

0.41

0.020

0.043

0.013

0.99

7.35

CR20-45

39.0

408.0

369.0

0.28

0.012

0.016

0.007

0.08

5.17

including

39.0

289.5

250.5

0.30

0.012

0.022

0.008

0.11

4.70

including

145.5

219.0

73.5

0.34

0.013

0.028

0.010

0.13

4.51

CR20-46

48.0

411.0

363.0

0.31

0.013

0.030

0.010

0.29

5.83

including

315.0

384.0

69.0

0.36

0.017

0.057

0.019

0.97

8.19

CR20-56

70.8

588.0

517.2

0.28

0.013

0.009

0.08

6.72

including

114.0

262.5

148.5

0.34

0.013

0.028

0.010

0.16

5.99

including

186.0

217.5

31.5

0.42

0.013

0.038

0.012

0.23

6.11

*These holes were drilled at a steep angle of -80 degrees almost entirely within the higher-grade core to better determine grade. Hole CR20-56 was drilled

at a -50 angle along the strike of the mineralization and the core length represents 65% of the core length. The estimated true width of this zone has been

determined from previous drilling to vary from 40 to

160 m

depending on location of the section.

Figure 1 - Plan View of Main Zone Nickel Resource, Crawford Nickel-Cobalt Sulphide Project, Ontario. (CNW Group/Canada Nickel Company Inc.)

Next Steps

All drill results to date will be incorporated into an updated resource now expected by the end of August. Once in-fill drilling is completed, the Company will

also follow up on the previously reported excellent PGM results from hole CR20-32 (three intervals including 2.6 g/t PGM over core length of 7.5 metres)

and several other prospective geophysical targets on the several kilometres of the Crawford structure which remain untested on the west side of the

highway.

Table 2 – Drill Hole Orientation, Crawford Nickel-Cobalt Sulphide Project,

Ontario

DDH ID

Easting

Northing

Dip

Azimuth

Length

(mE)

(mN)

(°)

(m)

CR20-44

473801.0

5408751.2

-80

215

402

CR20-45

473615.2

5408680.4

-80

408

CR20-46

473520.6

5408723.2

-80

215

411

CR20-56

472757.3

5408988.0

-50

305

588

Assays, Quality Assurance/Quality Control and Drilling and Assay Procedures

William E. MacRae

, MSc, P.Geo., a "qualified person" as defined by NI 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. Samples are bagged with QA/QC samples inserted in batches of 35

samples per lot. Samples are transported in secure bags directly from the Canada Nickel core shack to Actlabs Timmins, an ISO/IEC 17025 accredited

lab. Analysis for precious metals (gold, platinum and palladium) are completed by Fire Assay while analysis for nickel, cobalt, sulphur and 17 other

elements are performed using a peroxide fusion and ICP-OES analysis. Certified standards and blanks are inserted at a rate of one QA/QC sample per 32

core samples making a batch of 35 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 such term 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.

About Canada Nickel Company

Canada Nickel Company Inc. is advancing the next generation of nickel-cobalt sulphide projects to deliver nickel and cobalt 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 NickelTM, NetZero

CobaltTM, NetZero IronTM 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 and cobalt 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.

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 results relating to the Crawford Nickel-Cobalt Sulphide Project, the potential of the Crawford Nickel-

Cobalt Sulphide Project, timing of economic studies and resource estimates, strategic plans, including future exploration and development results, and

corporate and technical objectives. 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, political and social uncertainties, results of exploration

programs, timing of the updated resource estimate, risks of the mining industry, delays in obtaining governmental approvals, and failure to obtain regulatory

or shareholder approvals. 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.

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SOURCE

Canada Nickel Company Inc.

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%SEDAR: 00048733E

For further information:

Mark Selby, Chair and CEO, Phone: 647-256-1954, Email: [email protected]

CO: Canada Nickel Company Inc.

CNW 13:33e 06-AUG-20

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