Premium Nickel Resources Ltd. Announces Extension of CAD $7 Million Promissory Note

Premium Nickel Resources Ltd. Announces

Extension of CAD $7 Million Promissory Note

Toronto, Ontario--(Newsfile Corp. - March 17, 2023) -

Premium Nickel Resources Ltd. (TSXV:

PNRL) ("PNRL" or the "Company")

announces that it has entered into an amended and restated

promissory note (the "

A&R Promissory Note

") extending the maturity of its previously issued

CAD $7

million promissory note from March 22, 2023 to November 24, 2023 (the "

Extension

"). The promissory

note is held by Pinnacle Island LP, an arm's-length limited partnership formed under the laws of the

Province of Ontario (the "

Lender

"). All other terms of the promissory note remain as previously

announced (see news release of the Company dated November 21, 2022).

In connection with the Extension and entry into of the A&R Promissory Note, the Company paid an

amendment and restatement fee of CAD $225,000 and issued 350,000 non-transferrable common

share purchase warrants (the "

Warrants

") to the Lender. Each Warrant is exercisable to acquire one

common share of the Company (the "

Common Shares

") at a price of CAD $1.75 per Common Share

for a period of one year from date of the A&R Promissory Note. In connection with the Extension and

issuance of the Warrants, the 119,229 common share purchase warrants previously issued to the

Lender in connection with the initial issuance of the promissory note have been cancelled concurrently

with the Extension.

The Warrants and any Common Shares issuable on exercise of the Warrants are subject to a statutory

four-month hold period under applicable Canadian securities laws from the date of issue.

The Extension, A&R Promissory Note and the Warrants are subject to the final acceptance of the TSX

Venture Exchange.

In addition, further to the news release of the Company on February 24, 2023 announcing the closing of

PNRL's CAD $7.8 million "best efforts" brokered private placement (the "

Private Placement

"), the

Company wishes to confirm that a total of 221,448 broker warrants were issued to the agents of the

Private Placement. For further details of the Private Placement, please refer to the material change

report dated March 6, 2023, which is available on SEDAR (

www.sedar.com

) under the Company's

issuer profile.

About Premium Nickel Resources Ltd.

PNRL is a mineral exploration and development company that focuses on discovering and advancing

high-quality nickel, copper and cobalt resources. We are driven by our belief that the demand for these

metals will continue to grow in the medium to long term, as a result of global urbanization and the

increasing adoption of electric motors over internal combustion engines. These metals are vital for

achieving a low-carbon future.

Our global strategy is to identify the most promising Ni-Cu-Co-PGE projects and acquire or invest in

opportunities that offer high prospectivity in mining friendly jurisdictions located in low-risk countries with

supportive foreign investment and resource acts as well as rule-of-law. Our portfolio includes various

global projects (Botswana, Greenland, Canada and Morocco) that complement our flagship Selebi Ni-

Cu-Co sulphide mine located in Selebi-Phikwe, Botswana.

PNRL is committed to governance through transparent accountability and open communication within

our team and our stakeholders. Our skilled team has collectively worked over 100 projects collectively,

accumulating over 400 years of resource discoveries, mine development and mine re-engineering

experience on projects like Selebi and Selkirk. PNRL's team members have on average more than 20

years of experience in every single aspect of mine discovery and development, from geology to

operations.

ON BEHALF OF THE BOARD OF DIRECTORS

Keith Morrison

Chief Executive Officer

Premium Nickel Resources Ltd.

For further information about Premium Nickel Resources Ltd., please contact:

Jaclyn Ruptash

Vice President Business Development

+1 (604) 770-4334

Cautionary Note Regarding Forward-Looking Statements:

This news release contains "forward-looking information" within the meaning of applicable Canadian

securities legislation based on expectations, estimates and projections as at the date of this news

release. Forward-looking information involves risks, uncertainties and other factors that could cause

actual events, results, performance, prospects and opportunities to differ materially from those

expressed or implied by such forward-looking information. Forward-looking information in this news

release includes, but is not limited to, the ability of the Company to fund the repayment of the A&R

Promissory Note; the timing and ability of the Company (if at all) to obtain the final approval of the

Extension from the TSX Venture Exchange; objectives, goals or future plans of the Company including

the proposed advancement of the Selebi Mine. Factors that could cause actual results to differ materially

from such forward-looking information include, but are not limited to, successful negotiation of

documents; capital and operating costs varying significantly from estimates; the preliminary nature of

metallurgical test results; delays in obtaining or failures to obtain required governmental, environmental

or other project approvals; uncertainties relating to the availability and costs of financing needed in the

future; changes in equity markets; inflation; fluctuations in commodity prices; delays in the development

of projects; the other risks involved in the mineral exploration and development industry; and those risks

set out in the Company's public disclosure record on SEDAR (

www.sedar.com

) under the Company's

issuer profile. Although the Company believes that the assumptions and factors used in preparing the

forward-looking information in this news release are reasonable, undue reliance should not be placed on

such information, which only applies as of the date of this news release, and no assurance can be given

that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or

obligation to update or revise any forward-looking information, whether as a result of new information,

future events or otherwise, other than as required by law.

Neither 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 news release.

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR

DISSEMINATION IN THE UNITED STATES

To view the source version of this press release, please visit

https://www.newsfilecorp.com/release/158819