NEXM.V · 2022-08-17 12:00:00

Premium Nickel Resources Ltd. Reports First Assay Results at Its 100% Owned Selebi Mine in Botswana: 25.65 Metres of 0.95% Ni, 2.03% Cu

Drill Results

Premium Nickel Resources Ltd. Reports First

Assay Results at Its 100% Owned Selebi Mine

in Botswana: 25.65 Metres of 0.95% Ni, 2.03%

Toronto, Ontario--(Newsfile Corp. - August 17, 2022) -

Premium Nickel Resources Ltd.

(TSXV:

PNRL)

(formerly, North American Nickel Inc.) ("Premium Nickel" or the "Company")

is pleased

to report the first assay results from the Company's 2022 diamond drilling program at its 100% owned

Selebi nickel-copper-cobalt sulphide Mine in Botswana.

The Company's 2022 diamond drilling program commenced March 14, 2022, with approximately 8,366

metres of drilling completed as of August 16, 2022. Results have been received for the first 2022

drillhole and are reported herein. Assay results are pending from two additional target zone

intersections.

Initial drill hole SMD-22-001 was prioritized to test an off-hole borehole electromagnetic ("

BHEM

") target

from sd140 identified by PNRL during the compilation and verification of historic data in 2021 (

figure 1

Legacy drill hole sd140 completed in 2010 was aimed at following the down-dip extension of legacy drill

hole sd119 that reported an estimated true thickness interval of 38.5 metres averaging 1.58% Ni and

2.44% Cu, including 21.4 metres of 2.34% Ni and 3.39% Cu at the Selebi deposit (see news release

dated August 15, 2022). Drill hole sd119 is located approximately 300 metres from the Selebi Mine

underground infrastructure. See

"Historic Data"

SMD-22-001 intersected two intervals of amphibolite hosted Ni-Cu sulphides. The lower interval of

massive sulphide mineralization coincides with the interpreted target depth of the sd140 off-hole EM

plate. This new hole has returned potentially significant results including:

SMD-22-001 (upper interval):

7.15 metres of 0.33% Ni, 0.82% Cu, 0.01% Co and 2.23 ppm

Ag.

SMD-22-001 (lower interval):

25.65 metres of 0.95% Ni, 2.03% Cu, 0.04% Co and 7.40 ppm

Ag.

Including

6.90 metres of 2.22% Ni, 3.76% Cu, 0.08% Co and 13.47 ppm Ag.

and

3.25 metres of 0.87% Ni, 2.00% Cu, 0.04% Co and 6.54 ppm Ag.

and

1.90 metres of 1.40% Ni, 0.76% Cu, 0.06% Co and 2.58 ppm Ag.

Keith Morrison, CEO, commented:

"Our primary objective with this first phase of surface drilling and

borehole electromagnetics (BHEM) program at Selebi is to provide the Company with the relevant

information to support the transition to underground resource drilling at both the Selebi North and Selebi

deposits.

These assay results provide an indication that the mine horizons could be well mineralized beyond the

limits of legacy production when the mines were placed on care and maintenance in 2016. The BHEM

data is mapping conductive Ni-Cu-Co massive sulphide mineralization. The BHEM data is interpreted

by management to show several large, high conductance anomalies on the northern extension of the

Selebi Mine Horizon, along with a new lower horizon that has never been drilled. The surface drilling and

oriented core structural measurements and the BHEM are being used to locate the structures controlling

the geometry of the mine horizons, so that exploration drifts required for underground drilling can be

optimized reducing the length of drill holes, time to drill and cost to develop a PEA compliant resource.

We anticipate commencing underground drilling at the Selebi North deposit in October as we work

toward our goal of preparing an NI 43-101 compliant Inferred Mineral Resource. The proposed

exploration program at Selebi North includes drill 21,000 metres of underground drilling, with the view of

delivering a compliant resource by the fourth quarter of 2023. The remaining assay results, combined

with the ongoing BHEM program from this phase one exploration program will be focused on defining

the required underground drilling program at Selebi. We will communicate the proposed plans for the

Selebi underground drilling program as they are defined."

This news release summarizes the results from drill hole SMD-22-001, which was drilled from surface to

a down hole depth of 1,498 metres. A summary of assays and drill collar information are provided in

Tables 1 and 2, respectively. A drill plan and BHEM map are provided as Figures 1, 2 and 3,

respectively.

Figures may be viewed using the link provided with this news release.

Further details of drilling completed at the Selebi deposit are outlined below.

SMD-22-001 targeted the center of the modeled BHEM plate and is located approximately 160 metres

down plunge of the legacy hole sd119 (

figure 2

). Two intervals of amphibolite hosted Ni-Cu sulphide

mineralization, the upper interval and the lower interval, are separated by a 15.5 metre interval of

sporadically mineralized quartzo feldpathic gneiss.

The upper interval (from 1355.35 to 1362.50 metres) consists of disseminated, coarse blebby and local

net-textured sulphides hosted in a coarse grained massive amphibolite that returned 0.33 % Ni, 0.82%

Cu, 0.01% Co and 2.23 ppm Ag.

The lower interval (from 1374.50 to 1400.20 metres) is also hosted in coarse grained amphibolite.

Sulphide textures are primarily semi-massive to massive, with localized intervals of disseminations,

stringers, and patchy sulphides.

Importantly, the lower interval returned

25.65 metres of 0.95% Ni, 2.03% Cu, 0.04% Co and 7.40 ppm

. This large zone included three higher grade intervals including a 6.90 metres intersection of 2.22%

Ni, 3.76% Cu, 0.08% Co and 13.47 ppm Ag from 1378.00 to 1384.90 metres. In addition, a 3.25 metre

intersection from 1390.75 metres returned values of 0.87% Ni, 2.00% Cu, 0.04% Co and 6.54 ppm Ag.

Also contained within the main zone was an additional deeper high-grade intersection of 1.40% Ni,

0.76% Cu, 0.06% Co and 2.58 ppm Ag over 1.90 metres from 1398.25 to 1400.20 metres (

See Table

). True thickness is expected to be 70 to 80% of drill length intervals.

Table 1: Assay Results Selebi Deposit (Selebi Mine)

Hole-ID

From

(m)

Length

(m)

(%)

(ppm)

SMD-22-001

1355.35

1362.50

7.15

0.82

0.33

0.01

4.28

2.23

SMD-22-001

1374.50

1400.15

25.65

2.03

0.95

0.04

12.4

7.4

including

1378.00

1384.90

6.90

3.76

2.22

0.08

28.94

13.47

and

1390.75

1394.00

3.25

2.00

0.87

0.04

11.12

6.54

and

1398.25

1400.15

1.90

0.76

1.40

0.06

15.24

2.58

A second drill was commissioned on March 26, 2022 and, to date, two drill holes plus one wedge hole

have reached target depth and tested the large BHEM anomaly with assays expected in the coming

weeks. Separately, two additional drill holes are currently targeting the down-plunge of the intersection in

SMD-22-001-W1 with interpreted BHEM target depths expected to be reached imminently. Table 2

below shows the hole coordinates and depths of each hole. The coordinate system is WGS84 UTM

Zone 35 South.

Table 2: Drill Collar Information Selebi Deposit (Selebi Mine)

HOLE ID

UTM_EAST

UTM_NORTH

elevation

azimuth

dip

hole

length

drilled

meters

comment

SMD-22-

001

582889.3

7562998.8

903.6

107.8

-78.38

1498.37

completed

SMD-22-

001-W1

582889.3

7562998.8

903.6

107.8

-78.38

1467.95

1014.40

wedge at

453.55m,

completed

SMD-22-

002

582854.5

7562848.3

904.2

107.02

-79.2

1458.95

completed

SMD-22-

003

582745.0

7562843.0

905.0

108

-78.5

54.84

hole

abandoned,

excessive

deviation

SMD-22-

004

582749.1

7562843.3

905.0

108.18

-78.5

427.07

on hold

SND-22-

005

584710.0

7564991.3

895.0

297.9

-72.5

353.47

hole stopped

SND-22-

005a

584710.0

7564991.3

895.0

297.9

-72.5

517.07

209.16

Wedged from

005 at

307.91m

SND-22-

005b

584710.0

7564991.3

895.0

297.9

-72.5

909.67

469.80

Wedged from

005a at

439.87, on

hold at depth,

waiting for

NAVI

equipment

SMD-22-

006

582754.0

7563543.0

903.0

108.35

-78.3

18.21

Abandoned in

casing

SMD-22-

006a

582754.0

7563543.0

903.0

108.35

-78.3

1494.95

Re-start of

SMD-006,

drilling in

progress

SMD-22-

007

582801.0

7563267.0

897.0

108.19

-76.88

21.94

Hole

abandoned in

casing

SMD-22-

007a

582801.0

7563267.0

897.0

108.19

-76.88

1345.14

in progress

TOTAL

8366.30

August 16,

2022

Since 2019, the PNRL technical team has been compiling and verifying information. Mine level plans

were digitized and, after significant effort, PNRL now has a 3D model of the Selebi and Selebi North

underground workings and infrastructure. The gathering of the geological information to build a 3D model

is ongoing. Information from handwritten drill logs were merged into the historic drill hole database, and

as required, historic core is being re-logged. This 3D geological and structural model will be a vital

component for planning future drill programs.

Reporting of assay results from holes completed at the Selebi Mine mineralized zones is expected to

occur at regular intervals over the coming weeks.

Borehole Electromagnetic Survey

A total of 30 holes have been surveyed with BHEM and a program to collect additional BHEM data is

ongoing.

Almost all of the legacy holes were blocked, and a program of re-opening holes began in

October 2021. Gyro and BHEM data has been collected in these re-opened holes. Collars of 228 drill

holes have been located using a differential Global Positioning System (DGPS) and at another 105 sites

where evidence of drilling was found, but no hole was seen. An initial downhole program of televiewer

and physical property logging has also been completed to support the creation of a structural 3D model.

This work continues to highlight the potential for establishing a mineral resource estimate at depth at the

Selebi deposit. The Selebi North mineralization is also open at depth, and additional potential to

establish a mineral resource estimate occurs here. Given the basin structure, it is possible that the

Selebi North mineralization extends at depth and flattens to the south, while also potentially extending

southward. The conductors outlined to date all correlate to known horizons of nickel and copper sulphide

and it is interpreted that the BHEM results demonstrate continuity between the Selebi and Selebi North

deposits (

figure 3

Quality Control

The drilling was completed by Mitchell Drilling of Botswana utilizing a Sandvik UDR1500 and a Boart

Longyear LF-160 diamond drill rig. Drill core samples (47.75mm NQ) are cut in half by a diamond saw

on site.

Half of the core is retained for reference purposes.

Samples are generally 1.0 to 1.5 metre

intervals or less at the discretion of the site geologists. Sample preparation and lab analysis was

completed at the ALS Chemex in Johannesburg, South Africa.

Commercially prepared Blank samples

and certified Cu/Ni sulphide analytical control standards with a range of grades are inserted in every

batch of 20 samples or a minimum of one set per sample batch.

Analyses for Ni, Cu and Co are

completed using a peroxide fusion preparation and ICP-AES finish (ME-ICP81).

Qualified Person

The scientific and technical content of this news release has been reviewed and approved by Sharon

Taylor, Chief Geophysicist of the Company, who is a "qualified person" for the purposes of National

Instrument 43-101 -

Standards of Disclosure for Mineral Projects

NI 43-101

").

Technical Report

Scientific and technical information relating to the Selebi Mine is supported by the technical report titled

"Technical Report on the Selebi Mines, Central District, Republic of Botswana, Report for NI 43-101"

dated June 16, 2022 (effective date of March 1, 2022) (the "

Selebi Technical Report

"), and prepared

by SLR Consulting (Canada) Ltd. for PNRL. Reference should be made to the full text of the Selebi

Technical Report, including to review the assumptions, limitations and data verification relating to the

historic data compilation presented in this news release, which was prepared in accordance with NI 43-

101 and is available electronically on SEDAR (

www.sedar.com

) under PNRL's issuer profile.

Historic Data

The work undertaken by the Company and SLR Consulting (Canada) Ltd. to verify the historic data

compilation is further described in the Selebi Technical Report. While (i) visual estimates of oxidized

sulphides appear to correlate well with logged intercepts and analytical values, and (ii) analytical values

compared between the logs and the digital database appear to compare well, the technical team

continues to collect, compile, review and validate historic technical data relevant to the project. To that

end, the Selebi Technical Report recommends continued compilation and verification to confirm that the

QA/QC program results are adequate to support the inclusion of the historical drill hole information in a

mineral resource estimate in accordance with NI 43 101.

Historical down-dip drill hole sd140 was re-opened between October 19, 2021 and November 14, 2022

to facilitate new gyro and BHEM surveys. The hole failed to intersect mineralization and also failed to

intersect the host amphibolite at the anomaly depth.

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 Information

Certain statements contained in this news release may be considered "forward-looking statements"

within the meaning of applicable Canadian securities laws, including the timing and ability of the

Company to report additional assay results at regular intervals over the coming weeks; the ability of

exploration results (including drilling) to accurately predict mineralization; the significance of

exploration (including drilling) results; the objectives of the first phase; the ability of the Company to

transition to underground resource drilling at Selebi North and Selebi; the ability of assay results to

indicate mine horizons and mineralization, at all, including beyond the limits of legacy production;

management's interpretation of BHEM data; the ability of the Company to use exploration drifts for

underground drilling to optimize drilling and the time and cost to develop a PEA compliant resource;

the timing and ability of the Company (if at all) to commence underground drilling at Selebi North; the

timing and ability (if at all) of the Company prepare an inferred mineral resource on Selebi North in

accordance with NI 43-101; the ability of the Company to compile and verify historic data; the potential

for establishing a mineral resource estimate on the Selebi deposit at depth; the Selebi North

mineralization remaining open at depth and having a potential for a mineral resource estimate; and

the business and prospects of the Company. These forward-looking statements, by their nature,

require the Company to make certain assumptions and necessarily involve known and unknown risks

and uncertainties that could cause actual results to differ materially from those expressed or implied

in these forward-looking statements. Forward-looking statements are not guarantees of performance.

Words such as "may", "will", "would", "could", "expect", "believe", "plan", "anticipate", "intend",

"estimate", "continue", or the negative or comparable terminology, as well as terms usually used in

the future and the conditional, are intended to identify forward-looking statements. Information

contained in forward-looking statements are based upon certain material assumptions that were

applied in drawing a conclusion or making a forecast or projection, including management's

perception of geology and mineralization; perceptions of historical trends, current conditions and

expected future developments, current information available to the management of the Company,

public disclosure from operators of the relevant mines, as well as other considerations that are

believed to be appropriate in the circumstances. The Company considers its assumptions to be

reasonable based on information currently available, but cautions the reader that their assumptions

regarding future events, many of which are beyond the control of the Company, may ultimately prove

to be incorrect since they are subject to risks and uncertainties that affect the Company and its

businesses.

For additional information with respect to these and other factors and assumptions underlying the

forward-looking statements made in this news release concerning the Company, see the section

entitled "Risks and Uncertainties" in the most recent management discussion and analysis of the

Company, which is filed with the Canadian securities commissions and available electronically under

the Company's issuer profile on SEDAR (

www.sedar.com

) and the risk factors outlined in the filing

statement of the Company dated July 22, 2022, which are available electronically on SEDAR

(

www.sedar.com

) under the PNRL's issuer profile. The forward-looking statements set forth herein

concerning the Company reflect management's expectations as at the date of this news release and

are subject to change after such date. The Company disclaims any intention or obligation to update or

revise any forward-looking statements, whether as a result of new information, future events or

otherwise, other than as required by law.

Neither the Exchange nor its Regulation Services Provider (as that term is defined in the

policies of the Exchange) accepts responsibility for the adequacy or accuracy of this news

release. No stock exchange, securities commission or other regulatory authority has approved

or disapproved the information contained herein.

Figure 1. Selebi Drill Results: Inclined Long Section

To view an enhanced version of Figure 1, please visit:

https://images.newsfilecorp.com/files/7759/134153_981dadbfc4f7da89_002full.jpg

Figure 2. Drill Hole SMA-22-001 Location Map

To view an enhanced version of Figure 2, please visit:

https://images.newsfilecorp.com/files/7759/134153_981dadbfc4f7da89_003full.jpg

Figure 3. Drill Hole and Borehole EM (BHEM) Exploration Work Program

To view an enhanced version of Figure 3, please visit:

https://images.newsfilecorp.com/files/7759/134153_981dadbfc4f7da89_004full.jpg

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

https://www.newsfilecorp.com/release/134153

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