Canada Nickel Announces Successful Drill Results from Recently Acquired Deloro target and Provides Corporate Update

Highlights

• First hole in recently acquired properties intersects 480 metres of dunite at Deloro using a sixth drill rig acquired at start of year.
• All nine holes from Dargavel, Mahaffy, MacDiarmid, Kingsmill intersected multi-hundred metre intersections of mineralization with best interval from first hole at Dargavel of 162 metres of 0.30% nickel including 0.34% nickel over 28.5 metres.
• Completion of Crawford feasibility study expected by fourth quarter of 2022 and formal start of permitting process in first quarter of 2022.
• Announces management additions in engineering and environment to support Company efforts to advance Crawford through feasibility and subsequent steps towards development.

TORONTO, Jan. 24, 2022 / – Canada Nickel Company Inc. (“Canada Nickel” or the “Company”) (TSXV: CNC) (OTCQX: CNIKF) today announced assay results from its Mahaffy, Dargavel, Kingsmill, and MacDiarmid properties, and provided an update on drilling and corporate activities.

In addition to completed drill assay results, partial assays have been received to date from 11 holes drilled at the Company’s Nesbitt property – these results have also been in line with expectations and will be released when all assays are received.

“I’m very excited to start the year with successful drilling of Deloro – the first of the thirteen targets we acquired at end of last year and the first step in confirming the potential of the Timmins Nickel District. After two very successful years in 2020 and 2021, the year 2022 sets the stage for Canada Nickel to move to the next level with the formal launch of Crawford permitting this quarter, an updated resource next quarter, and a feasibility study expected to be completed by the fourth quarter, which is just over three years from our Crawford discovery,” said Mark Selby, Chair & CEO. “I am also pleased to expand our capabilities with the latest additions to our team. Canada Nickel is well-positioned not only for success this year but for continued success in 2023 and beyond as we advance Crawford towards production.”

Steve Balch, VP Exploration, added, “Today’s successful assay results from our initial set of properties outside of Crawford and the success of the first hole at Deloro confirm our targeting approach is correct. Deloro is a great first example having intersected mineralized dunite from just two metres below surface over a length 480 metres. This year we will move beyond our flagship Crawford property and start exploring our thirteen newly acquired regional properties, confident that our targeting approach will yield multiple discoveries. With over 40 km² of ultramafic rocks yet to explore, we believe our project has the potential to grow to a massive scale. I look forward to further success as we continue to delineate this potential during 2022.”

Exploration Results

All 20 holes from the regional drill program intersected thick sequences of peridotite and/or dunite with some holes collared in, or ending in, volcanics. The highest-grade intersection was 0.34% nickel over 28.5 metres in Dargavel hole DAR21-01 (0.30% cutoff) within a larger zone grading 0.30% nickel over 162.0 metres (0.25% cutoff) starting at 375 metres downhole. The thickest interval of mineralization was in Kingsmill drillhole KML21-01 which intersected 0.24% nickel over 334.5 metres starting at 16.5 metres downhole. The overburden encountered was highly variable with as little as 12.5 metres at Nesbitt and as much as 160 metres at Mahaffy.

Deloro Property

DEL22-01, collared in the centre of the ultramafic target measuring 1.4 km long by 300 – 500 metres wide, and drilled toward the west contact, intersected mineralized dunite (including some narrow dykes) starting at 1.8 metres downhole. The hole remained in dunite beyond its projected length of 400 metres to 482 metres at the west contact for a total interval of 480 metres.

Previously, six holes (FY-02-02, FY-02-06, FY-02-10, FY-02-11, FY-02-12, FY-02-13) were drilled at Deloro by other explorers, inside or on the edge of the ultramafic, with five intersecting serpentinized dunite/peridotite. Hole FY-02-10 intersected 24.2 metres, FY-02-13 intersected 138.4 metres and four holes ended in serpentinized dunite/peridotite. All five holes noted magnetite (up to 20-25% magnetite in FY-02-02 from 39.4-89.5 metres) 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 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 intersecting 0.48% nickel, 0.28 g/t Pd, and 0.14 g/t Pt over 2.8 metres.

Figure A – Plan View of Deloro – Current Drill Results Overlain on Total Field Magnetic Intensity

Deloro is a property of approximately 1,800 ha in size and located 10 km southeast of Timmins. The Property consists of a series of mining patents and mining claims that completely cover the ultramafic unit. The area is within 10 km south of Timmins and is easily accessed by road. It contains an ultramafic intrusion 1.4 km in length and up to 450 metres wide, that strikes south-southeast as identified by its high magnetic intensity. Historical drilling intersected serpentinized dunite/peridotite with four of five holes ending in serpentinized dunite/peridotite. All five historical holes noted the presence of magnetite and disseminated sulphides. Only specific non-consecutive intervals were assayed, for example, FY02-02 reported 0.42% nickel over a core length of 4.2 metres.

Dargavel-Bradburn Property

A single hole in Dargavel Township was completed in 2021 to confirm historic drilling from the 1960s by Inco. Drillhole DAR21-01 intersected 501.2 metres of 0.23% nickel below overburden starting at 68.0 metres with a higher-grade zone of 0.30% nickel over 162.0 metres starting at 375.0 metres and including 0.34% nickel over 28.5 metres starting at 451.5 metres downhole (see Table 1).

Table 1 – Dargavel Drill Results – Intervals

BHID	From	To	Length	Ni	Co	Pd	Pt	Fe	Cr	S
	(m)	(m)	(m)	(%)	(%)	(g/t)	(g/t)	(%)	(%)	(%)
DAR21-01	68.0	569.2	501.2	0.23	0.01	0.02	0.02	6.94	0.43	0.01
including	375.0	537.0	162.0	0.30	0.01	0.00	0.00	6.84	0.20	0.01
including	447.0	475.5	28.5	0.34	0.01	0.00	0.00	7.24	0.10	0.01

*Note: Holes were drilled at various inclinations ranging from -50 to -70 degrees. The lengths reported are core lengths and not true widths. Canada Nickel has insufficient information to determine the attitude, either of the ultramafic body or of mineralized zones within it.

The Dargavel-Bradburn Property (see Figure 1) includes 3,554 ha of mining patents and 11,438 ha of mining claims. The property hosts a series of very long ultramafic sills striking east-west that have been mapped for 10 km. These townships have been relatively unexplored, but historical drilling in the 1960’s by Inco Limited in Dargavel township encountered 590 feet of serpentinized peridotite in hole 25014 grading 0.24% nickel with local assays up to 0.40% nickel and 287 feet of serpentinized peridotite in hole 28479 (no assays reported).

Mahaffy Nickel Project

Drilling in 2021 intersected thick zones of mineralized peridotite and dunite in two holes (see Table 2) with MAH21-01A encountering 0.22% nickel over 429.5 metres and MAH21-02 intersecting 0.21% nickel over 335.0 metres. Overburden in the drilling area was up to 120 metres in vertical thickness but is known to be much thinner in other areas of the property.

Table 2 – Mahaffy Drill Results – Intervals

BHID	From	To	Length	Ni	Co	Pd	Pt	Fe	Cr	S
(m)	(m)	(m)	(%)	(%)	(g/t)	(g/t)	(%)	(%)	(%)
MAH-21-01	131.5	561.0	429.5	0.22	0.01	0.00	0.00	5.12	3.26	0.79
including	419.5	561.0	141.5	0.24	0.01	0.00	0.01	5.00	3.12	0.73
MAH-21-02	160.0	495.0	335.0	0.21	0.01	0.01	0.01	7.34	0.66	0.04
including	344.1	469.5	125.4	0.25	0.01	0.01	0.00	6.10	0.86	0.05
including	426.0	430.5	4.5	0.46	0.01	0.04	0.01	6.07	0.94	0.13

*Note: Holes were drilled at various inclinations ranging from -50 to -70 degrees. The lengths reported are core lengths and not true widths. Canada Nickel has insufficient information to determine the attitude, either of the ultramafic body or of mineralized zones within it.

The Mahaffy Property (see Figure 2) is located 12 km west of Crawford and consists of five closely spaced ultramafic sills having an aggregate strike length of 24 km. This property, comprising mining claims totaling approximately 4,600 ha, was previously tested by historic hole 31901 (1966) which intersected 0.23% nickel over 127 metres, and historic hole T2-80-2 (1980) which intersected 277 metres of serpentinized ultramafic rock with no assays reported.

Kingsmill Property

In-fill drilling in 2021 intersected 334.5 metres of 0.24% nickel starting at 16.5 metres in KML21-01 and 268.5 metres of 0.21% nickel starting at 118.5 metres (see Table 3). Two holes testing for higher grade mineralization near a major fault intersected only lower grade mineralization with KML21-03 encountering 76.5 metres of 0.13% Ni and KML21-04 intersecting 161.0 metres of 0.14% Ni, both intervals within a weakly mineralized peridotite that is commonly encountered at the contact of the ultramafic.

Table 3 – Kingsmill Drill Results – Intervals

BHID	From	To	Length	Ni	Co	Pd	Pt	Fe	Cr	S
(m)	(m)	(m)	(%)	(%)	(g/t)	(g/t)	(%)	(%)	(%)
KML21-01	16.5	351.0	334.5	0.24	0.01	0.00	0.00	6.29	0.21	0.03
including	85.5	153.0	67.5	0.27	0.01	0.00	0.00	6.03	0.08	0.01
KML21-02	118.5	393.0	274.5	0.21	0.01	0.00	0.00	5.59	0.31	0.03
including	307.5	349.0	41.5	0.26	0.01	0.00	0.00	4.52	0.10	0.04
KML21-03	78.0	154.5	76.5	0.13	0.01	0.00	0.00	6.43	0.40	0.03
KML21-04	37.0	198.0	161.0	0.14	0.00	0.00	0.00	0.00	0.00	0.00

*Note: Holes were drilled at various inclinations ranging from -50 to -70 degrees. The lengths reported are core lengths and not true widths. Canada Nickel has insufficient information to determine the attitude, either of the ultramafic body or of mineralized zones within it.

The Kingsmill Property (see Figure 3) contains a large serpentinized ultramafic intrusion 2.2 kilometres long and 375 to 600 metres wide. The property has been previously explored (see Canada Nickel press release dated July 13, 2020) where thick intersections of mineralized dunite were encountered. Follow-up drilling in 2021 consisted of two in-fill drill holes and two more drill holes to test an area of major faulting (sometimes an area of upgraded mineralization).

MacDiarmid Property

MAC21-01 intersected 241.5 metres of 0.22% nickel starting at 90.5 metres downhole, MAC21-02 intersected 317.2 metres of 0.23% nickel starting at 61.5 metres, and MAC21-03 intersected 308.0 metres of 0.22% nickel starting at 30.0 metres downhole. All holes intersected higher grade intervals as well (see Table 4).

Table 4 – MacDiarmid Drill Results – Intervals

BHID	From	To	Length	Ni	Co	Pd	Pt	Fe	Cr	S
(m)	(m)	(m)	(%)	(%)	(g/t)	(g/t)	(%)	(%)	(%)
MAC21-01	90.5	332.0	241.5	0.22	0.01	0.01	0.01	5.62	0.34	0.03
including	225.0	292.5	67.5	0.27	0.01	0.00	0.01	5.39	0.30	0.05
MAC21-02	61.5	378.7	317.2	0.23	0.01	0.00	0.01	5.75	0.35	0.04
including	136.5	356.0	219.5	0.25	0.01	0.00	0.01	5.68	0.34	0.03
including	144.0	168.0	24.0	0.28	0.01	0.00	0.01	5.33	0.23	0.02
MAC21-03	30.0	338.0	308.0	0.22	0.01	0.00	0.01	5.70	0.33	0.03
including	91.3	148.0	56.7	0.25	0.01	0.00	0.01	5.20	0.46	0.03

*Note: Holes were drilled at various inclinations ranging from -50 to -70 degrees. The lengths reported are core lengths and not true widths. Canada Nickel has insufficient information to determine the attitude, either of the ultramafic body or of mineralized zones within it.

The MacDiarmid Property contains a large ultramafic intrusion that is approximately 3 km long and 150 to 600 metres wide with the primary target a stronger magnetic anomaly of 1.8 km long and up to 400 metres wide (see Figure 4). Three holes were collared on the eastern side of the intrusion spaced 200 metres apart and were designed to intersect dunite-peridotite in this region. The 2021 drill program has now defined mineralization across a strike length of 400 metres to a depth of 290 metres and widths of 140-180 metres. All holes were drilled to the south (205^o azimuth) at -50^o inclination.

Crawford Project Update

The Company continues to aggressively advance Crawford and expects to deliver a feasibility study by the fourth quarter of 2022 based on a resource update provided in the second quarter of 2022. The Company also expects to file the initial project description which will formally begin the permitting process for Crawford during the first quarter of 2022. The feasibility study is expected to be delivered just over three years from when Canada Nickel was formed and began drilling the fifth hole on the property.

As the company expects to complete the feasibility study for Crawford this year and intends to continue to advance the project towards production, the Company has continued to build the team to ensure we are successful in meeting our objectives for 2022 and beyond. The Company has promoted Christian Brousseau to the position of Vice President, Capital Projects and has appointed Desmond Tranquilla as Project Director. Mr. Brousseau will be responsible for completion of the Crawford Feasibility Study and leading the execution team to develop the Project through to production. Mathieu Boucher has also been appointed as Manager, Environment.

Management Appointments

Mr. Christian Brousseau joined Canada Nickel in 2020 as Project Director to lead the preliminary economic assessment for Crawford Project, which was completed in July 2021. He has 30 years’ experience in engineering, design and construction in the Canadian mining industry, including over six years as Project Director for the Dumont Project, a shovel-ready nickel project located in the Abitibi Region of Quebec. At Dumont, he led the engineering and construction plans and was instrumental in completing the revised Dumont feasibility study in 2019. Prior to Dumont, Mr. Brousseau held the position of Engineering and Construction Manager on the US$1.2 billion capex Detour Lake open-pit mine, located in the Timmins-Cochrane mining district. He also held a number of construction management positions at Canadian Malartic Mine in Quebec, and Newmont’s Éléonore Mine, in northern Quebec. Mr. Brousseau spent eight years at Falconbridge supervising and managing capital projects in Sudbury and at Glencore Canada’s Raglan Mine and Horne Smelter in Quebec and Kidd Creek Mine north of Timmins, Ontario.

Mr. Desmond Tranquilla has over 30 years’ experience in the management of major capital projects involving large mines and processing plants in Canada and the U.S., as well as transportation infrastructure projects, hydroelectricity and aggregate processing plants. Prior to joining Canada Nickel, Mr. Tranquilla held the position of Director of Construction for SNC-Lavalin North America, and was responsible for project execution, construction planning, procurement and contract agreements for Coeur Mining’s Rochester POA11 Merrill Crowe Heap Leach Project in Nevada. Mr. Tranquilla also acted as Senior Project Manager overseeing engineering, procurement, construction and management for the CAD$1.6 billion Vale Atmospheric Emission Reduction project in Sudbury, Canada. As Project Director at Ausenco Canada Limited, Mr. Tranquilla developed the construction plan for Hudbay Minerals’ US$1.9 billion Rosemont Copper Project in Arizona, U.S. Mr. Tranquilla also managed execution of mining projects for the Potash Corporation of Saskatchewan and Detour Lake Gold Mine Development in Northern Ontario.

Mr. Mathieu Boucher has over 10 years of experience working in environment and engineering. Prior to joining Canada Nickel, Mr. Boucher was employed at Glencore’s Horne Copper Smelter and North America Copper Assets, where he held positions as Environment and Sustainability specialist, supervisor, and superintendent. Throughout his time with Glencore, Mr. Boucher acted as a technical advisor or lead for the development of key characterization and improvement projects related to water treatment and water management from tailings facilities and industrial operations.

Mr. Boucher started his career with Golder Associates, where he contributed to environmental site assessment, site remediation, and water treatment projects for industrial and mining clients, and was involved in the development of modern, innovative approaches to ensuring the protection of sensitive natural environments. Mr. Boucher holds a Bachelor of Water Engineering from Laval University.

Table 6 – Drill Hole Orientation

BHID	Easting mE	Northing mN	Elevation	Depth	Azimuth	Dip
(mE)	(mN)	(m)	(m)	(o)	(o)
DAR21-01	459865.0	5432975.0	265.0	569.0	360.0	-55.0
DAR21-02	458415.0	5433486.0	266.0	lost	15.0	-55.0
DAR21-02A	458415.0	5433486.0	266.0	lost	15.0	-60.0
DEL-22-01	480413.0	5361341.0	320.0	492.0	248.0	-60.0
KML21-01	454867.0	5423113.0	275.0	446.0	360.0	-52.0
KML21-02	454810.0	5423105.0	265.0	428.0	270.0	-50.0
KML21-03	456499.0	5423095.7	271.8	lost	90.0	-50.0
KML21-03A	456498.0	5423097.0	265.0	156.0	90.0	-50.0
KML21-04	455772.5	5422900.0	274.4	198.0	90.0	-50.0
MAC21-01	459643.0	5390614.0	265.0	441.0	205.0	-50.0
MAC21-02	459443.0	5390613.0	268.0	411.0	205.0	-50.0
MAC21-03	459832.0	5390583.6	280.0	438.0	205.0	-50.0
MAH21-01	457650.0	5413477.0	270.0	lost	45.0	-50.0
MAH21-01A	457650.0	5413477.0	270.0	561.0	45.0	-70.0
MAH21-02	457562.0	5413681.0	275.0	lost	60.0	-60.0
MAH21-02A	457562.0	5413681.0	270.0	495.0	60.0	-70.0

Statement Regarding TSX Venture

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

The completion of any transactions mentioned in this release is subject to customary closing conditions, including final TSX Venture Exchange approval. The common shares issued pursuant to the above noted acquisitions will be subject to a four month hold period under applicable Canadian securities laws. Some transactions may have been approved prior to this release.

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.

Assays, Quality Assurance/Quality Control and Drilling

Edwin Escarraga, 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. A set of Samples are transported in secured bags directly from the Canada Nickel core shack to Actlabs Timmins, the other set of samples are securely shipped to SGS Burnaby. Both are ISO/IEC 17025 accredited labs. 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 3 QA/QC samples per 20 core samples making a batch of 60 samples that are submitted for analysis.

About Canada Nickel Company

Canada Nickel Company Inc. is advancing the next generation of nickel-sulphide projects to deliver nickel 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 Nickel^TM, NetZero Cobalt^TM, NetZero Iron^TM 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 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. 

For more information, please visit www.canadanickel.com. or contact:

Mark Selby
Chair and CEO
Phone: 647-256-1954
Email: info@canadanickel.com 

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 and exploration results relating to the target properties described herein (the “Properties”), the potential of the Crawford Nickel Sulphide Project and the Properties, timing of economic studies and mineral resource estimates, the ability to sell marketable materials, strategic plans, including future exploration and development results, and corporate and technical objectives. Forward-looking information is necessarily based upon several 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, risks of the mining industry, delays in obtaining governmental approvals, failure to obtain regulatory or shareholder approvals, and the impact of COVID-19 related disruptions in relation to the Company’s business operations including upon its employees, suppliers, facilities and other stakeholders. 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 because of new information, future events or otherwise, except as required by law.