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

• 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.

Canada Nickel Company Inc. ("Canada Nickel" or the "Company") (TSXV: CNC) (OTCQX: CNIKF – https://www.commodity-tv.com/ondemand/companies/profil/canada-nickel-company-inc/) 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.

More information is attached

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.