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Canada Nickel Expands New Nesbitt Nickel Discovery by 1.8 kilometres

Press Release

Highlights:

  • Third hole at Nesbitt Nickel Property drilled 1.8 kilometres east of initial discovery holes intersected 302 metres of nickel mineralization with intervals of visible disseminated sulphides
  • Consistent results with the first two Nesbitt drill holes and Higher Grade Zone at Crawford

TORONTO, July 14, 2021 – Canada Nickel Company Inc. (“Canada Nickel” or the “Company”) (TSXv :CNC)(OTCQB: CNIKF) today announced additional results from its drilling program currently underway at the Nesbitt Nickel property, part of the Company’s larger exploration program testing regional targets around its wholly -owned Crawford Nickel Sulphide Project. The two initial discovery holes were previously described in a press release dated June 29, 2021.

Mark Selby, Chair and CEO said, “This third hole was drilled 1.8 kilometres east of the first two holes at Nesbitt and demonstrates the scale potential of this new discovery on a 3.7 kilometre long target. Located just 8 kilometres north of Crawford it is a potential source of higher-grade source of feed for the Crawford mill. The results further underscore the success of our geophysical approach and the district scale potential of our overall land package. I look forward to continued success at Nesbitt and to our upcoming follow-up on the significant 0.38% nickel interval at the recently acquired Bradburn/Dargavel target.”

Nesbitt Nickel Project

The Nesbitt Nickel project is centered on an ultramafic sill that strikes east -west for a distance of 3.7 kilometres and a width that is estimated to vary between 100 to 300 metres (for reference, the Crawford Main Zone resource is 1.7 kilometres long and 225 to 425 metres wide). Consistent with the first two holes, the third hole was collared near the eastern limit of the central Nesbitt trend to explore a coincident (high) magnetic and (low) gravity anomaly (see Figure 2 below) identified during Canada Nickel’s geophysical exploration work conducted during the first half of 2021.

Nesbitt NES21 -03 was collared on the south side of the intrusion and drilled to the north. The hole was pulled back into the volcanics to test for possible PGM (platinum group metals) mineralization at the pyroxenite-peridotite contact, which this hole did not intersect. It exited the volcanics and intersected nickel-bearing peridotite and dunite with visible sulphides for a core length of 314 metres from 126 metres to 440 metres (including a 12 metre felsic dike), where the hole returned to volcanics. The hole was stopped at 474 metres. NES21-02 was continued from 360 metres (as previously reported) to a final depth of 501 metres, where it intersected a total of 304 metres of nickel-bearing peridotite and dunite from 113 to 417 metres. The area between NES21-03 and NES21-02 (located 1.8 kilometres to the west) remains untested, along with an area 1.1 kilometres west of the initial hole NES21-01.

Figure 1 – Hole NES21 -03 Pentlandite + Pyrrhotite in serpentinized dunite Microscope photos at 190 and 279 metres

Figure 2–plan view of Nesbitt Property showing Nesbitt Property discovery holes on Outline of Gravity Low and Magnetic High geophysics anomaly overlain on total field magnetic intensity, Nesbitt Township, Ontario

Table 1 Drill Hole Orientation

Analytical results from the regional exploration drill holes will be released after completion of internal QAQC procedures. Table 1 below lists drill locations for the results of the three drill holes outlined in this news release, the holes currently in the assay lab and those in progress.

Target DDH ID Northing Easting Azimuth Dip Length
(mN) (mE) (°) (°) (m)
Nesbitt NES21-01 5,416,550 468,015 5.00 -50.00 499.0
Nesbitt NES21-02 5,416,775 468,351 360.00 -50.00 501.0
Nesbitt NES21-03 5,416,782 470,182 360.00 -50.00 474.0

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.

Cautionary Statement Concerning Historical Information

The historical information referenced in this press release is based primarily on drilling results reported by Inco Ltd. and Noble Mineral Exploration Inc. The information has also been filed with the Ontario Government and is available on-line through the Mining Lands Administration System (MLAS) website. The company believes this information is relevant, as it was completed by reputable companies using industry standard drilling and sampling practices. The company or its “qualified person” (for the purposes of National Instrument 43-101 – Standards of Disclosure for Mineral Projects) has reviewed the information to confirm it has been correctly reproduced from the public MLAS database, but given the Company’s and its qualified person’s inability to access the underlying data, the Company or its qualified person has not done sufficient work to verify the historical information contained in this news release.

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. For more information, please visit www.canadanickel.com.

For further information, please contact:

Mark Selby, Chair and CEO

Phone: 647-256-1954

Email: [email protected]

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