Canada Nickel Expands Timmins Nickel District – Acquires 13 Additional Highly Prospective Nickel Properties in Timmins Region

Canada Nickel Expands Timmins Nickel District – Acquires 13 Additional Highly Prospective Nickel Properties in Timmins Region Highlights

• Acquisition of 13 additional target properties consolidates district scale potential.

• Combined target surface footprint of 37.7 square km – 40 times larger than current Crawford Main Zone resource of 0.85 square km.
• Ten target properties have larger footprint than Crawford and nine confirmed to contain the same host mineralization as Crawford.
• Sothman target property has historical higher grade, shallow resource of approximately 190,000 tons of 1.24% nickel (with 300 metres strike length)¹; remaining 2.2 km of strike length is largely untested.

• Four target areas have yielded drill intersections of > 0.3% nickel including:

‒ Sothman: 2.31% nickel and 0.19% copper over true width of 3.2 metres within 1.58% nickel and 0.12% copper over true width of 8.6 metres from 41 metres;

‒ Deloro: 0.38% nickel and 0.22 g/t PGM over core length of 15.5 metres within 0.28% nickel and 0.09 g/t PGM over core length of 299 metres from 241 metres;

‒ Midlothian: 0.24% nickel over core length of 345 metres, including 0.30% nickel over 42 metres;

‒ Mann Southeast: multiple 3 metre intervals grading 0.31-0.33% nickel within 111 metres of dunite across entire core length

TORONTO, November 22, 2021 – Canada Nickel Company Inc. ("Canada Nickel" or the "Company") (TSXV: CNC) (OTCQX: CNIKF) today announced that the Company has concluded 18 separate transactions resulting in the outright acquisition or earn-in to 13 additional target properties within a radius of 95 km of the Company’s flagship Crawford Nickel-Sulfide Project, consolidating Canada Nickel’s position in the Timmins area. Each of the additional properties contains one or more ultramafic targets based on combinations of historical geophysical work and drilling over the past 65 years. See transaction summary at the end of the release for a summary of the acquisition terms. “The acquisition of these highly prospective target properties represents a transformational milestone for Canada Nickel, on par with the initial discovery of our flagship property, Crawford. The consolidation of these properties underscores our strong belief in the district-scale potential of the Timmins region and in our journey to become a leader of the Next Generation of Nickel Supply – large, scalable, low carbon nickel supply,” said Mark Selby, Chair & CEO of Canada Nickel. “These properties have combined target structures 40 times the scale of the structure which hosts our current Crawford Main Zone resource (contained nickel of 1.56 million tonnes M&I + 0.76 million tonnes inferred²), and

1 See Statement Regarding Historical Resource Estimates on page 27 of this press release.

2 See Preliminary Economic Assessment, titled "Crawford Nickel-Sulphide Project National Instrument 43-101 Technical Report and Preliminary Economic Assessment", with an effective date of May 21, 2021 like Crawford, all these target structures are near excellent infrastructure. Each target has had some amount of historical work, and in some cases, much more than Crawford did initially, confirming these targets contain the same serpentinized dunite and/or peridotite that hosts Crawford mineralization and, as our last release reported, has the potential to permanently sequester CO2.”

Figure A – The Timmins Nickel District

The Company will host a conference call and webcast today, Monday, November 22, 2021, at 10:00 a.m. EDT, to discuss the property acquisitions and answer questions related to the advancement of the Timmins Nickel District (see details at the end of this announcement).

Sothman

Sothman is a property of approximately 1,000 ha located 70 km south of Timmins. The project was acquired from Glencore.

The Sothman Property contains an ultramafic sill comprised mainly of dunite (see Figure 2) that is estimated to be up to 200-300 metres thick, 2.2 km long and open at depth. An unclassified historical resource estimate reported as 189,753 tons grading 1.24% nickel (the Sothman West Zone)³ is centred 500 metres west of the sill (the 2.2 km dunite sill is largely untested).

The Sothman West Zone occurs at the north ultramafic contact within a footwall embayment approximately 300 metres wide and open at depth. The best historical intersection was hole DG50-S04 with 1.58% nickel over 12.2 metres (8.6 metres estimated true width) from 41.2 metres downhole including 4.6 metres (3.2 metres estimated true width) of 2.31% nickel and 0.19% copper. A sample of historical drill results is shown in Table 1a and 1b. Two drillholes intersected a deeper pod of similar sulphide mineralization (3.4 metres of 1.32% nickel from 398 metres in SM71-1 and 5.5 metres of 0.49% nickel from 353.2 metres in SM71-2) outside of the resource during the last drill program in 1971. The Sothman Main Zone has seen very limited exploration but is known to contain dunite and peridotite and is similar in size to the East Zone at Crawford. For example, drillhole SM67-B25, SM67-B26 and SM67- B27 all intersected peridotite below overburden intersecting 54.56 metres of peridotite from 36.6 metres, 112.47 metres of peridotite from 7.6 metres, and 109.43 metres of peridotite from 12.19 metres respectively. All three holes ended in peridotite. Drillhole SM67-B28 was collared in peridotite (intersecting 46.02 metres of ultramafics from 15.24 metres) and crossed the south contact into volcanics at 61.26 metres, completing the only geologic section across the Sothman Main Zone.

Drillhole DG53-S41A is the only hole drilled in the eastern area of the Sothman Main Zone and intersected 60.1 metres of peridotite from 23.8 metres downhole, ending in peridotite. The south contact of the Sothman Main Zone has been intersected in three drillholes (DG51-S09, DG51-S12 and SM67-B28) with all holes starting in peridotite and ending in volcanics.

Table 1a – Historical Drilling – Sothman West Zone – Significant Intersections

3 See Statement Regarding Historical Resource Estimates on page 27 of this press release.

Table 1a – Historical Drilling – Sothman West Zone – Significant Intersections (continued)

Table 1b – Historical Drilling – Sothman Property – Selected Lithologies

• Denotes ended in mineralization

Figure 1 – Sothman Property – Historical Drillholes Over Total Magnetic Intensity (“TMI”).

Deloro

Deloro is a property of approximately 1,800 ha located 10 km southeast of Timmins. It contains an ultramafic unit 1.4 km in length and up to 450 metres wide, striking south-southeast identified by the high magnetic intensity anomaly and historical drilling (see Figure 2). Six holes (FY-02-02, FY-02-06, FY-02-10, FY-02-11, FY-02-12, FY-02-13) were drilled inside and on the edge of the anomaly. Five of six holes intersected serpentinized dunite/peridotite with a core length of 24.2 metres in hole FY-02-10 up to 138.4 metres in hole FY-02-13, with four of five holes ending in serpentinized dunite/peridotite.

All five holes noted presence of magnetite (up to 20-25% magnetite in interval 39.4-89.5 metres from hole FY-02-02) 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 a core length of 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 with 0.48% nickel, 0.28 g/t Pd, and 0.14 g/t Pt over 2.8 metres. See Table 2a and 2b below.

Figure 2 – Deloro Property – Historical Drillholes Over TMI

Table 2a – Historical Drilling – Deloro Property – Significant Intersections*

Table 2b – Historical Drilling – Deloro Property – Selected Lithologies

Table 2b – Historical Drilling – Deloro Property – Selected Lithologies (continued)

Mann

Mann is located 25 km east of Crawford and totals 7,800 ha. The ultramafic is estimated to be a combined 21 km in length with variable thickness and having at least three main dunitic cores like that at Crawford (Mann Central, Mann Northwest, and Mann Southeast). The Company has acquired the right to earn an 80% interest in the Mann Property from Noble by an initial payment of $100,000 in cash and 150,000 shares and paying a further $100,000 per year over the four-year Option Period (for a total cash payment of $400,000) and issuing a further 250,000 common shares, and incurring total exploration expenditures of $1.7 million, over the Option Period. Noble will retain a 2.00% Net Smelter Return (“NSR”) with a 1.00% buy-back to Canada Nickel for $1.0 million plus 50% of the buy-back provisions that total $4.5 million ($2.25 million to CNC).

Mann Central

The Mann Central Property area covers a single 4 km long by up to 1 km wide ultramafic intrusion (see Figure 3) that is evident in TMI geophysical surveys. Historical drilling has already delineated ultramafic mineralization over a strike length of 2,700 metres and 690 metres wide. Only one historical hole had assays – Falconbridge Ltd. intersected 79 metres (MAN43-03) of ultramafic which was intermittently sampled - with the highest reported assay of 0.29% nickel over ~1 metre (See Table 3a below). Historical drilling began in 1951 with seven of eight holes intersecting serpentinized peridotite containing magnetite. The longest intersection occurred in hole M-1, with 212 metres of well serpentinized peridotite along its entire core length. A 1976 drilling campaign reported wide intercepts of serpentinized ultramafic intrusive with visible sulphides and pervasive magnetite. Hole MA5-2-76 was the longest at 114 metres of serpentinized ultramafics along its entire core length (see Table 3a below).

Table 3a – Historical Drilling – Mann Central Property – Selected Lithologies

Table 3a – Historical Drilling – Mann Central Property – Selected Lithologies (continued)

Table 3b – Historical Drilling – Mann Central Property – Significant Intersections

Figure 3 – Mann Central Property – Historical Drillholes Over TMI.

Mann Northwest

The Mann Northwest Property covers an ultramafic intrusion having dimensions of 3.5 km long by 600- 800 metres wide (see Figure 4). The intrusion is described as mostly peridotite, commonly serpentinized, with overlying leuco-gabbro and pyroxenite.

First Point Minerals Corp. conducted a three-hole drill program (468 metres) in 2002 targeting PGMs in pyroxenites that overlie the ultramafic units. While the first hole (FHR-01-01) targeted the contact between the volcanics and the ultramafic rocks, the second hole (FHR02-02) intersected serpentinized peridotite containing magnetite and some sulphide stringers in fractures. Nickel assays were taken at selected intervals and ranged from a low of 0.10% nickel to a high of 0.31% nickel with average values >0.20% nickel (see table 4a).

Drilling conducted by Tres-Or Resources Ltd., did not report nickel assays but did intersect wide sections of serpentinized peridotite with magnetite and/or sulphide minerals (e.g., MAN-87-1) as observed in 22 drill holes (see Table 4b), as well as elevated PGM values (e.g., 0.57-0.59 g/t PGM) from several channel samples. Geological descriptions and geochemistry from these programs resemble what is observed at Canada Nickel’s Crawford property.

Table 4a – Historical Drilling – Mann Northwest Property – Significant Intersections

Table 4b – Historical Drilling – Mann Northwest Property – Selected Lithologies