Mr. Keith Morrison reports

PREMIUM NICKEL RESOURCES LTD. REPORTS FIRST ASSAY RESULTS AT ITS 100 per cent OWNED SELEBI MINE IN BOTSWANA: 25.65 METRES OF 0.95 per cent NI, 2.03 per cent CU

Premium Nickel Resources Ltd. has released the first assay results from the company's 2022 diamond drilling program at its 100-per-cent-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 Aug. 16, 2022. Results have been received for the first 2022 drill hole 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 Premium Nickel during the compilation and verification of historic data in 2021. 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 per cent nickel and 2.44 per cent copper, including 21.4 metres of 2.34 per cent Ni and 3.39 per cent Cu at the Selebi deposit (see news release dated Aug. 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 per cent Ni, 0.82 per cent Cu, 0.01 per cent cobalt and 2.23 parts per million silver;
• SMD-22-001 (lower interval): 25.65 metres of 0.95 per cent Ni, 2.03 per cent Cu, 0.04 per cent Co and 7.40 ppm Ag, including:
  • 6.90 metres of 2.22 per cent Ni, 3.76 per cent Cu, 0.08 per cent Co and 13.47 ppm Ag;
  • 3.25 metres of 0.87 per cent Ni, 2.00 per cent Cu, 0.04 per cent Co and 6.54 ppm Ag;
  • 1.90 metres of 1.40 per cent Ni, 0.76 per cent Cu, 0.06 per cent Co and 2.58 ppm Ag.

Keith Morrison, chief executive officer, 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 [preliminary economic assessment]-compliant resource.

"We anticipate commencing underground drilling at the Selebi North deposit in October as we work toward our goal of preparing [a National Instrument] 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 downhole depth of 1,498 metres. A summary of assays is provided in the attached table.

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

SMD-22-001 targeted the centre of the modelled BHEM plate and is located approximately 160 metres down plunge of the legacy hole sd119. 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 1,355.35 to 1,362.50 metres) consists of disseminated, coarse blebby and local net-textured sulphides hosted in a coarse grained massive amphibolite that returned 0.33 per cent Ni, 0.82 per cent Cu, 0.01 per cent Co and 2.23 ppm Ag.

The lower interval (from 1,374.50 to 1,400.20 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 per cent Ni, 2.03 per cent Cu, 0.04 per cent Co and 7.40 ppm Ag. This large zone included three higher-grade intervals, including a 6.90-metre intersection of 2.22 per cent Ni, 3.76 per cent Cu, 0.08 per cent Co and 13.47 ppm Ag from 1,378.00 to 1,384.90 metres. In addition, a 3.25-metre intersection from 1,390.75 metres returned values of 0.87 per cent Ni, 2.00 per cent Cu, 0.04 per cent Co and 6.54 ppm Ag. Also contained within the main zone was an additional deeper high-grade intersection of 1.40 per cent Ni, 0.76 per cent Cu, 0.06 per cent Co and 2.58 ppm Ag over 1.90 metres from 1,398.25 to 1,400.20 metres. True thickness is expected to be 70 per cent to 80 per cent of drill length intervals.

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.

Since 2019, the Premium Nickel technical team has been compiling and verifying information. Mine level plans were digitized, and, after significant effort, Premium Nickel now has a 3-D model of the Selebi and Selebi North underground workings and infrastructure. The gathering of the geological information to build a 3-D model is continuing. Information from handwritten drill logs were merged into the historic drill hole database, and, as required, historic core is being relogged. This 3-D 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 continiung. Almost all of the legacy holes were blocked, and a program of reopening holes began in October, 2021. Gyro and BHEM data have been collected in these reopened 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 3-D 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.

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 (47.75-millimetre NQ) are cut in half by a diamond saw on site. One-half of the core is retained for reference purposes. Samples are generally 1.0-metre to 1.5-metre intervals or less at the discretion of the site geologists. Sample preparation and lab analysis were 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), and prepared by SLR Consulting (Canada) Ltd. for Premium Nickel. 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 under Premium Nickel's issuer profile.

Historic data

The work undertaken by the company and SLR Consulting (Canada) 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 quality assurance/quality control 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 reopened between Oct. 19, 2021, and Nov. 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.

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