PREMIUM NICKEL RESOURCES LTD. COMPLETES PURCHASE OF SELKIRK MINE IN BOTSWANA

Premium Nickel Resources Ltd. (PNRL) has completed its acquisition of the nickel, copper, cobalt, platinum-group element Selkirk mine in Botswana, together with associated infrastructure and four surrounding prospecting licences formerly operated by Tati Nickel Mining Company (TNMC). The acquisition was completed, pursuant to the company's previously announced asset purchase agreement with the liquidator of Tati Nickel Mining (see the news release dated Feb. 14, 2022). With the acquisition now complete, ownership of the Selkirk mine has been transferred to the company.

The company began comprehensive due diligence programs on the Selkirk mine in 2020 and has since continued to verify old data and collect new data, including completion of a concept-level metallurgical study. The metallurgical testing carried out at SGS Lakefield, Ont., Canada, will help to establish the company's redevelopment plan to produce separate copper and nickel-cobalt concentrates.

Keith Morrison, chief executive officer, commented: "Completing the transfer of ownership of the Selkirk mine concludes PNRL's announced asset purchases with the Liquidator of TNMC in Botswana. On a voluntary basis, PNRL will move forward with completing its initial NI [National Instrument] 43-101 technical report on Selkirk and the surrounding prospecting licences. Concurrently, we will prioritize the preparation and exploration requirements that will support our proposed redevelopment plans for new modern operations with state-of-the-art processing and tailings management facilities. The redevelopment plan will encompass modern best practices, using less power, less water and assuming conservative commodity prices."

The Selkirk mine is situated 28 kilometres south-east of the town of Francistown and 75 kilometres north of the 100-per-cent-owned Selebi mines. The Selkirk mining licence covers approximately 14.6 square kilometres and the four prospecting licences cover 126.7 square kilometres. Production at the Selkirk mine took place between 1989 and 2002 with Anglo American mining high-grade Ni-Cu massive sulphides and producing one million tonnes at 2.6 per cent Ni and 1.5 per cent Cu. Thereafter, in 2006, LionOre Mining International Ltd. published a technical report in accordance with NI 43-101, which reported a historic indicated mineral resource estimate of six million tonnes (Mt) grading 1.06 per cent nickel and 0.36 per cent copper at a cut-off grade of 0.75 per cent Ni. The technical report entitled "A preliminary assessment and techno-economic analysis of the requirements for the establishment of a nickel mining & processing facility at the Selkirk project situated on the farms 73NQ and 75 NQ in NE Botswana, mineral properties and prospects held by LionOre," with an effective date of Sept. 21, 2006, was prepared for LionOre by TMP Consulting (Pty.) Ltd. See "Historical estimate." The former operator acquired Selkirk from Norilsk Nickel through a purchase agreement in October, 2014. Norilsk was preparing Selkirk as an open pit operation and had completed definitive feasibility studies in 2012 and 2013 (Norilsk Nickel annual reports).

Premium Nickel Resources intends to complete a technical report, in accordance with National Instrument 43-101 -- Standards of Disclosure for Mineral Projects, to advance its understanding of the Selkirk property. The technical report is being prepared on a voluntary basis, as the Selkirk property is not a material property of the company, pursuant to NI 43-101. Following the completion of the technical report, the company currently anticipates that a work plan will be proposed for the Selkirk mine redevelopment that will include drilling to better define the existing resources and search for additional resources, develop a 3-D geological and structural model, and complete additional metallurgical studies.

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 NI 43-101.

Historical estimate

The historic Selkirk MRE (mineral resource estimate), completed in 2006, is considered to be historical in nature and should not be relied upon as a current mineral resource estimate. While management believes that the Historic Selkirk MRE could be indicative of the presence of mineralization on the Selkirk mines property, a qualified person has not completed sufficient work to classify the historical mineral estimate as a current mineral resource estimate and Premium Nickel Resources is not treating the historical mineral estimates as current mineral resource estimate.

About Premium Nickel Resources Ltd.

Premium Nickel Resources is a Canadian company dedicated to the exploration and development of high-quality Ni-Cu-Co resources. Premium Nickel Resources believes that the medium to long-term demand for these metals will continue to grow through global urbanization and the increasing replacement of internal combustion engines with electric motors. Importantly, these metals are key to a low-carbon future.

Premium Nickel Resources maintains a skilled team with strong financial, technical and operational expertise to take an asset from discovery to exploration to mining.

Premium Nickel Resources has focused its efforts on discovering world-class nickel sulphide assets in jurisdictions with rule-of-law that fit a strict criteria that comply with Premium Nickel Resources's values and principles which stand up and surpass the highest acceptable industry standards. Premium Nickel Resources is committed to governance through transparent accountability and open communication within the company's team and its stakeholders.

On Jan. 31, 2022, Premium Nickel Resources closed the acquisition of Premium Nickel Resources's flagship asset, the Selebi mine. The Selebi mine includes two shafts, (Selebi and Selebi North shafts) and related infrastructure (rail, power and water). Shaft sinking and plant construction started in 1970. Mining concluded in October, 2016, when the operations were placed on care and maintenance due to a failure in the separate and offsite processing facility. The Selebi mine was subsequently placed under liquidation in 2017.

The proposed work plan for the Selebi mine includes diamond drilling which is expected to continue for up to 18 months. During that time, additional metallurgical samples will be collected and sent for more detailed studies. The underground infrastructure at Selebi North will be upgraded to support an underground drilling program, as well as to improve health and safety.

In addition, Premium Nickel Resources is evaluating direct and indirect nickel asset acquisition opportunities globally, and also: (i) holds a 100-per-cent interest in the Maniitsoq property in Greenland, which is a camp-scale permitted exploration project comprising 3,048 square kilometres covering numerous high-grade nickel-copper plus cobalt-sulphide occurrences associated with norite and other mafic-ultramafic intrusions of the Greenland norite belt; (ii) holds a 100-per-cent interest in the Post Creek/Halcyon property in Sudbury, Ont., which is strategically located adjacent to the past-producing Podolsky copper-nickel-precious metal sulphide deposit of KGHM International Ltd.; (iii) holds a 100-per-cent ownership of property in the Quetico region near Thunder Bay, Ont.; and (iv) is expanding its area of exploration interest into Morocco.

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