Mr. Keith Morrison reports

PREMIUM NICKEL RESOURCES LTD. REPORTS ADDITIONAL ASSAY RESULTS AT ITS 100% OWNED SELEBI MINE IN BOTSWANA: 6.40 METRES OF 0.52% NI, 2.63% CU, 1.51% NIEQ

Premium Nickel Resources Ltd. has released additional 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 8,958 metres of drilling completed as of Sept. 5, 2022. Assay results have been received for an additional two drillholes, SMD-22-001-W1 and SMD-22-002, and are reported herein.

Initial drillhole SMD-22-001 was prioritized to test an off-hole borehole electromagnetic (BHEM) target from historical hole sd140 identified by Premium Nickel during the compilation and verification of historic data in 2021. This initial hole was previously released and intersected two intervals of amphibolite-hosted nickel-copper sulphide mineralization (see news release dated Aug. 17, 2022). SMD-22-001-W1 is a wedge hole that intersected two intervals of mineralization located 85 metres from SMD-22-001 in the direction of historic hole sd119. Hole SMD-22-002 pierced mineralized amphibolite 110 metres down-dip of sd119 and is interpreted to be located west of the fold structure that contains thick intervals of massive sulphides.

SMD-22-001-W1 intersected two intervals of amphibolite hosted nickel-copper sulphides. This new hole has returned potentially significant results including:

• SMD-22-001-W1 (upper interval): 4.35 m of 0.98 per cent nickel, 1.61 per cent copper, 0.02 per cent cobalt and 4.69 grams per tonne silver (1.59 per cent nickel equivalent);
• SMD-22-001-W1 (lower interval): 12.55 m of 0.39 per cent Ni, 1.99 per cent Cu, 0.02 per cent Co and 5.42 g/t Ag (1.14 per cent NiEq):
  • Including 6.4 metres of 0.52 per cent Ni, 2.63 per cent Cu, 0.03 per cent Co and 7.49 g/t Ag (1.51 per cent NiEq).

Keith Morrison, chief executive officer, commented: "A SAMREC [South African code for the reporting of exploration results, mineral resources and mineral reserves] compliant resource was calculated for the Selebi mine in 2016 that included measured and indicated mineral resources of 7.19 million tonnes of 1.05 per cent Ni and 2.28 per cent Cu and inferred mineral resources of 4.09 Mt of 0.86 per cent Ni and 1.21 per cent Cu (see technical report). Due to the location of drilling completed by the previous operator at that time, the volume contained in this SAMREC resource is located at shallower depths than the main controlling structure of the mineralization. Premium Nickel is using a combination of BHEM and structural data to accurately locate this structure and drill additional associated massive sulphide mineralization. The purpose of this additional drilling is to extend future PEA [preliminary economic assessment] resource calculations to include these mineralized volumes that were not included in the SAMREC resource estimate."

This news release summarizes the results from drillhole SMD-22-001-W1, which was wedged from SMD-22-001 at 453.55 and drilled to 1467.95 m, as well as SMD-22-002 which was drilled from surface to a down hole depth of 1,467.95 m. A summary of assays is provided in Table 1: Assay results selebi deposit (Selebi mine).

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

SMD-22-001-W1 targeted the area midway between SMD-22-001 and sd119. Two extended intervals of amphibolite with localized Ni-Cu sulphide mineralization and large sections of barren amphibolite were encountered, the two intervals are separated by a 0.8-metre interval of weakly mineralized quartzo feldpathic gneiss.

The sulphide mineralization in the upper amphibolite unit (from 1,344.05 m to 1,387.65 m) consists of textures ranging from disseminated to coarse blebby, and local semi-massive to massive sulphide stringers hosted in a coarse-grained massive amphibolite that returned 0.37 per cent Ni, 0.58 per cent Cu, 0.01 per cent Co and 2.95 g/t silver over 6.95 metres from 1,344.05 m to 1,351 m. Lower down, from 1,363 m to 1,367.35 m, the mineralized amphibolite host returned values of 0.98 per cent Ni, 1.61 per cent Cu, 0.02 per cent Co and 4.69 g/t Ag over 4.35 metres.

The lower mineralized amphibolite unit (from 1,388.40 m to 1,403.50 m) contains primarily disseminations and blebby sulphides with localized intervals of chalcopyrite-rich stringers to semi-massive sulphides that returned 0.39 per cent Ni, 1.99 per cent Cu, 0.02 per cent Co and 5.42 g/t Ag over 12.55 metres from 1,385.65 m to 1,398.2 m. This interval included a more strongly mineralized portion over 6.4 m that returned values of 0.52 per cent Ni, 2.63 per cent Cu, 0.03 per cent Co and 7.49 g/t Ag from 1,391 m to 1,397.4 m.

BHEM results show that a strong conductor, dipping westward and plunging to the northwest, was intersected. The centre of the conductor is located up-dip and north of SMD-22-001-W1.

Drillhole SMD-22-002 intersected a single short interval of mineralized amphibolite. Sulphide textures are primarily disseminations with chalcopyrite and pyrrhotite rich stringers that returned grades of 0.55 per cent Ni, 0.22 per cent Cu and 0.02 per cent Co over 2.9 m from 1,374.8 m to 1,397.4 m. BHEM results indicate that hole passed 15 metres below a strong conductor plunging to the northwest. This supports the geological interpretation that this hole is interpreted to have intercepted immediately west of the primary fold nose that contains thicker intervals of massive sulphides (see Table 1: Assay results Selebi Deposit (Selebi mine). True thickness is expected to be 70 per cent to 80 per cent of drill length intervals.

To date, an additional two drillholes have reached target depth and tested the various modelled BHEM conductors. Assays are expected in the coming weeks.

Simultaneous to continuing drilling, Premium Nickel will continue to improve the database with the collection of additional data from the drilling, BHEM and gyro programs as it becomes available. In addition to the two diamond drill rigs currently drilling new holes for the company, there have been up to three diamond drill rigs designated to cleaning out historic holes in preparation for the collection of gyro and BHEM data. To date, televiewer and physical property logging has been collected in five holes. Work is continuing on the creation of a 3-D geological and structural model utilizing oriented core measurements from new holes and relogging of historic holes.

BHEM surveys are continuing in both the new and historic holes, results of these continuing surveys continue to highlight the area at the down-dip western extent of the mineralized horizon. Structurally, the western extent of mineralization correlates with an interpreted fold nose with associated thickening of the mineralized amphibolite. Drilling continues to explore this structure both down dip and down-plunge.

Premium Nickel's engineering team, with the support of G-Mining Services and third parties, has completed its assessment, review and planning of required work to support the upcoming surface and underground drilling program at the Selebi North and Selebi deposits.

Since Aug. 1, 2022, Premium Nickel's care and maintenance (C&M) team has taken responsibility from the liquidator for the care and maintenance of the Selebi mine surface and underground infrastructure. The C&M team has also been supporting the engineering team in its planning and execution of underground work required to support underground drilling.

The Selebi mine includes two shafts and related infrastructure (rail, power and water). The Selebi deposit is serviced by a 6.1-metre diameter shaft commissioned in 1980 which is concrete-lined along the entire 340-metre length and an access ramp from surface. The Selebi shaft is equipped with a double drum production hoist, a double drum services hoist, two six-tonne skips and a 70-person cage with a daily capacity of 3,600 tonnes per day. The infrastructure also includes two inclined shafts down to 900 metres, a hoist room and winder, headframe, surface structures, and two overhead power lines.

The Selebi North deposit is serviced by a 3.5-metre diameter shaft commissioned later in 1990 and has an access ramp from the surface. The Selebi North shaft is equipped with a Koepe hoist with a two-cage six-tonne skip. The cage has a four-person capacity. The shaft limitation implies that it is mainly used for ore skipping with a daily capacity of 1,500 tonnes per day. The Selebi North shaft runs a length of 730 metres and is supported by an additional decline down to 1,000 metres. This shaft is also supported by hoist room and winder, headframe, surface structures, and overhead power lines.

The two shafts are fully functional, and the care and maintenance of the remaining infrastructure are continuing. The company estimates that the replacement cost of the current infrastructure at the Selebi mine would be approximately $400-million (U.S.).

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. Half of the core is retained for reference purposes. Samples are generally one- 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 nickel, copper, cobalt and sulphur are completed using a peroxide fusion preparation and ICP-AES (inductively coupled plasma atomic emission spectroscopy) finish (ME-ICP81). Silver analyses are completed using a four-acid digestion with ICP-AES finish (ME-ICP61).

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.

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.

Historical estimate

The historical SAMREC compliant resource that was calculated for the Selebi mine in 2016 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 SAMREC resource could be indicative of the presence of mineralization on the Selebi deposit, a qualified person has not completed sufficient work to classify the historical mineral estimate as a current mineral resource estimate and Premium Nickel is not treating the historical mineral estimates as current mineral resource estimate.

We seek Safe Harbor.