Mr. Keith Morrison reports

PREMIUM NICKEL RESOURCES LTD ANNOUNCES ASSAY RESULTS AT ITS 100% OWNED SELEBI MINE IN BOTSWANA INCLUDING: 6.80 METRES OF 2.06% NIEQ (1.28% NI, 2.35% CU, 0.04% CO), 4.65 METRES OF 1.55% NIEQ (1.10% NI, 1.24% CU, 0.04% CO)

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 (Ni-Cu-Co) sulphide mine in Botswana.

The company previously released results from the first three holes, SMD-22-001, SMD-22-002 and SMD 22-001-W1 (see news releases dated Aug. 17 and Sept. 13, 2022). Results have been received for an additional four drill holes, SMD-22-006a, SMD-22-006a-W2, SMD-22-007a and the extension of historic hole sd145x, and are reported herein. Approximately 14,815 metres of diamond drilling has been completed to date at the Selebi mine by Premium Nickel in 2022.

Notable highlights include:

• SMD-22-006a-W2 (upper interval): 9.80 metres of 1.56 per cent nickel equivalent (0.97 per cent Ni, 1.74 per cent Cu, 0.03 per cent Co);
  • Including 6.80 metres of 2.06 per cent NiEq (1.28 per cent Ni, 2.35 per cent Cu, 0.04 per cent Co);
• SMD-22-006a-W2 (lower interval): 4.65 metres of 1.55 per cent NiEq (1.10 per cent Ni, 1.24 per cent Cu, 0.04 per cent Co).

The company's phase 1 drilling program commenced on March 14, 2022, with the purpose of locating the Selebi mine mineralized structures within the three-kilometre area located between the Selebi mine historical mine workings to the south and the Selebi North mine historic workings to the north.

This current phase of drilling is focused on an area at the western down-dip edge of the historic 2016 South African Mineral Resource Committee (SAMREC)-compliant Selebi resource (measured mineral resources of 370,000 tonnes of 1.01 per cent Ni and 2.19 per cent Cu; indicated mineral resources of 6.82 Mt of 1.05 per cent Ni and 2.29 per cent Cu; and inferred mineral resources of 4.09 Mt of 0.86 per cent Ni, which has not been prepared in accordance with National Instrument 43-101), where the company has shown that the mineralization has greater thicknesses and depth extent than those of the historic resource. Drilling included testing of an off-hole borehole electromagnetic (BHEM) anomaly identified by Premium Nickel in historic hole sd140, a 2010 drill hole located to the north and down plunge of the historic drill hole sd119 that reported an estimated true thickness interval of 38.5 metres averaging 1.58 per cent Ni and 2.44 per cent Cu, including 21.4 metres of 2.34 per cent Ni and 3.39 per cent Cu. Historic drill hole sd119 is located approximately 300 metres north from the closest Selebi mine underground infrastructure, and is used as Premium Nickel's point of reference for this initial drill program to help communicate stepout distances and geometries of additional drill hole pierce points.

The company's drilling to date has provided evidence of at least two mineralized amphibolite-hosted horizons that are separated by gneiss. All four of these drill holes intersected the same two intervals of amphibolite hosted Ni-Cu-Co mineralization, including SMD-22-006a-W2 that is located approximately 500 metres down plunge of previously announced SMD-22-001 and 650 metres from historic hole sd119. By drilling down dip to the west, the company has intercepted thicker intervals of mineralization when compared with the widths reported in the historic Selebi SAMREC resource. Although the lower mineralized amphibolite has been intersected in historic drill holes, drill hole SMD-22-006a-W2 is the first occurrence of significant widths and grades in the lower interval.

Keith Morrison, chief executive officer, commented: "PNRL's work on the Selebi mine continues to demonstrate significant expansion potential and mineralization continuity along strike, down dip and down plunge of the historic 2016 SAMREC-compliant resources (which included measured mineral resources of 370,000 tonnes of 1.01 per cent Ni and 2.19 per cent Cu, indicated mineral resources of 6.82 Mt of 1.05 per cent Ni and 2.29 per cent Cu, and inferred mineral resources of 4.09 Mt of 0.86 per cent Ni and 1.21 per cent Cu at Selebi as well as included measured mineral resources of 710,000 of 1.24 per cent Ni and 1.03 per cent Cu, indicated mineral resources of 1.14 Mt of 1.27 per cent Ni and 1.13 per cent Cu, and inferred mineral resources of 2.79 Mt of 0.93 per cent Ni and 0.87 per cent Cu at Selebi North). The strategic initiative through this first phase of drilling is to obtain the necessary geoscience data to advance to the second phase of drilling, which is the transition to underground resource drilling at both the Selebi and Selebi North deposits. Our team is using an integrated data-driven process incorporating BHEM, televiewer surveys, structural modelling and surface drilling to extend the known mineralization from the south (Selebi) and from the north (Selebi North), as the company believes Selebi mine could be a single continuous mineralized system. The borehole geophysics has been very successful in imaging highly conductive metallic mineralization along the down-dip structure, possibly joining the two deposits over a length greater than 3,000 metres. The structural understanding increases as more holes are drilled, additional geophysical surveys are completed, and multiple mineralized structures at the Selebi North deposit are identified and explored. Data supported modelling is beginning to demonstrate that the mineralized Selebi North structures could be potentially related to similar structures below the Selebi deposit and mine horizon."

Project update

When the company took possession of the Selebi mine in January, upside potential was defined by an off-hole anomaly associated with a significant intersection in historic drill hole sd119 and a vision that the Selebi and Selebi North mines connected at depth. Through the execution of a state-of-the-art technical program, the company has increased the upside potential with 1) the identification of a structural corridor where intervals of mineralization are thicker and 2) has a strong indication through geophysics that the Selebi and Selebi North deposits are connected at depth. Conductivity defined to date through BHEM surveys correlates well with known nickel-copper mineralization intersected in drill holes. It is fortunate that there are no other known sources of conductivity along the mine horizon to complicate the interpretation of the mineralized amphibolite.

These four recent drill holes were designed to test the BHEM conductivity along the interpreted down-dip structures, following the anticipated plunge of these structures from sd119 to the north. Drill holes SMD-22-006a and SMD-22-007a lifted during drilling and as a result are approximately 100 metres up dip of the target location and main thickening structure. SMD-22-006a-W2 was drilled to straighten out and pierce closer to the original target location. Historic drill hole sd145x was extended to provide structural information in an area of sparse drilling and is also up dip of the target area.

The drilling to date has not fully defined the plunge direction or dip extent of the structurally controlled thickening. BHEM and drill data indicate that the plunge direction is turning toward the west with depth and indicates a down-dip extension of the mineralization in both the upper and lower intervals in SMD-22-006a-W2. The BHEM data from all holes are currently being integrated with the updated structural model to refine the location of the controlling structures for more precise resource drilling in 2023. In an effort to accelerate the release of assays, the company is working diligently to improve the drill hole rate of advancement and timely receipt of lab results. Premium Nickel is also increasing the number of drill rigs for the second phase of drilling.

Drilling is continuing and two additional holes have been completed with assays pending. This includes drill hole SMD-22-008a, targeting the mineralized amphibolite 130 metres down dip from SMD-22-001, SMD-22-009a, targeting a gap in historic drilling east and south of drill hole sd119, and SMD-22-012, targeting a gap northeast of sd119 and in progress. By reducing the distance between historic holes, the company is moving toward a better understanding of the structural controls on mineralization and also working toward defining a potential inferred resource that may be used in a future preliminary economic assessment.

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

SMD-22-006a intersected mineralization 455 metres down plunge of SMD-22-001. The upper and lower intervals of amphibolite with localized Ni-Cu sulphide mineralization were encountered; the two intervals are separated by a 30.65-metre interval of quartzo feldpathic gneiss with local quartz flooding and decimetre-sized felsic pegmatitic units.

The sulphide mineralization in the upper amphibolite interval consists of textures ranging from disseminated, to coarse blebby and local semi-massive, to massive sulphide stringers hosted in a coarse-grained massive amphibolite which returned 4.25 metres of 0.29 per cent Ni, 1.39 per cent Cu and 0.01 per cent Co from 1,575.20 to 1,579.45 metres.

The lower mineralized biotite altered amphibolite interval contains primarily disseminations and blebby sulphides with localized intervals of chalcopyrite-rich stringers to semi-massive sulphides which returned 3.55 metres of 0.24 per cent Ni, 1.33 per cent Cu and 0.01 per cent Co from 1,631 to 1,634.55 metres.

SMD-22-006a-W2, wedged from SMD-22-006a, intersected the target mineralized horizon 70 metres down dip of SMD-22-006a. The sulphide mineralization in the upper amphibolite interval occurs from 1,581.50 to 1,591.30 metres with textures ranging from disseminated, to coarse blebby and local decimetre- to metre-length semi-massive to massive sulphides which returned 9.80 metres of 0.97 per cent Ni, 1.74 per cent Cu and 0.03 per cent Co. A higher-grade 6.80-metre interval starting at 1,581.50 metres returned 1.28 per cent Ni, 2.35 per cent Cu and 0.04 per cent Co.

The lower mineralized biotite schistose amphibolite interval occurs from 1,625 to 1,651 metres and contains primarily disseminations and blebby sulphides with localized intervals of semi-massive sulphides amidst sporadic quartz flooding and strong biotite alteration.

Two intervals of significant sulphide mineralization were intercepted. An initial four-metre intercept beginning from 1,627 metres returned 0.66 per cent Ni, 0.40 per cent Cu and 0.03 per cent Co. A lower 4.65-metre intercept from 1,639.80 to 1,644.45 metres returned 1.10 per cent Ni, 1.24 per cent Cu and 0.04 per cent Co. BHEM indicates conductivity of the upper and lower intervals continues to 125 metres down dip and remain parallel to each other.

Similar to drill hole SMD-22-006a-W2, SMD-22-007a intersected three separate intervals of copper and nickel sulphide mineralization 240 metres down plunge of SMD-22-001. The sulphide mineralization along the upper contact between the felsic gneiss and amphibolite returned a 6.45-metre intercept of 0.66 per cent Ni, 0.67 per cent Cu and 0.03 per cent Co from 1,451.40 to 1,457.85 metres. This mineralization ranged from disseminated, to coarse blebby and local semi-massive to massive sulphide veins.

An additional 1.70-metre intercept at 1,460.50 to 1,462.50 metres reported a mineralized contact of 0.75 per cent Ni, 0.71 per cent Cu and 0.02 per cent Co, continuing with 1.90 metres reported at 1,467.40 to 1,469.30 metres in a lower mineralized contact reporting value of 0.32 per cent Ni, 1.79 per cent Cu and 0.01 per cent Co. The lower mineralized amphibolite interval contains primarily semi-massive sulphides which returned 0.75 metre of 1.82 per cent Ni, 1.07 per cent Cu and 0.08 per cent Co from 1,509.95 to 1,510.70 metres.

The most distant Selebi stepout was drilled by deepening of 2010 historic drill hole sd145x. This drill hole is located approximately 1,050 metres north of historic drill hole sd119 and 880 metres north of SMD-22-001. This drill hole was extended by 510 metres to infill a gap between historic drilling (600 metres between intercepts), in addition to providing a BHEM platform. It is located 325 metres up dip of the interpreted target area of increased thickness of mineralization.

Drill hole sd145x intercepted two intervals of mineralized amphibolite separated by a 53-metre interval of gneiss. A narrow sulphidic amphibolitic unit was intersected at the expected depth of the upper zone. The zone consisted primarily of semi-massive veins and stringers which returned 0.75 metre of 1.40 per cent Ni, 0.42 per cent Cu and 0.01 per cent Co from an interval beginning at 1,519.30 metres.

The lower interval consisted of a much broader span of mineralization over a sporadically flooded quartz, biotite altered, schistose amphibolite occurrence from 1,570.85 to 1,580.75 metres. An interval of coarse sulphide blebs, disseminations and semi massive veins returned 7.75 metres of 0.21 per cent Ni, 1.09 per cent Cu and 0.004 per cent Co from 1,573 to 1,580.75 metres.

The remaining assay results, combined with the continuing BHEM, gyro programs and structural data, will help the team define and support the coming underground drilling programs at Selebi.

Quality control

The drilling was completed by Mitchell Drilling of Botswana utilizing a Sandvik UDR1500 diamond drill rig. Drill core samples (47.75-millimetre NQ) and Discovery Drilling using a DS2500 diamond drill coring BQ-sized drill core (36.5 mm). All samples are one-half core cut 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 Ni, Cu and Co are completed using a peroxide fusion preparation and inductively coupled plasma atomic emission spectroscopy 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.

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.

Historical estimate

The historical SAMREC-compliant resource that was calculated for the Selebi mine in 2016 is considered to be historical in nature has not been prepared in accordance with NI 43-101 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.

About Premium Nickel Resources Ltd.

Premium Nickel is a Canadian company dedicated to the exploration and development of high-quality nickel copper plus cobalt resources. Premium Nickel 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 focuses its efforts on discovering world-class nickel sulphide assets in jurisdictions with rule of law that comply with Premium Nickel's values and principles which surpass the highest industry standards. Premium Nickel is committed to governance through transparent accountability and open communication within its team and its stakeholders.

Premium Nickel maintains a skilled team that has worked on over 100 projects collectively, accumulating over 400 years of resource discoveries, mine development and mine re-engineering experience on projects like Selebi and Selkirk. Premium Nickel's team members have on average more than 20 years of experience in every single aspect of mine discovery and development, from geology to operations.

On Jan. 31, 2022, Premium Nickel closed the acquisition of Premium Nickel'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 off-site 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 be continuing 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 improved health and safety.

In addition, Premium Nickel is evaluating direct and indirect nickel asset acquisition opportunities globally, and also: (i) holds 100-per-cent interest in the Selkirk mine which was acquired in August, 2022, as well as four adjacent prospecting licences in Botswana; (ii) 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; (iii) 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.; (iv) holds a 100-per-cent ownership of property in the Quetico region near Thunder Bay, Ont.; and (v) is expanding its area of exploration interests into Morocco.

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