Mr. Keith Morrison reports

PREMIUM NICKEL RESOURCES LTD. ANNOUNCES "BEST EFFORTS" PRIVATE PLACEMENT FINANCING OF UP TO CAD $27 MILLION AND PROVIDES UPDATE ON BRIDGE LOAN

Premium Nickel Resources Ltd. has arranged a brokered private placement, on a best efforts basis, of up to 15.43 million common shares of the company at a price of $1.75 per common share for gross proceeds of up to $27,002,500.

In connection with the offering, the company has entered into an engagement letter with Paradigm Capital Inc. to act as lead agent and sole bookrunner, on behalf of a syndicate of agents to be formed.

The company will grant the agents an option to sell up to that number of additional common shares equal to 15 per cent of the base offering size, exercisable up to 48 hours prior to the closing date.

The net proceeds from the offering will be used to support the continuing exploration and redevelopment work on the company's flagship Botswana assets, being its 100-per-cent-owned Selebi and Selkirk mines, and for general corporate purposes.

In addition, the company has agreed with Pinnacle Island LP to extend the previously announced $7-million bridge loan (see news release of Premium Nickel dated Nov. 28, 2022), subject to completion of the offering and approval of the TSX Venture Exchange. The extension would result in the extension of the bridge loan to Nov. 28, 2023, being 12 months from the date of advance of the bridge loan, at the same interest rate and subject to the following modifications:

• Requirement to repay the full balance of the bridge loan upon Premium Nickel raising a minimum of $30-million (U.S.);
• Recommitment fee payable to Pinnacle Island of 2 per cent of the $7-million original loan amount, payable within 10 days of the extension becoming effective.

Closing of the offering and the amendments to the bridge loan are subject to receipt of all necessary corporate and regulatory approvals, including the approval of the TSX Venture Exchange. All securities issued in connection with the offering will be subject to a hold period of four months plus a day from the date of issuance and the resale rules of applicable securities legislation.

In addition to the offering, the company is continuing to evaluate various financing options available to it, including royalty and streaming transactions.

About Premium Nickel Resources Ltd.

Premium Nickel is a mineral exploration and development company focused on the discovery and advancement of high-quality nickel copper plus cobalt resources. The company believes that the medium-term to long-term demand for these metals will continue to grow, driven by global urbanization and the increasing replacement of internal combustion engines with electric motors. These metals play a crucial role in a low-carbon future.

We seek Safe Harbor.