Mr. Keith Morrison reports

PREMIUM NICKEL RESOURCES LTD. ANNOUNCES RESULTS OF RECENT METALLURGICAL TESTING OF SAMPLES FROM SELEBI AND SELKIRK MINES

Premium Nickel Resources Ltd. has released the results of recent metallurgical testing of the company's 100-per-cent-owned nickel-copper-cobalt-platinum group elements (Ni-Cu-Co-PGE) Selkirk project, and the nickel-copper-cobalt Selebi project, both of which are located in Botswana.

The Selkirk Ni-Cu-Co-PGE deposit, located 75 kilometres north of Premium Nickel's flagship Selebi mine in Botswana, is a near-surface deposit that has been extensively drilled by previous operators. The drill results and various historic estimates were reported in the technical report entitled "NI 43-101 Technical Report, Selkirk Nickel Project, Northeast District, Republic of Botswana," dated April 12, 2023 (with an effective date of March 31, 2023), which was prepared for the company by G Mining Services Inc. in accordance with National Instrument 43-101 -- Standards of Disclosure for Mineral Projects. Reference is made to the full text of the Selkirk technical report, a copy of which is available on SEDAR+ under the company's issuer profile and on the company's website. The historic estimates on the Selkirk Ni-Cu-Co-PGE deposit do not comply with NI 43-101 (see below under the heading historic estimates). As reported in the Selkirk technical report, there is a significant increase in total tonnage of historic estimates when the cut-off grade is lowered. The table entitled "Summary of 2016 mineral resource estimates at Selkirk at a lower cut-off of 0.20 per cent Ni" shows tonnage used by Worley Parsons Ltd. in 2016 using a lower cut-off grade of 0.20 per cent Ni, and the table entitled "Selkirk mineral resources at a lower cut-off grade of 0.10 per cent Ni" shows the estimate using a lower cut-off of 0.10 per cent Ni, as documented by Gipronickel Institute in 2013.

Premium Nickel's initial metallurgical test work carried out in 2021 at SGS Canada in Lakefield, Ont., demonstrated that commercial nickel and copper concentrates could be produced at feed grades of 0.44 per cent Ni and 0.55 per cent Cu. Premium Nickel Resources recently completed a new series of metallurgical tests at SGS Canada on four composite samples, with assays averaging 0.20 per cent Ni, 0.18 per cent Cu, 0.08 gram per tonne (g/t) platinum (Pt), 0.37 g/t palladium (Pd) and 0.01 g/t gold (Au), with the purpose of demonstrating that reasonable recoveries were possible near the cut-off grades used in the 2016 historic estimates. Quality assurance/quality control (QA/QC) was carried out internally at SGS Canada.

The current metallurgical test program was designed to collect information that will be used to evaluate processing options. Given the disseminated nature of the Ni-Cu-PGE mineralization at Selkirk, a processing flowsheet designed to maximize Ni-Cu-Co-PGE recovery via a bulk flotation concentrate is being evaluated. This could add optionality for saleable products, which could include a separate Cu concentrate and a separate Ni-Cu-Co-PGE concentrate, to be further refined by hydrometallurgical processing.

The four composite samples were therefore subjected to milling and flotation testing targeted to maximize nickel recovery into a bulk nickel-copper concentrate (before copper-nickel separation).

Keith Morrison, chief executive officer, commented: "These initial metallurgical test results for the leaching of concentrate from both Selebi and Selkirk are very good. This news release focuses predominantly on the Selkirk results, as this is a near-surface deposit that contains appreciable PGE content. The results of the recent test work are particularly significant for Selkirk as PGEs can be challenging to leach sometimes. The Selkirk Ni-Cu-Co-PGE deposit has exceptional tonnage potential. Previous processing studies on Selkirk were focused on producing a concentrate for refining at the Phikwe smelter which shut down in 2016. PNRL is committed to producing the highest-quality Ni-Cu-Co products with the lowest possible carbon footprint, and that will require an alternate processing option. This recent test work is part of a larger effort of gathering data to assess the various available options. These very encouraging phase 1 results indicate that almost all of the available Ni-Cu-Co-PGEs contained in the flotation concentrate is leached into solution through the Platsol hydrometallurgical process. These results, and the results of the phase 2 processing, will allow us to further refine our engineering studies on the Selkirk deposit."

Flotation testing

The most recent flotation tests showed average nickel and copper grades in the bulk concentrate of 4.9 per cent Ni and 5.6 per cent Cu, with the highest metal recoveries of 70.9 per cent for nickel and 88.9 per cent for Cu. Future metallurgical work will include additional grinding and flotation optimization studies aimed at maximizing metal recovery.

Platsol testing

In addition, laboratory quantities of separate nickel and copper concentrates, produced from earlier, higher-grade Selkirk drill samples (averaging 0.61 per cent Ni and 0.61 per cent Cu) were tested under high-pressure oxidation leaching using Platsol technology. The Platsol process was developed at SGS to solubilize PGEs during high-pressure leaching, thus offering a potential process route for low-nickel- and low-copper-grade Selkirk material which contains appreciable platinum, palladium and gold.

Samples of Selkirk and Selebi nickel concentrates, using a two-litre autoclave for leaching have been completed. The test conditions for these tests were established by SGS based on experience in previous Platsol test work. However, it is noted that these test conditions are not necessarily optimized for the concentrates being tested. At the present time, Platsol leach tests of copper concentrate produced from samples of these two deposits are still continuing.

The results of phase 1 metal extraction into the leach solution for the above two nickel concentrates are summarized in the table entitled "Results of initial phase 1 laboratory test work on Platsol testing of Selkirk and Selebi nickel concentrates." The metal extractions for both Selebi and Selkirk were excellent, resulting in the decision to proceed to phase 2 of the work program, which includes testing the downstream processing of the leach solution to produce, initially, a copper-PGE cake and a mixed hydroxide precipitate product. Results from this work will be released in the coming weeks.

Qualified person

The scientific and technical content of this news release has been reviewed and approved by Phillip Mackey, consulting metallurgist, who is a qualified person for the purposes of National Instrument 43-101.

Historic estimates

Certain scientific and technical information in this news release pertaining to Selkirk (including the mineral resource estimates presented in the table entitled "Summary of 2016 mineral resource estimates at Selkirk at a lower cut-off of 0.20 per cent Ni" and "Selkirk mineral resources at a lower cut-off grade of 0.10 per cent Ni") are considered to be historical in nature and should not be relied upon as a current mineral resource estimate. The historical information contained in this news release does not comply with NI 43-101. While management believes that these historical mineral resource estimates could be indicative of the presence of mineralization on the Selkirk mines property, a qualified person (for purposes of NI 43-101) has not completed sufficient work to classify the historical mineral estimate as a current mineral resource estimate, and the company is not treating the historical mineral estimates as current mineral resource estimate.

About Premium Nickel Resources Ltd.

Premium Nickel Resources is a mineral exploration and development company that is focused on the redevelopment of the previously producing nickel, copper and cobalt resources mines owned by the company in the Republic of Botswana. The company is driven by its belief that the demand for these metals will continue to grow in the medium term to long term as a result of global urbanization and the increasing adoption of electric motors over internal combustion engines. These metals are vital for achieving a low-carbon future.

Premium Nickel Resources is committed to governance through transparent accountability and open communication within its team and the company's stakeholders. Premium Nickel Resources' skilled team has worked on over 100 projects collectively, accumulating over 400 years of resource discoveries, mine development and mine re-engineering experience on projects like the company's Selebi and Selkirk mines. Premium Nickel Resources' senior team members have on average more than 20 years of experience in every single aspect of mine discovery and development, from geology to operations.

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