Mr. Keith Morrison reports

PREMIUM NICKEL RESOURCES LTD. REPORTS INITIAL ASSAYS FROM SELEBI NORTH UNDERGROUND DRILLING IN BOTSWANA

Premium Nickel Resources Ltd. has released initial assay results from drilling at its past-producing nickel-copper-cobalt sulphide (Ni-Cu-Co) Selebi North mine in Botswana. In reporting the 50-plus drill holes over the coming months, the company expects to report a range of results, as certain drill holes will target the centres of mineralization while others will focus on defining the limits of mineralization.

Highlights include:

• SNUG-23-025 (South Limb): 9.25 metres of 1.78 per cent NiEq (nickel equivalent) (1.35 per cent Ni (nickel), 0.67 per cent Cu (copper) and 0.07 per cent Co (cobalt));
• SNUG-23-018 (N2 Limb): 9.85 metres of 1.28 per cent NiEq (0.77 per cent Ni, 0.95 per cent Cu and 0.04 per cent Co), including:
  • 5.6 metres of 1.06 per cent NiEq (0.50 per cent Ni, 1.13 per cent Cu and 0.03 per cent Co); and
  • 2.45 m of 2.24 per cent NiEq (1.75 per cent Ni, 0.72 per cent Cu and 0.09 per cent Co).
• Identification of the down-plunge extension of a zone that was previously thought to have been pinched off. More drilling is required;
• Significant grades and widths of mineralization intercepted up to 510 m down plunge of existing mine infrastructure, including intercepts occurring below the historic mineralization wireframe.

Keith Morrison, chief executive officer, commented: "The historic resource at Selebi North was prioritized for underground drilling due to its grade, size, proximity to existing infrastructure, and the potential for the quickest and most cost-effective path to production. It represents a relatively small portion of the historic Selebi-Phikwe mine resources (see "Historic resource estimate" below). The historic Selebi North resource contains three identified mineralized zones referred to as the N2, N3 and South Limb. These distinctive but proximal zones were all produced historically and vary significantly in size and grade.

"PNRL's underground drilling program at Selebi North has three objectives, being to:

1. Complete a mineral resource estimation (MRE) prepared in accordance with National Instrument 43-101 -- Standards of Disclosure for Mineral Projects (NI 43-101);
2. Demonstrate up-side potential through drilling down-plunge of the historic resource; and
3. Conduct exploration drill testing of priority borehole electromagnetic (BHEM) targets.

"As we continue to progress, we anticipate being able to provide a range of results and the context of each drill hole. In addition, each drill hole is expected to provide new geoscience data, including geology, structure, geochemistry and geophysics, which data is expected to be integrated and applied to testing our deeper structural and BHEM conductance targets in a systematic manner at Selebi North.

"Assays are being received in the order that holes have been prioritized, completed and sampled. Drilling is planned from seven drill bays that are located to delineate different areas of the deposit. Drilling from each bay is optimized for distance and perpendicular core angles when possible."

The Selebi North mineralization is hosted in an amphibolite that has been tightly folded, and mineralization is generally thickest in the embayments and noses of the folds. On the limbs of the folds, the thickness of the mineralization can be as high as 15 metres in local undulations. The various mineralized zones have been named N2, N3 and South Limb to demarcate their locations on the folded structure. Narrow high-grade N3 mineralization extends beyond the limits of the amphibolite, and occurs as massive and semi-massive sulphide within the country rock gneiss.

The underground drill program will be carried out from seven drill bays. Three drill rigs are currently operating from drill bays on the 880L, 895L and 935L, and targeting the areas nearest existing mine development. The mineralized envelope is tightly folded and the location of the available drill bays is limited, meaning that drill holes will not necessarily intersect mineralization perpendicular to the strike and dip. Additional drilling is needed to estimate true width and define the folded mineralization.

Drilling continues

As of Oct. 31, 2023, a total of 10,387 metres in 32 drill holes have been completed from the initial three underground drill bays. During this initial phase, drilling is targeting the area down plunge of mine infrastructure to characterize the remaining resource. Concurrently, stepout drilling will occur farther down plunge, with the aim to demonstrate upside potential which will support a future MRE. Assay results for completed holes will be released as they are received and confirmed by the company.

Additional drill holes in the N2, N3 and South Limb mineralization have been recently concluded and are now in the process of preparation for shipment to the lab for testing.

Quality control

The underground drilling program is being carried out through an agreement with Forage Fusion Drilling Ltd. of Hawkesbury, Que., Canada, which has provided three Zinex U-5 drills for purchase and training of local operators. Drill core samples are BQTK (40.7-millimetre diameter). 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 m to 1.5 m intervals, or less, at the discretion of the site geologists. Sample preparation and lab analysis was 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 ICP-AES (inductively coupled plasma atomic emission spectroscopy) finish (ME-ICP81).

Holes are numbered as follows: SNUG (Selebi North underground) plus year plus hole number starting at 013.

Qualified person

The scientific and technical content of this news release has been reviewed and approved by Sharon Taylor, vice-president of exploration for the company, a qualified person for the purposes of National Instrument 43-101.

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 the company. Reference should be made to the full text of the Selebi technical report, including the assumptions, limitations and data verification therein 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 resource estimate

The historical mineral resource estimate reported herein was calculated for the Selebi North, Selebi Main, Phikwe South and Southeast extension deposits in accordance with SAMREC in 2016, and does not comply with NI 43-101. To that end, the historic resource 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 resource could be indicative of the presence of mineralization on the deposits, a qualified person for purposes of NI 43-101 has not completed sufficient work to classify the historical mineral estimates as current mineral resource estimates, and Premium Nickel is not treating the historical mineral estimates as current mineral resource estimates.

BHEM (borehole electromagnetic) surveys

The BHEM surveys at Selebi utilize the Crone PEM system operated by local Botswana staff. Survey data is collected using a three component fluxgate probe collecting full waveform data. Surveys have been collected using time bases between 50 milliseconds and 1000 ms (0.25 Hertz to five Hz). The data has been processed to a calculated residual step response to better quantify the conductive sources. This added processing has proven to be invaluable because of the size of the highly conductive mineralized system.

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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