Mr. Keith Morrison reports

PREMIUM NICKEL REPORTS ASSAYS FROM SELEBI NORTH UNDERGROUND DRILLING

Premium Nickel Resources Ltd. has released additional assay results from drilling at its past-producing nickel-copper-cobalt sulphide (Ni-Cu-Co) Selebi North underground (SNUG) mine in Botswana. Results have been previously released for six holes (see news release dated Nov. 14, 2023), and results for a further six holes are released herein.

Highlights include:

• SNUG-23-028 (South limb): 10.75 metres of 1.90 per cent NiEq (1.15 per cent Ni, 1.40 per cent Cu and 0.06 per cent Co) and 13.50 metres of 1.86 per cent NiEq (1.34 per cent Ni, 0.84 per cent Cu and 0.07 per cent Co);
• SNUG-23-032 (N2 Limb): 22.00 metres of 1.74 per cent NiEq (1.22 per cent Ni, 0.89 per cent Cu and 0.06 per cent Co), including 13.45 metres of 2.19 per cent NiEq (1.52 per cent Ni, 1.17 per cent Cu and 0.07 per cent Co).

Keith Morrison, chief executive officer of Premium Nickel, commented: "Our underground drilling at Selebi North continues at higher productivity rates than anticipated. Recent drilling results confirm that the legacy fold pattern identified in the mine (South limb, N2 limb and N3 limb) continues beyond the historic South African Mineral Resource Committee (SAMREC) resource block model. We have intercepts of thicker remobilized conductive massive sulphide mineralization associated with these folds. The combination of fold/fault structures and high electrical conductivity will provide effective targeting for following this higher-grade mineralization both inside and outside the legacy SAMREC resource."

The objective of these holes is to define mineralization downplunge of the existing workings that will be used to complete a mineral resource estimation (MRE) prepared in accordance with National Instrument 43-101, Standards of Disclosure for Mineral Projects. Assay results are given below in the attached table.

The various mineralized zones have been historically mined and subsequently named N2 limb, N3 limb and South limb to demarcate their location on the folded mineralized horizon.

At the South and N2 limbs, 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. The N3 limb mineralization has historically been nickel-copper-cobalt sulphides contained solely within a gneissic package.

The underground drill program will be carried out from seven drill bays. Three drill rigs are currently operating from drill bays on 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 Nov. 23, 2023, a total of 13,817 metres in 40 drill holes have been completed from the initial three underground drill bays. During this initial phase, drilling is targeting the area downplunge of mine infrastructure to characterize the remaining resource. Concurrently, stepout drilling will occur further downplunge, 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 limb, the N3 limb and the 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 1.0-metre 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 copper/nickel 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 and cobalt are completed using a peroxide fusion preparation and ICP-AES finish (ME-ICP81).

Qualified person

The scientific and technical content of this news release has been reviewed and approved by Sharon Taylor, vice-president, exploration, of the company, who is 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 Premium Nickel Resources. 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 Resources' 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 Resources is not treating the historical mineral estimates as current mineral resource estimates.

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. Premium Nickel Resources is driven by its belief that the demand for these metals will continue to grow in the medium 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 the company's team and the company's stakeholders. Premium Nickel Resources' skilled team has worked 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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