Mr. Keith Morrison reports

PREMIUM NICKEL RESOURCES LTD. ANNOUNCES HIGH EXTRACTION RATES FOR ALL METALS IN RECENT METALLURGICAL TESTWORK SUPPORTING LOW CARBON METAL PRODUCTION

Premium Nickel Resources Ltd. has released phase 2 results of metallurgical testing of the company's 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 PNRL's flagship Selebi mine in Botswana, is a near-surface deposit that has been extensively drilled by previous operators. Initial metallurgical testwork carried out in 2021 by PNRL at SGS Canada in Lakefield, Ont., demonstrated that it was possible to produce separate nickel and copper grades at acceptable recoveries. To enhance recoveries, Premium Nickel has been exploring alternate processing options for both the Selebi and Selkirk mines, including producing a lower-grade nickel concentrate suitable for hydrometallurgical processing. Given the disseminated nature of the Ni-Cu-Co-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.

Chris Fleming, SGS Canada, commented: "Recoveries of all the pay metals (Ni, Cu, Co, Au, Pt and Pd) to the solution phase were very high (generally greater than 99 per cent) in the initial batch autoclave testing of the Platsol process with concentrates from both the Selkirk and Selebi projects. In fact, in all my years of testing the Platsol process on ores and concentrates from around the world, I have never before experienced Pt and Pd recoveries of greater than 99 per cent by direct autoclave leaching under Platsol conditions. The downstream processes have been tested at bench scale and separate precious metal, copper, cobalt and nickel products have been generated -- targeting a final nickel product of battery-grade nickel sulphate hexahydrate. Although it is not possible to precisely quantify final metal recoveries to saleable products until continuous, integrated piloting is completed, based on commercial experience of base metal hydrometallurgical plants, overall recoveries of all pay metals from both Selkirk and Selebi nickel and copper concentrates or a combined bulk nickel-copper (plus Co, PGEs) concentrate should be greater than 95 per cent in a well-designed, well-operated plant. SGS Minerals looks forward to working with PNRL to advance this project to a prefeasibility stage."

Keith Morrison, Premium Nickel chief executive officer, commented: "PNRL's recent hydrometallurgical tests show very high extraction rates of Cu, Ni, Co and PGEs into leach solution and subsequently equally high recoveries into precipitates. We are very pleased that our vision for future low-carbon critical metal mines is supported by these results. PNRL will continue with the evaluation of hydrometallurgical processing options for Selebi and Selkirk, providing a superior alternative to the legacy smelting. It will cut power usage, reduce pollution, boost metal recovery and facilitate local beneficiation. Next steps include flowsheet optimization studies to maximize Ni recovery to the flotation concentrate."

Detailed Platsol testing

In late 2023 and early 2024, PNRL completed phase 1 scoping level laboratory tests at SGS Canada in Lakefield, Ont., investigating the application of the Platsol hydrometallurgical technology on the Selebi and Selkirk concentrates, in particular the Selkirk concentrates, which contain potentially valuable levels of PGEs (see news release dated Sept. 13, 2023).

The Platsol process is a high-temperature, chloride-assisted pressure leaching process developed at SGS Canada to simultaneously extract both base metals and precious group metals as soluble chloro-complexes into the autoclave leach solution. Previous work with Platsol has demonstrated that of all the many PGE minerals found in nature, only the sperrylite family of minerals respond poorly to Platsol. Since only minimal sperrylite was found in the Selkirk nickel concentrate and none in the Selebi Ni concentrate, these concentrates are expected to respond well to Platsol, provided the PGE minerals are well exposed.

The phase 1 Platsol studies using a two-litre autoclave tested the optimal conditions (pressure, temperature, residence time, grind size) and extraction rates of metals into the leach solution. Results showed very high extractions rates are possible for all metals, including PGEs.

Phase 2 extraction from solution focused on the Selkirk nickel concentrate. A larger volume of Selkirk nickel concentrate was tested in a 20-litre autoclave giving extractions rate shown in the next attached table.

Tests using five litres of autoclave solution measured PGE and base metal recovery through precipitation of the leach solution. The next attached table shows the high recovery of PGEs to precipitate.

Downstream processing to remove copper, cobalt and nickel followed established methods, with high recoveries of metals using multistage processes. In a commercial plant, solution would be recirculated and expected recoveries of copper, nickel and cobalt are indicated in the next attached table.

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 first two attached tables) 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 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 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 is committed to governance through transparent accountability and open communication within its team and its stakeholders. The company's 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's 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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