Mr. Keith Morrison reports

PREMIUM NICKEL REPORTS DOWN PLUNGE EXTENSION OF SELEBI NORTH MASSIVE SULPHIDE MINERALIZATION

Premium Nickel Resources Ltd. has released additional assay results from drilling at its past-producing nickel-copper-cobalt sulphide Selebi North underground (SNUG) mine in Botswana. Previous results for 37 holes were released in seven separate news releases between Nov. 14, 2023, and Feb. 26, 2024. Results for a further five holes are released herein. To date a total of 42 holes have been released representing an aggregate of approximately 15,301 metres including the holes and metres released herein.

Highlights include:

• SNUG-23-017 (drilled 180 metres down plunge and outside of the South Limb historic resource):
  • 18.15 metres of 2.25 per cent nickel equivalent (1.27 per cent nickel; 1.65 per cent copper; 0.06 per cent cobalt);
  • Including 6.25 metres of 3.28 per cent NiEq (2.34 per cent Ni; 1.40 per cent Cu; 0.11 per cent Co);
  • 3.50 metres of 3.31 per cent NiEq (1.06 per cent Ni; 4.08 per cent Cu; 0.05 per cent Co).
• SNUG-24-089 (drilled 403 metres down plunge and outside of the South Limb historic resource):
  • Intersected massive sulphide mineralization (assays pending).

Keith Morrison, chief executive officer of Premium Nickel, commented: "The underground drilling at Selebi North is successfully advancing our NI 43-101 compliant mineral resource estimate (MRE). In addition, it is providing new structural, geochemical and geological information to integrate with our borehole electromagnetic (BHEM) electrical conductivity imaging supporting drilling down-plunge mineralization below the legacy Selebi North resource block model. The success of this process continues to be proven with the results in SNUG-23-017 180 metres down plunge and SNUG-24-089 403 metres down plunge. We will use the same process to target massive Ni-Cu-Co sulphide mineralization in the 3,000-metre gap between the end of mine at Selebi and Selebi North -- an area we refer to as the southern hinge. The current underground drilling program is expected to be completed this month, allowing us to move one of our underground drill rigs for surface drilling and begin testing the southern hinge mineralization."

The primary focus of this drill program is to define mineralization down plunge of the existing workings that will be used to complete an MRE prepared in accordance with National Instrument 43-101 -- Standards of Disclosure for Mineral Projects.

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. Additional drilling is needed to properly determine true width of mineralization on each limb and define the folded mineralization.

The highlighted results from SNUG-23-017, drilled from 935mL, intersected South Limb mineralization 180 metres down plunge of the historic resource. Recent holes, drilled from the 810mL exploration drift and targeting South Limb at depth, have demonstrated that South Limb mineralization extends over 400 metres beyond the historic resource in the down-plunge direction (240 metres vertically).

Drill holes SNUG-23-071 and SNUG-23-073, also reported in this release, intercepted mineralization down dip of the historic resource at N3.

As reported in the news release on Feb. 26, 2024, SNUG-23-035 intersected mineralization 130 metres along strike of the Selebi North historic resource.

Drilling and BHEM continue

Three drills are currently active, two on the 810mL exploration drift and one drilling from the 925mL South Limb development drive. The two drills on the 810mL exploration drift allow for the evaluation of areas farther down plunge and outside of the known historic resource estimate.

BHEM surveys are currently under way, with surveys completed in a total of 19 underground drill holes, including six 2024 holes drilled from the 810mL exploration drift evaluating the down-plunge potential of the South Limb. Results from these surveys indicate that the mineralized zones continue down plunge of current drilling, permitting larger stepout intervals.

As of March 3, 2024, a total of 25,109 metres in 73 drill holes have been completed from six underground drill bays with three of those drill holes currently in progress. Assay results for completed holes will be released as they are received and confirmed by the company.

Quality assurance/quality control

The underground drilling program is being carried out through an agreement with Forage Fusion Drilling Ltd. of Hawkesbury, Ont., 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- to 1.5-metre intervals or less at the discretion of the site geologists. Sample preparation and lab analysis were completed at 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 inductively coupled plasma atomic emission spectroscopy finish (ME-ICP81).

BHEM surveys

The BHEM surveys at Selebi utilize the Crone PEM system operated by local Batswana staff. Survey data are collected using a three-component fluxgate probe collecting full waveform data. Surveys have been collected using timebases between 50 and 1,000 milliseconds (0.25 hertz to five Hz). The data have 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.

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 NI 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. 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 referenced 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.

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. It 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.

We seek Safe Harbor.