Mr. Keith Morrison reports

PREMIUM NICKEL REPORTS 17.55 METRES OF 3.28% NIEQ OR 6.16% CUEQ (2.07% NI, 1.98% CU, 0.11% CO) AT SELEBI NORTH UNDERGROUND, 403 METRES DOWN PLUNGE OF THE HISTORIC RESOURCE

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 47 holes were released in 10 separate news releases between Nov. 14, 2023, and April 17, 2024. This release highlights results for a further six holes. Details of the assay results are shown below.

Highlights include:

• SNUG-24-089 (South Limb, 403 metres down plunge of historic resource):
  • 17.55 metres of 3.28 per cent nickel equivalent or 6.16 per cent copper equivalent (2.07 per cent Ni, 1.98 per cent Cu, 0.11 per cent Co).
• SNUG-24-081 (South Limb and N2 Limb, within historic resource):
  • 28.60 metres of 1.95 per cent NiEq or 3.66 per cent CuEq (0.84 per cent Ni, 1.96 per cent Cu, 0.04 per cent Co), including 6.10 metres of 3.18 per cent NiEq or 5.97 per cent CuEq (0.91 per cent Ni, 4.13 per cent Cu, 0.05 per cent Co).

Keith Morrison, chief executive officer of Premium Nickel, commented: "The assays from the down-plunge extension of the Selebi North historic resource continue to confirm the interpretation of upside potential of the high-grade Ni-Cu-Co polymetallic nature of this deposit. These assays will be included in the first Selebi National Instrument 43-101 compliant mineral resource estimate (MRE), that will combine drilling from both Selebi North and Selebi Main, which is expected this June. While there is geoscience data indicating that both orebodies continue down plunge from our current drilling, the underground drills will focus on upgrading the inferred resources to indicated resources, with the intent of incorporating the data into a[n] NI 43-101 compliant prefeasibility study (PFS) optimizing initial mine life estimates."

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.

Drilling and BHEM continues

Three drills are currently active on the 810-metre level exploration drift. The two drill bays located at the southern most extent of the 810-metre level exploration drift allow for the evaluation of areas farther down plunge and outside of the known historic resource estimate. The third drill is stationed in the newly completed development located approximately 130 metres east orthogonal to of the main 810-metre level exploration drift, allowing for optimal intersection angles on South Limb and N2 Limb.

BHEM surveys have been completed in a total of 30 underground drill holes including nine 2024 holes drilled from the 810-metre level 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 May 14, 2024, a total of 35,246 metres in 92 drill holes have been completed from seven 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 was 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).

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

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 time bases 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 in 2016 for the Selebi North, Selebi Main, Phikwe South and Southeast Extension deposits in accordance with South African Mineral Resource Committee (SAMREC) code 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.

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.

We seek Safe Harbor.