Mr. Keith Morrison reports

PREMIUM NICKEL RESOURCES ANNOUNCES CLOSING OF SECOND TRANCHE OF PRIVATE PLACEMENT OF UNITS FOR TOTAL OFFERING OF C$27.5 MILLION

Further to the news release dated June 14, 2024, Premium Nickel Resources Ltd. has closed the second tranche of its non-brokered private placement offering of units of the company, pursuant to which the company issued an additional 16,021,795 units at a price of 78 cents per unit for gross proceeds of approximately $12.5-million.

The total size of the offering is approximately $27.5-million, comprising: (i) $15-million, which closed on June 14, 2024; and (ii) $12.5-million, which closed earlier today.

Each unit is composed of one common share of the company and one common share purchase warrant of the company. Each warrant entitles the holder thereof to acquire one common share at any time prior to 5 p.m. Toronto time for a period expiring 60 months following its respective date of issuance at a price of $1.10 per common share, subject to acceleration as described herein. If, at any time prior to the expiry date, the volume-weighted average trading price of the common shares on the TSX Venture Exchange (or such other principal exchange or market where the common shares are then listed or quoted for trading) is at least $2 per common share for a period of 20 trading days, the company may, at its option, elect to accelerate the expiry date to a date that is not fewer than 30 days following the date that the company provides written notice to the holders of the warrants of the accelerated expiry date.

Keith Morrison, chief executive officer of Premium Nickel, commented: "We are very pleased with the result of this financing. This financing will provide the capital needed for continuing the underground infill drilling at Selebi North and the surface infill and exploration drilling at Selebi Main and in the Hinge zone. The Selebi mineral resource estimate is on track to be released in the coming weeks. Additionally, we anticipate publishing a maiden mineral resource estimate, prepared in accordance with [National Instrument] 43-101, for Selkirk in [fourth quarter] 2024. The company will publish, when available, assay results from drilling, metallurgical testing and strategic initiatives as we work towards prefeasibility study reporting at both permitted resources."

The net proceeds of the offering will be used by the company to advance the exploration and development of its past-producing nickel-copper-cobalt-platinum-group-element sulphide assets in Botswana and for general corporate and working capital purposes. All securities issued under the offering are subject to a hold period of four months plus one day from the date of issuance in accordance with applicable Canadian securities laws and the policies of the exchange. The offering remains subject to final acceptance by the exchange.

Multilateral Instrument 61-101 disclosure

Certain insiders of the company have subscribed for an aggregate 1,389,140 units for gross proceeds of $933,529.74. Each subscription by an insider is considered to be a related-party transaction for the purposes of Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions). The company has completed the offering in reliance on exemptions available under MI 61-101 from the formal valuation and minority approval requirements of MI 61-101. Specifically, the offering is exempt from the formal valuation requirement in Section 5.4 of MI 61-101 in reliance on Section 5.5(b) of MI 61-101 as the company is not listed on a specified market within the meaning of MI 61-101. Additionally, the offering is exempt from the minority approval requirement in Section 5.6 of MI 61-101 in reliance on Section 5.7(1)(a) of MI 61-101 insofar as neither the fair market value of the subject matter of, nor the fair market value of the consideration for, the offering, insofar as it involves (or is expected to involve) interested parties, exceeds 25 per cent of the company's market capitalization. The company did not file a material change report more than 21 days before the expected closing date of the offering as the details of the offering and the participation therein by each related party of the company were not settled until shortly prior to closing, and the company wished to close the offering on an expedited basis for sound business reasons.

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. Its 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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