Mr. Keith Morrison reports

PREMIUM NICKEL EXPANDS DEPOSIT WHILE ADVANCING INFILL DRILLING AT SELEBI NORTH: ASSAYS INCLUDE 26.35 METRES 4.31% CUEQ OR 2.09% NIEQ

Premium Nickel Resources Ltd. has released additional high-grade assay results for a further six holes from drilling at its past-producing nickel-copper-cobalt sulphide Selebi North underground mine in Botswana.

Highlights include:

• SNUG-24-106 (South Limb): infill drilling targeting reclassification of inferred to indicated resources):
  • 26.35 metres of 4.31 per cent copper equivalent or 2.09 per cent nickel equivalent (1.09 per cent copper, 1.56 per cent nickel and 0.08 per cent cobalt) including 16.10 metres of 5.87 per cent CuEq or 2.84 per cent NiEq (1.54 per cent Cu, 2.10 per cent Ni and 0.11 per cent Co);
• SNUG-24-107 (South Limb): infill drilling targeting reclassification of inferred to indicated resources):
  • 8.40 metres of 7.04 per cent CuEq or 3.41 per cent NiEq (2.64 per cent Cu, 2.13 per cent Ni and 0.11 per cent Co);
• SNUG-24-096-W1 (South Limb and N2): intersected significant mineralization 100 metres down plunge of 2024 initial mineral resource estimate; borehole electromagnetic results pending;
• SNUG-24-146 (South Limb): infill drilling targeting reclassification of inferred to indicated resources).

This is the first set of assays not included in the MRE for the Selebi mines in Botswana (see news release issued on Aug. 8, 2024, titled: Premium Nickel Resources Ltd. Announces Its Initial Mineral Resource Estimate of 27.7 MT for the Selebi Mines in Botswana). Details of the assay results are shown herein.

Chief executive officer Keith Morrison commented: "When we acquired these permitted projects in January, 2022, our strategy was to recharacterize the remaining resources, achieve [National Instrument] 43-101 compliance and advance to a prefeasability study as part of an accelerated path to production. This release highlights the successful exploration strategy that has further extended the mineralization at Selebi North beyond the MRE. We work from known mineralization and use BHEM to image mineralization down plunge. BHEM data in SNUG-24-096-W1, when available, is expected to provide direct evidence of the upside potential at depth and any change in the fold morphology. Our strategy prioritizes time and cost-efficiencies beginning with data compilation, geological analysis and economic studies to meet our goal of production by late 2027.

"Ongoing underground drilling at Selebi North totalling approximately 20,000 metres has been completed, in addition to the approximately 30,000 metres reflected in the initial mineral resource estimate. Infill drilling is designed to upgrade classification in the mineral resource estimate from inferred into indicated, which is required for future prefeasibility studies. We are also preparing to move underground and start the process of infill drilling to upgrade the classification of the Selebi Main resources and expand on the deposit. With this data and potential future underground infrastructure development, we are better positioned to effectively evaluate additional upside potential between the known Selebi North and Selebi Main deposits," said Mr. Morrison.

Assay results are provided in the attached table for SNUG-24-106, 107, 109, 110, 113 and 115.

Drilling and BHEM continue

Two drills are currently active on the 810-metre-level exploration drift, and the third drill is on a new drill bay on the 925-metre level. The drill bay located at the southernmost extent of the 810-metre-level exploration drift allows for the evaluation of areas farther down plunge of the deposit. The drill positioned approximately 130 metres east of the exploration, perpendicular to the main 810-metre-level exploration drift, allows for optimal intersection angles on the South Limb and N2 Limb. The drill positioned on the 925-metre level allows for testing of the lower portions of both limbs of N3 and their down plunge extents. BHEM surveys continue, with a total of 40 holes surveyed, including a survey in the deepest down plunge hole, SNUG-24-096-W1. BHEM data from this hole are pending.

As of Sept. 3, 2024, a total of 51,612 metres in 128 drill holes have been drilled from eight underground drill bays with three of those drill holes currently in progress. Drilling totalling 21,628 metres across 43 completed holes with three more in progress is not included in the MRE. This new drilling is a combination of infill and exploration drilling to follow the extension of the mineralization downdip and down plunge.

New assay results not captured in the MRE will be published as they are received and verified by the company. Due to the extensive drilling that has intersected mineralization, the company has released assay results only for the most significant intercepts. The results of these new drill holes will be included in a future mineral resource update, with the goal of both expansion and reclassification of the current MRE. Premium Nickel anticipates that these pending results combined with future drilling will support the progression toward a prefeasibility study.

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 1.0- 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 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 Ni, Cu and Co are completed using a peroxide fusion preparation and ICP-AES 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 time bases between 50 and 1,000 milliseconds (0.25 hertz to five hertz). The data have been processed to a calculated residual step response to better quantify the conductive sources. This added processing has proved 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.

An updated NI 43-101 technical report will be released in the coming weeks to support the recent publication by Premium Nickel of a mineral resource estimate on Aug. 8, 2024.

Historic resource estimate

The historical mineral resource estimate referenced herein was calculated for the Selebi North and Selebi Main, in accordance with Samrec, in 2016, prior to the acquisition of the property by the company. 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, it has been superseded by the mineral resource estimate disclosed on Aug. 8, 2024.

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 resource 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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