Continental Nickel: Environmental Scoping Study Approved for Ntaka Hill Nickel Project

TORONTO, ONTARIO -- (Marketwire) -- 03/20/12 -- Continental Nickel Limited (TSX VENTURE: CNI) ("CNI" or the "Company") is pleased to announce that the Environmental Scoping Study ("ESS") recently submitted to the National Environment Management Council ("NEMC") of Tanzania (CNI press release February 28, 2012) for the Ntaka Hill Nickel Project (the "Project") has been approved. This approval also includes approval of the Terms of Reference ("ToR") for the Environmental and Social Impact Assessment ("ESIA") that is the next stage in achieving environmental permitting of the project.

The preparation of the ESIA and environmental approval of the project has been prioritized by CNI as it is identified as being a critical path activity in advancing the Project into production in 2015.

The Project is part of the larger 75:25 joint venture between CNI and IMX Resources Limited of Australia for the Nachingwea Project in Southern Tanzania.

Tanzanian based environmental consulting group MTL Consulting Company Limited will continue detailed baseline studies and other investigations for the ESIA with an aim of providing the ESIA for public display and submission to NEMC in the fourth quarter of 2012.

Community Engagement

In addition to the ESS and ESIA, CNI has increased the level of engagement and consultation with all project stakeholders in order to work towards obtaining a "social license" to develop the project. These steps include:

--  Promotion of Mr. Chris Airo to CNI's Community Manager for the project.
    Mr. Airo is a Tanzanian trained geologist who has been employed as the
    In-Country Project Manager during exploration over the past 5 years and
    has previously carried out community liaison on an ad-hoc basis for the
    exploration activities.
--  Engagement of Coffey Environments Australia Ltd to assist Mr. Airo in
    developing systems and procedures for community engagement that are in
    line with global best practice.
--  Development of detailed community engagement plans and procedures that
    are suitably robust to be utilized for the life of mine.

Mr. Stewart Watkins, Vice President Projects commented; "Approval of the ESS, including the ToR, is an important step in the path towards environmental permitting of the Ntaka Hill project. The preparation of the detailed ESIA can now continue towards our target submission date."

"The increased focus on community engagement and consultation is a critical aspect of our project development as we are keen to ensure that the relationships with our stakeholders are 'owned' by the Company rather than third-party consultants. Obtaining a 'social license' to operate is as important to the Company as the formal environmental and mining permitting."

About Continental Nickel Limited

Continental is focused on the exploration, discovery and development of nickel sulphide deposits in geologically prospective, but under-explored regions globally. The Company's key asset is its 75% interest in the Nachingwea project in Tanzania, where measured and indicated mineral resources have been estimated at 12.8 Mt grading 1.21% nickel and inferred mineral resources have been estimated at 45 Mt grading 0.30% nickel. (CNI press release March 2, 2012). The project is a 75:25 joint venture between the Company and IMX Resources Limited.

The Company also has an option to joint venture on the St. Stephen project in New Brunswick, Canada where the 2010 and 2011 diamond drill program discovered new Ni-Cu sulphide zones.

As at the date of this release, the Company has 42,738,508 common shares issued and outstanding (51,126,914 on a fully-diluted basis) and trades on the TSX Venture Exchange under the symbol CNI. The Company remains well funded with over C$9.4 million in the treasury as at December 31, 2011.

On behalf of Continental Nickel Limited

Dave Massola, President and Chief Executive Officer

Web site: www.continentalnickel.com

CAUTIONARY STATEMENT: The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain "forward-looking statements". All statements other than statements of historical fact included in this release including, without limitation, statements regarding potential mineralization, potential or estimated metal recoveries, resources and reserves, cut-off grades, exploration results, future plans and objectives of Continental Nickel Limited, is forward-looking information that involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate and actual results and future events could differ materially from those anticipated in such information. Important factors that could cause actual results to differ materially from Continental Nickel Limited's expectations are the risks detailed herein and from time to time in the filings made by Continental Nickel Limited with securities regulators.

Contacts:

Continental Nickel Limited

Dave Massola

President and Chief Executive Officer

(416) 603-8416

(416) 603-8760 (FAX)


Continental Nickel Limited

Stewart Watkins

Vice President Projects

+61 403 242 954
info@continentalnickel.com
www.continentalnickel.com