Infill Drilling Continues to Highlight Potential of Higher-Grade Core at Canada Nickel's Crawford Nickel-Cobalt-Palladium Project

Highlights

• Infill hole on Main Zone returned 0.33% nickel over core length of 357 metres from the start of the hole at 45 metres, beginning with 0.36% nickel over 249 metres, within the steeply dipping higher-grade core which varies in true thickness from 40 to 160 m
• Final four holes from this phase of East Zone drilling intersected thick intersections of nickel mineralization including hole CR20-39 with 0.24% nickel over estimated true width of 273 metres including 0.30% nickel over estimated true width of 40 metres
• East Zone holes at north contact holes extend PGM mineralization with consistent grade and thickness
• • 1.8 g/t palladium + platinum (0.9 g/t Pd, 0.9 g/t Pt) over estimated true width of 2.9 metres from 323 metres in hole CR20-41 and 1.8 g/t palladium + platinum (0.8 g/t Pd, 0.9 g/t Pt) over estimated true width of 2.9 metres core length from 189 metres in hole CR20-38

TORONTO, July 30, 2020 - Canada Nickel Company Inc. (TSX-V:CNC) ("Canada Nickel" or the "Company") today announced the remaining assay results from the East Zone and additional results from infill drilling on the Main Zone at its Crawford Nickel-Cobalt Sulphide project.

"Our infill drilling program continues to deliver outstanding results. Another drill hole delivered higher grades than our average Higher-Grade Core resource of 0.31% nickel along the entire core length – and most importantly, the hole begins with 249 metres at 0.36% extending 50 metres outside our existing 0.35% grade shell. These results continue to highlight the potential of the Higher-Grade Core in our Main Zone," said Mark Selby, Chair and CEO of Canada Nickel. "We remain on track to complete our Preliminary Economic Assessment (PEA) by year-end. Our resource update, expected by the end of July, has been delayed approximately four weeks due to unusually wet weather earlier in the summer which delayed our access to the final three drill holes to complete our infill program (the next 200 metres east of hole 42). We now expect to deliver a resource update by the end of August. Drier weather has allowed us to resume drilling next week and once in-fill drilling is completed, we will also follow up on the previously reported excellent PGM results from hole CR20-32 (three separate intersections including 2.6 g/t over 7.5 metres) and several other prospective geophysical nickel targets on the several kilometres of the Crawford structure which remain untested."

The Crawford Nickel-Cobalt Sulphide Project is located in the heart of the prolific Timmins-Cochrane mining camp in Ontario, Canada, and is adjacent to well-established, major infrastructure associated with over 100 years of regional mining activity.

Main Zone

Infill drilling on the Main Zone continued to focus on more clearly defining and upgrading the Higher-Grade Core resource which was previously defined as part of the resource estimate and dips steeply within the ultramafic unit and having a true thickness that varies from 40 to 160 m.

Infill hole CR20-43 on Main Zone returned 0.33% nickel, 0.014% cobalt, 0.027 g/t palladium and 0.010 g/t platinum, and 0.29% sulphur over core length of 357 metres from the start of the hole at 45 metres, beginning with 0.36% nickel over 249 metres and included 86 metres grading 0.39% nickel, 0.014% cobalt, 0.03 g/t palladium and 0.01 g/t platinum, and 0.41% sulphur. Assays from the remaining 15 holes and the final 3 holes to be completed will be released over the next several weeks. See Table 1 and Figure 1 for results.

East Zone - Nickel

The East Zone has continued to deliver consistently long intersections of nickel and cobalt intercepts and grades. See Table 2 and Figure 2 for results.

PGM Zone

Both holes that intersected the northern contact between the peridotite and pyroxenite layer just north of the nickel structure on the East Zone again returned consistent palladium-platinum intersections. Hole CR20-38 returned 1.8 g/t palladium + platinum (0.8 g/t Pd, 0.9 g/t Pt) over 4.5 metres (ETW: 2.9m) within 1.5 g/t palladium + platinum (0.7 g/t Pd, 0.7 g/t Pt) over 6.0 metres (ETW: 3.9m), from 189 metres downhole. Hole CR20-41 returned 1.8 g/t palladium + platinum (0.9 g/t Pd, 0.9 g/t Pt) over 4.5 metres (ETW: 2.9m) within 1.5 g/t palladium + platinum (0.7 g/t Pd, 0.8 g/t Pt) over 6.0 metres,(ETW: 3.9m) from 321 metres downhole. See Table 3 and Figure 3 for results.

Next Steps

We expect to begin drilling the final three infill holes next week, which results to be incorporated into an updated resource now expected by the end of August. Once in-fill drilling is completed, the Company will also be able to follow up on the previously reported excellent PGM results from hole CR20-32 (three intervals including 2.6 g/t over core length of 7.5 metres) and several other prospective geophysical targets on the several kilometres of the Crawford structure which remain untested on the western side of the highway.

Assays, Quality Assurance/Quality Control and Drilling and Assay Procedures

William E. MacRae, MSc, P.Geo., a "qualified person" as defined by NI 43-101, is responsible for the on-going drilling and sampling program, including quality assurance (QA) and quality control (QC). The core is collected from the drill in sealed core trays and transported to the core logging facility. The core is marked and sampled at 1.5 metre lengths and cut with a diamond blade saw. Samples are bagged with QA/QC samples inserted in batches of 35 samples per lot. Samples are transported in secure bags directly from the Canada Nickel core shack to Actlabs Timmins, an ISO/IEC 17025 accredited lab. Analysis for precious metals (gold, platinum and palladium) are completed by Fire Assay while analysis for nickel, cobalt, sulphur and 17 other elements are performed using a peroxide fusion and ICP-OES analysis. Certified standards and blanks are inserted at a rate of one QA/QC sample per 32 core samples making a batch of 35 samples that are submitted for analysis.

Qualified Person and Data Verification

Stephen J. Balch P.Geo. (ON), VP Exploration of Canada Nickel and a "qualified person" as such term is defined by National Instrument 43-101, has verified the data disclosed in this news release, and has otherwise reviewed and approved the technical information in this news release on behalf of Canada Nickel Company Inc.

About Canada Nickel Company

Canada Nickel Company Inc. is advancing the next generation of nickel-cobalt sulphide projects to deliver nickel and cobalt required to feed the high growth electric vehicle and stainless steel markets. Canada Nickel provides investors with leverage to nickel and cobalt in low political risk jurisdictions. Canada Nickel is currently anchored by its 100% owned flagship Crawford Nickel-Cobalt Sulphide Project in the heart of the prolific Timmins-Cochrane mining camp.

Cautionary Statement Concerning Forward-Looking Statements

This press release contains certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward looking information includes, but is not limited to, drill results relating to the Crawford Nickel-Cobalt Sulphide Project, the potential of the Crawford Nickel-Cobalt Sulphide Project, timing of economic studies and resource estimates, strategic plans, including future exploration and development results, and corporate and technical objectives. Forward-looking information is necessarily based upon a number of assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Factors that could affect the outcome include, among others: future prices and the supply of metals, the future demand for metals, the results of drilling, inability to raise the money necessary to incur the expenditures required to retain and advance the property, environmental liabilities (known and unknown), general business, economic, competitive, political and social uncertainties, results of exploration programs, timing of the updated resource estimate, risks of the mining industry, delays in obtaining governmental approvals, and failure to obtain regulatory or shareholder approvals. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. Canada Nickel disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

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SOURCE Canada Nickel Company Inc.