Canada Nickel Announces Industry Leading Low Carbon Footprint

Highlights:

• Life-of-mine Crawford CO2 footprint lower than 99.7% of global nickel production
• Crawford estimate of 2.05 tonnes of CO2 per tonne of nickel-equivalent production, 93% lower than the industry average of 29 tonnes CO2
• Estimate excludes potential carbon offsets expected from company's waste rock and tailings, which is expected to result in net zero CO2 production

TORONTO, June 1, 2021 - Canada Nickel Company Inc. ("Canada Nickel" or the "Company") (TSXV: CNC) (OTCQB: CNIKF) today announced its Crawford project is expected to have an industry leading low carbon footprint, lower than 99.7% of existing global nickel production. When in operation, Crawford is expected to produce 2.05 tonnes of carbon dioxide (CO2) per tonne of nickel-equivalent production over the life of mine. This is 93% lower than the industry average of 29 tonnes of CO2.

These results are based on a study by Skarn Associates, a metals and mining ESG research company, applying data from Canada Nickel's Preliminary Economic Assessment ("PEA"), the results of which were released on May 25^th 2021. Importantly, this CO2 footprint estimate does not include the carbon offset expected to be provided from the process of spontaneous mineral carbonation from the tailings and waste rock comprised largely of serpentine rock which naturally absorbs CO2 when exposed to air.

Mark Selby, Chair & CEO said, "This study demonstrates that Canada Nickel's Crawford project can be a world-leading large scale, low cost nickel supplier while possessing an extremely low carbon footprint. I am particularly excited that we can achieve this result even before we include the carbon offset potential from our waste rock and tailings which we expect to allow us to produce NetZero Nickel^TM, NetZero Cobalt^TM, and NetZero Iron^TM. These results reflect the mine's low strip ratio and our ability to utilize the low carbon hydroelectricity in the region and by using trolley trucks and electric shovels to reduce the consumption of diesel fuel."

Skarn Associates' proprietary E₀ GHG intensity metric relates to Scope 1 and 2 mine site emissions from mining and processing of ore, plus fugitive emissions. It includes emissions from integrated smelting and refining facilities, but excludes emissions from third-party smelting and refining. Emission intensities are stated on a recovered nickel-equivalent basis, calculated using average 2020 metal prices. Emissions are pro-rated across all commodities produced by the mine, based on contribution to gross revenue.

Figure 1 - Nickel GHG Intensity Curve - CO2e Intensity (tCO2e/t Ni eq.)

About Skarn Associates
Skarn's mission is to bridge the research gap between mine economics and ESG. Founded in 2016, since early 2020 Skarn has focused on creating high quality, independent, forward-looking mining sector ESG analysis, especially energy use and carbon emissions from mining, smelting and refining operations. Commodities covered include nickel, gold, aluminum, zinc, iron ore, metallurgical coal and copper.

Skarn has become a leader in mining sector greenhouse gas benchmarking, having developed unique methodologies and datasets, including its proprietary E0 and E1™ emissions metrics. For more information visit www.skarnassociates.com.

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 Company has applied in multiple jurisdictions to trademark the terms NetZero NickelTM, NetZero CobaltTM, NetZero IronTM and is pursuing the development of processes to allow the production of net zero carbon nickel, cobalt, and iron products. 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. For more information, please visit www.canadanickel.com.

Qualified Persons
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.

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, the results of Crawford's PEA, including proposed mining plans and methods, 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. The PEA results are estimates only and are based on a number of assumptions, any of which, if incorrect, could materially change the projected outcome. 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, risks of the mining industry, delays in obtaining governmental approvals, failure to obtain regulatory or shareholder approvals, and the impact of COVID-19 related disruptions in relation to the Company's business operations including upon its employees, suppliers, facilities and other stakeholders. 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.