North American Nickel Maintains 10% Ownership in Premium Nickel Resources Through Recent Financing

Vancouver, British Columbia--(Newsfile Corp. - August 26, 2021) - North American Nickel Inc. (TSXV: NAN) (OTCBB: WSCRF) (CUSIP: 65704T 108) (the "Company" or "NAN") announces that it has participated for its pro-rata share in a recent private placement financing of Premium Nickel Resources ("PNR"), to maintain its 10% equity ownership. The PNR private placement is being held in escrow and is conditional on the anticipated signing of the Asset Purchase Agreement for the assets in liquidation of the former BCL Limited, Botswana.

NAN is a founding shareholder in PNR, a private Canadian company that provides direct exposure to nickel-copper-cobalt ("Ni-Cu-Co") opportunities in the southern African region. PNR submitted an Indicative Offer ("IO") to the BCL Liquidator in June 2020 to acquire the former producing BCL Selebi-Phikwe Mining Complex and the Tati Nickel Mining Corporation ("TNMC") Operations as well as regional exploration joint ventures on highly prospective Ni-Cu-Co projects located in north-eastern Botswana. NAN currently owns 10% of common shares of PNR and has a 5-year Warrant to purchase an additional 15% undiluted equity interest in PNR for USD$10M. NAN is providing the corporate management and technical expertise to PNR on a contractual basis.

NAN CEO, Keith Morrison commented "NAN is working with PNR during the current exclusivity period to finalize the assets for purchase. The use of this private placement will enable a smooth transition to the ownership of the assets and prepare for the activities required to advance the purchased assets to a compliant Pre-Feasibility level. The PNR business model is based on a modern redevelopment of a combination of the BCL and TNMC deposits to produce Ni-Cu-Co and water in a manner which will benefit all stakeholders and that is inclusive of modern environmental, social and corporate governance responsibilities. PNR's goal is to significantly reduce the environmental and carbon footprint with the adaption of best practices including safety, sustainability and the application of new technologies."

PNR was selected as the preferred bidder to acquire the assets formerly owned by BCL Limited and TNMC on February 10, 2021. On March 24, 2021, PNR completed the Exclusivity Memorandum of Understanding ("MOU") with the Liquidator for the ongoing six-month exclusivity period to complete additional work and related Asset Purchase Agreements (See News Release Dated March 24, 2021). Negotiations are ongoing to finalize terms on the prioritized assets that will be included in the Asset Purchase Agreement.

The BCL operations at Selebi-Phikwe are comprised of a mining complex, a concentrator and a processing facility, as well as other supplementary assets and infrastructure such as rail line, tailings facilities, and employee housing. Shaft sinking and plant construction started in 1970 and open pit mining commenced at Phikwe in 1972. Throughout the mine's life the various deposits, over a 14 km strike length, have been mined by open pit and various underground mining methods. Mining concluded in October 2016 when the operations were placed on care and maintenance due to a failure in the smelter. PNR's redevelopment plan is based on a re-characterization of the remaining resources and the ability to produce two separate commercial concentrates (a Cu concentrate and a separate Ni-Co concentrate).

Underground Selebi-Phikwe Remaining reserves and resources at 31 December, 2016

Proven & Probable Mineral Reserves 49 Mt @ 0.61% Ni, 0.68% Cu;
Indicated & Inferred Mineral Resources 35 Mt @ 0.82% Ni, 0.92% Cu

(The historical statements of resources and reserves noted above are sourced from the following report Wood Mackenzie - Selebi Phikwe Closed Nickel Operation Asset Report, December, 2018. The report was reviewed by Sharon Taylor on behalf of NAN, who has concluded that the stated reserves and resources are non NI 43-101 compliant. However, the historical reserves and resources are considered to be relevant and reliable as a basis for understanding the potential resources at the property. To the best of NAN's knowledge, information and belief, there is no new material, scientific or technical information that would make the disclosure of the mineral resources inaccurate or misleading. NAN has not done sufficient work to classify the historic estimate as current mineral resources or mineral reserves and is not treating the historical estimate as current mineral resources or mineral reserves. The Company understands that PNR, upon successful acquisition of the assets, intends to commence a program to update the resource model to support an NI 43-101 compliant resource estimate).

The TNMC Operations are comprised of two mines and a processing plant situated 65 km south-east of town of Francistown, and 75 km north of the BCL Operations at Selebi-Phikwe. Underground production at Selkirk of high-grade massive sulphides between 1989 to 2002 produced 1 million tonnes @ 2.6% Ni and 1.5% Cu that was direct shipped to the BCL Smelter. A large volume of disseminated Ni-Cu mineralization surrounds the higher-grade Selkirk mineralization is being evaluated as a potential open pit development. The Phoenix open pit mine and processing plant began operations in 1995. The operations were put on care and maintenance in early 2016.

Open Pit TNMC Remaining reserves and resources at 31 December, 2016

Proven & Probable Mineral Reserves 17.8 Mt @ 0.19% Ni, 0.13% Cu;
Indicated & Inferred Mineral Resources 234 Mt @ 0.22% Ni, 0.23% Cu

(The historical statements of resources and reserves noted above are sourced from the following report Wood Mackenzie - Tati Closed Nickel Operation Asset Report, December, 2018. The report was reviewed by Sharon Taylor on behalf of NAN, who has concluded that the stated reserves and resources are non NI 43-101 compliant. NAN has not done sufficient work to classify the historic estimate as current mineral resources or mineral reserves and is not treating the historical estimate as current mineral resources or mineral reserves. To the best of NAN's knowledge, information and belief, the reported resource is understated because it does not report grades for Cobalt, Platinum or Palladium. These elements are known to add value based on historical annual reports by previous operator Nornickel. The Company understands that PNR, upon successful acquisition of the assets, intends to commence a program to update the resource model to support an NI 43-101 compliant resource estimate).

There can be no assurance that PNR will move from exclusivity to successful completion of the proposed acquisition.

About North American Nickel

North American Nickel is a mineral exploration company with 100% owned properties in Maniitsoq, Greenland and Ontario, Canada. In 2019 the Company became a founding shareholder in Premium Nickel Resources ("PNR") a private Canadian company, to provide direct exposure to Ni-Cu-Co opportunities in the southern African region. PNR completed a Memorandum of Understanding to acquire the assets, in liquidation, formerly operated by BCL Limited in Botswana. In addition, the Company is expanding its area of exploration interest into Morocco and building a relationship with the Office National des Hydrocarbures et des Mines ("ONHYM"), the leading resource crown corporation and the single largest permit holder in Morocco.

The Maniitsoq property in Greenland is a Camp scale permitted exploration project comprising 3,048 square km covering numerous high-grade nickel-copper + cobalt sulphide occurrences associated with norite and other mafic-ultramafic intrusions of the Greenland Norite Belt (GNB). The >75km-long belt is situated along, and near, the southwest coast of Greenland and is accessible from the existing Seqi deep water port with an all-year-round shipping season and hydroelectric power potential from a quantified watershed.

The Post Creek/Halcyon property in Sudbury is strategically located adjacent to the past producing Podolsky copper-nickel-precious metal sulphide deposit of KGHM International Ltd. The property lies along the extension of the Whistle Offset dyke structure. Such geological structures host major Ni-Cu-PGM deposits and producing mines within the Sudbury Camp.

The Company acquired 100% ownership of property near the southern extent of the Lingman Lake Greenstone Belt in northwest Ontario known as Lingman Nickel and in the Quetico region near Thunder Bay Ontario. The acquisition of these properties is part of the Company's strategy to develop a pipeline of new nickel projects. The Company is evaluating direct and indirect nickel asset acquisition opportunities globally.

ON BEHALF OF THE BOARD OF DIRECTORS

Keith Morrison
Chief Executive Officer
North American Nickel Inc.

For more information contact:

North American Nickel Inc.
Jaclyn Ruptash
Corporate Communications
+1 (604) 770-4334

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain "forward-looking statements" and "forward-looking information" under applicable Canadian securities legislation concerning the business, operations and financial performance and condition of the Company. Forward-looking statements and forward-looking information include, but is not limited to, statements about the future prospects of any assets or properties of the Company, the ability of the Company to successfully complete due diligence, the ability of the Company to access capital, any spending commitments, the success of exploration activities, the future economics of minerals including nickel and copper, the benefits of the development potential of the properties of the Company, the benefits of drilling and advancement of projects. Forward-looking information is necessarily based upon a number of estimates and 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. 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. The Company 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.

Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. Statements concerning mineral reserve and resource estimates may also be deemed to constitute forward-looking statements to the extent they involve estimates of the mineralization that will be encountered if the property is developed.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/94510

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