Canada Nickel Takes Important Step in Crawford Nickel Project Permitting Process

TORONTO, May 12, 2022 - Canada Nickel Company Inc. ("Canada Nickel" or the "Company") (TSXV: CNC) (OTCQX: CNIKF) is pleased to announce submission of the preliminary draft of the Initial Project Description ("IPD") to the Impact Assessment Agency of Canada ("the Agency") following the related signing of ground-breaking Impact Assessment Process Agreements ("Impact Assessment Agreements" or "IA Agreements") with Taykwa Tagamou Nation, Matachewan First Nation, and Mattagami First Nation.

Mark Selby, Chair & CEO of Canada Nickel said, "This is an important first step in the permitting process for Crawford. Since the founding of the Company, our approach has been to work with Indigenous communities and local stakeholders as partners in order to create shared value through economic opportunities, while also being respectful and responsible stewards of the natural environment. These ground-breaking Impact Assessment Agreements foster full participation of Indigenous Communities in the federal Impact Assessment process for the development of the Crawford Nickel Project."

"Taykwa Tagamou Nation is proud of the partnership we have with Canada Nickel. This innovative model of applying Traditional Knowledge through a land use study enables our community to both understand the project's impacts through all stages of its life cycle, while ensuring that, as the stewards of our Traditional Territory, development is conducted in an environmentally sustainable manner", said Chief Bruce Archibald.

"True Indigenous partnerships, such as ours with Canada Nickel, provide certainty for proponents, along with economic opportunity for Northern Ontario and impacted Indigenous communities," said Deputy Chief Derek Archibald. "With this certainty, Taykwa Tagamou Nation is meaningfully participating in the project's economic development from beginning to end".

Chief Chad Boissoneau, of Mattagami First Nation, commented "Agreements of this nature, built upon honest and genuine relationships, benefit both the First Nation and the Proponent. First Nations can fully participate in the Impact Assessment of a major project on our Traditional Land, while supporting Canada Nickel in making properly informed, sustainable, and respectful decisions about a project that stands to be of great benefit to our community."

The submission of the preliminary draft of the IPD to the Agency initiates a precursory review period of the document. This review period, coinciding with Canada Nickel's independent Indigenous and public consultation program for the IPD, will enable Canada Nickel to integrate feedback from both the Agency's review and Canada Nickel's engagement activities into the final draft of the IPD, expected to be formally submitted in summer 2022.

The Impact Assessment process is a planning and decision-making tool used by regulators, Indigenous communities, the general public, stakeholders, and proponents to emphasize the positive benefits and resolve or mitigate the potential impacts of a proposed major project. The IPD is a key phase in the early planning and development of a modern mining project.

The signing and implementation of the IA Agreements further validates the meaningful and productive relationships developed between Canada Nickel and Taykwa Tagamou Nation, Matachewan First Nation, and Mattagami First Nation, and serves as tangible evidence of Canada Nickel's intention around full integration of Indigenous communities into the development of the Crawford Nickel Project.

The IA Agreements are intended to foster full participation of Indigenous communities in the federal Impact Assessment process, with a focus on community driven completion of Traditional Knowledge and Land Use and Socio-economic studies. In addition to outlining effective communication channels and platforms for meaningful engagement, the IA Agreements facilitate tangible capacity building within the communities that will extend beyond the timeline of and activities relating to the Crawford Project and Canada Nickel, including the hiring and training of a dedicated Impact Assessment Coordinator and the creation of an Impact Assessment Coordination Committee, comprised of representative, interested community members, including youth and elders.

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 successfully registered and applied for trademarks in various jurisdictions for NetZero Nickel™, NetZero Cobalt™ and NetZero Iron™ 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.

For further information, please contact:

Mark Selby, Chair and CEO
Phone: 647-256-1954
Email: info@canadanickel.com

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 Sulphide Property, the potential of the Crawford Nickel Sulphide Property, timing of economic studies and mineral resource estimates, the ability to sell marketable materials, 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, 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.