Continental Nickel Limited Announces Management Changes

TORONTO, ONTARIO -- (Marketwire) -- 01/21/11 -- Continental Nickel Limited (TSX VENTURE: CNI) ('Continental Nickel' or the 'Company') announced today that Craig S. MacDougall has advised the Board of Directors that he will resign as the President, Chief Executive Officer and a director.

The board of directors wishes to thank Craig, who was instrumental in the founding of Continental Nickel in 2006, completing the successful initial public offering and listing in 2007, and leading the Company since that time. Under Craig's leadership, the Company has discovered the Sleeping Giant and Ntaka Hill deposits at the Nachingwea Project. Final assay results from the 2010 Exploration Program are expected to be announced shortly. Management plans to complete an updated resource calculation completed in approximately 90 days. Currently, NI 43-101 compliant Measured and Indicated Mineral Resources, from six separate sulphide deposits (G, H, J, L, M and NAD013) at Ntaka Hill, total 3.1 million tonnes grading 1.31% nickel and 0.24% copper at a US$23/tonne Net Smelter Return ('NSR') cut-off (Press Release July 15, 2009).

The board of directors of Continental Nickel has commenced a search process for a new Chief Executive Officer and is confident that there will be an orderly transition in leadership. Until a new CEO is appointed, Craig will continue as the Company's Chief Executive Officer with a mandate to oversee completion of an updated resource calculation on the Nachingwea Project using data from the 2010 Exploration Program.

The Company also announced that Mr. John S. Nitschke has recently been appointed Chairman of the Board of Directors following on the appointment of new outside directors at the annual meeting held on October 26, 2010. Mr. Nitschke commented, 'The board of directors is disappointed to lose Craig. He is greatly respected and we appreciate and thank him for his dedication and work on behalf of the Company. Nevertheless, we look forward to building on what Craig has started at Continental Nickel.'

About Continental Nickel

Continental Nickel Limited 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 NI 43-101 Mineral Resources have defined 40,000 tonnes of contained nickel, and ongoing exploration is underway to evaluate the potential to expand these Resources.

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

Continental Nickel Limited has 38,943,664 shares issued and outstanding (46,211,514 on a fully-diluted basis) and trades on the TSX Venture Exchange under the symbol CNI. The Company remains well-funded with over C$9.9 million in the treasury.

CAUTIONARY STATEMENT: 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, resources and reserves, exploration results, future plans and objectives of Continental Nickel Limited, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. 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.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contacts:

Continental Nickel Limited

John S. Nitschke

Chairman

61 407-081-446


Continental Nickel Limited

Bruce Burton, C.A.

Director

(416) 364-7111

(416) 364-8114 (FAX)
info@continentalnickel.com
www.continentalnickel.com