Canada Nickel Makes Third New Discovery at Crawford Nickel-Cobalt Sulphide Project

Highlights

• All four drill holes intersected mineralized dunite across width of 800 metres and along a strike length of 425 metres in 2.5 km by 400-800 metre wide geophysical anomaly approximately 850 metres northwest of Main Zone.
• Fourth hole ended in mineralization (0.31% nickel, 0.09% sulphur, 0.06 g/t PGM, 0.014% Co, 7.37% Fe  across 21 metres) with more assays pending.

TORONTO, Oct. 22, 2020 /CNW/ - Canada Nickel Company Inc. ("Canada Nickel" or the "Company") (TSX-V:CNC) (OTCQB: CNIKF) today announced the discovery of previously unknown mineralization at its Crawford Nickel-Cobalt Sulphide project. The discovery was made from four new drill holes; assays are pending.

This discovery is separate and in addition to the Company's latest resource update, which focuses on the Company's first two discoveries. This third discovery and resource update will be discussed on a conference call on Thursday October 22^nd at 10am EDT.

Figure 1 – West Zone Discovery Holes CR20-69 through CR20-72 over top of gravity gradient (Crawford Township airborne gravimetric survey completed in 2018) (CNW Group/Canada Nickel Company Inc.)

"This is yet another exciting discovery on the Crawford Nickel-Cobalt Sulphide project with a geophysical footprint larger than the Main Zone," said Mark Selby, Chair and CEO of Canada Nickel. "These drill holes intersected mineralization consistent with what we've seen in the Crawford Main Zone, and reinforces our geophysical understanding of Crawford's mineralization.  I look forward to seeing these assay results and our continued exploration results as we continue to unlock the potential at Crawford."

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.

West Zone Discovery

The four holes intersected mineralized dunite (three of four holes both collared and ended in dunite), consistent with mineralization seen in the Crawford Main Zone, across a width of 800 metres and strike length of 425 metres.  The final 21 metres in the fourth hole intersected disseminated mineralization with sulphide blebs (see Figure 1 for images from the 352.5 metre and 370 metre locations from this hole) approximately 850 metres along strike from the westernmost portion of the Main - Higher Grade Zone.  The 2.5 km by 400-800 metre wide gravity anomaly in the West Zone is larger in area that the 1.8 km by 100-300 metre gravity anomaly in the Main Zone and confirms the Company's understanding of gravity anomalies as a guide to mineralization.  See Figure 1 and Table 1 and 2 for assays, and location and position of holes relative to gravity anomaly.

Table 1 – West Zone Nickel – Drilling Results, Crawford Nickel-Cobalt Sulphide Project, Ontario

DDH ID	From	To	Length	Estimated True Width	Ni	Co	Pd	Pt	S	Fe
	(m)	(m)	(m)	(m)	(%)	(%)	(g/t)	(g/t)	(%)	(%)
CR20-69	45.0	501.0	456.0	na	assays pending
CR20-70	46.2	541.0	494.8	na	assays pending
CR20-71	48.0	594.0	546.0	na	assays pending
CR20-72	46.5	342.0	295.5	na	assays pending
CR20-72	342.0	372.0	30.0	na	0.29	0.014	0.043	0.023	0.07	7.38
including	351.0	372.0	21.0	na	0.31	0.014	0.045	0.026	0.09	7.37

Note: All holes drilled at a 50 degree inclination.  The lengths reported are core lengths and not true widths. Canada Nickel has insufficient information to determine the attitude, either of the ultramafic body or of mineralized zones within it. True widths will be less than the core lengths by a number of factors.

Figure 1 – West Zone Discovery Holes CR20-69 through CR20-72 over top of gravity gradient
(Crawford Township airborne gravimetric survey completed in 2018)

Table 2 – Drill Hole Orientation, Crawford Nickel-Cobalt Sulphide Project, Ontario

DDH ID	Easting	Northing	Dip	Azimuth	Length
	(mE)	(mN)	(°)	(°)	(m)
CR20-69	470960.0	5409690.0	-50	90	498.6
CR20-70	471420.0	5409815.0	-50	270	156.0
CR20-71	471418.9	5409821.7	-50	315.1	594.1
CR20-72*	471555.9	5409818.6	-50	90	372.1

Conference Call Details

Canada Nickel is hosting a live Q&A conference call on October 22 at 10:00 a.m. Eastern time (7:00 a.m. Pacific time).  Participants may join the call by dialing:

Local: Toronto: 416-764-8688

North American Toll Free: 888-390-0546

Webcast URL: https://produceredition.webcasts.com/starthere.jsp?ei=1389471&tp_key=79c1b4fb17

A playback version will be available for two weeks after the call at [phone] (local or international) or toll free at [phone] (passcode 442999).

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 Company has applied in multiple jurisdictions to trademark the terms NetZero Nickel^TM, NetZero Cobalt^TM, NetZero Iron^TM 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.

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.

SOURCE Canada Nickel Company Inc.

please contact: Mark Selby, Chair and CEO, Phone: [phone], Email: [email protected]