NLPXF - Canada Nickel Announces MacDiarmid Exploration Target - Approximately 15% Larger Than Crawford Main Zone

(TheNewswire)

Enters Binding LOI withNoble Minerals to Option Additional MacDiarmid Properties

Highlights

• - Completion of regional geophysics and interpretation of historicaldrilling has yielded multiple targets including the MacDiarmid targetin excess of 1.8 km long and an average of 400 metres wide – asimilar quality target andapproximately 15% larger than the size of original Crawford Main Zonediscovery

  - Entire MacDiarmid target has now been acquired through a bindingletter of intent with Noble Mineral Exploration to consolidateadditional mining claims around entire target

T oronto – TheNewswire - February 17, 2021 - Canada Nickel Company Inc. (" Canada Nickel "or “ The Company ")(TSXV:CNC) (OTC:CNIKF) and Noble Mineral Exploration (“ Noble ”) (TSXV:NOB ) ( FRANKFURT:NB7 )( OTC:NLPXF)   today announced that they have entered into abinding letter of intent (“LOI”) to consolidate ownership of arecently identified high priority nickel target in MacDiarmidtownship.

The LOI options additional claims adjacent to the original MacDiarmidproperty option previously announced on July 13, 2020.  Canada Nickelhas identified prospective targets on the Option Properties itobtained from Noble: Kingsmill, Mahaffy-Aubin, Nesbitt North, andCrawford Nesbitt-Aubin and drilling on several of these targets isexpected to begin during the current winter season.

“With MacDiarmid’s location justwest of the Kidd Creek Mine, we are thrilled by the district-scalepotential of this rapidly emerging nickel sulphide corridor alongHighway 655 and we look forward to unlocking the potential ofMacDiarmid in addition to the other properties optioned fromNoble.” said Mark Selby, Chair and CEO of Canada Nickel.

Airborne geophysics and a compilation ofhistorical exploration activities led to the identification of theMacDiarmid target, 1.8 km long and an average 400 metre widegeophysical footprint, 15% larger than CanadaNickel’s original Crawford Main Zone discovery.  Thegeophysics results were further confirmed by review of historicaldrill logs (no assays were completed) for all seven holes drilledentirely within the target coincident anomaly which all intersecteddunite or peridotite (the mineralized host rock at Crawford) acrossthe bulk of the core length.  All seven of the holes also indicatedpresence of magnetite and sulphides in abundances consistent with thatseen in Crawford core logs .

Vance White, President & CEO of Nobleadded “Today’s resultssupport our belief that the nickel exploration potential on the set ofproperties that were optioned to Canada Nickel has the potential togenerate as much or more return for our shareholders as the originalCrawford transaction. Noble has always been very confident that theProject 81 land package has the potential to generate multiple largetonnage Nickel Sulphide deposits and with the expertise of CNC, wethink we are well on our way to realize this potential.”

The Crawford Nickel-Cobalt Sulphide Project is located in the heart ofthe prolific Timmins-Cochrane mining camp in Ontario, Canada, and isadjacent to well-established, major infrastructure associated withover 100 years of regional mining activity.

Figures 1 & 2 – Plan view ofCrawford and MacDiarmid Properties – Outline of Gravity Low andMagnetic High geophysics anomaly overlain on total field magneticintensity, Crawford and MacDiarmid Township, Ontario.

Click Image To View Full Size

Click Image To View Full Size

Note: Property continues beyond map boundary.

MacDiarmid Nickel-Cobalt SulphideTarget

As Canada Nickel continues to advance its Crawford discovery, theCompany has been working through the interpretation of an airbornegeophysics survey program completed in September 2020, on the set ofproperties optioned from Noble Mineral Exploration (see Canada Nickelannouncement dated July 13, 2020). The company has identified a numberof nickel-cobalt targets on the MacDiarmid, Kingsmill, Mahaffy-Aubin,and Nesbitt properties – the MacDiarmid target being the mostattractive. Drilling on each of the targets is expected during thecurrent winter season. (See Figure 4 for map of properties.)

Drill results from the Crawford Ultramafic Complex have demonstratedthat coincidental strong magnetic high and gravity low geophysicsanomalies have generally delivered mineralization with higher gradesfrom the Crawford project.  The Crawford Main Zone Measured &Indicated resource of 606 Mt grading 0.26% nickel, including 201 Mtgrading 0.34% nickel at a 0.30% cutoff (see Canada Nickel announcementdated January 18, 2021), is hosted mainly in serpentinized dunite orperidotite.

The coincident MacDiarmid anomaly is 15% larger than Crawford,measuring a combined 1.8 km long by average 400 metres wide. Based onhistoric drill hole logs, the MacDiarmid target is an ultramaficintrusion with identified serpentinized dunite and peridotite, much ofit was not assayed (as the historic target was not nickel sulphides).

Over 50 holes have been drilled in the area since the original Incohole in 1946 but only eleven holes ever intersected the ultramaficintrusion. Of those only seven holes intersected the coincidentmagnetic and gravity anomaly portion of the intrusion. These sevenholes all intersected dunite and/or peridotite over their entirelength, interrupted only by narrow dykes and faults. All seven of thedrill holes had similar quantities of visible magnetite and sulphidesas in the Crawford drill holes, magnetite being an indicator ofserpentinization which is the process that generates nickelmineralization in this type of ultramafic body.  Four holes drilledoutside the anomaly (MCD32-02, MCD41-02, MAC-3, MAC-4) intersectedsignificant sulphides within much of the volcanic rocks intersected. While these holes did not intersect dunite or peridotite acrosstheir entire length, the presence of sulphides is a good indicator ofthe presence of sulphur inside the intrusion, which is critical to theformation of nickel sulphide minerals.

See below caution regarding Historical Information.

Figure 3 – Plan view of MacDiarmidProperty – Outline of Gravity Low and Magnetic High geophysicsanomaly with historicdrilling/logs over top of gravity gradient , MacDiarmid Township, Ontario.

Click Image To View Full Size

Note: Property continues beyond map boundary.

Figure 4. Planview of Crawford, Kingsmill, Nesbitt-Aubin, Nesbit North, MacDiarmidand Mahaffy-Aubin Properties overlain on total field magneticintensity, Ontario.

Click Image To View Full Size

Table 1 – Historical Drill HoleOrientation, MacDiarmid Nickel-Cobalt Sulphide Target,Ontario *

Historical drillholes are not NI43-101 compliant. Allreferences to UTMs are in NAD-83 Datum and Zone 17N Projection.

Transaction Summary

In exchange for the option, Canada Nickel has agreed to (i) issue 200,000 common shares of CNC to Noble, (ii) forgivethe $160,224 amount currently owed by Noble to CNC, (iii) take allsteps as are commercially reasonable to transfer $500,000 inassessment credits to Noble, and (vi) Noble to retain an NSR of up to1.75%. Under the terms of the Option, a 60%interest in the Claims will vest in CNC provided CNC funds at least$100,000 of exploration and development expenditures on the Claimswithin 18 months. An 80% interest in the Claims will vest in CNCprovided CNC funds at least an additional $150,000 (for a total of$250,000) of exploration and development expenditures on the Claimswithin 36 months. CNC will also be responsible for explorationexpenditures and other costs required to maintain the Claims in goodstanding (and to make certain related filings).

If the conditions to earn a 60% interest or 80% interest have beensatisfied, a joint venture would be formed between CNC and Noble onsuch proportionate basis.

The transaction is subject to certain specific conditions, includingprior approval of the TSX Venture Exchange, Board approvals and thirdparty approvals.

Next Steps

Canada Nickel has applied for exploration permits and expects tobegin drilling MacDiarmid in early March.

Cautionary Statement Concerning Historical Information

The historical information referenced in this press release is basedprimarily on drilling results reported by Inco Ltd. and Noble MineralExploration Inc. The information has also been filed with the OntarioGovernment and is available on-line though the Mining LandsAdministration System (MLAS) website. The company believes thisinformation is relevant, as it was completed by reputable companiesusing industry standard drilling and sampling practices. The companyor its “qualified person” (for the purposes of National Instrument43-101 – Standards of Disclosure for Mineral Projects) has reviewedthe information to confirm it has been correctly reproduced from thepublic MLAS database, but given the company’s and its qualifiedperson’s inability to access the underlying data, the company or itsqualified person has not done sufficient work to verify the historicalinformation contained in this news release.

Qualified Persons and DataVerification

Stephen J. Balch P.Geo. (ON), VP Exploration of Canada Nickel and a"qualified person" as such term is defined by NationalInstrument 43-101, has verified the data disclosed in this newsrelease, and has otherwise reviewed and approved the technicalinformation in this news release on behalf of CanadaNickel Company Inc .

Randy S C Singh P.Geo. (ON), P.Eng. (ON), VPExploration & Project Development of Noble and a "qualifiedperson" as such term is defined by National Instrument 43-101,has verified the technical data disclosed in this news release onbehalf of Noble Mineral Exploration Inc.

About Canada Nickel Company

Canada Nickel Company Inc. is advancing the nextgeneration of nickel-cobalt sulphide projects to deliver nickel andcobalt required to feed the high growth electric vehicle and stainlesssteel markets.  Canada Nickel Company has applied in multiplejurisdictions to trademark the terms NetZero Nickel TM , NetZeroCobalt TM , NetZero Iron TM and is pursuing the development ofprocesses to allow the production of net zero carbon nickel, cobalt,and iron products. Canada Nickel provides investors with leverage tonickel and cobalt in low political risk jurisdictions.  Canada Nickelis currently anchored by its 100% owned flagship CrawfordNickel-Cobalt Sulphide Project in the heart of the prolificTimmins-Cochrane mining camp. For more information please visit www.canadanickel.com .

About Noble Mineral ExplorationInc.:

Noble Mineral Exploration Inc. is a Canadian-basedjunior exploration company which, in addition to its shareholdings inCanada Nickel Company Inc., Spruce Ridge Resources Ltd. and MacDonaldMines Exploration Ltd., and its interest in the Holdsworth goldexploration property in the area of Wawa, Ontario, holds approximately72,000 hectares of mineral rights in the Timmins-Cochrane areas ofNorthern Ontario known as Project 81. Project 81 hosts diversifieddrill-ready gold, nickel-cobalt and base metal exploration targets atvarious stages of exploration. More detailed information is availableon the website at www.noblemineralexploration.com .

Noble’s common shares trade on the TSX VentureExchange under the symbol “NOB”.

Cautionary Statement ConcerningForward-Looking Statements

This press release contains certain information thatmay constitute "forward-looking information" underapplicable Canadian securities legislation. Forward lookinginformation includes, but is not limited to, drill results relating tothe Crawford Nickel-Cobalt Sulphide Project, the potential of theCrawford Nickel-Cobalt Sulphide Project, timing of economic studiesand resource estimates, strategic plans,including future exploration and development results, and corporateand technical objectives. Forward-looking information is necessarilybased upon a number of assumptions that, while considered reasonable,are subject to known and unknown risks, uncertainties, and otherfactors which may cause the actual results and future events to differmaterially from those expressed or implied by such forward-lookinginformation. Factors that could affect the outcome include, amongothers: future prices and the supply of metals, the future  demandfor metals, the results of drilling, inability to raise the moneynecessary to incur the expenditures required to retain and advance theproperty, environmental liabilities (known andunknown), general business, economic, competitive, political andsocial uncertainties, results of exploration programs, risks of themining industry, delays in obtaining governmental approvals, failureto obtain regulatory or shareholder approvals, and the impact ofCOVID-19 related disruptions in relation to the Company's businessoperations including upon its employees, suppliers, facilities andother stakeholders.  There can be no assurance that such informationwill prove to be accurate, as actual results and future events coulddiffer materially from those anticipated in such information.Accordingly, readers should not place undue reliance onforward-looking information. All forward-looking information containedin this press release is given as of the date hereof and is based uponthe opinions and estimates of management and information available tomanagement as at the date hereof. Canada Nickel disclaims anyintention or obligation to update or revise any forward-lookinginformation, whether as a result of new information, future events orotherwise, except as required by law.

For further information, pleasecontact:

Mark Selby, Chair and CEO

Phone: 647-256-1954

Email: info@canadanickel.com

H. Vance White, President and CEO

Phone:        416-214-2250

Fax:        416-367-1954

Email: info@noblemineralexploration.com

Investor Relations

Email: ir@noblemineralexploration.com

Copyright (c) 2021 TheNewswire - All rights reserved.