Selebi Mine Diamond Drilling Program In Botswana

TORONTO - Premium Nickel Resources Ltd. reported on the Selebi nickel-copper-cobalt (Ni-Cu-Co) sulphide mine in Botswana. Approximately 14,815 meters of diamond drilling has been completed to date at the Selebi Mine by PNRL in 2022. Notable highlights include: 1) SMD-22-006a-W2 (upper interval): 9.80 meters of 1.56% NiEq (0.97% Ni, 1.74% Cu, 0.03% Co), including 6.80 meters of 2.06% NiEq (1.28% Ni, 2.35% Cu, 0.04% Co). 2) SMD-22-006a-W2 (lower interval): 4.65 meters of 1.55% NiEq (1.10% Ni, 1.24% Cu, 0.04% Co).

The Company's Phase 1 drilling program commenced on March 14, 2022, with the purpose of locating the Selebi Mine mineralized structures within the 3 km area located between the Selebi Mine historical mine workings to the south and the Selebi North Mine historic workings to the north. This current phase of drilling is focused on an area at the western down dip edge of the historic 2016 South African Mineral Resource Committee ("SAMREC") compliant Selebi resource (Measured Mineral Resources of 0.37 Mt of 1.01% Ni and 2.19% Cu, Indicated Mineral Resources of 6.82 Mt of 1.05 % Ni and 2.29 % Cu, and Inferred Mineral Resources of 4.09 Mt of 0.86% Ni, which has not been prepared in accordance with NI 43-101), where the Company has shown that the mineralization has greater thicknesses and depth extent than those of the historic resource. Drilling included testing of an off-hole borehole electromagnetic ("BHEM") anomaly identified by PNRL in historic hole sd140, a 2010 drill hole located to the north and down plunge of the historic drill hole sd119 that reported an estimated true thickness interval of 38.5 meters averaging 1.58% Ni and 2.44% Cu, including 21.4 meters of 2.34% Ni and 3.39% Cu. Historic drill hole sd119 is located approximately 300 meters north from the closest Selebi mine underground infrastructure, and is used as PNRL’s point of reference for this initial drill program to help communicate step out distances and geometries of additional drill hole pierce points.

The Company's drilling to date has provided evidence of at least two mineralized amphibolite hosted horizons that are separated by gneiss. All four of these drillholes intersected the same two intervals of amphibolite hosted Ni-Cu-Co mineralization, including SMD-22-006a-W2 that is located approximately 500 meters down-plunge of previously announced SMD-22-001 and 650 metres from historic hole sd119. By drilling down-dip to the west, the Company has intercepted thicker intervals of mineralization when compared to the widths reported in the historic Selebi SAMREC resource. Although the lower mineralized amphibolite has been intersected in historic drill holes, drill hole SMD-22-006a-W2 is the first occurrence of significant widths and grades in the lower interval.

Keith Morrison, CEO, said, “PNRL’s work on the Selebi Mine continues to demonstrate significant expansion potential and mineralization continuity along strike, down dip and down plunge of the historic 2016 SAMREC compliant resources (which included Measured Mineral Resources of 0.37 Mt of 1.01% Ni and 2.19% Cu, Indicated Mineral Resources of 6.82 Mt of 1.05 % Ni and 2.29 % Cu, and Inferred Mineral Resources of 4.09 Mt of 0.86% Ni and 1.21 % Cu at Selebi as well as included Measured Mineral Resources of 0.71 Mt of 1.24% Ni and 1.03% Cu, Indicated Mineral Resources of 1.14 Mt of 1.27 % Ni and 1.13 % Cu, and Inferred Mineral Resources of 2.79 Mt of 0.93 % Ni and 0.87 % Cu at Selebi North) (see "Historical Estimate"). The strategic initiative through this first phase of drilling is to obtain the necessary geoscience data to advance to the second phase of drilling, which is the transition to underground resource drilling at both the Selebi and Selebi North deposits. Our team is using an integrated data driven process incorporating BHEM, televiewer surveys, structural modeling and surface drilling to extend the known mineralization from the south (Selebi) and from the north (Selebi North), as the Company believes Selebi Mine could be a single continuous mineralized system. The borehole geophysics has been very successful in imaging highly conductive metallic mineralization along the down-dip structure possibly joining the two deposits over a length greater than 3,000 metres. The structural understanding increases as more holes are drilled, additional geophysical surveys are completed, and multiple mineralized structures at the Selebi North deposit are identified and explored. Data supported modeling is beginning to demonstrate that the mineralized Selebi North structures could be potentially related to similar structures below the Selebi deposit and mine horizon.”