Canada Nickel Company Inc. ("Canada Nickel" or "The Company") (TSXV: CNC) 
(OTCQB: CNIKF) is pleased to announce that it has entered into a non-binding 
Memorandum of Understanding ("MOU") with Glencore Canada Corporation 
("Glencore") in order to examine the potential use of Glencore's Kidd 
concentrator and metallurgical site ("Met Site") in Timmins, Ontario for the 
treatment and processing of material mined from Canada Nickel's 100% owned 
Crawford Nickel-Cobalt Sulphide project ("Crawford"). Crawford is located 40 km 
north of Glencore's operations.

"The opportunity to utilize the excess capacity and existing infrastructure at 
the Kidd Met Site provides the potential to allow a faster, simpler, smaller 
scale start-up of Crawford at a vastly lower capital cost while the Company 
continues to permit and develop the much larger scale project currently being 
contemplated.  Given the potential for this significant change in the scope of 
the project start-up, the release of the Preliminary Economic Assessment (PEA) 
will be delayed until the end of March 2021 to allow this option, if 
successful, to be incorporated," said Mark Selby, Chair and CEO of Canada 
Nickel. 

Canada Nickel has completed an initial high-level assessment and will now 
proceed with a detailed study on the potential for upgrading excess capacity at 
the Kidd Concentrator and/or utilizing the existing infrastructure in place at 
the Kidd Met Site for milling and further processing the nickel-cobalt and 
magnetite concentrates that are expected to be produced from Crawford. Should 
the study deliver a positive outcome for both parties, the parties will 
continue good faith negotiations towards a binding agreement. The MOU is 
non-exclusive.

This detailed study is expected to be completed by the end of March 2021.  
Ausenco Engineering Canada Inc. ("Ausenco"), currently retained as the lead 
study consultant for the Crawford Preliminary Economic Assessment that is 
underway, has been engaged to support the assessment of the Kidd Met Site 
facilities.

About Kidd Operations

Located in Timmins, Ontario, Glencore Canada Corporation operates the Kidd 
Operations consisting of the Kidd Metallurgical Site and the Kidd Mine.

The Concentrator is located on the property of the Kidd Metallurgical Site 
(Kidd Met Site). The Kidd Met Site is located 27 km east of Timmins, Ontario in 
the Townships of Hoyle and Matheson, within the Timmins City Limits. Built in 
1966 with numerous upgrades over the years, the Concentrator currently 
processes metal ore to produce copper and zinc concentrates. The facility has a 
design rated capacity of 12,500 tonne-per-day and is fully permitted with water 
taking and discharge permits and thickened tailings storage. The site has 
incoming and outgoing rail service via Ontario Northland Railway.

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. For more information please visit 
www.canadanickel.com.

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, the potential of 
the Crawford Nickel-Cobalt Sulphide Project, timing for completion of the 
Proposed Transaction, 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.

Mark Selby, Chair and CEO, Phone: +1 647-256-1954, Email: info@canadanickel.com

SOURCE: Canada Nickel Company Inc.