Positive Preliminary Economic Assessment And Updated Mineral Resource Estimate For Bucko Lake Mine

VANCOUVER - CaNickel Mining Ltd. reported on the Preliminary Economic Assessment (PEA) and Mineral Resource Estimate (MRE) on the Bucko Lake Mine located 110 km southwest of Thompson, Manitoba near the Town of Wabowden. The PEA outlines a mine life of 13 years with average annual production of 7.8 million pounds of nickel at average cash costs and all-in sustaining costs (AISC) per pound of nickel of US$4.91 and US$6.48, respectively.

Measured and Indicated Mineral Resources of 5.7 million tonnes grading 1.24% nickel ("Ni") (using a 0.7% Ni cut-off grade) and 0.11% copper ("Cu") for contained metal content of 156.3 million pounds of nickel and 13.4 million pounds of copper. Additional Inferred Mineral Resources of 10.6 million tonnes grading 1.18% Ni (using a 0.7% Ni cut-off grade) and 0.13% Cu for contained metal content of 275.6 million pounds of nickel and 31.2 million pounds of copper.

The PEA indicates that the Project would be rehabilitated from its current "care and maintenance" status and placed into operation to produce 101 million pounds of payable nickel over a 13-year mine life. The existing 1,000 tonne-per-day (tpd) processing plant would be upgraded to 1,500 tpd. Opportunities exist for operations to continue beyond the current LOM plan using resources from multiple known satellite deposits on active company claims: three contiguous deposits are located within 4 km from the Bucko Lake Mine, and a fourth deposit is located approximately 30 km away.

"We are encouraged by the positive economics demonstrated by this PEA for the Bucko Lake Mine," stated Kevin Zhu, CEO. "The Project represents one of the more advanced, higher grade nickel sulphide projects in North America and benefits from existing infrastructure, including a previously operated 1,000 tpd process plant which we placed on care and maintenance due to low nickel prices in 2012. With demand and prices now surging for Class 1 nickel sulphide on the back of increased demand in electric vehicle batteries, production at the Bucko Lake Mine appears to be economically feasible once again. CaNickel now intends to advance on two fronts in the coming months: (1) review options for restructuring the Company's $90+ million in corporate debt; and (2) seek to advance the Project by completing a mine restart and closure plan along with pursuing growth opportunities by updating Mineral Resource Estimates for its four satellite deposits."