PR87539

TORONTO, Jan. 11, 2021 /PRNewswire=KYODO JBN/ --

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.