Mr. Mark Selby reports

RNC ANNOUNCES COMPLETION OF PREVIOUSLY ANNOUNCED LOW COST TOLL PROCESSING AGREEMENT AND PURCHASE OPTION WITH WESTGOLD, AND EXTENSION OF COPPER PREPAYMENT AGREEMENT WITH AURAMET

Royal Nickel Corp. has completed the previously announced (see news release dated Feb. 13, 2017) toll processing and purchase option agreements with Westgold Resources Ltd. Ore processing under the toll agreement is expected to commence on or about July 22, 2017. The purchase option agreement sets forth the detailed terms under which Royal Nickel would acquire Westgold's South Kalgoorlie operations (SKO) in the event Royal Nickel elects to exercise the option. Royal Nickel has not yet made a determination as to whether it will exercise the option.

Royal Nickel has also signed and closed a $3.3-million (U.S.) extension of the existing copper prepayment agreement with Auramet International LLC with respect to Royal Nickel's 30-per-cent share of metals production at the Reed mine operated by Hudbay.

Mark Selby, president and chief executive officer of Royal Nickel, commented: "The tolling agreement with Westgold provides RNC with a lower-cost toll milling alternative for Beta Hunt gold, while the option agreement provides us with an option to significantly expand our Kalgoorlie footprint through a potential acquisition of the SKO mining assets and milling infrastructure, which is located approximately 30 kilometres from RNC's Beta Hunt mine. The extension to the Auramet copper prepayment agreement provides additional liquidity to support the ramp-up of gold production at the Beta Hunt mine, which achieved commercial production in June, 2017. We continue to look forward to robust performance at Beta Hunt in the second half of 2017 to deliver our previously announced 2017 production guidance."

Beta Hunt toll agreement and SKO purchase option

Under the tolling agreement, Westgold has granted Royal Nickel access to 50 per cent of its plant capacity at SKO on an approximate three-weeks-on/three-weeks-off basis during the 12-month term of the agreement. Royal Nickel will pay Westgold toll processing fees on a fixed plus variable arrangement on commercial terms. It is anticipated that the total toll processing and transportation costs will be materially lower than Royal Nickel's existing arrangements.

As previously announced, Royal Nickel will issue a total of 23.4 million shares in exchange for these tolling rights and the option to acquire the SKO business.

Extension to secured copper prepayment agreement

Auramet has agreed to extend the current copper prepayment arrangements through an additional $3.3-million (U.S.) advance in exchange for the delivery of 1.5 million pounds of copper (300,000 pounds per month commencing on March 30, 2018, and ending on July 31, 2018). An upfront fee of 2 per cent of the prepayment amount was paid to Auramet under the terms of the extension.

About Royal Nickel Corp.

Royal Nickel is a multiasset mineral resource company with a portfolio of gold and base metal production and exploration properties. Royal Nickel's principal assets are the producing Beta Hunt gold and nickel mine in Western Australia, a 50-per-cent interest in a nickel joint venture with Waterton that holds the Dumont nickel project in the Abitibi region of Quebec, and a 30-per-cent stake in the producing Reed mine in the Flin Flon-Snow Lake region of Manitoba, Canada. Royal Nickel also owns a majority interest in the West Raglan and Qiqavik projects in Northern Quebec.

We seek Safe Harbor.