Mr. Mark Selby reports

PALA INVESTMENTS MAKES US$4 MILLION INVESTMENT INTO RNC MINERALS

Royal Nickel Corp. has entered into a $4-million (U.S.) 18-month convertible term debt facility with Pala Investments Ltd.

Mark Selby, president and chief executive officer, commented: "I am pleased to have this investment by Pala, one of the world's leading mining private equity groups and an investment leader in the battery materials sector. This investment highlights the position of the Dumont nickel project as one of the world's largest resources of both nickel and cobalt, two key components of the batteries used in the growing electric vehicle market. Dumont is the only fully permitted, shovel-ready, large scale nickel and cobalt project located in a low-risk political jurisdiction that could deliver significant volumes of both metals to market this decade."

Stephen Gill, Pala Investments managing partner, commented: "We are pleased to provide funding to RNC as they move towards positive project cash generation. We look forward to working with RNC as part of their broader nickel development and consolidation strategy, including providing strategic and financial support where appropriate."

The unsecured facility will bear interest at a rate of 15 per cent per annum payable at the end of the 18-month term. Pala will have the right to convert the debt into RNC shares at a price of 25.37 cents per share (a 25-per-cent premium to the RNC share price over a 20-day volume-weighted average price), along with certain other conversion rights. As part of the transaction, RNC issued five million warrants to Pala, exercisable for three years at 25 cents per share.

Proceeds of the facility will be used for general RNC corporate purposes and to finance the continuing ramp-up of the RNC Beta Hunt gold mine.

About the Dumont nickel project

The Dumont nickel project is one of the world's largest undeveloped, permitted and shovel-ready nickel and cobalt sulphide deposits. When in production, Dumont is expected to rank as the fifth-largest nickel sulphide operation in the world by annual production and the largest cobalt mine in North America. It contains the third-largest nickel reserve in the world and one of the largest cobalt reserves outside of Africa.

About Royal Nickel Corp.

RNC is a multiasset mineral resource company focused primarily on the acquisition, exploration, evaluation and development of base metal and precious metal properties. RNC's principal assets are the producing Beta Hunt gold and nickel mine in Western Australia, a 50-per-cent interest in the 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. RNC also owns a majority interest in the West Raglan and Qiqavik projects in Northern Quebec. RNC has a strong management team and board with over 100 years of mining experience at Inco and Falconbridge.

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