Mr. Terry Lynch reports

POWER NICKEL EXERCISES OPTION & ADDS TO MANAGEMENT TEAM AS IT EXPANDS ITS FOCUS ON NISK

Power Nickel Inc. has exercised its option to acquire 50 per cent of the Nisk project. Nisk is a high-grade nickel PGM (platinum group element) project near Nemaska, Que. In addition, the company has notified its partner, Critical Elements Lithium Corp., that it intends to exercise its second option to acquire an additional 30-per-cent interest to bring ownership in the project to 80 per cent. The last remaining obligation in respect of the second option is the delivery of a National Instrument 43-101 technical report, which includes a resource estimate, under NI 43-101, which is expected to be delivered late Q3 or early Q4.

As set out in the company's Feb. 25, 2021, news release, listed below are the terms of the option that Power Nickel has now fulfilled:

1. Make cash payments totalling $500,000 to Critical Elements (all of which were completed within six months of the original option agreement);
2. The issue to Critical Elements 12,051,770 shares of the company (all of which were issued in 2021);
3. Incur an aggregate of $2.8-million of work expenditures on the Nisk property on or before the dates set out below:
   • $500,000 in work expenditures within the first year of the agreement;
   • $800,000 in work expenditures within the second year of the agreement;
   • $1.5-million in work expenditures within the third year of the agreement, which have now been completed.

"Nisk has been an amazing success story for Power Nickel and Critical Elements. The exploration success is building and we are confident the best is yet to come. We look forward to getting our technical resources out there and completing a feasibility study on the project. That will be the last condition prior to entering a true 80:20 JV [joint venture] with our partner, Critical Elements. The CRE team has been excellent to work with and has really helped us to achieve the exploration success we are building on for both companies."

In addition, Power Nickel would like to announce it has hired two key individuals to help move the company toward the goal of building Canada's first carbon-neutral nickel mine. Kenneth Williamson has been hired as vice-president, exploration, and Duncan Roy as vice-president, investor relations.

Mr. Williamson (MSc, PGeo), is a professional geologist with over 15 years of experience in the mining industry. Mr. Williamson graduated from the University of Laval with a master's degree in structural geology in 2002. From 2004 to 2010, he worked as a special projects geologist at the Goldcorp Red Lake gold mines. Mr. Williamson has been, amongst other tasks, in charge of elaborating the unified Campbell-Red Lake deposit-scale and Red Lake district-scale 3-D (three-dimensional) litho-structural models.

In 2010, Mr. Williamson accepted a job for the Bureau de l'Exploration Geologique du Quebec (BEGQ), where he had the opportunity to work on a regional mapping campaign in the Matagami area, which culminated with the elaboration of the Matagami district-scale 3-D model. From 2011 to 2013, he was a project geologist with InnovExplo, a Val d'Or-based consulting firm, where he developed his mineral resource estimate skills. Late in 2013, he joined Premier Gold Mines, first as a senior geologist and later as the technical services manager, where he was responsible for providing geological, modelling and resource estimate expertise to various project teams. In 2017, Mr. Williamson returned to the consulting business and created 3DGeo Solution Inc. (3DGS) shortly after. Since then, through 3DGS, he has provided structural geology expertise, 3-D litho-structural modelling and integrated mineral resource estimate solutions to various clients, including Power Nickel.

"As we move deeply into the continued exploration and development at Nisk, we need to build our team. While we are very pleased to have the accomplished GeoVector team, we need our internal team to help oversee and direct the exploration and help compile our data for the coming permitting and feasibility plans we are expediting. Ken did the original modelling on Nisk, which led to our first real drilling success, and has been with the project since we took over. We are confident Ken can hit the ground running and add a ton of value right away," commented Power Nickel chief executive officer Terry Lynch

Mr. Roy is a University of Western Ontario graduate with a BA in political science. He brings a sophisticated, highly experienced and diverse knowledge base to his current role with Power Nickel. Since 2019, he has run a highly successful capital markets advisory company. Prior to that, he spent over three decades plus in the brokerage industry, based in Toronto, as a retail broker with a PDO designation and various management roles.

"You cannot have a successful junior mining company if you cannot raise capital. To do that, you need experienced executives who can credibly present investments to individuals, brokers and institutions. Duncan is a very successful ex broker who is held in high esteem across the investment landscape. I would feel quite comfortable having Duncan present the Power Nickel investment and know that he will do a great job of hitting that correct level of expertise and optimism while delivering our features and benefits honestly and respectfully," commented Power Nickel CEO Mr. Lynch

Private placement

The company also wishes to announce a small hard-dollar private placement of $200,000. Up to 800,000 units issued at 25 cents per unit will consist of one common share and one share purchase warrant. Each warrant will consist of one common share exercisable for five years at 25 cents, subject to an accelerated expiry provision. The warrants are subject to an acceleration clause that entitles the company to notify holders that the warrants will expire 30 days from the date the company provides the acceleration notice. The company can only provide the acceleration notice if the closing price of the company's common shares on the TSX Venture Exchange is equal to or greater than 50 cents for 10 consecutive trading days. The acceleration notice can be provided at any time after the statutory hold period. Before the expiry date of the warrants, the private placement is subject to TSX-V approval and is expected to close shortly.

About Power Nickel Inc.

Power Nickel is a Canadian junior exploration company focusing on developing the high-grade Nisk project into Canada's first carbon-neutral nickel mine.

On Feb. 1, 2021, Power Nickel (then called Chilean Metals) completed the acquisition of its option to acquire up to 80 per cent of the Nisk project from Critical Elements Lithium.

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