TORONTO, ONTARIO--(Marketwire - March 20, 2012) - Continental Nickel Limited (TSX VENTURE:CNI) ("CNI" or the "Company") is pleased to announce that the Environmental Scoping Study ("ESS") recently submitted to the National Environment Management Council ("NEMC") of Tanzania (CNI press release February 28, 2012) for the Ntaka Hill Nickel Project (the "Project") has been approved. This approval also includes approval of the Terms of Reference ("ToR") for the Environmental and Social Impact Assessment ("ESIA") that is the next stage in achieving environmental permitting of the project.

The preparation of the ESIA and environmental approval of the project has been prioritized by CNI as it is identified as being a critical path activity in advancing the Project into production in 2015.

The Project is part of the larger 75:25 joint venture between CNI and IMX Resources Limited of Australia for the Nachingwea Project in Southern Tanzania.

Tanzanian based environmental consulting group MTL Consulting Company Limited will continue detailed baseline studies and other investigations for the ESIA with an aim of providing the ESIA for public display and submission to NEMC in the fourth quarter of 2012.

Community Engagement

In addition to the ESS and ESIA, CNI has increased the level of engagement and consultation with all project stakeholders in order to work towards obtaining a "social license" to develop the project. These steps include:

  • Promotion of Mr. Chris Airo to CNI's Community Manager for the project. Mr. Airo is a Tanzanian trained geologist who has been employed as the In-Country Project Manager during exploration over the past 5 years and has previously carried out community liaison on an ad-hoc basis for the exploration activities.
  • Engagement of Coffey Environments Australia Ltd to assist Mr. Airo in developing systems and procedures for community engagement that are in line with global best practice.
  • Development of detailed community engagement plans and procedures that are suitably robust to be utilized for the life of mine.

Mr. Stewart Watkins, Vice President Projects commented; "Approval of the ESS, including the ToR, is an important step in the path towards environmental permitting of the Ntaka Hill project. The preparation of the detailed ESIA can now continue towards our target submission date."

"The increased focus on community engagement and consultation is a critical aspect of our project development as we are keen to ensure that the relationships with our stakeholders are 'owned' by the Company rather than third-party consultants. Obtaining a 'social license' to operate is as important to the Company as the formal environmental and mining permitting."

About Continental Nickel Limited

Continental is focused on the exploration, discovery and development of nickel sulphide deposits in geologically prospective, but under

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