TORONTO, ONTARIO--(Marketwire - April 17, 2012) - Continental Nickel Limited (TSX VENTURE:CNI) ("CNI" or the "Company") is pleased to advise that the Technical Report, in accordance with Canadian National Instrument 43-101, supporting the recently released Mineral Resource Estimate (Press Release March 2, 2012) for the Ntaka Hill project has been filed with SEDAR. The project is part of the 75:25 joint venture between CNI and IMX Resources Limited of Australia covering the Nachingwea project.

Detailed results of the updated mineral resource estimate are presented in Table 1.

Table 1 -Mineral Resources for Ntaka Hill Project at Various Cut-Off Grades
Category Tonnes(000's) % Ni % Cu % Co Contained Ni
(tonnes)
Cut-Off: 0.15% Ni
Measured 1,662,000 1.71 0.29 0.05 28,400
Indicated 11,147,000 1.13 0.25 0.03 126,300
M+I 12,809,000 1.21 0.25 0.03 154,700
Inferred 58,846,000 0.27 0.06 0.01 159,400
Cut-Off: 0.20% Ni
Measured 1,662,000 1.71 0.29 0.05 28,400
Indicated 11,125,000 1.14 0.25 0.03 126,300
M+I 12,786,000 1.21 0.25 0.03 154,700
Inferred 45,037,000 0.30 0.07 0.01 135,000
Cut-Off: 0.25% Ni
Measured 1,659,000 1.71 0.29 0.05 28,400
Indicated 11,105,000 1.14 0.25 0.03 126,200
M+I 12,764,000 1.21 0.25 0.03 154,600
Inferred 28,481,000 0.34 0.08 0.01 97,700

Notes to Mineral Resource Estimates in Table 1

The following notes should be read in conjunction with the viewing of Table 1.

  1. Mineral resource estimates were prepared in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") definition standards regarding mineral resources and mineral reserves.
  2. Assays of drill core were completed at ALS Minerals of Vancouver, BC and included a comprehensive Quality Assurance / Quality Control ("QA/QC") program. All aspects of the core sampling, assay procedures and QA/QC program have been reviewed by Roscoe Postle Associates Inc. ("RPA") and were judged to be of industry standard and suitable for use in the estimation of mineral resources. RPA also completed a data verification exercise including independent core sampling and assaying with acceptable results.
  3. Resource models were prepared based on drill section interpretation using nominal nickel grade wireframes of 0.1%, 0.5% and 1.0% nickel grade cut-offs. 3D solids were constructed cooperatively between CNI and RPA geologists, then reviewed and revised as necessary by RPA.
  4. The estimation employed statistical analysis and variography of nickel values with construction of block models by zone. Block cell size was 2.5 x 5 x 5 metres for zones J, G, M, L and H. Block size for Sleeping Giant and NAD013 was 10 x 10 x 10 metres with level 3 sub-celling (8 x 8).
  5. Grade interpolation to assign grade values to cells used Inverse Distance squared ("ID2") methods for zones J, G, M, L and H with Ordinary Kriging used for Sleeping Giant and NAD013.
  6. More than 3,500 bulk density determinations on core using the immersion method were used for the estimate, with densities assigned where data were not available, based on an analysis of the correlation between specific gravity and sulphur.
  7. Mineral resources are reported at cut-off values of 0.15%, 0.20% and 0.25% nickel and are based on open pit mining.
  8. No minimum mining width was used.
  9. Resource classification involved a review of geological and grade continuity and was based on drill hole spacing.
  10. Preliminary pits used to constrain the mineral resources reported were constructed using Whittle software based on the metallurgical and cost assumptions from the PEA completed in November 2011 (Press Release, November 15, 2011).
  11. Totals may differ due to rounding.
  12. The Company is not aware of any environmental, permitting, legal, title, taxation, socio-political or marketing issues that are material to the statement of the mineral resource estimate.
  13. The mineral resource estimate is effective as of March 2, 2012.

Qualified Persons / Quality Control

The mineral resource estimate was prepared by Roscoe Postle Associates Inc. of Toronto, Ontario by Chester Moore, P. Eng., Principal Geologist and Bruce Churchill P. Geo., Associate Consultant Resource Geologist. Mr. Moore and Mr. Churchill are both independent qualified persons as defined by National Instrument 43-101.

The quality control, technical information and all aspects of the exploration program were supervised by Patricia Tirschmann, P. Geo., Vice President, Exploration for CNI. The information in this release was prepared under the direction Ms. Tirschmann who is a qualified person as defined by National Instrument 43-101.

About Continental Nickel Limited

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

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