Canada Nickel Company Inc. Upsizes Private Placement Financing

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TORONTO, April 20, 2020 - Canada Nickel Company Inc. ("Canada Nickel" or the "Company") (TSX.V: CNC) is pleased to announce that the unit component of the best efforts private placement financing previously announced on April 02, 2020 (the "Offering") is now oversubscribed and as a result the syndicate of agents led by PI Financial Corp., which includes Red Cloud Securities Inc. and Haywood Securities Inc., have exercised their agents' option and the Company has upsized the Offering. The Offering will now consist of up to 1,642,890 units (the "Units"), up to 5,000,000 flow-through common shares (the "FT Shares") and up to 4,113,900 flow-through units (the "FT Units") of the Company to raise aggregate gross proceeds of up to approximately C$4.69 million.

Canada Nickel CEO Mark Selby commented, "We are grateful for the support from existing investors and welcome new investors who have recently become acquainted with the Canada Nickel story. Demand for the private placement was higher than we expected which has led to today's announcement of an increase in the total funds to be raised which will be used to continue to advance our Crawford nickel-cobalt sulphide discovery."

Each of the Units, FT Shares and FT Units will be offered by way of a best efforts private placement at a price of C$0.35 per Unit, C$0.40 per FT Share and C$0.515 per FT Unit respectively. The Agents are working with a charitable promoter in respect of the sale of the FT Units.

Each Unit will now consist of one common share in the capital of the Company and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant shall entitle the holder to acquire an additional common share at a price of C$0.57 for a period of 30 months following the closing of the Offering. The exercise of the Warrants shall be subject to the following acceleration provision: if for any twenty (20) consecutive trading days the volume-weighted average trading price of the Shares on the TSX Venture Exchange (the "Exchange") exceeds C$0.85 at any time after the Closing Date and until the expiry date of the Warrants, then the Company is entitled, at its option, to accelerate the expiry date of the Warrants to a date that is not less than 30 days from the date when such notice is given. The Issuer will notify warrant holders by way of press release that the warrants have accelerated and provide new expiry dates in such press release. This clause may not be used to extend the expiry date of the Warrants.

Each FT Unit will consist of one flow through common share in the capital of the Company and one-half of one common share purchase warrant (each whole warrant, a "FT Warrant"). Each FT Warrant shall have the same terms as the Warrant forming part of the Unit.

The net proceeds of the Offering will be used to fund advancement of the Company's Crawford Nickel-Cobalt Sulphide Discovery and for working capital purposes. The closing of the Offering is anticipated to occur on or around May 5, 2020 (the "Closing Date") and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals, including the acceptance of the TSX Venture Exchange. All securities issued under the Offering will be subject to a statutory hold period in Canada expiring four months and one day from the Closing Date.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

About Canada Nickel Company

Canada Nickel Company Inc. is advancing the next generation of nickel-cobalt sulphide projects to deliver nickel and cobalt required to feed the high growth electric vehicle and stainless steel markets. Canada Nickel provides investors with leverage to nickel and cobalt in low political risk jurisdictions. Canada Nickel is currently anchored by its 100% owned flagship Crawford Nickel-Cobalt Sulphide Project in the heart of the prolific Timmins-Cochrane mining camp.

Cautionary Statement Regarding Forward Looking Statements

This press release contains certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward looking information includes, but is not limited to, the timing of the closing of the Offering, the total amount raised under the Offering, the potential of the Crawford Nickel-Cobalt Sulphide Project, strategic plans, including future exploration and development results, and corporate and technical objectives. Forward-looking information is necessarily based upon a number of assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Factors that could affect the outcome include, among others: future prices and the supply of metals, the future demand for metals, the results of drilling, inability to raise the money necessary to incur the expenditures required to retain and advance the property, environmental liabilities (known and unknown), general business, economic, competitive, political and social uncertainties, results of exploration programs, risks of the mining industry, delays in obtaining governmental approvals, and failure to obtain regulatory or shareholder approvals. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. Canada Nickel disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

SOURCE Canada Nickel Company Inc.