Premium Nickel Resources Ltd. provided an update on the ongoing activities and progress at its 100% owned Selebi nickel-copper-cobalt ("Ni-Cu-Co") sulphide mines in Botswana. The Company has commenced the second phase of a focused strategy to develop the past-producing Selebi North and Selebi Main mines (together, the "Selebi Mines") with the initial objective of defining a mineral resource estimate on the Selebi Mines in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and, pending positive results, the completion of a preliminary economic assessment ("PEA") on the Selebi Mines. Underground drilling has commenced at the Selebi North deposit, with the initial phase targeting the historic resource area and stepping out immediately down plunge in an effort to expand the resource and demonstrate upside potential.

Underground infrastructure refurbishment is ongoing and includes excavation and development of nine drill bays and exploration drifts totalling 320 metres. In addition, the Company is studying possible southward extension of the primary exploration drift at Selebi North, to facilitate drilling to test the borehole electromagnetic targets that indicate that mineralization is continuous between the Selebi Main and Selebi North Mines. While phase 1 drilling was performed entirely by independent contractors, the current drill program is being conducted with Company-owned drill rigs operated by teams comprising both independent contractors and Company-trained employees.

The planned underground drill program at Selebi North comprises approximately 52 holes, totaling approximately 32,000 metres. Drill holes collared from the Selebi North underground development will primarily target the historic mineral estimate and its down-plunge extent, supported by high conductance sources of BHEM anomalies identified during the Company's 2022 and 2023 BHEM program. The program will also test targets located to the south of the Selebi North historical workings to gather additional information as to whether the known Selebi North and Selebi Main deposits are part of a single mineralized system and are connected at depth.

PNRL continues to clean historic holes at Selebi North and Selebi Main for the collection of gyro and BHEM data. Selected historic drill core is re-logged for detailed lithology and structural measurements. Future work at Selebi North and Selebi Main will include the continuation of the hole cleaning, gyro and BHEM programs, as well as the development of a 3D geology and structural model through structural and geological studies.

The brownfields exploration potential on the Selebi Mining Licence is also being evaluated through data compilation and field work. The Company has entered into a binding commitment letter with the Liquidator of BCL Limited, which is subject to customary final documentation, to acquire a 100% interest in two additional deposits located adjacent to and immediately north of the Selebi North mine. The impact is to extend the northern boundary of the Selebi Mining Licence by 3.7 kilometres and increase the Selebi Mining License area from 115.0 square kilometres to 153.7 square kilometres.

While the remaining historic resources at Phikwe South and Southeast Extension occur within the expanded Selebi Mining Licence, the amended licence intentionally does not include the historic mine workings and infrastructure at these previously-producing properties, and the Company has no liability for historic environmental issues at those sites. The upfront cost to the Company to acquire these additional mineral properties is US$1 million. In addition, the Company has agreed to additional work commitments of US$5 million over the next four years.

As a result of the extension of the Selebi Mining Licence, the remaining asset purchase obligations of the Company outlined in the original Selebi Mines asset purchase agreement with the Liquidator will each increase by 10%, while the trigger events remain unchanged. The existing 2% net smelter royalty held by the Liquidator with respect to production from the Selebi Mining Licence will also apply to production from these additional deposits, subject to the Company's existing buy-back right for 50% of the NSR.