Canada Nickel : MD&A for the 3 months ended January 31, 2022

Canada Nickel Company Inc.

Management's Discussion & Analysis

For the Three Months Ended January 31, 2022

(Expressed in Canadian Dollars, unless otherwise noted)

March 31, 2022

Canada Nickel Company Inc. Management's Discussion & Analysis

For the Three Months Ended January 31, 2022

Introduction

The following interim management's discussion and analysis (Interim MD&A) of Canada Nickel Company Inc. (the "Company" or "Canada Nickel") for the three months ended January 31, 2022 has been prepared to provide material updates to the business operations, liquidity and capital resources of the Company since its last annual management's discussion and analysis, being the management's discussion and analysis for the year ended October 31, 2021 (Annual MD&A). This Interim MD&A does not reflect any non-material events since the date of the Annual MD&A.

For the purposes of preparing this Interim MD&A, management, in conjunction with the board of directors of the Company (the Board), considers the materiality of information. Information is considered material if: (i) such information results in, or would reasonably be expected to result in, a significant change in the market price or value of the Company's common shares; (ii) there is a substantial likelihood that a reasonable investor would consider it important in making an investment decision; or (iii) it would significantly alter the total mix of information available to investors. Management, in conjunction with the Board, evaluates materiality with reference to all relevant circumstances, including potential market sensitivity.

This discussion should be read in conjunction with the Company's Annual MD&A, audited annual consolidated financial statements for the years ended October 31, 2021 and 2020, together with the notes thereto, and unaudited condensed interim consolidated financial statements for the three months ended January 31, 2022 and 2021, together with the notes thereto.

Results are reported in Canadian dollars, unless otherwise noted. The Company's unaudited condensed interim consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and interpretations of the IFRS Interpretations Committee (IFRIC). The unaudited condensed interim consolidated financial statements have been prepared in accordance with International Standard 34, Interim Financial Reporting.

This Interim MD&A has been prepared with reference to the MD&A disclosure requirements established under National Instrument 51-102 Continuous Disclosure Obligations (NI 51-102) of the Canadian Securities Administrators. Additional information regarding Canada Nickel is available on its website atwww.canadanickel.comor through the Company's SEDAR profile available at www.sedar.com. This Interim MD&A has been prepared as of March 31, 2022.

Caution Regarding Forward-Looking Statements

This Interim MD&A contains or incorporates certain forward-looking information and forward-looking statements, as defined in applicable securities laws (collectively referred to herein as "forward-looking statements"). These statements relate to future events or the Company's future performance, objectives, goals, strategies, beliefs, intentions, plans, estimates, projections and outlook, or estimates or predictions of actions of customers, suppliers, partners, distributors, competitors or regulatory authorities. All statements other than statements of historical fact are forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "continues", "forecasts", "projects", "predicts", "intends", "anticipates" or "believes", or variations of, or the negatives of, such words and phrases, or state that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in such forward-looking statements. The forward-looking statements in this Interim MD&A speak only as of the date of this Interim MD&A or as of the date specified in such statement.

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Canada Nickel Company Inc. Management's Discussion & Analysis

For the Three Months Ended January 31, 2022

The results of Crawford's Preliminary Economic Assessment, including statements relating to net present value, future production, estimates of cash cost, proposed mining plans and methods, mine life estimates, cash flow forecasts, metal recoveries, estimates of capital and operating costs, timing for permitting and environmental assessments, realization of mineral resource estimates, capital and operating cost estimates, project and life of mine estimates, ability to obtain permitting by the time targeted, size and ranking of project upon achieving production, economic return estimates, the timing and amount of estimated future production and capital, operating and exploration expenditures and potential upside and alternatives are forward looking statements. Readers should not place undue reliance on forward-looking statements.

Inherent in forward-looking statements are risks, uncertainties and other factors beyond the Company's ability to predict or control. Please also refer to those risk factors set out in Risk Factors. Readers are cautioned that the list of risk factors that may affect the forward-looking statements is not exhaustive, and that the assumptions underlying such statements may prove to be incorrect. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this Interim MD&A.

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements to be materially different from any of its future results, performance or achievements expressed or implied by forward-looking statements. All forward-looking statements herein are qualified by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements whether as a result of new information or future events or otherwise, except as may be required by law. If the Company does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements, unless required by law.

Scientific and Technical Information

Steve Balch, (P.Geo.), Vice President Exploration of the Company and Arthur G. Stokreef, P.Eng (ON), Manager of Process Engineering & Geometallurgy, both Qualified Persons as defined by NI 43-101, has reviewed and approved the scientific and technical content contained in this Interim MD&A.

Description of The Business

Canada Nickel was incorporated on October 11, 2019 under the laws of the Province of Ontario, Canada, and its head office is located at 130 King Street West, Suite 1900, Toronto, Ontario, M5X 1E3.

On February 27, 2020, the Company's common shares commenced trading on the TSX Venture Exchange (TSX-V) under the symbol "CNC" and its common shares also trade on the OTCQX Best Market under the symbol "CNIKF".

Canada Nickel is engaged in the exploration and discovery of nickel sulphide assets to deliver future supply for the high growth electric vehicle, green energy and stainless steel markets. In 2020, the Company acquired 100 per cent of the Crawford Nickel Sulphide Project (Crawford or the Crawford Project), which is located adjacent to major infrastructure in the world class Timmins-Cochrane mining camp of northern Ontario, Canada. The Company also owns 19 additional nickel targets located near the Crawford Project.

On July 21, 2020, Canada Nickel launched wholly-owned NetZero Metals Inc. (NetZero), with the aim to develop zero-carbon production of nickel, cobalt, and iron at the Crawford Project. The Company has applied for trademarks for the terms NetZero NickelTM, NetZero CobaltTM, and NetZero IronTM in the United States, Canada, and other jurisdictions related to zero-carbon production of nickel, cobalt, and iron products.

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Canada Nickel Company Inc. Management's Discussion & Analysis

For the Three Months Ended January 31, 2022

Key Developments During the Three Months Ended January 31, 2022 and up to March 31, 2022

During the first quarter of fiscal 2022, the Company continued its efforts to enhance the value of the Crawford Project and aggressively moved forward on the Crawford feasibility study.

Realize on District Scale Potential

The Company concluded on several acquisitions during the quarter realizing on its strategy to expand and consolidate Crawford's overall footprint, as well as expanding the district scale potential.

On November 22, 2021, the Company announced the acquisition of 13 additional target properties within a 95 kilometre radius of Crawford and on February 15, 2022, announced that it entered into a further four purchase or option agreements within the same Timmins, Ontario nickel-sulphide mining district, consolidating what could be a district scale potential. The combined target surface footprint of the new properties is 37.7 square kilometres - 40 times larger than the current Crawford Main Zone resource of 0.85 square kilometres. Each of the additional properties contains one or more ultramafic targets based on combinations of historical geophysical work and drilling over the past 65 years. Ten of the target properties have a larger footprint than Crawford and nine are confirmed to contain the same host mineralization as Crawford. The Sothman property has an historical higher grade, shallow resource of approximately 190,000 tons of 1.24% nickel (with 300 metres strike length)1; the remaining 2.2 kilometres of strike length is largely untested and is interpreted to be a large tonnage, low grade ultramafic intrusion like Crawford. Four of the target areas have yielded drill intersections of > 0.30% nickel including:

• o Sothman: 2.31% nickel and 0.19% copper over true width of 3.2 metres within 1.58% nickel and 0.12% copper over true width of 8.6 metres from 41 metres

• o Deloro: 0.38% nickel and 0.22 g/t PGM over core length of 15.5 metres within 0.28% nickel and 0.09 g/t PGM over core length of 299 metres from 241 metres

• o Midlothian: 0.24% nickel over core length of 345 metres, including 0.30% nickel over 42 metres

• o Mann Southeast: multiple 3 metre intervals grading 0.31-0.33% nickel within 111 metres of dunite across entire core length.

The acquisition of these target properties represents a transformational milestone for Canada Nickel, on par with the initial discovery of the flagship Crawford. The consolidation of these properties underscores the Company's strong belief in the district-scale potential of the Timmins region and in the journey to become a leader of the Next Generation of Nickel Supply - large, scalable, and low carbon nickel. Each target has had some historical work, and in some cases, much more than Crawford did initially, confirming that these targets contain the same serpentinized dunite and/or peridotite that hosts the Crawford mineralization and have the potential to permanently sequester CO2.

Please refer to Canada Nickel press release dated November 22, 2021, for complete transaction details as well as additional information of each acquired property.

On December 17, 2021, the Company acquired from Noble Mineral Exploration Inc. ("Noble") all the properties previously optioned by the Company (Crawford/Nesbitt/Aubin, Nesbitt North, Aubin/Mahaffy, Kingsmill/Aubin, MacDiarmid and Bradburn/Dargavel) plus additional claims held by Noble - all in proximity to the flagship Crawford property. Under the terms of the agreement, the existing option agreements with Noble would be terminated and Canada Nickel would acquire 100% of the optioned claims and other interests in return for 3.5 million of the Company's common shares.

1 See Statement Regarding Historical Resource Estimates on page 20 of this Interim MD&A.

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Canada Nickel Company Inc. Management's Discussion & Analysis

For the Three Months Ended January 31, 2022

Exploration upside at new properties

On January 24, 2022, the Company announced assay results from the drilling at its Mahaffy, Dargavel, Kingsmill and MacDiarmid properties. All 20 holes from the regional drill program intersected thick sequences of peridotite and/or dunite with some holes collared in, or ending in, volcanics. The highest-grade intersection was 0.34% nickel over 28.5 metres in Dargavel hole DAR21-01 (0.30% cutoff) within a larger zone grading 0.30% nickel over 162.0 metres (0.25% cutoff) starting at 375 metres downhole. The thickest interval of mineralization was in Kingsmill drillhole KML21-01 which intersected 0.24% nickel over 334.5 metres starting at 16.5 metres downhole. The overburden encountered was highly variable with as little as 12.5 metres at Nesbitt and as much as 160 metres at Mahaffy.

In addition, first drill hole results were also announced on January 24, 2022 at the Company's newly acquired Deloro property. DEL22-01, collared in the centre of the ultramafic target measuring 1.4 kilometres long by 300 - 500 metres wide, and drilled toward the west contact, intersected mineralized dunite (including some narrow dykes) starting at 1.8 metres downhole. The hole remained in dunite beyond its projected length of 400 metres to 482 metres at the west contact for a total interval of 480 metres.

Please refer to Canada Nickel press release dated January 24, 2022 for further details.

Optimization of Nickel, Iron, Chrome Recovery and Concentrate Grades

A key focus of the feasibility study activities is the continued improvement in flowsheet performance given its potential to add significant value to the project. Since releasing the PEA, two phases of optimization work have been completed: Phase 1 focused on increasing recoveries, while Phase 2 has focused on increasing concentrate quality at increased recovery.

Phase 1

In October 2021, the locked cycle tests (LCT) delivered significant metallurgical improvements in both the High-Grade core and the Low Grade zone:

• o Nickel recovery of 62% - an improvement of 10 percentage points or 19% over the PEA

• o Iron recovery of 45% - an improvement of 2 percentage points or 5% over the PEA

• o Magnetite concentrate grade of 54% iron - an improvement of 6.5 percentage points or 14% over the PEA

• o Cobalt recovery of 70% - an improvement of 30 percentage points or 75% over the PEA (note that cobalt will be a payable metal in the Feasibility Study while not in the PEA)

In the open circuit test (OCT), the average increase in flotation recovery was 6 to 16 percentage points in the high grade zone and 14 percentage points in the lower grade zone. The improvements would deliver more than the 4-5 percentage point improvement targeted for the Feasibility Study and would represent a US$92 million improvement to the PEA NPV8% for each percentage point increase in nickel recovery. Please refer to Canada Nickel press release dated October 5, 2021 for further details.

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