Canada Nickel : Management’s Discussion & Analysis For the Three and Six Months Ended April 30, 2021 and 2020

Canada Nickel Company Inc.

Management's Discussion & Analysis

For the Three and Six Months Ended April 30, 2021 and 2020

(Expressed in Canadian Dollars, unless otherwise noted)

June 16, 2021

Canada Nickel Company Inc.

Management's Discussion & Analysis

For the Three and Six Months Ended April 30, 2021 and 2020

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 and six months ended April 30, 2021 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, 2020 (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:

1. 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 year ended October 31, 2020 and for the period From October 11, 2019 (Date of Incorporation) to October 31, 2019, together with the notes thereto, and unaudited condensed interim consolidated financial statements for the three and six months ended April 30, 2021 and 2020, 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 at www.canadanickel.com or through the Company's SEDAR profile available at www.sedar.com.

This Interim MD&A has been prepared as of June 16, 2021.

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

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Canada Nickel Company Inc.

Management's Discussion & Analysis

For the Three and Six Months Ended April 30, 2021 and 2020

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.

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. 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 a Qualified Person 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 TSX-V:CNC and on October 14, 2020 its common shares commenced trading on the OTCQB Venture Marketplace under the symbol OTCQB: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 entered into a binding letter of intent to acquire six additional nickel targets located near the Project.

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Canada Nickel Company Inc.

Management's Discussion & Analysis

For the Three and Six Months Ended April 30, 2021 and 2020

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.

Key Developments During the Three Months Ended April 30, 2021 and up to June 16, 2021

Finalized the Preliminary Economic Assessment (PEA) for Crawford

On May 25, 2021, Canada Nickel announced the PEA results for the Crawford project. The PEA confirmed robust economics showing an after-tax NPV8% of US$1.2 billion and an after-tax IRR of 16%. The PEA, prepared by Ausenco Engineering Canada Inc. in accordance with National Instrument 43-101, demonstrates the potential to develop a phased conventional nickel sulphide concentrator, producing nickel concentrates and magnetite concentrate. The operation is designed with an open pit mine and a process plant potential to mill 120,000 tonnes per day. The Company is immediately advancing the project to a feasibility study, which is expected to be completed by mid-2022.

The PEA, utilizing just a fraction of the resource potential, demonstrates that Crawford can be one of the largest nickel sulphide operations globally, producing 1.9 billion pounds of nickel over a 25-year period with estimated life-of-mine net cash costs of US$1.09 per pound of nickel produced. The current focus on the stainless-steel market allows the Company to fully utilize the substantial by-product value for the contained iron and chrome, placing Crawford on the lower end of the cost curve. However, the Company continues to explore opportunities to deliver nickel in concentrates into the electric vehicle ("EV") market.

PEA Highlights

• Robust economics

• 1. After-taxUS$1.2 billion NPV8% and 16% IRR at long-term price assumptions of US$7.75/lb nickel, US$1.04/lb chromium and US$290/tonne iron ("long-term price assumptions")
• Large scale, low cost, long-life
• 1. Annual average nickel production of 75 million pounds (34,000 tonnes) with peak period

annual average of 93 million pounds (42,000 tonnes)

1. Significant iron and chrome by-products of 860,000 tonnes per annum and 59,000 tonnes per annum, respectively

1. Life-of-minenet C1 cash cost of US$1.09/lb and net all in sustaining costs of US$1.94/lb

on a by-product basis

• 1. Life-of-mineproduction of 25 years with 842,000 tonnes of nickel, 21 million tonnes of iron and 1.5 million tonnes of chrome valued at US$24 billion using long-term price assumptions
• Significant earnings and free cash flow generation
• 1. Annual EBITDA of US$439 million and free cash flow of US$274 million
• Minimization of carbon footprint
• 1. Use of autonomous trolley trucks and electric shovels reduce diesel use by 40%

1. Optimization of the carbon sequestration potential of the tailings and waste rock.

The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the results of the PEA will be realized.

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Canada Nickel Company Inc.

Management's Discussion & Analysis

For the Three and Six Months Ended April 30, 2021 and 2020

The PEA envisions the Crawford project to be a conventional open pit mine/mill operation powered by zero- carbon electricity and utilizing trolley trucks and electric rope shovels to minimize its carbon footprint through reduced diesel consumption. The project will produce three products: (1) a high-grade concentrate estimated at 35% nickel; (2) a standard grade concentrate estimated at 12% nickel; and (3) a magnetite concentrate estimated at 48% iron and 3% chromium. All of the products are assumed to be sold based on the nickel, iron, and chromium content of the concentrates on terms which provide sufficient incentive for the construction of a co-located stainless steel mill using the same RKEF-AOD approach utilized very successfully in China and Indonesia.

The process plant will utilize a conventional milling operation consisting of crushing, grinding, desliming and flotation consistent with other ultramafic nickel operations. The process plant will be constructed in three phases. Phase I will have a steady-state throughput of 42,500 tonnes per day using a single 36 x 24 foot semi-autonomous grinding mill and a 26.5 x 44 foot ball mill grinding circuit. Phase II will double throughput starting in year four, by mirroring the first line. Phase III will raise production to the ultimate rate of 120,000 tonnes per day through the addition of secondary crushing and a third ball mill and additional downstream capacity.

The Company estimates the capital cost for the initial Phase 1 of the project to be US$1.2 billion. Further details on the PEA can be found in the press release dated May 25, 2021 on the Company's website.

Additional Opportunities

There remains significant potential for additional value to be created at the Crawford project through a number of identified opportunities, which include:

• Significant additional exploration potential within the Crawford property and at the Company's additional properties including the Company's most recent acquisition at Bradburn/Dargavel
• Optimization of nickel, iron, chrome recovery and concentrate grades through additional testwork during feasibility study stage
• Determination of the carbon capture potential from the carbon sequestration potential of the Company's tailings and waste rock to permit the Company to achieve net zero carbon footprint and produce NetZero NickelTM, NetZero CobaltTM and NetZero IronTM products
• Processing of nickel concentrates to capture cobalt, platinum group metals ("PGM") content through various processing alternatives for the company's high grade and standard grade concentrates and deliver nickel and cobalt to the EV market
• Capital cost reductions via electricity distribution and fleet acquisition opportunities through the Company's Memorandum of Understanding with Taykwa Tagamou Nation to participate in the financing of all or a portion of the project's electricity supply and heavy mining equipment fleet required for Crawford's operation
• Completion of negotiations to potentially utilize Glencore's Kidd Creek mill based on the capital and operating costs successfully determined during the initial phase of work.

ESG

Following the completion of the PEA, the Company announced that Crawford is expected to have an industry leading low carbon footprint, lower than 99.7% of existing global nickel producers. When in operation, Crawford is expected to produce 2.05 tonnes of carbon dioxide (CO2) per tonne of nickel- equivalent production over the life of mine. This is 93% lower than the industry average of 29 tonnes of CO2.

The results are based on a study by Skarn Associates, a metals and mining ESG research company, applying data from Canada Nickel's PEA. Importantly, this CO2 footprint estimate does not include the carbon offset expected to be provided from the process of spontaneous mineral carbonation from the

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