CaNickel Mining Ltd. released a summary of the results of a current independent Preliminary Economic Assessment (PEA) and Mineral Resource Estimate (MRE) on the Company's Bucko Lake Mine (the Project) located 110 km southwest of Thompson, Manitoba near the Town of Wabowden. The PEA outlines a mine life of 13 years with average annual production of 7.8 million pounds of nickel at average cash costs and all-in sustaining costs (AISC) per pound of nickel of USD 4.91 and USD 6.48, respectively. Preparation of PEA: The PEA was prepared by independent firm P&E Mining Consultants Inc. of Brampton, Ontario, with geotechnical assistance from Knight Piésold Ltd. and backfill assistance by Paterson & Cooke Canada Inc. The PEA was prepared in accordance with the requirements of National Instrument 43-101 - Standards of Disclosure for Mineral Projects, and has an effective date of January 13, 2023.

For the PEA base case, a nickel price of USD 9.84/lb was used. Updated Mineral Resource Estimate: The updated MRE incorporates results from a total of 428 drill holes drilled from 1962 to 2013, of which 360 drill holes intersected the mineralization wireframes used for the MRE. Additionally, recent metal prices were incorporated into the estimate for the PEA.

The MRE, with an effective date of January 13, 2023. Mineralization domain boundaries were determined from grade boundary interpretation constrained by lithological and structural controls determined from visual inspection of drill hole cross-sections and level plans. The domain outlines were influenced by the selection of mineralized material above 0.70% Ni that demonstrated a lithological and structural zonal continuity along strike and down dip and that had a reasonable prospect of economic extraction.

The minimum constrained down-hole sample length for the wireframes was 2.0 m. In some cases, mineralization below 0.70% Ni was included for the purpose of maintaining zonal continuity and minimum mining width. On each cross-section, polyline interpretations were digitized from drill hole to drill hole, however, were not extended more than 25 m into untested territory. The interpreted polylines from each cross-section were wireframed into 3-Dimensional solids.

The resulting solids (domains) were used for statistical analysis, grade interpolation, rock coding and Mineral Resource reporting purposes. Four mineralization domains were constructed for consideration for potential economic underground mining of the Mineral Resource Estimate. In order to regularize the assay sampling intervals for grade interpolation, a 1.5 m compositing length was selected for the drill hole intervals that fell within the constraints of the above-mentioned Mineral Resource wireframe domains.

Grade capping was investigated and applied to the 1.5 m composite values in the database within the constraining domain to ensure that the possible influence of erratic high-grade values did not bias the database. A variography analysis was undertaken as a guide to determining a grade interpolation search strategy. The Ni and Cu grade blocks in the model were interpolated with the Inverse Distance Squared method.

The model block size was 2.5 m x 2.5 m x 2.5 m. The Nearest Neighbour interpolation method was utilized for validation. Additional mineralization at the Bucko Lake property not captured in the PEA include four known satellite deposits located 4 to 30 km distance from the main deposit. These include the Bowden Lake, M11A, Halfway Lake and Apex prospects.

All four deposits have historical mineral resources which the Company will update into compliant NI 43-101 Mineral Resource Estimates in the coming months. These satellite deposits represent an opportunity for extending the operational life of the Project, which will be evaluated in future studies. Underground Mine Development: Despite underground development challenges associated with geotechnical stability experienced during previous operations at the Bucko Lake Mine from 2009 to 2012, there are no significant technical issues to preclude successful mining and processing of the nickel-copper mineralization.

Optimization of mining methods and Life of Mine planning with cemented paste backfill hold the key to a successful mine restart and the PEA has adopted the following mine development strategy to overcome previously known issues: Rehabilitate and re-use existing development where possible while avoiding stopes in historical production areas: Refit and re-use the existing shaft for broken rock conveyance; Rehabilitate and re-use the existing ramp for trackless equipment access; Convert the existing 1,000 ft (305 m) Level exploration drift into new primary access on hanging wall (HW) side of the deposit; Change access orientation to the HW from the footwall (FW) to improve geotechnical stability of the parallel wireframed domains. Improve the ventilation system by relocating ventilation raises to the HW side of the deposit using raise-bores from the 1,000 ft Level to surface. Postpone capital development while mining previously accessed areas.

FW drifts will allow improved grade selection, bypassing low-grade areas and allowing improvement of the grade profile by targeting more high-grade areas earlier. Alimak ventilation raises will be attached to FW drifts to facilitate bypassing of levels in a mining block versus using drop raises, allowing further postponement of lateral development. Areas of development to be situated away from weaker ultramafic contact areas.

Development will be done either outside the ultramafic unit or fully inside the unit with improved ground support versus previous efforts at the mine. Intersections with the ultramafic unit, while unavoidable, will be minimized. Mine design and planning were accomplished with the assistance of geomechanical input from Knight Piésold Ltd. based on the review of the historical mine performance, experience at similar operating mines, and empirical methods.

Knight Piésold provided numerous recommendations on the PEA underground mine plan. Paterson & Cooke Canada Inc. reviewed the paste backfill system that was previously installed at the Bucko Lake Mine. The system was installed just prior to mine suspension in 2012 and therefore never commissioned.

Recommendations were provided on rehabilitating equipment, completing the paste plant installation and future test work.