Premium Nickel Resources Ltd. provided an update on the ongoing activities and progress at its 100% owned Selebi nickel-copper-cobalt 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 totaling 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 ("BHEM") 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. At Southeast Extension, highlighted historic intervals include 1.39% Ni and 0.86% Cu over 1.90 metres, 1.03% Ni and 0.69% Cu over 1.80 metres and 1.65% Ni and 1.15% Cu over 2.00 metres.

Phikwe South is the most southern portion of the large Phikwe mineralized system that commenced production in 1972. In the twenty years between 1997 and its closure in 2016, the Phikwe operation produced 21.3Mt grading 0.50% nickel and 0.52% copper. The start of underground drilling program is an important milestone.

It comes after the successful preliminary refurbishment of the Selebi North (#4) shaft and declines, including safety, power, ventilation and pressurized air support and the procurement of initial underground mining equipment, including three drill rigs and one blasting rig. The company have also hired and trained a staff of local mine workers to operate the mine in a safe and compliant manner. The benefits of this approach are expected to include: shorter drill hole lengths will reduce time and costs and increase precision for each hole; better drilling equipment and techniques will increase productivity and reduce costs; ownership of the underground equipment and development of a trained company workforce will provide additional flexibility and reduce costs while improving efficiency and safety; reduced dependence on the local supply chain of underground mining goods and services that is still recovering from the impacts of the collapse of BCL and the global pandemic; and an overall reduction in the time and cost of drilling to advance the project.

Scientific and technical information relating to the Selebi Mine is supported by the technical report titled "Technical Report on the Selebi Mines, Central District, Republic of Botswana, Report for NI 43-101", dated June 16, 2022 (effective date of March 1, 2022) (the "Selebi Technical Report"), and prepared by SLR Consulting (Canada) Ltd. for PNRL. Reference should be made to the full text of the Selebi Technical Report, including to review the assumptions, limitations and data verification relating to the historic data compilation presented in this news release, which was prepared in accordance with NI 43- 101 and is available electronically on SEDAR+ under PNRL's issuer profile. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to differ materially from such forward the preliminary nature of metallurgical test results include, but are not limited To, but are not limited to, capital and operating costs varying significantly from estimates; the preliminary nature of met all estimates; the preliminary nature of meetallurgical test results; the preliminary nature of exploration results; the preliminary results; the preliminary nature of metall surgical test results; the preliminary exploration results; the preliminary results.