Premium Nickel Resources Ltd. (TSX-V: PNRL) (OTCQX: PNRLF) is pleased to announce that it has closed its previously announced financing with Cymbria Corporation (TSX: CYB) EdgePoint Investment Group Inc. and certain other entities managed by it, for aggregate gross proceeds of CAD$33,999,200. The financing included three concurrent and inter-conditional transactions comprised of an equity offering of units, a three year term loan and options to acquire a 0.5% net smelter returns royalty on the Company’s Selebi and Selkirk mines in certain circumstances upon payment of further consideration (see news release dated June 13, 2023).

As a result of the Financing Transactions, Cymbria and certain other funds managed by EdgePoint have acquired 14,772,000 common shares of the Company, representing approximately 10.9% of the Company’s issued and outstanding Shares. The Financing Parties also acquired on closing an aggregate of 5,324,000 warrants with a three year term and an exercise price of CAD$1.4375 which, if exercised, together with the Shares acquired at closing would result in the Financing Parties holding approximately 14.2% of the Shares in the aggregate (calculated on a partially-diluted basis).

Immediately following closing of the Financing Transactions, the Company prepaid all principal and interest owing by the Company under its promissory note in favour of Pinnacle Island LP.

The Company is preparing for an extensive surface and underground drilling campaign with a focus on defining National Instrument 43-101 compliant resources, including drill testing of high-conductance electromagnetic targets situated along the down-plunge extension of the Selebi North mineralization. The deepest of these drillholes, designed to evaluate the down-plunge area, will specifically target the sources of the EM anomalies identified during the Company’s 2022 drilling program. These anomalies are located south of the Selebi North mineralization and this drilling is expected to provide evidence that the known Selebi and Selebi North ore bodies are part of the same mineralized horizon.

All securities issued in connection with the Financing Transactions are subject to a hold period of four months plus a day from the date hereof and the resale rules of applicable securities legislation and policies of the TSX Venture Exchange. Fort Capital Partners acted as financial advisor to PNRL on the Financing Transactions and was paid cash fees by PNRL of 5.0% of the gross proceeds of the equity portion of the Financing Transactions and 2.5% of the gross proceeds of the term loan portion of the Financing Transactions, plus applicable taxes.

About Premium Nickel Resources Ltd.

PNRL is a mineral exploration and development company that focuses on discovering and advancing high-quality nickel, copper and cobalt resources. We are driven by our belief that the demand for these metals will continue to grow in the medium to long term, as a result of global urbanization and the increasing adoption of electric motors over internal combustion engines. These metals are vital for achieving a low-carbon future.

Our global strategy is to identify the most promising Ni-Cu-Co-PGE projects and acquire or invest in opportunities that offer high prospectivity in mining friendly jurisdictions located in low-risk countries with supportive foreign investment and resource acts and strong rule of law. Our portfolio includes various projects (Botswana, Greenland, Canada and Morocco) that complement our flagship Selebi Ni-Cu-Co sulphide mine located in Selebi-Phikwe, Botswana.

PNRL is committed to governance through transparent accountability and open communication within our team and our stakeholders. Our skilled team has worked over 100 projects collectively, accumulating over 400 years of resource discoveries, mine development and mine re-engineering experience on projects like Selebi and Selkirk. PNRL’s team members have on average more than 20 years of experience in every single aspect of mine discovery and development, from geology to operations.