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April 17, 2012 Continental Nickel Files NI 43-101 Technical Report Supporting Mineral Resource Estimate at Ntaka Hill Project, Tanzania TORONTO, ONTARIO--(Marketwire - April 17, 2012) - Continental Nickel Limited (TSX VENTURE:CNI) ("CNI" or the "Company") is pleased to advise that the Technical Report, in accordance with Canadian National Instrument 43-101, supporting the recently released Mineral Resource Estimate (Press Release March 2, 2012) for the Ntaka Hill project has been filed with SEDAR. The project is part of the 75:25 joint venture between CNI and IMX Resources Limited of Australia covering the Nachingwea project. Detailed results of the updated mineral resource estimate are presented in Table 1. Table 1 -Mineral Resources for Ntaka Hill Project at Various Cut-Off Grades ---------------------------------------------------------------------------- Contained Ni Category Tonnes(000s) % Ni % Cu % Co (tonnes) ---------------------------------------------------------------------------- Cut-Off: 0.15% Ni ---------------------------------------------------------------------------- Measured 1,662,000 1.71 0.29 0.05 28,400 ---------------------------------------------------------------------------- Indicated 11,147,000 1.13 0.25 0.03 126,300 ---------------------------------------------------------------------------- M+I 12,809,000 1.21 0.25 0.03 154,700 ---------------------------------------------------------------------------- Inferred 58,846,000 0.27 0.06 0.01 159,400 ---------------------------------------------------------------------------- Cut-Off: 0.20% Ni ---------------------------------------------------------------------------- Measured 1,662,000 1.71 0.29 0.05 28,400 ---------------------------------------------------------------------------- Indicated 11,125,000 1.14 0.25 0.03 126,300 ---------------------------------------------------------------------------- M+I 12,786,000 1.21 0.25 0.03 154,700 ---------------------------------------------------------------------------- Inferred 45,037,000 0.30 0.07 0.01 135,000 ---------------------------------------------------------------------------- Cut-Off: 0.25% Ni ---------------------------------------------------------------------------- Measured 1,659,000 1.71 0.29 0.05 28,400 ---------------------------------------------------------------------------- Indicated 11,105,000 1.14 0.25 0.03 126,200 ---------------------------------------------------------------------------- M+I 12,764,000 1.21 0.25 0.03 154,600 ---------------------------------------------------------------------------- Inferred 28,481,000 0.34 0.08 0.01 97,700 ---------------------------------------------------------------------------- Notes to Mineral Resource Estimates in Table 1 The following notes should be read in conjunction with the viewing of Table 1. 1. Mineral resource estimates were prepared in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") definition standards regarding mineral resources and mineral reserves. 2. Assays of drill core were completed at ALS Minerals of Vancouver, BC and included a comprehensive Quality Assurance / Quality Control ("QA/QC") program. All aspects of the core sampling, assay procedures and QA/QC program have been reviewed by Roscoe Postle Associates Inc. ("RPA") and were judged to be of industry standard and suitable for use in the estimation of mineral resources. RPA also completed a data verification exercise including independent core sampling and assaying with acceptable results. 3. Resource models were prepared based on drill section interpretation using nominal nickel grade wireframes of 0.1%, 0.5% and 1.0% nickel grade cut-offs. 3D solids were constructed cooperatively between CNI and RPA geologists, then reviewed and revised as necessary by RPA. 4. The estimation employed statistical analysis and variography of nickel values with construction of block models by zone. Block cell size was 2.5 x 5 x 5 metres for zones J, G, M, L and H. Block size for Sleeping Giant and NAD013 was 10 x 10 x 10 metres with level 3 sub-celling (8 x 8). 5. Grade interpolation to assign grade values to cells used Inverse Distance squared ("ID(2)") methods for zones J, G, M, L and H with Ordinary Kriging used for Sleeping Giant and NAD013. 6. More than 3,500 bulk density determinations on core using the immersion method were used for the estimate, with densities assigned where data were not available, based on an analysis of the correlation between specific gravity and sulphur. 7. Mineral resources are reported at cut-off values of 0.15%, 0.20% and 0.25% nickel and are based on open pit mining. 8. No minimum mining width was used. 9. Resource classification involved a review of geological and grade continuity and was based on drill hole spacing. 10. Preliminary pits used to constrain the mineral resources reported were constructed using Whittle software based on the metallurgical and cost assumptions from the PEA completed in November 2011 (Press Release, November 15, 2011). 11. Totals may differ due to rounding. 12. The Company is not aware of any environmental, permitting, legal, title, taxation, socio-political or marketing issues that are material to the statement of the mineral resource estimate. 13. The mineral resource estimate is effective as of March 2, 2012. Qualified Persons / Quality Control The mineral resource estimate was prepared by Roscoe Postle Associates Inc. of Toronto, Ontario by Chester Moore, P. Eng., Principal Geologist and Bruce Churchill P. Geo., Associate Consultant Resource Geologist. Mr. Moore and Mr. Churchill are both independent qualified persons as defined by National Instrument 43-101. The quality control, technical information and all aspects of the exploration program were supervised by Patricia Tirschmann, P. Geo., Vice President, Exploration for CNI. The information in this release was prepared under the direction Ms. Tirschmann who is a qualified person as defined by National Instrument 43-101. About Continental Nickel Limited Continental Nickel Limited is focused on the exploration, discovery and development of nickel sulphide deposits in geologically prospective, but under-explored regions globally. The Companys key asset is its 75% interest in the Nachingwea project in Tanzania which includes Ntaka Hill. The Company also has an option to joint venture on the St. Stephen project in New Brunswick, Canada where the 2010 and 2011 diamond drill programs discovered new Ni-Cu sulphide zones. As at the date of this release, the Company has 42,793,508 common shares issued and outstanding (51,166,914 on a fully-diluted basis) and trades on the TSX Venture Exchange under the symbol CNI. The Company had over $9.4 million in the treasury as at December 31, 2011. On behalf of Continental Nickel Limited Dave Massola, President and CEO CAUTIONARY STATEMENT: This News Release includes certain "forward-looking statements". All statements other than statements of historical fact included in this release including, without limitation, statements regarding potential mineralization, potential or estimated metal recoveries, resources and reserves, exploration results or targets, future plans and objectives of Continental Nickel Limited, is forward-looking information that involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate and actual results and future events could differ materially from those anticipated in such information. Important factors that could cause actual results to differ materially from Continental Nickel Limiteds expectations are the risks detailed herein and from time to time in the filings made by Continental Nickel Limited with securities regulators. Information in this announcement relating to exploration results is based on data collected under the supervision of or compiled by Patricia Tirschmann, P. Geo., who holds the position of Vice President, Exploration and is a full time employee of Continental Nickel Limited. Ms. Tirschmann is a registered member of the Association of Professional Geoscientists of Ontario and has sufficient relevant experience to qualify as a Competent Person under the 2004 Edition of the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves. Ms. Tirschmann consents to the inclusion of the data in the form and context in which it appears. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

CONTACT INFORMATION: Continental Nickel Limited Dave Massola President and CEO (416) 603-8416 Fax: (416) 603-8760 or Continental Nickel Limited Patricia Tirschmann Vice President, Exploration (416) 603-8416 Fax: (416) 603-8760 www.continentalnickel.com INDUSTRY: Manufacturing and Production - Mining and Metals