Continental Nickel Announces Brokered $5.0 Million Private Placement Financing
NOT FOR DISTRIBUTION TO U.S.

NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Toronto, Ontario (April 13, 2010): Continental Nickel Limited (TSXV:CNI) ("Continental" or the
"Company") announces that it has entered into an agreement with a syndicate of agents led by
Paradigm Capital Inc.

and including Genuity Capital Markets (the "Agents"), which has agreed "on a best
efforts private placement basis" to sell units consisting of one common share (the "Common Shares") of
the Company and one‐half of one Common Share purchase warrant for aggregate gross proceeds of
$5,000,000 (the "Offering").

The Agents have the option to purchase an additional 15% of the Offering
up to 30 days following the closing date to bring the aggregate gross proceeds to $5,750,000.

It is
proposed that each Unit will be priced at $0.70 and each whole purchase warrant will entitle the holder
to purchase one Common Share for $0.90 for a period of two years from the date of closing of the
Offering.
In connection with the Offering the Agents will be paid a cash commission and will receive brokers
warrants exercisable into Common Shares at the Offering price.
The Company intends to use the net proceeds of the Offering for further exploration of its Nachingwea
nickel project in Tanzania as well as for general corporate activities.
The securities issued pursuant to the Offering will be subject to a 4 month statutory hold period from
closing and the Offering is subject to certain conditions including, but not limited to, the receipt of all
necessary approvals including the approval of the TSX Venture Exchange.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the
securities in the United States.

The securities have not been and will not be registered under the United
States Securities Act of 1933, as amended (the "U.S.

Securities Act") or any state securities laws and may
not be offered or sold within the United States or to U.S.

Persons as defined under applicable securities
laws unless registered under the U.S.

Securities Act and applicable state securities laws or an exemption
from such registration is available.
About Continental Nickel
Continental Nickel Limited is focused on the exploration and discovery of nickel sulphide deposits in
prospective, but under‐explored regions globally.

Current projects include its 70% controlling interest in
the Nachingwea project in Tanzania, where NI 43‐101 Mineral Resources have been defined, and an
option joint venture on the St.

Stephen project in New Brunswick, Canada.

Continental Nickel has
30,609,644 shares issued and outstanding (33,097,164 on a fully‐diluted basis) and trades on the TSX
Venture Exchange under the symbol CNI.

The Company remains well funded with over C$9.2 million in
the treasury.
On behalf of
Continental Nickel Limited
"Craig MacDougall"
President & Chief Executive Officer
For further information please contact:
Continental Nickel Limited
Craig MacDougall, P.

Geo.
President and CEO
Tel: (416) 364‐7111
Fax: (416) 364‐8114
E:
Web site: www.continentalnickel.com
CAUTIONARY STATEMENT: 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.

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 and reserves, exploration results, future plans and objectives of
Continental Nickel Limited, are forward‐looking statements that involve various risks and uncertainties.

There can be no assurance that such
statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
Important factors that could cause actual results to differ materially from Continental Nickel Limited"s expectations are the risks detailed herein
and from time to time in the filings made by Continental Nickel Limited with securities regulators.