Continental Nickel Limited
TSX VENTURE : CNI

Continental Nickel Limited

January 22, 2008 08:00 ET

Continental Nickel Intersects 3.35% Ni and 0.46% Cu Over 21.0 Metres, Including 7.11% Ni and 0.71% Cu Over 6.35 Metres at the Newly Discovered Zone J From the Nachingwea Project, Tanzania

TORONTO, ONTARIO--(Marketwire - Jan. 22, 2008) - Continental Nickel Limited (TSX VENTURE:CNI) is pleased to announce the remaining 2007 drill assay results from its 70% owned Nachingwea nickel sulphide project in Tanzania. The Nachingwea project is a 70:30 JV with IMX Resources NL ("IMX") (formerly Goldstream Mining NL) of Australia. In 2007, 53 drill holes totalling 10,514 metres were completed testing twelve conductive targets identified from the Crone ground TDEM survey. The 2007 drill program was highly successful, discovering six new, near surface Ni-Cu sulphide zones in addition to the NAD013 zone discovered by IMX in 2006. 24 of the 53 holes drilled in 2007 intersected sulphide mineralization grading greater than 2% Ni, over core widths ranging from less than 1 metre to 21.0 metres.

Results for 22 drill holes were reported up to December 10, 2007. This release describes the results from the remaining 31 drill holes. The results are listed in the attached table. The locations of the various holes are illustrated on the attached figures.

Highlights from the current results include:

- Target J:

-- NAD07-069 intersects 21.0 metres grading 3.35% Ni and 0.46% Cu,
including 7.11% Ni and 0.71% Cu over 6.35 metres;

-- NAD07-065 intersects 16.3 metres grading 2.88% Ni and 0.44% Cu,
including 5.71% Ni and 0.54% Cu over 3.4 metres;

- Target H:

-- NAD07-043 intersects 6.8 metres grading 5.53% Ni and 0.31% Cu,
including 15.89% Ni and 0.77% Cu over 2.15 metres;

- NAD013:

-- NAD07-060 intersects 5.2 metres grading 4.45% Ni and 3.01% Cu;

- Target M (New Discovery):

-- NAD07-044 intersects 1.98% Ni and 0.47% Cu over 11.3 metres;
including 3.19% Ni and 0.76% Cu over 5.3 metres.

Bore hole EM surveys were completed on the 2007 drill holes during November and December and the data are currently being modelled and interpreted. With the receipt of all outstanding drill hole assays, the company is integrating drill hole and geophysical data in order to prioritize targets and design an aggressive 2008 follow up drill program. It is expected that the 2008 field program will commence by April.

A 5900 line kilometre airborne VTEM survey was also completed in December, with processing and interpretation of the data in progress. Results will be reported once they are received.

Target J:

The initial discovery of Zone J was reported December 10, 2007. Discovery drill hole NAD07-030 intersected 17.95 metres of net textured sulphide mineralization grading 2.59% Ni and 0.41% Cu. The mineralization appears to be nearly flat lying at very shallow depths (starting at 30 metres depth) and was further tested by drill holes NAD07-065 and 069 as described below.

Hole NAD07-065 was drilled 20 metres southeast along strike of the discovery hole NAD07-030 and intersected 16.3 metres of massive to net textured sulphides from 34.7 metres down hole grading 2.88% Ni and 0.44% Cu. Massive sulphide mineralization was intersected at the start of the interval and graded 5.71% Ni and 0.54% Cu over 3.4 metres. Drill hole NAD07-069 was drilled 20 metres up dip on the same section as NAD07-065 and intersected a 21.0 metre interval of massive to net textured sulphides from 30.0 metres down hole grading 3.35% Ni and 0.46% Cu. This interval includes a 6.35 metre interval of massive sulphide mineralization starting at 32.65 metres grading 7.11% Ni and 0.71% Cu.

The discovery of high grade (greater than 2.5% Ni) massive to net textured sulphide mineralization over a significant thickness on the east side of the Ntaka intrusion opens a substantial area for evaluation. The J Zone is a priority target for follow up in the 2008 program.

Target H:

Follow up drilling confirmed the discovery of high grade Ni mineralization at Target H, that was announced on November 20, 2007 (drill hole NAD07-028 intersecting 7.50% Ni and 1.15% Cu over 9.55 metres) This new sulphide zone is shallow dipping and occurs at shallow depths of less than 60 metres. Drill holes NAD07-041 and 043 were drilled 20 metres along strike to the southeast.

Hole NAD07-041 intersected narrow zones of sulphide mineralization starting at 84.6 metres down hole grading 2.07% Ni and 0.71% Cu over 3.75 metres (including 9.01% Ni and 0.44% Cu over 0.75 metres). Hole NAD07-043 was drilled 20 metres down dip on the same section as NAD07-043 and intersected disseminated to massive sulphide mineralization starting from 84.0 metres down hole grading 5.53% Ni and 0.31% Cu over 6.80 metres, including a 2.15 metre interval of coarse massive sulphides grading 15.98% Ni and 0.77% Cu.

Drill hole NAD07-070 drilled midway between Zones H and NAD013, primarily as a platform to complete a bore hole EM survey, intersected a number of intervals of sulphide mineralization including 1.70 metres grading 1.54% Ni and 0.49% Cu from 99.15 metres; 5.0 metres grading 1.07% Ni and 0.20 % Cu from 125.0 metres and 4.05 metres grading 1.41% Ni and 0.43 % Cu from 288.75 metres down hole. The upper two intervals may correlate with Zone H which would suggest that the zone may extend northwest along strike for 125 metres.

Zone H remains open along strike to both the northwest and southeast of the existing drilling. The dip extent across the center of the zone to date appears to be limited, but further drill testing is warranted given the pinch and swell and bifurcating nature of the high grade massive sulphide mineralization.

NAD013 Zone:

At the NAD013 zone originally discovered by IMX in 2006, additional drill testing was completed along strike to the northwest and up and down dip of the original discovery holes. Holes NAD07-053 and 055 were drilled 20 metres along strike to the northwest of NAD06-013 (11.23% Ni, 1.74% Cu over 3.0 metres, previously reported). Hole NAD07-053 intersected disseminated to stringer sulphide mineralization starting from 89.1 metres grading 1.22% Ni and 0.46% Cu over 5.1 metres and 2.75 metres grading 1.69% Ni and 0.39% Cu from 121.25 metres. Hole NAD07-055 was drilled 25 metres up dip on the same section and intersected a massive sulphide zone grading 4.73% Ni and 0.51% Cu over 0.60 metres at 63.85 metres down hole.

Holes NAD07-056 and 058 were drilled 20 metres up dip of the NAD06-013 and NAD07-019 intersections, respectively, and both holes intersected narrow massive sulphide zones representing the up dip extent of the NAD013 sulphide zone. NAD07-056 intersected 0.6 metres of massive sulphide grading 10.3% Ni and 0.99% Cu at 49.0 metres down hole, while NAD07-058 intersected a 0.25 metre interval grading 10.15% Ni and 0.15% Cu at 39.75 metres down hole.

Drill holes NAD07-060 and 062 tested down dip of holes NAD07-019 and 020 (previously reported) on the same section. Drill hole NAD07-060 intersected a strong stringer to massive sulphide zone at 91.9 metres grading 4.45% Ni and 3.01% Cu over 5.2 metres. Hole NAD07-062 tested 40 metres down dip on the same section as NAD07-060 intersecting disseminated to net textured mineralization 122.0 metres down hole grading 2.41% Ni, 0.27% Cu over 2.1 metres.

The zone remains open down dip and along strike to the northeast where hole NAD07-068 drilled 250 metres north of the NAD013 zone returned an interval of disseminated to net textured mineralization starting at 52.0 metres grading 1.1% Ni and 0.22% Cu over 6.4 metres. This intersection indicates a possible linkage between the NAD013 zone and the newly discovered L zone (drill hole NAD07-039 intersected 2.40% Ni and 0.50% Cu over 15.25 metres, reported on December 10, 2007) located 200 metres north of drill hole NAD07-068.

Target M:

Target M is an isolated conductive target located approximately 650 metres northeast of Target L and represents another new Ni-Cu zone discovered on the property.

The target was tested by a single drill hole NAD07-044 which intersected disseminated to net textured to semi-massive sulphide mineralization within ultramafic rock starting at 83.0 metres down hole. The sulphide zone graded 1.98% Ni and 0.47 % Cu over 11.3 metres, including a 5.3 metre interval grading 3.19% Ni and 0.76% Cu.

The mineralization remains open in all directions.

Target G:

Assays from eleven additional drill holes testing Target G are presented in the attached table. Although of generally lower grades (0.52 to 2.26% Ni), significant thicknesses of sulphide mineralization (up to 17.1 metres) have been intersected confirming the potential for a large, lower grade sulphide zone at relatively shallow depths.

Craig MacDougall, President & CEO of Continental Nickel Limited, reported "the 2007 exploration program on Nachingwea project has met with unparalleled success given the early stage of exploration on this vast property. The exploration team has in one field season discovered six new Ni-Cu sulphide zones, near surface, that exhibit outstanding nickel grades over significant thicknesses. All of the new discoveries remain to be further evaluated and there is potential for one or more to develop into a significant deposit. In addition, the potential for other discoveries on the property remains outstanding and the completion of the airborne survey will provide immediate focus to identify target areas of interest for exploration in 2008".

Quality Control

The drilling was completed by Tandrill Limited of Tanzania. Drill core samples (NQ) are cut in half by a diamond saw on site. Half of the core is retained for reference purposes and half is sent for analysis. Samples are generally collected in 1.0 metre intervals or less at the discretion of the site geologists. Sample preparation is completed at the ALS Chemex preparation lab in Mwanza, Tanzania. Sample pulps are sent by courier to ALS Chemex analytical laboratory in Vancouver, Canada. Blank samples and commercially prepared and certified Ni sulphide analytical control standards with a range of grades are inserted in every batch of 20 samples or a minimum of one per sample batch. Analyses for Ni, Cu and Co are completed using a peroxide fusion preparation and ICP-AES finish (ME-ICP81). Analyses for Pt, Pd, and Au are by fire assay with an ICP-AES finish (PGM-ICP23).

The quality control, technical information and all aspects of the exploration program were supervised by Patricia Tirschmann, P.Geo., Vice President of Exploration for CNI. Ms. Tirschmann is a qualified person as defined by National Instrument 43-101.

About Continental Nickel

Continental Nickel Limited is an exploration company focused on developing and advancing nickel sulphide exploration projects in geologically prospective, but under explored regions globally. Continental Nickel has 30,009,727 shares issued and outstanding (32,435,916 on a fully-diluted basis) and trades on the TSX Venture Exchange under the symbol CNI.

On behalf of Continental Nickel Limited

Craig MacDougall, President & Chief Executive Officer

CAUTIONARY STATEMENT: 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.

Information in this announcement relating to exploration results is based on data compiled by Patricia Tirschmann, P. Geo., who is a registered member of the Association of Professional Geoscientists of Ontario and who is a full-time employee of the company. Patricia Tirschmann 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. Patricia Tirschmann consents to the inclusion of the data in the form and context in which it appears.



Summary of Recent Assay Results, Nachingwea Project, Tanzania.

---------------------------------------------------------------------------
Drillhole Location Az/Dip Hole From To Inter- % Ni % Cu % Co
(NAD07-) (local Length (m) (m) val
grid) (m) (m)
---------------------------------------------------------------------------
NAD013
AREA :
053 L4449N, 050/-71 169.6 89.1 94.2 5.1 1.22 0.46 0.04
2701E
121.25 124.0 2.75 1.69 0.34 0.07
---------------------------------------------------------------------------
055 L4449N, 050/-71 120.0 63.85 64.5 0.65 4.73 0.51 0.08
2726E
---------------------------------------------------------------------------
056 L4424N, 050/-65 121.6 49.0 49.6 0.60 10.30 0.99 0.14
2746E
---------------------------------------------------------------------------
058 L4399N, 050/-69 121.6 39.75 40.0 0.25 10.15 0.15 0.15
2756E
45.6 46.3 0.7 2.27 0.61 0.03
---------------------------------------------------------------------------
060 L4399N, 050/-70 250.6 91.9 97.1 5.2 4.45 3.01 0.07
2683E
---------------------------------------------------------------------------
062 L4399, 050/-86 298.6 122.0 124.1 2.1 2.41 0.27 0.03
2682E
---------------------------------------------------------------------------
068 L4704N, 050/-65 596.1 52.0 58.4 6.4 1.1 0.22 0.02
2750E
---------------------------------------------------------------------------
TARGET H :
041 L4080N, 050/-58 169.4 84.6 88.35 3.75 2.07 0.71 0.03
2774E Incl.:
87.6 88.35 0.75 9.01 0.44 0.10
---------------------------------------------------------------------------
043 L4080N, 050/-73 172.6 84.0 90.8 6.8 5.53 0.31 0.08
2773E Incl.:
89.6 89.05 2.15 15.89 0.77 0.21
---------------------------------------------------------------------------
064 L4100N, 050/-71 142.6 38.0 40.0 2.0 1.75 0.49 0.05
2726E
109.0 110.0 1.0 0.10 1.47 0.01
---------------------------------------------------------------------------
070 L4228N, 050/-66 601.9 99.15 100.85 1.70 1.54 0.49 0.04
2690E
125.0 130.0 5.0 1.07 0.20 0.03
288.75 292.80 4.05 1.41 0.43 0.07
Incl.
288.75 289.75 1.0 2.64 0.94 0.12
---------------------------------------------------------------------------
TARGET L :
066 L4900N, 050/-58 175.5 NSA NSA NSA
2825E
---------------------------------------------------------------------------
TARGET M :
044 L5275N, 230/-64 109.3 83.0 94.3 11.3 1.98 0.47 0.04
3512E Incl.:
89.0 94.3 5.3 3.19 0.76 0.06
---------------------------------------------------------------------------
TARGET J :
065 L4479N, 050/-75 75.8 34.7 51.0 16.3 2.88 0.44 0.09
4231E Incl.:
34.7 38.10 3.4 5.71 0.54 0.16
---------------------------------------------------------------------------
069 L4479N, 050/-55 79.2 30.0 51.0 21.0 3.35 0.46 0.10
4231E Incl.:
32.65 45.10 12.45 4.81 0.65 0.15
& 32.65 39.0 6.35 7.11 0.71 0.22
---------------------------------------------------------------------------
067 L4450N, 050/-65 515.1 NSA NSA NSA
4156E
---------------------------------------------------------------------------
TARGET G :
040 L4400N, 050/-72 202.7 133.75 137.5 3.75 0.84 0.22 0.05
3874E
---------------------------------------------------------------------------
042 L4501N, 050/-73 196.7 25.5 31.0 5.5 0.56 0.19 0.04
3843E
79.4 82.4 3.0 0.66 0.17 0.05
---------------------------------------------------------------------------
045 L4400N, 050/-75 195.3 138.35 141.8 3.45 1.01 0.22 0.06
3825E
---------------------------------------------------------------------------
047 L4300N, 050/-80 175.7 NSA NSA NSA
3814E
---------------------------------------------------------------------------
050 L4600N, 050/-61 200.7 116.0 128.0 12.0 0.52 0.14 0.04
3890E
---------------------------------------------------------------------------
052 L4601N, 050/-65 200.7 98.0 108.5 10.5 0.72 0.16 0.03
3976E
---------------------------------------------------------------------------
054 L4650N, 050/-74 196.7 114.35 129.0 14.65 0.59 0.15 0.05
3974E
---------------------------------------------------------------------------
057 L4650N, 050/-61 199.4 104.0 121.1 17.1 0.53 0.14 0.04
3974E
---------------------------------------------------------------------------
059 L4700N, 050/-84 181.4 101.0 105.6 4.6 1.60 0.28 0.14
4024E Incl.:
101.0 103.2 2.2 2.26 0.27 0.19
---------------------------------------------------------------------------
061 L4400N, 050/-77 181.7 NSA NSA NSA
3799E
---------------------------------------------------------------------------
063 L4700N, 050/-69 181.6 NSA NSA NSA
4024E
---------------------------------------------------------------------------
TARGET N :
046 L5050N, 230/-80 156.7 NSA NSA NSA
4178E
---------------------------------------------------------------------------
TARGET O :
048 L3743N, 050/-60 148.5 NSA NSA NSA
6604E
---------------------------------------------------------------------------
TARGET P :
033 L4201N, 050/-75 232.7 49.0 62.15 13.15 0.72 0.20 0.04
3673E
---------------------------------------------------------------------------
051 L3570N, 050/-62 128.9 79.0 87.45 8.45 0.64 0.19 0.03
3559E
---------------------------------------------------------------------------

(i) Note: Intervals represent core lengths, not necessarily true widths.
Pt, Pd and Au assay results are not reported because in general, they are
less than 1.0 g/t on a combined basis.
(ii) NSA - No Significant Assays


To view a map of the Nachingwea Property Ntaka Grid Total Field Magnetics
and TDEM Targets, please visit the following link: http://www.ccnmatthews.com/docs/cni122-1.pdf

To view a map of the Nachingwea Property Ntaka Grid - West drill plan please visit the following link: http://www.ccnmatthews.com/docs/cni122-2.pdf

To view a map of the Nachingwea Property Ntaka Grid - East drill plan, please visit the following link: http://www.ccnmatthews.com/docs/cni122-3.pdf

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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