Continental Nickel Limited

Continental Nickel Limited

March 26, 2009 08:00 ET

Continental Nickel Announces an Amendment to the St. Stephen Option Agreement With Abitex Resources

TORONTO, ONTARIO--(Marketwire - March 26, 2009) - Continental Nickel Limited (TSX VENTURE:CNI) ("CNI" or the "Company") announces an amendment to the exploration option and joint venture agreement with Abitex Resources Inc. of Val D'Or Quebec to acquire up to a 75% interest in the St. Stephen nickel-copper project in New Brunswick. Subject to regulatory approval, and in consideration for the issuance of 70,000 shares of the Company to Abitex, the remaining expenditure, cash payment and share issuance obligations have all been deferred by one year.

As a result of this amendment, the Company can earn an initial 50% interest in the project by completing scheduled cash payments totaling $150,000 ($30,000 already paid), issuing a total of 200,000 shares of CNI (40,000 shares already issued and exclusive of the 70,000 shares to be issued in consideration for this extension) and completing $1.0 million in work expenditures by April 3, 2013. The Company can further increase its interest to 60% by completing additional cash payments and share issuances of CNI totaling $60,000 and 80,000 shares respectively, and completing additional work expenditures totaling $1.0 million by April 3, 2015.

The Company can elect to conduct a feasibility study at any time within five years after it has vested its 60% interest for which its interest will increase to 65% by completing the study, and increase to 75% if the study recommends a positive development recommendation that the Company gives notice, that it intends to implement within two years of tabling the study, to the joint venture.

The St. Stephen property is underlain by Ordovician, sulphide-rich metasedimentary rocks which have been intruded by Devonian mafic to ultramafic intrusive rocks of the St. Stephen igneous complex. Seventeen historic sub-cropping nickel-copper rich, magmatic sulphide occurrences are documented on the property. The nickel-copper sulphide occurrences are associated with the mafic intrusions. Detailed exploration of several of the occurrences conducted up to 1972 outlined three historical resources referred to as the Roger`s Farm, C Zone and the Hall-Carroll zones. The nickel-copper sulphide occurrences include disseminated, net textured and massive sulphides, comprised dominantly of pyrrhotite with accessory pentlandite and chalcopyrite.

CNI is currently compiling historical data to identify and prioritize target areas in advance of a planned ground TDEM geophysical survey to be completed later in 2009.

The technical information in this release have been reviewed 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 the exploration and discovery of nickel sulphide deposits in geologically prospective, but under explored regions globally. Current projects include its 70% controlling interest in the Nachingwea project in Tanzania and an option joint venture on the St. Stephen project in New Brunswick, Canada. Continental Nickel has 30,062,395 shares issued and outstanding (33,285,916 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: 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.

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.

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