Continental Nickel Limited
TSX VENTURE : CNI

Continental Nickel Limited

November 20, 2008 08:00 ET

Continental Nickel Intersects More High Grade Nickel at Three Zones at the Nachingwea Project, Including: 4.38% Nickel and 0.72% Copper Over 9.0 Metres

TORONTO, ONTARIO--(Marketwire - Nov. 20, 2008) - Continental Nickel Limited (TSX VENTURE:CNI) is pleased to announce additional assay results from drilling on its 70% owned Nachingwea nickel sulphide project in Tanzania. The Nachingwea project is a 70:30 Joint Venture with IMX Resources NL ("IMX") of Australia. Continental Nickel is conducting a C$7.0 million exploration program at Nachingwea in 2008 and is well funded with over C$14.9 million in the treasury.

The 2008 drill program is now complete and the two diamond drills which have been operating since early July have demobilized from the project site. One hundred and nineteen (119) drill holes totalling 15,573 metres were completed during the program. Assay results have been received for an additional twenty four diamond drill holes (see attached Table and Figures) for a total of fifty drill holes reported year to date. Updated results from additional sampling are also reported for two holes from J Zone for which initial results were previously reported. The remaining assay results will be reported as they are received and verified.

Building upon the excellent results previously reported from the J and NAD013 zones, assays have now confirmed additional zones of high grade mineralization from the L, H and M Zones on the west and northwest side of the Ntaka Intrusion. Highlights include 9.0 metres grading 4.38% nickel and 0.72% copper, including 7.80% nickel and 1.16% copper over 4.6 metres from drill hole NAD08-103 at the L sulphide zone, and 13.0 metres grading 2.72% nickel and 0.59% copper, including 3.48% nickel and 0.71% copper over 8.0 metres from drill hole NAD08-134 at the M sulphide zone.

L Zone:

The L Zone discovered in 2007 is located 400 metres along strike of the NAD013 Zone on the west side of the Ntaka intrusion. Two of three drill holes completed in 2007 intersected disseminated to massive sulphide mineralization with the best result reported from NAD07-039 which intersected 2.40% nickel and 0.50% copper over 15.25m, including 4.66% nickel and 0.91% copper over 4.35 metres (previously reported). In 2008, sixteen drill holes totalling 1,858 metres were completed on sections spaced 25 metres apart. This drilling has traced the zone 175 metres along strike and it remains open at depth along a shallow southerly plunge. The zone displays a moderate to steep dip to the west with a dip extent of 50 to 75 metres.

Results reported herein include 9.0 metres grading 4.38% nickel and 0.72% copper from drill hole NAD08-103, including 7.80% nickel and 1.16% copper over 4.6 metres and 2.81% nickel and 0.73% copper over 3.2 metres from hole NAD08-104.

Drill hole NAD08-174 was drilled to test the down plunge continuation of the zone but intersected only narrow (0.1 metre) massive sulphide mineralization (assays pending). The hole will be surveyed with bore hole EM to help target a down plunge extension.

H Zone:

Sixteen drill holes totalling 2,195 metres were completed on 25 metre spaced sections at the H Zone in 2008. The zone was discovered in 2007 with drill hole NAD07-028 intersecting 7.50% nickel and 1.15% copper over 9.55 metres (previously reported). The zone has been traced for 150 metres along strike and remains open to the north and south, but thins to less than 1 metre. Mineralization consists of remobilized massive sulphide veins with individual veins pinching and swelling from less than 1 metre to several metres thick. The zone varies from single to multiple closely spaced veins, the latter occurring over widths of up to 9.5 metres. The zone has a moderate to shallow dip to the southwest.

Assay results reported herein continue to confirm previous high grades of nickel including 5.02% nickel and 0.33% copper over 4.45 metres (including 17.35% nickel over 0.55 metres and 16.51% nickel over 0.75 metres) from drill hole NAD08-114.

A prospecting program located the up dip extent of the zone where it outcrops at surface in a small creek bed. Selected grab samples contain up to 10.45% nickel and 29.9% copper. The discovery of mineralization at surface along with the shallow dip of mineralization indicates there may be potential to evaluate the zone for low cost open pit mining methods once resource studies are completed.

M Zone:

The M Zone was the last discovery made in 2007, and was tested with only a single drill hole (NAD07-044) which intersected 1.98% nickel and 0.47% copper over 11.3 metres, including 5.3 metres grading 3.19% nickel and 0.76% copper (previously reported). In 2008 a total of twenty-six drill holes, totalling 3,607 metres were completed to delineate the zone. The zone has been traced for 200 metres along strike. It has a moderate plunge to the south and has a dip extent of 75 to 100 metres to the east.

Mineralization consists of ultramafic-hosted disseminated, net textured and locally semi-massive sulphides similar in appearance to the J Zone. Assay results reported herein include: 2.82% nickel and 0.51% copper over 6.9 metres, including 3.0 metres grading 5.08% nickel and 0.71% copper from NAD08-133 and 2.72% nickel and 0.59% copper over 13.0 metres, including 8.0 metres grading 3.48% nickel and 0.71% copper from drill hole NAD08-134.

Drill hole NAD08-173 targeted the down plunge extension of the zone 50 metres along strike, but only intersected minor sulphide mineralization that may be off the plunge trend. The hole will be surveyed with borehole EM to help locate additional mineralization.

J Zone:

A total of thirty diamond drill holes (2,459 metres) have been completed in the current drill program at the J Zone. Assay results have been received for an additional four new holes as well as from additional sampling of two holes previously reported where sampling did not adequately constrain the mineralized intervals. The additional sampling has identified a "transition" zone of partially weathered and oxidized sulphide mineralization between the oxide and sulphide mineralization.

Highlights include NAD08-74 which has an upper oxide zone grading 2.12% nickel and 0.61% copper over 16.0 metres overlying transitional sulphide mineralization grading 2.3% nickel and 0.15% copper over 19.0 metres including 13.0 metres grading 3.00% nickel and 0.20% copper.

Additional sampling of hole NAD08-071 increased the width of the intersected oxide mineralization to 26.0 metres grading 1.17% nickel and 1.20% copper. Additional sampling of NAD08-081 increased the width of the intersected transitional sulphide mineralization to 18.0 metres grading 1.54% nickel and 0.43% copper starting at a depth of 15.0 metres down hole.

It is believed that the J Zone is now largely delineated. When the outstanding assay results have been received, a 3D geological model will be constructed to facilitate resource studies.

Craig MacDougall, President & CEO of Continental Nickel Limited, reported "following the success of our drilling efforts at J and NAD013 Zones, three additional zones (L, H and M) have all returned solid sulphide intersections in multiple drill holes. The continuity and grade of the mineralization that has been intersected is very encouraging. It is anticipated that the Company will initiate resource studies on several zones from the Ntaka intrusion once all of the assay results have been received."

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. Samples are generally 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, Exploration for CNI, and 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 (33,235,916 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.

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.



Table I: Summary of Recent Assay Results, Nachingwea Project, Tanzania.

----------------------------------------------------------------------------
Drillhole Location Az/Dip Length From To Interval % Ni % Cu % Co
(NAD08-) (local grid) (m) (m) (m) (m)
----------------------------------------------------------------------------
L Zone
----------------------------------------------------------------------------
103 1175N / 98/-51 73.7 39.0 48.0 9.0 4.38 0.72 0.08
141E Incl:
43.4 48.0 4.6 7.80 1.16 0.14
----------------------------------------------------------------------------
104 1175N / 98/-51 112.7 66.0 69.2 3.2 2.81 0.73 0.07
110E Incl:
68.6 69.2 0.60 9.57 2.58 0.24
----------------------------------------------------------------------------
106 1200N / 98/-51 91.7 35.0 41.0 6.0 0.83 0.26 0.02
119E 50.0 55.0 5.0 0.89 0.20 0.02
----------------------------------------------------------------------------
107 1150N / 98/-54 74.2 NSA NSA NSA
149E
----------------------------------------------------------------------------
108 1150N / 98/-51 109.7 88.0 88.8 0.8 1.52 0.26 0.03
83E 97.7 99.0 1.3 0.87 0.19 0.02
----------------------------------------------------------------------------
109 1125N / 98/-52 70.3 NSA NSA NSA
148E
----------------------------------------------------------------------------
H Zone
----------------------------------------------------------------------------
111 4100N / 50/-59 103.4 45.60 48.35 2.75 1.09 2.41 0.02
2826E
----------------------------------------------------------------------------
112 4125N / 50/-61 115.6 58.55 58.80 0.25 2.82 0.35 0.04
2795E
----------------------------------------------------------------------------
113 4075N / 50/-61 100.8 67.4 68.4 1.0 3.39 0.02 0.04
2806E 73.3 73.6 0.3 6.75 1.71 0.10
----------------------------------------------------------------------------
114 4075N / 50/-72 137.0 92.0 93.0 1.0 1.34 0.20 0.04
2748E 98.75 103.2 4.45 5.02 0.33 0.07
Incl:
98.75 99.3 0.55 17.35 0.81 0.22
102.45 103.2 0.75 16.51 1.22 0.21
----------------------------------------------------------------------------
115 4075N / 50/-86 162.8 116.0 117.25 1.25 7.58 0.20 0.09
2748E 142.0 146.0 4.0 1.26 0.72 0.03
----------------------------------------------------------------------------
116 4050N / 50/-66 124.8 95.65 97.0 1.35 4.25 0.16 0.05
2771E
----------------------------------------------------------------------------
117 4050N / 50/-50 130.6 94.0 99.0 5.0 1.91 0.11 0.03
2771E Incl:
97.8 98.35 0.55 9.12 0.06 0.13
----------------------------------------------------------------------------
M Zone
----------------------------------------------------------------------------
131 5275N / 230/-77 145.9 110.6 115.2 4.6 1.17 0.17 0.03
3512E
----------------------------------------------------------------------------
133 5300N / 230/-57 106.7 54.3 61.2 6.9 2.82 0.51 0.05
3515E Incl:
58.2 61.2 3.0 5.08 0.71 0.09
----------------------------------------------------------------------------
134 5300N / 230/-72 124.9 61.0 74.0 13.0 2.72 0.59 0.05
3514E Incl:
66.0 74.0 8.0 3.48 0.71 0.06
----------------------------------------------------------------------------
135 5300N / 230/-55 97.3 NSA NSA NSA
3487E
----------------------------------------------------------------------------
J Zone
----------------------------------------------------------------------------
071 1175N / 100/-59 103.6 3.0 29.0 26.0(i) 1.17 1.20 0.06
167E
----------------------------------------------------------------------------
074 1200N / 100/-73 82.2 9.0 25.0 16.0(i) 2.12 0.61 0.112
158E
25.0 44.0 19.0(ii) 2.30 0.15 0.10
Incl:
25.0 38.0 13.0 3.00 0.20 0.13
----------------------------------------------------------------------------
081 1150N / 100/-63 73.5 9.0 13.0 4.0(i) 0.50 0.26 0.02
165E 15.0 33.0 18.0(ii) 1.54 0.43 0.07
----------------------------------------------------------------------------
098 1050N / 100/-70 77.1 2.25 8.0 5.75(i) 0.44 0.40 0.02
163E 17.0 19.0 2.0(i) 0.12 1.82 0.01
----------------------------------------------------------------------------
099 1050N / 100/-76 74.0 NSA NSA NSA
142E
----------------------------------------------------------------------------
102 1250N / 100/-75 88.8 33.0 36.0 3.0 1.21 0.18 0.04
119E
----------------------------------------------------------------------------
Miscellaneous Ntaka Area Drill Holes
----------------------------------------------------------------------------
119 3775N / 50/-62 250.7 176.3 177.0 0.70 3.56 0.61 0.08
2844E
----------------------------------------------------------------------------
120 3750N / 50/-63 253.9 135.0 138.0 3.0 0.84 0.19 0.04
2848E 195.0 198.0 3.0 1.08 0.21 0.05
205.0 207.0 2.0 1.29 0.21 0.06
----------------------------------------------------------------------------
127 4600N / 50/-50 115.6 93.5 101.0 7.5 0.51 0.10 0.02
2750E
----------------------------------------------------------------------------

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.
NSA - No Significant Assays
(i) - Oxide mineralization
(ii) - Transitional mineralization (locally partially oxidized)


To view figure 1, Nachingwea Property Ntaka Grid, Total Field Magnetics and TDEM Targets, please visit the following link: http://media3.marketwire.com/docs/cni1120-f1.pdf

To view figure 2, Nachingwea Property Ntaka Grid, Drill Plan - L Zone, please visit the following link: http://media3.marketwire.com/docs/cni1120-f2.pdf

To view figure 3, Nachingwea Property Ntaka Grid, Drill Plan - H Zone, please visit the following link: http://media3.marketwire.com/docs/cni1120-f3.pdf

To view figure 4, Nachingwea Property Ntaka Grid, Drill Plan - M Zone, please visit the following link: http://media3.marketwire.com/docs/cni1120-f4.pdf

To view figure 5, Nachingwea Property Ntaka Grid, Drill Plan - J Zone, please visit the following link: http://media3.marketwire.com/docs/cni1120-f5.pdf

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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