Continental Nickel Limited
TSX VENTURE : CNI

Continental Nickel Limited

August 05, 2009 08:00 ET

Continental Nickel Provides a Corporate Update Regarding Shares of the Company Held by IMX Resources Limited

TORONTO, ONTARIO--(Marketwire - Aug. 5, 2009) - Continental Nickel Limited (TSX VENTURE:CNI) ("Continental" or the "Company") has been advised by IMX Resources Limited ("IMX") of Australia that its shareholding in Continental Nickel remains a core part of its portfolio and the Board of IMX believes it is in the interests of its shareholders to remain a strategic shareholder of the Company. IMX currently holds 14.28 million shares in Continental Nickel representing 47.4% of the issued and outstanding shares of the Company. The shareholding, which has been held in escrow since Continental's Initial Public Offering (IPO) in August 2007, will come out of escrow on August 8th, 2009.

In addition to its shareholding in the Company, IMX holds a 30% joint venture interest in the Nachingwea nickel sulphide Project in Tanzania, with Continental holding the remaining 70% interest. Continental recently announced the results of the first National Instrument (NI) 43-101 compliant Mineral Resource estimate for the project reported in a company news release on July 15, 2009. As stated in that release, Measured and Indicated Mineral Resources at Ntaka Hill total 3,085,000 tonnes grading 1.31% nickel, 0.24% copper and 0.04% cobalt calculated at a US$23 /tonne Net Smelter Return (NSR) cut-off.

The Nachingwea Project is comprised of Prospecting Licenses and applications for licenses covering an aerially extensive land position totalling 7,560 square kilometres, much of which has seen only minimal exploration. To date, six nickel-copper sulphide deposits have been discovered by the Joint Venture at Ntaka Hill. In 2009, Continental is conducting a CAD$2.5 million exploration program at Nachingwea to continue the search for nickel sulphide deposits in this emerging new nickel district. Some twenty eight airborne VTEM anomalies have been identified for further work as part of this program and a 3,000 metre diamond drill campaign is expected to commence in September. Continental Nickel remains well funded with CAD$11.6 million in the treasury.

Qualified Persons

The information in this release was prepared under the direction of Craig MacDougall, P. Geo., President and Chief Executive Officer for Continental Nickel Limited. Mr. MacDougall is a qualified person as defined by National Instrument 43-101.

About Continental Nickel

Continental Nickel Limited is 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 30,132,395 shares issued and outstanding (32,692,395 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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