Continental Nickel Limited

Continental Nickel Limited

February 29, 2008 08:00 ET

Continental Nickel Reports Five New Conductive Targets Identified in a Regional Airborne VTEM Survey of the Nachingwea Project, Tanzania

TORONTO, ONTARIO--(Marketwire - Feb. 29, 2008) - Continental Nickel Limited (TSX VENTURE:CNI) ("the Company") is pleased to announce that at least five new conductive targets have been identified in a regional, helicopter-borne, geophysical survey completed in December 2007 on the Nachingwea project in southeast Tanzania. The Nachingwea project is a 70:30 joint venture with IMX Resources NL ("IMX") (formerly Goldstream Mining NL) of Australia. The new targets are similar to those coincident with nickel sulphide zones in the Ntaka intrusion and are priority targets for the 2008 exploration program.

The survey was carried out by Geotech Airborne Limited of South Africa employing the Versatile Time-Domain Electromagnetic (VTEM) geophysical system. A total of 5,971 line kilometres of magnetic and electromagnetic (EM) data were collected on lines spaced 200 metres apart over a 1,150 square kilometre area surrounding the Ntaka Intrusion where the Company has discovered numerous zones of high grade nickel-copper sulphide mineralization. Previously reported drill intersections from the 2007 program include 7.55% Ni and 1.15% Cu over 9.55 metres at the H Zone, 3.35% Ni and 0.46% Cu over 21.0 metres at the J Zone, and 2.40% Ni and 0.46% Cu over 15.4 metres at the L zone.

A limited, 450 line kilometre, VTEM survey completed by IMX in 2005 delineated the initial targets in the Ntaka area. The initial targets consisted of EM conductors within, and adjacent to, the Ntaka intrusion. Subsequent drilling by the Company led to the discovery of multiple zones of massive, net textured and disseminated nickel-copper sulphide mineralization.

In this expanded, regional survey, at least five new conductive anomalies that are similar to the original Ntaka geophysical anomaly have been discovered. These new targets are located within 25 kilometres of the Ntaka intrusion and display close magnetic, electromagnetic and structural similarities to the Ntaka intrusion. Accordingly, they are priority regional targets for follow up in 2008 (see attached figure).

Craig MacDougall, President & CEO of Continental Nickel Limited, reported "the results of the 2007 airborne magnetic and VTEM survey are a very exciting development. These conductive anomalies could well be associated with additional sulphide bodies in this emerging nickel-copper sulphide district. These new targets will be ranked and prioritised for drilling in the 2008 exploration program."

Continental Nickel Limited also announces the grant, pursuant to its Stock Option Plan, of 125,000 incentive stock options to an officer and employee as an exercise price of $2.35 per share with a term of five years.

Data Quality Control

The data collected from the airborne survey was collected to contract survey specifications and were monitored and reviewed during collection and has been subsequently processed by Dr. Mark Shore, P. Geo. Dr. Shore is an independent consulting geophysicist who provides services to the company under the direction of Ms. Patricia Tirschmann, P. Geo., Vice President of Exploration for CNI. Both Dr. Shore and Ms Tirschmann are qualified persons as defined by National Instrument 43-101.

About Continental Nickel

Continental Nickel Limited is an exploration company focused on the discovery and development of nickel sulphide exploration projects in geologically prospective, but under explored regions globally. Continental Nickel has 30,009,727 shares issued and outstanding (32,560,916 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 Dr. Mark Shore, P. Geo. and Ms Patricia Tirschmann, P. Geo., who are both registered members of the Association of Professional Geoscientists of Ontario. Dr. Shore is an independent consulting geophysicist who provides services to the company. Patricia Tirschmann is a full time employee of the company. Dr. Shore and Ms Tirschmann each have 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. Dr. Shore and Ms Tirschmann both consent to the inclusion of the data in the form and context in which it appears.

NOTE: To view a map of the Nachingwea Property, please visit the following link:

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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