Continental Nickel Announces Brokered $5.0 Million Private Placement Financing

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES


Continental Nickel Limited (TSX VENTURE:CNI) ("Continental" or the "Company")
announces that it has entered into an agreement with a syndicate of agents led
by Paradigm Capital Inc. and including Genuity Capital Markets (the "Agents"),
which has agreed "on a best efforts private placement basis" to sell units
consisting of one common share (the "Common Shares") of the Company and one-half
of one Common Share purchase warrant for aggregate gross proceeds of $5,000,000
(the "Offering"). The Agents have the option to purchase an additional 15% of
the Offering up to 30 days following the closing date to bring the aggregate
gross proceeds to $5,750,000. It is proposed that each Unit will be priced at
$0.70 and each whole purchase warrant will entitle the holder to purchase one
Common Share for $0.90 for a period of two years from the date of closing of the
Offering.


In connection with the Offering the Agents will be paid a cash commission and
will receive brokers warrants exercisable into Common Shares at the Offering
price.


The Company intends to use the net proceeds of the Offering for further
exploration of its Nachingwea nickel project in Tanzania as well as for general
corporate activities.


The securities issued pursuant to the Offering will be subject to a 4 month
statutory hold period from closing and the Offering is subject to certain
conditions including, but not limited to, the receipt of all necessary approvals
including the approval of the TSX Venture Exchange.


This news release does not constitute an offer to sell or a solicitation of an
offer to buy any of the securities in the United States. The securities have not
been and will not be registered under the United States Securities Act of 1933,
as amended (the "U.S. Securities Act") or any state securities laws and may not
be offered or sold within the United States or to U.S. Persons as defined under
applicable securities laws unless registered under the U.S. Securities Act and
applicable state securities laws or an exemption from such registration is
available.


About Continental Nickel 

Continental Nickel Limited is focused on the exploration and discovery of nickel
sulphide deposits in prospective, but under-explored regions globally. Current
projects include its 70% controlling interest in the Nachingwea project in
Tanzania, where NI 43-101 Mineral Resources have been defined, and an option
joint venture on the St. Stephen project in New Brunswick, Canada. Continental
Nickel has 30,609,644 shares issued and outstanding (33,097,164 on a
fully-diluted basis) and trades on the TSX Venture Exchange under the symbol
CNI. The Company remains well funded with over C$9.2 million in the treasury.


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.