Continental Nickel Announces Closing of 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 the closing of a brokered private placement for gross proceeds of
$5,000,400 with a syndicate of agents led by Paradigm Capital Inc. and including
Canaccord Genuity Corp. (the "Agents"). A total of 8,334,000 Units were sold,
each Unit 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 $5,000,400 (the "Offering"). 


Each Unit was sold at $0.60 and each whole Common Share purchase warrant
entitles the holder to purchase one Common Share for $0.80 until May 12, 2012.
In connection with the Offering the Agents were paid a cash commission and
received 208,350 broker warrants, each exercisable into one Common Share for
$0.60 until May 12, 2012. The securities issued pursuant to the Offering are
subject to a 4 month statutory hold period from closing.


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. 


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, discovery and
development 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. Providing for the above noted offering, Continental Nickel
has 38,943,664 shares issued and outstanding (45,806,514 on a fully-diluted
basis) and remains well funded with C$14 million in the treasury. The Company
trades on the TSX Venture Exchange under the symbol CNI.


On behalf of Continental Nickel Limited 

Craig MacDougall, President & Chief Executive Officer

CAUTIONARY STATEMENT: No stock exchange, securities commission or other
regulatory authority has approved or disapproved the information contained
herein. 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.