Continental Nickel Closes a Second Non-Brokered 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") is
pleased to announce the closing of a previously announced (see Company's news
release dated December, 17, 2009) non-brokered private placement of 207,269
common shares sold to the Company's largest shareholder IMX Resources Limited
("IMX") of Australia. The shares were sold at a price of $0.92 per share raising
gross proceeds of $190,687 and are subject to a hold period expiring on May 5,
2010.


IMX, under the terms of an "Interrelationship Agreement" dated February 28,
2007, elected to exercise its pre-emptive right to participate in a financing to
maintain its non-diluted share ownership interest at 47.4% of the issued and
outstanding shares in the Company, after the Company closed a non-brokered
private placement of 230,000 flow-through ("FT") shares at a price of $1.10 per
share for gross proceeds of $253,000 (see Company's news release dated December
22, 2009). Gross proceeds from the two placements total $443,687.


The proceeds raised in the IMX placement will be used for ongoing exploration at
the Company's Nachingwea Project in Tanzania and for general corporate purposes.
Currently, the Company is compiling the results of the 2009 exploration program
to enable target selection for exploration in 2010. The main objectives of the
2010 program will be to increase the current NI 43-101 compliant Mineral
Resources at Ntaka Hill, currently estimated at 3,085,000 tonnes grading 1.31%
nickel and 0.24% copper (see press release of July 15, 2009), as well as
continue to aggressively explore the large regional land holdings for additional
nickel sulphide deposits in this new emerging nickel district.


No fees were paid in connection to the IMX private placement.

As a result of completing the private placement, IMX owns a total of 14,490,269
issued and outstanding common shares of Continental Nickel, representing 47.4%
of the 30,569,664 issued and outstanding common shares. The private placement by
IMX was unanimously approved by the directors of Continental Nickel exclusive of
Mr. Bruce Burton, who is the nominee director of IMX. The private placement by
IMX is a "related party transaction" as defined by Multilateral Instrument
61-101-Protection of Minority Security Holders in Special Transactions ("MI
61-101") under applicable securities laws as IMX is the majority shareholder of
Continental. However, Continental is exempt from the valuation and minority
approval requirements of MI 61-101 for related party transactions because the
fair market value of the private placement is not more than 25% of the market
capitalization of the Company.


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 geologically 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 30,569,664 shares issued and
outstanding (33,237,164 on a fully-diluted basis) and trades on the TSX Venture
Exchange under the symbol CNI. The Company remains well funded with over C$9.6
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.