Continental Nickel Files NI 43-101 Technical Report Supporting Mineral Resource Estimate at Ntaka Hill Project, Tanzania

Continental Nickel Limited (TSX VENTURE:CNI) ("CNI" or the "Company") is pleased
to advise that the Technical Report, in accordance with Canadian National
Instrument 43-101, supporting the recently released Mineral Resource Estimate
(Press Release March 2, 2012) for the Ntaka Hill project has been filed with
SEDAR. The project is part of the 75:25 joint venture between CNI and IMX
Resources Limited of Australia covering the Nachingwea project. 


Detailed results of the updated mineral resource estimate are presented in Table 1. 



Table 1 -Mineral Resources for Ntaka Hill Project at Various Cut-Off Grades 
                                                                            
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                                                                Contained Ni
Category     Tonnes(000's)        % Ni        % Cu        % Co      (tonnes)
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                              Cut-Off: 0.15% Ni                             
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Measured         1,662,000        1.71        0.29        0.05        28,400
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Indicated       11,147,000        1.13        0.25        0.03       126,300
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M+I             12,809,000        1.21        0.25        0.03       154,700
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Inferred        58,846,000        0.27        0.06        0.01       159,400
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                              Cut-Off: 0.20% Ni                             
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Measured         1,662,000        1.71        0.29        0.05        28,400
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Indicated       11,125,000        1.14        0.25        0.03       126,300
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M+I             12,786,000        1.21        0.25        0.03       154,700
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Inferred        45,037,000        0.30        0.07        0.01       135,000
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                              Cut-Off: 0.25% Ni                             
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Measured         1,659,000        1.71        0.29        0.05        28,400
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Indicated       11,105,000        1.14        0.25        0.03       126,200
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M+I             12,764,000        1.21        0.25        0.03       154,600
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Inferred        28,481,000        0.34        0.08        0.01        97,700
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Notes to Mineral Resource Estimates in Table 1

The following notes should be read in conjunction with the viewing of Table 1. 



1.  Mineral resource estimates were prepared in accordance with the Canadian
    Institute of Mining, Metallurgy and Petroleum ("CIM") definition
    standards regarding mineral resources and mineral reserves. 
2.  Assays of drill core were completed at ALS Minerals of Vancouver, BC and
    included a comprehensive Quality Assurance / Quality Control ("QA/QC")
    program. All aspects of the core sampling, assay procedures and QA/QC
    program have been reviewed by Roscoe Postle Associates Inc. ("RPA") and
    were judged to be of industry standard and suitable for use in the
    estimation of mineral resources. RPA also completed a data verification
    exercise including independent core sampling and assaying with
    acceptable results. 
3.  Resource models were prepared based on drill section interpretation
    using nominal nickel grade wireframes of 0.1%, 0.5% and 1.0% nickel
    grade cut-offs. 3D solids were constructed cooperatively between CNI and
    RPA geologists, then reviewed and revised as necessary by RPA. 
4.  The estimation employed statistical analysis and variography of nickel
    values with construction of block models by zone. Block cell size was
    2.5 x 5 x 5 metres for zones J, G, M, L and H. Block size for Sleeping
    Giant and NAD013 was 10 x 10 x 10 metres with level 3 sub-celling (8 x
    8). 
5.  Grade interpolation to assign grade values to cells used Inverse
    Distance squared ("ID(2)") methods for zones J, G, M, L and H with
    Ordinary Kriging used for Sleeping Giant and NAD013. 
6.  More than 3,500 bulk density determinations on core using the immersion
    method were used for the estimate, with densities assigned where data
    were not available, based on an analysis of the correlation between
    specific gravity and sulphur. 
7.  Mineral resources are reported at cut-off values of 0.15%, 0.20% and
    0.25% nickel and are based on open pit mining. 
8.  No minimum mining width was used. 
9.  Resource classification involved a review of geological and grade
    continuity and was based on drill hole spacing. 
10. Preliminary pits used to constrain the mineral resources reported were
    constructed using Whittle software based on the metallurgical and cost
    assumptions from the PEA completed in November 2011 (Press Release,
    November 15, 2011). 
11. Totals may differ due to rounding. 
12. The Company is not aware of any environmental, permitting, legal, title,
    taxation, socio-political or marketing issues that are material to the
    statement of the mineral resource estimate. 
13. The mineral resource estimate is effective as of March 2, 2012.



Qualified Persons / Quality Control

The mineral resource estimate was prepared by Roscoe Postle Associates Inc. of
Toronto, Ontario by Chester Moore, P. Eng., Principal Geologist and Bruce
Churchill P. Geo., Associate Consultant Resource Geologist. Mr. Moore and Mr.
Churchill are both independent qualified persons as defined by National
Instrument 43-101.


The quality control, technical information and all aspects of the exploration
program were supervised by Patricia Tirschmann, P. Geo., Vice President,
Exploration for CNI. The information in this release was prepared under the
direction Ms. Tirschmann who is a qualified person as defined by National
Instrument 43-101.


About Continental Nickel Limited 

Continental Nickel Limited is focused on the exploration, discovery and
development of nickel sulphide deposits in geologically prospective, but
under-explored regions globally. The Company's key asset is its 75% interest in
the Nachingwea project in Tanzania which includes Ntaka Hill. The Company also
has an option to joint venture on the St. Stephen project in New Brunswick,
Canada where the 2010 and 2011 diamond drill programs discovered new Ni-Cu
sulphide zones. 


As at the date of this release, the Company has 42,793,508 common shares issued
and outstanding (51,166,914 on a fully-diluted basis) and trades on the TSX
Venture Exchange under the symbol CNI. The Company had over $9.4 million in the
treasury as at December 31, 2011.


On behalf of

Continental Nickel Limited 

Dave Massola, President and CEO 

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, potential or estimated metal recoveries, resources and reserves,
exploration results or targets, future plans and objectives of Continental
Nickel Limited, is forward-looking information that involves various risks and
uncertainties. There can be no assurance that such information will prove to be
accurate and actual results and future events could differ materially from those
anticipated in such information. 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 collected under the supervision of or compiled by Patricia Tirschmann, P.
Geo., who holds the position of Vice President, Exploration and is a full time
employee of Continental Nickel Limited. Ms. Tirschmann is a registered member of
the Association of Professional Geoscientists of Ontario and has 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. Ms. Tirschmann consents to the inclusion of the data
in the form and context in which it appears.