Continental Nickel Outlines its 2010 Exploration Program at the Nachingwea Nickel-Copper Sulphide Project in Tanzania

Continental Nickel Limited (TSX VENTURE:CNI) ("Continental" or "CNI" or the
"Company") is pleased to provide an update on its planned 2010 exploration
program on the Nachingwea nickel-copper sulphide project in Tanzania. The
project is a 70:30 Joint Venture between CNI and IMX Resources Limited ("IMX")
of Australia.


The Nachingwea Joint Venture has approved a $4 million exploration program and
budget, which will include the completion of 9,000 metres of diamond and reverse
circulation (RC) drilling in 2010. The program has two objectives: 




1) to expand the current Mineral Resources at Ntaka Hill towards the
   exploration target of 100,000 tonnes of contained nickel; and 
2) to continue to explore the vast regional land holdings to identify
   additional nickel sulphide deposits.  



Planning for the 2010 program is now well advanced, and field crews have
mobilized to the project in preparation for the diamond drill program at Ntaka
Hill which is expected to commence in June.


Ntaka Hill

At Ntaka Hill, the Company has outlined NI 43-101 compliant Measured and
Indicated Mineral Resources totalling 3.1 million tonnes grading 1.31% nickel
and 0.24% copper with 40,000 tonnes of contained nickel (see Press Release dated
July 15, 2009). 


In 2010, a 5,000 metre diamond drilling program is planned with the goal of
expanding the current Mineral Resource inventory towards the exploration target
of 100,000 tonnes of contained nickel. The potential to increase the Mineral
Resource inventory is derived from the following target areas (see Figure 1
attached):




1) drilling along potential extensions to the known sulphide deposits
   (H, G, L, M) which remain open beyond the current limits of drilling; 
2) systematic drill testing of a new sulphide zone discovered in 2009
   referred to as Ntaka C. Drilling will test a 500 metre long
   electromagnetic ("EM") conductor associated with the zone. 
   Previous drill intersections included 2.53% nickel and 0.42% copper over
   5.3 metres from drill hole NAD09-180 (see Press Release November 24, 
   2009); 
3) infill diamond drilling of nickel sulphide zones intersected in
   2006-2009. Drill holes to be evaluated for their resource potential
   include NAD09 (0.95% nickel and 0.27% copper over 10.0 metres),
   NAD07-024 (0.62% nickel and 0.13% copper over 62.8 metres) and NAD07-033
   (0.72% nickel and 0.20% copper over 13.2 metres), and 
4) drilling of untested TDEM ("Time Domain Electromagnetic") anomalies,
   such as the Grizzly and H North for potential new zones of nickel
   sulphide mineralization.



If the drilling at Ntaka Hill is successful, the Company plans to complete an
updated Mineral Resource Estimate and commission a scoping study, if warranted,
by year end.


At Lionja, approximately 8 kilometres south of Ntaka Hill, drilling completed in
2009 intersected nickel sulphide mineralization in drill hole LID09-055 near the
base of an ultramafic sill at a depth of approximately 200 metres. The
intersection graded 0.91% nickel and 0.20% copper over 7.75 metres, including
2.03% nickel and 0.41% copper over 2.25 metres (see Press Release November 24,
2009). In 2010, approximately 1,000 metres of diamond drilling is planned to
further explore the basal contact of the mineralized sill.


Regional Exploration

The Company intends to complete a detailed, 32,000 line kilometre, airborne
magnetic and radiometric survey over the entire 7,500 square kilometre project
area. This extensive survey will provide first pass airborne coverage beyond the
areas previously covered by the 2007 and 2008 airborne VTEM ("Versatile Time
Domain Electromagnetic") surveys, which covered approximately 30% of the
Nachingwea project area. The survey will help identify areas with possible mafic
and ultramafic intrusions which have potential to contain undiscovered nickel
sulphide deposits. Of particular interest in this year's program, is an area
located approximately 35 kilometres northeast of Ntaka Hill, where stream
sediment geochemical sampling conducted in late 2009, in an area of anomalies
discovered by IMX, confirmed anomalous values for nickel, cobalt and chromium
over a widespread area. Anomalies up to 1,950 parts per million ("ppm") nickel,
137 ppm cobalt and 1470 ppm chromium in stream sediment were obtained which are
comparable to sampling results at Ntaka Hill where the current Mineral Resources
have been outlined. 


Upon completion of the airborne survey, selected targets will be prioritized and
explored with additional stream and soil geochemical sampling, geological
mapping, prospecting, and EM surveys. Selected targets from this work, plus
anomalies already identified in the 2007 and 2008 airborne VTEM surveys will be
prioritized and tested with reconnaissance reverse circulation ("RC") drilling.
Approximately 3,000 metres of RC drilling are planned in 2010.


Continental's Interest in the Nachingwea Project is Expected to Increase 75% in 2010

Under the terms of the Nachingwea Joint Venture, the Company is to fund the
first $15 million in exploration expenditures on the project, upon which its
equity interest in the project will increase by 5% to hold a 75% interest. At
75:25, ongoing JV expenditures are to be funded by the joint venture parties pro
rata or a non-participating party will have its interest diluted. As at March
31, 2009, the Company had expended $13.9 million and expects to satisfy the sole
funding commitment by mid-year 2010. IMX has indicated that it intends to fund
its respective share of the 2010 program.


Craig MacDougall, President & CEO of Continental Nickel Limited, said "Our
objective in 2010 is to increase the Mineral Resources at Ntaka Hill towards
100,000 tonnes of contained nickel. Exploration funds are also being deployed
towards regional exploration because of our strong belief in the potential of
the Nachingwea area to host additional nickel sulphide deposits. The first drill
results from Ntaka Hill are expected in late July."


Qualified Persons

The quality control, technical information and all aspects of the exploration
program are supervised by Patricia Tirschmann, P. Geo., Vice President,
Exploration for CNI. The information in this release was prepared under the
direction of Craig MacDougall, P. Geo., President and CEO for Continental Nickel
Limited. Both Ms. Tirschmann and Mr. MacDougall are qualified persons as defined
by National Instrument 43-101.


About Continental Nickel

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 70% interest in
the Nachingwea project in Tanzania, where NI 43-101 Mineral Resources have
defined 40,000 tonnes of contained nickel. The Company is targeting an
exploration threshold of 100,000 tonnes of contained nickel in Mineral Resources
at Nachingwea. The Company also has an option joint venture on the St. Stephen
project in New Brunswick, Canada. Continental Nickel Limited has 38,943,664
shares issued and outstanding (46,206,514 on a fully-diluted basis) and trades
on the TSX Venture Exchange under the symbol CNI. The Company remains
well-funded with over C$13.5 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, resources 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 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. 


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