Continental Nickel Provides a Corporate Update Regarding Shares of the Company Held by IMX Resources Limited

Continental Nickel Limited (TSX VENTURE:CNI) ("Continental" or the "Company")
has been advised by IMX Resources Limited ("IMX") of Australia that its
shareholding in Continental Nickel remains a core part of its portfolio and the
Board of IMX believes it is in the interests of its shareholders to remain a
strategic shareholder of the Company. IMX currently holds 14.28 million shares
in Continental Nickel representing 47.4% of the issued and outstanding shares of
the Company. The shareholding, which has been held in escrow since Continental's
Initial Public Offering (IPO) in August 2007, will come out of escrow on August
8th, 2009.


In addition to its shareholding in the Company, IMX holds a 30% joint venture
interest in the Nachingwea nickel sulphide Project in Tanzania, with Continental
holding the remaining 70% interest. Continental recently announced the results
of the first National Instrument (NI) 43-101 compliant Mineral Resource estimate
for the project reported in a company news release on July 15, 2009. As stated
in that release, Measured and Indicated Mineral Resources at Ntaka Hill total
3,085,000 tonnes grading 1.31% nickel, 0.24% copper and 0.04% cobalt calculated
at a US$23 /tonne Net Smelter Return (NSR) cut-off.


The Nachingwea Project is comprised of Prospecting Licenses and applications for
licenses covering an aerially extensive land position totalling 7,560 square
kilometres, much of which has seen only minimal exploration. To date, six
nickel-copper sulphide deposits have been discovered by the Joint Venture at
Ntaka Hill. In 2009, Continental is conducting a CAD$2.5 million exploration
program at Nachingwea to continue the search for nickel sulphide deposits in
this emerging new nickel district. Some twenty eight airborne VTEM anomalies
have been identified for further work as part of this program and a 3,000 metre
diamond drill campaign is expected to commence in September. Continental Nickel
remains well funded with CAD$11.6 million in the treasury.


Qualified Persons

The information in this release was prepared under the direction of Craig
MacDougall, P. Geo., President and Chief Executive Officer for Continental
Nickel Limited. Mr. MacDougall is a qualified person as defined by National
Instrument 43-101.


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 and an option joint venture on the St. Stephen
project in New Brunswick, Canada. Continental Nickel has 30,132,395 shares
issued and outstanding (32,692,395 on a fully-diluted basis) and trades on the
TSX Venture Exchange under the symbol CNI.


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.