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North American Nickel Confirms Continuity of High Grade P-058 Mineralization at Fossilik

12/23/2016

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 23, 2016) - North American Nickel Inc. (TSX VENTURE:NAN) (OTCBB:WSCRF) (CUSIP:65704T 108) (the "Company" or "NAN") is pleased to report drilling and exploration results from the Fossilik area on their 100% owned Maniitsoq nickel-copper-cobalt-PGM sulphide project in southwest Greenland. Exploration in the Fossilik area in 2016 included drilling, prospecting, surface sampling and ground geophysical surveys. Drilling results for the P-053 and Mikissoq areas are also included.

Highlights include:

  • Intersection of high grade sulphide veins and stringers at P-058 confirm continuity of P-058 mineralization:
    • MQ-16-131: 3.05% nickel and 0.22% copper over 0.50 metres
    • MQ-16-131: 4.83% nickel and 0.40% copper over 0.30 metres
    • MQ-16-129: 1.24% nickel and 1.62% copper over 0.65 metres
  • Gradient Induced Polarization (IP) chargeability anomalies coincident with Fossilik intrusions
  • New gossans at Fossilik returning values of up to 2.36% Ni, 0.41% Cu, 0.71 g/t Pt+Pd in surface grab samples

NAN CEO, Keith Morrison, commented: "The results from the 2016 drilling at P-058 have confirmed the continuity of high grade mineralization from surface to a depth of 350 metres and, importantly, increasing mineralized widths with depth. The P-058 mineralization remains open down dip and along strike and additional step-out drilling is planned in 2017.

The Fossilik norite is the largest known mineralized intrusion in the Greenland Norite Belt with drill intersected nickel sulphides occurring at P-058, P-059 and P-004. Exploration in 2016 has defined new surface gossans and geophysical targets within the intrusion, including a 600 metre long trend northeast of P-004. This emerging area compares favorably with the Imiak Hill Complex in potential to host multiple mineralized zones and both areas will be a focus of drilling in 2017."

During the 2016 exploration program, 30 drill holes and two hole extensions totalling 9,596 metres were completed to test nine mineralized zones and selected regional targets. This release summarizes the results for eight holes totalling 2,963 metres completed in the P-058 (Fossilik), P-053 and Mikissoq areas (Figure 1) and concludes the reporting for the 2016 drilling program. Drill collar information and a summary of assays are provided in Tables 1 and 2, respectively.

Exploration carried out in the Fossilik area has confirmed the continuity of the P-058 mineralization over a vertical extent of 350 metres and has identified new exploration targets related to the large Fossilik intrusion for future drill testing. Step-out holes completed to test the main zone at P-053 have limited the strike extent, however, the zone remains open down plunge. Drilling at P-053 has also identified a second, deeper "footwall" zone of mineralization.

Further details of the drilling and of additional exploration carried out in the Fossilik area are given below.

Table 1: Drill Collar Information

Hole Number UTM East UTM North Elevation (m) Length (m) Azimuth Dip Target Area
MQ-16-129 473745 7248624 658 265.00 118 -52 P-058
MQ-16-131 473744 7248624 658 316.50 117 -64 P-058
MQ-16-112 474157 7248753 681 369.00 51 -52 P-004
MQ-16-130 451565 7220074 363 345.00 25 -62 P-053
MQ-16-132 451466 7220045 393 423.00 24 -65 P-053
MQ-16-133 451661 7220035 337 369.00 0 -68 P-053
MQ-16-127 477923 7258181 448 447.00 139 -64 Mikissoq
MQ-16-125 478041 7257664 518 428.50 44 -55 IP Target btw Spotty and Mikissoq

Notes: Collar coordinates in UTM WGS84 Zone 22N

Table 2: Assay Results

Target and Hole Number From (m) To
(m)
Core Length (m) Ni % Cu % Co % S
%
Pt g/t Pd g/t Au g/t Zone
Fossilik Area
P-058:
MQ-16-129 222.10 222.75 0.65 1.24 1.62 0.03 8.11 0.01 0.01 0.01 Main
229.35 229.65 0.30 0.61 0.15 0.15 18.20 0.18 0.00* 0.01 FW
MQ-16-131 225.55 225.85 0.30 0.18 0.84 BDL 1.87 BDL 0.00* 0.00
255.20 255.70 0.50 3.05 0.22 0.10 14.70 0.06 0.02 0.01 Main
275.20 275.50 0.30 4.83 0.40 0.12 28.20 0.05 0.02 0.01 FW
P-004:
MQ-16-112 NSA
P-053 Target
MQ-16-130 NSA
MQ-16-132 354.50 368.00 13.50 0.35 0.13 0.01 2.13 0.05 0.02 0.02 FW
Incl. 356.00 358.00 2.00 0.53 0.12 0.02 2.97 0.07 0.03 0.02
And 362.00 368.00 6.00 0.50 0.18 0.02 3.07 0.07 0.03 0.02
377.00 387.70 10.70 0.20 0.03 0.01 0.53 0.01 0.00* 0.01
MQ-16-133 NSA
Mikissoq
MQ-16-127 NSA
IP Target Between Mikissoq and Spotty Hill
MQ-16-125 NSA
Notes: Intervals represent core lengths.
FW = Footwall
NSA - No Significant Assays
* Assay values for Pd are between >0.0 and 0.005 g/t, rounds to "0".
BDL - Below Detection Limit of 0.005% for Co and 0.005 g/t for Pt

Fossilik Area Figures 2, 3 & 4

The Fossilik norite intrusion is located in the central portion of the Greenland Norite Belt and comprises a large, approximately four and half kilometre long, northeast striking norite intrusion with surface gossans and associated electromagnetic (EM) anomalies ("P-058", "P-059" and "P-004"). Drill testing of EM anomalies by NAN during the period 2012 to 2015, intersected mineralization grading 0.55% nickel and 0.27% copper over 21.50 metres at P-058; 1.16% nickel and 1.00% copper over 12.15 metres at P-059; and 0.59% nickel and 0.18% copper over 32.19 metres at P-004 (see news releases dated September 2, 2105 and September 26, 2013). Drilling earlier in 2016 returned up to 3.41% nickel and 0.28% copper over 10.20 metres while testing the down dip extent of the P-058 zone (see NAN news release dated October 12, 2016).

P-058

The P-058 target comprises a northeast striking and steeply northwest dipping panel of mineralized norite hosted in orthogneiss and cross-cut by parallel to sub-parallel mylonite zones. Mineralization consists predominantly of remobilized massive to breccia sulphide veins and stringers but locally includes disseminated to blebby magmatic sulphides. The Company previously reported the intersection of high grade drilling results from the P-058 zone (see NAN news release dated October 12, 2016).

Two additional holes (MQ-16-129 and 131) totaling 581.5 metres were completed to test a large moderate conductance borehole electromagnetic (BHEM) anomaly situated in an untested gap in the drilling to the northeast of previous hole MQ-15-077 (Figures 2 and 3). Both holes intersected narrow (< 1m) remobilized sulphide veins and stringers at the expected target depth which returned values of up to 4.83% nickel and 1.62% copper. These intersections confirm the continuity of the P-058 mineralization which remains open down dip and along strike. Borehole EM results indicate that the Fossilik mineralization is laterally extensive and continuous from surface to a vertical depth of greater than 350 metres.

P-004

One hole (MQ-16-112) totaling 369 metres was completed to test 100 metres down plunge of known mineralization and related BHEM plates along an interpreted fold nose. At surface, mineralization in this area is observed to occur in fold noses along the norite stratigraphy. MQ-16-112 intersected norite but did not return any significant assays and is interpreted to have been drilled along the limb of a fold versus the targeted fold nose. A BHEM survey of this hole identified a low conductance off-hole anomaly.

Fossilik IP Survey & Surface Sampling

Prospecting and outcrop sampling was carried out in the Fossilik area in 2016 to follow-up gossan targets generated from the Worldview-3 satellite spectral data collected in 2015. This work identified a number of new gossan occurrences located on strike to the northeast of the P-004 area. Surface samples returned values of up to 2.36% nickel, 0.41% copper, 0.19 g/t palladium and 0.52 g/t platinum.

Based on these encouraging results, a 12.6 line km surface gradient IP survey was completed over the southeastern portion of the Fossilik intrusion. The survey identified a number of anomalies associated with the intrusion (Figure 4):

  • A 600 metre long sinuous chargeability anomaly slightly offset from but mimicking the trend of new surface gossans northeast of P-004
  • A strong chargeability high and resistivity low situated immediately east of P-004 in an area of historic drilling which intersected shallow norite-hosted mineralization
  • A strong chargeability anomaly northwest of P-004 where a historic drill hole interested strongly magnetic gneisses which may explain the source for the anomaly
  • Two unexplained weaker chargeability anomalies located northeast and southwest of P-058

Drill testing of Fossilik IP anomalies is planned for 2017.

P-053 Figures 5 & 6

Three additional holes totalling 1,137 metres were completed at P-053. Two holes (MQ-16-130 and 132) tested for the dip extent and eastern strike extent of the main P-053 zone hosted in the northern norite body and one hole (MQ-16-133) tested for mineralization at depth in the southern norite (Figures 5 and 6). No significant assays were obtained at the target depth of the main zone. These results have limited the strike extent of the main zone, however, it remains open down plunge. Hole MQ-16-132 intersected a mineralized interval, which returned 0.50% nickel and 0.18% copper over 6.0 metres, that is correlated with a second deeper "footwall" zone located 35 to 70 metres below the main zone. The footwall zone has now been intersected in four holes over a plunge extent of 150 metres and has returned values of up to 2.42% nickel over 1.25 metres in MQ-16-104 (see NAN news release dated September 20, 2016). Borehole EM results at P-053 support the interpretation of a footwall horizon with the area of best conductivity located adjacent to hole MQ-16-104.

Mikissoq

One hole (MQ-16-127) totaling 447 metres was drilled 45 metres along strike to the northeast of the newly discovered Mikissoq sulphide lens (see NAN news release dated October 31, 2016). The hole intersected a wide interval of norite hosting weakly disseminated sulphides which contained elevated nickel values of up to 0.11% but did not intersect the main zone of mineralization. The position of hole MQ-16-127 relative to the new Mikissoq sulphide lens is not accurately known as limited drilling to date (three holes on one section) does not allow for the plunge of the zone to be determined at this time. The BHEM response for the new sulphide lens at Mikissoq is dominated by high conductance responses that correlate with the existing drill intersections, however, additional weaker BHEM responses indicate the potential for down-dip mineralization. Additional drilling at Mikissoq is planned for 2017.

IP Target Between Mikissoq and Spotty Hill

One hole (MQ-16-125) totalling 428.5 metres was completed to test a gradient array IP chargeability anomaly located between Spotty Hill and Mikissoq. This hole tested 235 metres vertically below the peak of the anomaly and intersected a mixed sequence of orthogneiss, mylonite zones and mafic intrusive rocks but did not return any significant assay values. The source of the IP anomaly remains unexplained and further testing is planned in 2017 once detailed IP depth information has been collected.

Quality Control

The drilling was completed by Boart Longyear Canada utilizing two Boart LF-70 diamond drill rigs. Drill core samples (40.54 mm BQTK and 47.6 mm NQ) are cut in half by a diamond saw on site. Half of the core is retained for reference purposes. Samples are generally 1.0 to 1.5 metre intervals or less at the discretion of the site geologists. Sample preparation is completed at the ALS Minerals preparation lab in Öjebyn, Sweden. Sample pulps are sent by air courier to ALS Minerals analytical laboratory in Loughrea, Ireland. Blank samples and commercially prepared and certified Ni sulphide analytical control standards with a range of grades are inserted in every batch of 20 samples or a minimum of one per sample batch. Analyses for Ni, Cu and Co are completed using a peroxide fusion preparation and ICP-AES finish (ME-ICP81). Analyses for Pt, Pd, and Au are by fire assay (30 grams nominal sample weight) with an ICP-AES finish (PGM-ICP23).

Technical Information; Qualified Person

The Company is not aware of any legal, political, environmental or other risks that could materially affect the potential development of the project other than those set out in its annual information form filed on www.sedar.com. Please see below under the heading "Cautionary Note Regarding Forward-looking Statements" for further details regarding risks facing the Company.

All technical information in this release has been reviewed and approved by Patricia Tirschmann, P.Geo, who is the Qualified Person for the Company and Vice President Exploration, North American Nickel Inc.

About the Company

NAN is a mineral exploration company with 100% owned properties in Maniitsoq, Greenland and Sudbury, Ontario.

The Maniitsoq property in Greenland is a Camp scale project comprising 2,985 square km covering numerous high-grade nickel-copper sulphide occurrences associated with norite and other mafic-ultramafic intrusions of the Greenland Norite Belt (GNB). The >75km-long belt is situated along, and near, the southwest coast of Greenland accessible from the existing Seqi deep water port (See NAN News Release dated January 19, 2015) with an all year round shipping season and abundant hydro-electric potential.

The Company's Post Creek/Halcyon property in Sudbury is strategically located adjacent to the past producing Podolsky copper-nickel-platinum group metal deposit of KGHM International Ltd. The property lies along an interpreted extension of the Whistle Offset embayment structure. Such geological structures host major Ni-Cu-PGM deposits and producing mines within the Sudbury Camp.

Cautionary Note Regarding Forward-looking Statements

This press release contains certain "forward-looking statements" and "forward-looking information" under applicable securities laws concerning the business, operations and financial performance and condition of the Company. Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to the success of exploration activities; impact of mineralogy, estimation of mineral resources at mineral projects of the Company; the future economics of minerals including nickel and copper; synergies and financial impact facilities; the benefits of the development potential of the properties of the Company and currency exchange rate fluctuations. Except for statements of historical fact relating to the Company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Many of these assumptions are based on factors and events that are not within the control of the Company and there is no assurance they will prove to be correct.

Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include variations in metal grades, changes in market conditions, variations in recovery rates, risks relating to international operations, fluctuating metal prices and currency exchange rates, and other risks of the mining industry, including but not limited to the failure of plant, equipment or processes to operate as anticipated. The Company cautions that the foregoing list of important factors is not exhaustive. Investors and others who base themselves on forward-looking statements should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. The Company believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws.

Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. Statements concerning mineral reserve and resource estimates may also be deemed to constitute forward-looking statements to the extent they involve estimates of the mineralization that will be encountered if the property is developed.

Statements about the Company's future expectations and all other statements in this press release other than historical facts are "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and as that term defined in the Private Litigation Reform Act of 1995. The Company intends that such forward-looking statements be subject to the safe harbours created thereby. Since these statements involve risks and uncertainties and are subject to change at any time, the Company's actual results may differ materially from the expected results. For further information on the project, please see National Instrument 43-101 (NI 43-101) technical report prepared by SRK Consulting (Canada) Inc. (SRK) dated effective March 24th, 2016, titled "Independent Technical Report for the Maniitsoq Nickel-Copper-PGM Project, Greenland", available under the Company's profile at www.sedar.com or at www.northamericannickel.com

ON BEHALF OF THE BOARD OF DIRECTORS

Mark Fedikow, President

North American Nickel Inc.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view the Figures associated with this release, please visit the following link: http://media3.marketwire.com/docs/1081273_figures.pdf

Contact Information:
North American Nickel Inc.
Jaclyn Ruptash
Corporate Communications
604-770-4334
Toll free: 1-866-816-0118