Base Metals

Power Nickel Inc. (the "Company" or "Power Nickel") (TSX-V:PNPN, OTCBB:CMETF, Frankfurt:IVVI) is pleased to announce that it has issued 5,557,125 shares as a result of warrant exercise. The $833,568.75 was added to the capital of the Company and will as announced fund the up to 5000 Metre follow-up drill program on its promising Nisk Nickel Sulphide project south of James Bay Quebec

"We were very pleased with the drilling results (see below) at Nisk and are quite excited to be able to follow up our initial program with this new program in Q2 after breakup. We will continue to test the extension of Nisk Main and additionally several new target zones. Globally these deposits tend to exist as pods or as a string of pearls. With each pearl representing a deposit. We believe this is what we have here at Nisk and, with our actual understanding of the Nisk litho-structural setting, we can expect a well-planned drill program to help expand beyond our first pearl at Nisk Main to hopefully other pearls located in our project land package" commented Power Nickel CEO Terry Lynch.

Results obtained during the 2021 drilling program are from 7 holes that were planned to either confirm or expand the historical resources reported in 2009. These results, presented below, successfully demonstrated the existence of the Nisk main mineralized lense, and appear to be representative of what was expected from the historical work.

Power Nickel Inc., Wednesday, May 4, 2022, Press release picture

*UTM NAD83, Zone 18N

**True widths are estimated to be 70 to 90% of core length

The table above and the illustration below detail the current results and location of drill holes covered in the releases dated March 1, March 14, and March 30, 2022.

Power Nickel Inc., Wednesday, May 4, 2022, Press release picture

The existing resource estimates at the Nisk project are of historic nature and the Company's geology team has not completed sufficient work to confirm a NI 43-101 compliant mineral resource. Therefore, caution is appropriate since these historic estimates cannot, and should not be relied on. For merely informational purposes see Table 1.

Table ‑1: Historical Resource Estimate figures for respective confidence categories at the NISK-1 deposit, After RSW Inc 2009: Resource Estimate for the NISK-1 Deposit, Lac Levac Property, Nemiscau, Québec.

Power Nickel Inc., Wednesday, May 4, 2022, Press release picture

The information regarding the NISK-1 deposit was derived from the technical report titled "Resource Estimate for the NISK-1 Deposit, Lac Levac Property, Nemiscau, Québec" dated December 2009. The key assumptions, parameters, and methods used to prepare the mineral resource estimates described above are set out in the technical report.

The 3D geological model developed by 3DGeo Solution Inc. ("3DGS") identified a prospective set of targets that the Company feels will give the best potential to expand the Nisk historical deposit. The image below is a view of the mineralization projected from the surface of the area we refer to as Nisk Main.

Power Nickel Inc., Wednesday, May 4, 2022, Press release picture

"Nisk has four distinct target areas covering over 7 Kilometres of strike length. Our focus this round was on the Nisk Main target. Historically, we know globally these types of deposits typically have multiple pods. We are encouraged by what we see on Nisk Main and feel we can continue to build commercial tonnage there but we are also looking forward to exploring Nisk West and the two wildcat targets in subsequent drilling in Q2", commented Power Nickel's CEO Terry Lynch.

Power Nickel Inc., Wednesday, May 4, 2022, Press release picture

ABOUT NISK

Nisk is located south of James Bay as illustrated in the area map below. This region is the site of a number of mining projects and improving infrastructure.

Power Nickel Inc., Wednesday, May 4, 2022, Press release picture

Nisk has historically had some very high-grade Nickel intercepts as shown below. The Grade-Thickness iso-contours are representative of the nickel distribution only.

Power Nickel Inc., Wednesday, May 4, 2022, Press release picture

Analysis and QAQC Procedures

All samples were submitted to and analyzed at ALS Global ("ALS"), an independent commercial laboratory located in Val-d'Or, Québec for both the sample preparation and assaying. ALS is a commercial laboratory independent of Power Nickel with no interest in the Project. ALS is an ISO 9001 and 17025 certified and accredited laboratory. Samples submitted through ALS are run through standard preparation methods and analyzed using ME-ICP61a (33 element Suite; 0.4g sample; Intermediate Level Four Acid Digestion) and PGM-ICP27 (Pt, Pd, and Au; 30g fire assay and ICP-AES Finish) methods. ALS also undertakes its own internal coarse and pulp duplicate analysis to ensure proper sample preparation and equipment calibration.

Power Nickel's QA/QC program includes the regular insertion of CRM standards, duplicates, and blanks into the sample stream with a stringent review of all results. Historic holes were assayed by various accredited laboratories.

About Power Nickel Inc.

Power Nickel is a Canadian junior exploration company focusing on high-potential copper, gold, and battery metal prospects in Canada and Chile.

On February 1, 2021, Power Nickel (then called Chilean Metals) completed the acquisition of its option to acquire up to 80% of the Nisk project from Critical Elements Lithium Corp. (CRE: TSXV)

The NISK property comprises a large land position (20 kilometers of strike length) with numerous high-grade intercepts. Power Nickel, formerly Chilean Metals is focused on confirming and expanding its current high-grade nickel-copper PGE mineralization historical resource by preparing a new Mineral Resource Estimate in accordance with NI 43-101, identifying additional high-grade mineralization, and developing a process to potentially produce nickel sulphates responsibly for batteries to be used in the electric vehicles industry.

Power Nickel (then called Chilean Metals) announced on June 8th, 2021 that an agreement has been made to complete the 100% acquisition of its Golden Ivan project in the heart of the Golden Triangle. The Golden Triangle has reported mineral resources (past production and current resources) in a total of 67 million ounces of gold, 569 million ounces of silver, and 27 billion pounds of copper. This property hosts two known mineral showings (gold ore and Magee), and a portion of the past-producing Silverado mine, which was reportedly exploited between 1921 and 1939. These mineral showings are described to be Polymetallic veins that contain quantities of silver, lead, zinc, plus/minus gold, and plus/minus copper.

Power Nickel is the 100-per-cent owner of five properties comprising over 50,000 acres strategically located in the prolific iron-oxide-copper-gold belt of northern Chile. It also owns a 3-per-cent NSR royalty interest on any future production from the Copaquire copper-molybdenum deposit, recently sold to a subsidiary of Teck resources Inc. Under the terms of the sale agreement, Teck has the right to acquire one-third of the 3-per-cent NSR for $3-million at any time. The Copaquire property borders Teck's producing Quebrada Blanca copper mine in Chile's first region.

For further information on Power Nickel Inc., please contact:

Mr. Terry Lynch, CEO
647-448-8044

terry@powernickel.com

For further information, readers are encouraged to contact:

Power Nickel Inc.
The Canadian Venture Building
82 Richmond St East, Suite 202
Toronto, ON

ON BEHALF OF THE BOARD OF DIRECTORS

Terry Lynch & CEO

Qualified Person

Kenneth Williamson, Géo (OGQ #1490), M.Sc., Senior Consulting Geologist, and Matthew DeGasperis, Géo (OGQ #2261), B.Sc., Consulting Geologist, from 3DGeo Solution Inc. is the independent qualified persons pursuant to the requirements of NI 43-101, and have reviewed and approved the technical content of this press release.

Cautionary Note Regarding Forward-Looking Statement

This news release may contain certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address events or developments that PNPN expects to occur, including details related to the proposed spin-out transactions, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Forward-looking statements in this document include statements regarding current and future exploration programs, activities, and results. Although PNPN believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration success, continued availability of capital and financing, inability to obtain required regulatory or governmental approvals, and general economic, market, or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.

SOURCE:Power Nickel Inc.



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PNPN:CA
Power Nickel

Power Nickel

Overview

Power Nickel (TSXV:PNPN) has historically been a Chilean focused company. However, with two substantial acquisitions announced in Q4 2020 the Company has been reshaped into a multi project junior miner. Power Nickel now has an advanced high grade nickel copper cobalt PGE in the James Bay Area – the NISK deposit – the very interesting Golden Ivan project in the heart of the Southern portion of the Golden Triangle kilometers away from the recently announced Ascot Resources mine and of course its historic Chilean properties led by the Tierra De Oro project.

Company Highlights

  • Power Nickel is a mining exploration company with assets in Chile (Tierra de Oro, Zulema), British Columbia, Canada (Golden Ivan) and a pending acquisition in Quebec Canada (NISK).
  • The company recently closed C$3 million in financing.
  • The company receives 3 percent NSR royalty for its Copaquire deposit, which sold for upwards of C$3 million.
  • The company’s wholly owned Tierra de Oro and Zulema projects are located within Chile’s prolific iron-oxide-copper-gold (IOCG) belt, which hosts a number of significant copper-gold deposits.
  • The company recently acquired 100 percent of the Golden Ivan property located within British Columbia’s world-class Golden Triangle.

Key Projects

Nisk

Located in the James Bay region of Quebec this high grade Nickel Copper Cobalt PEG project with a Historical resource of over three million tonnes was optioned from Critical Elements Lithium Corporation (TSXV:CRE) in December 2020, subject to TSXV approval and agreement to acquire 80 percent of the NISK property via a series of option payments and work commitments.

The Nisk Deposit – Location Map

Previous Work

The NISK-1 property hosts a nickel showing discovered and evaluated by INCO and its subsidiary, Nemiscau Mines, in the period from 1962 to 1969. At the time, the Nemiscau area was very remote and INCO had large quantities of high-grade nickel ore in the Sudbury area, so the property was abandoned.

From 1987 to 1988 Muscocho Explorations Ltd completed surficial explorations that included an airborne VLF-EM and total magnetic field geophysical survey, collection, and analysis of surface rock samples, and completed diamond drilling of 16 holes totalling 1,843 m at the NISK-1 showing.

In 2006 to 2008 Golden Goose Resources completed further surficial explorations that included an airborne AeroTEM 2 – EM and magnetometry geophysical survey, and a ground TEM geophysical survey. Golden Goose Resources also completed diamond drilling of 63 holes totaling 13,088 m at the NISK-1 showing.

The 63 holes drilled by Golden Goose Resources were utilized to develop a NI 43-101 mineral resource. The resource estimation was completed by RSW INC and is detailed in their report entitled Resource Estimate for the NISK-1 Deposit, Lac Levac Property, Nemiscau, Québec. Dated ‘December 2009’. The 2009 resource estimation is considered to be a ‘Historical Estimate’ as defined by the National Instrument 43-101 Standards of Disclosure for Mineral Projects

The historical resource estimation culminated in the definition of Nickel, Copper, Cobalt, Palladium, Platinum resources, containing Measured, Indicated, and Inferred confidence categories as described in Table 1 below. The simplified sectional resource is developed along a single continuous drill hole intersections, developed with a cut-off grade of 0.4 percent nickel over a minimum width of 0.5 meters, within estimation blocks measuring up to 75 meters along respective sections to define the nickel-bearing zone.

Table -1: Historical Resource Estimate figures for respective confidence categories at the NISK-1 deposit, After RSW Inc 2009: Resource Estimate for the NISK-1 Deposit, Lac Levac Property, Nemiscau, Québec.

The information regarding the NISK-1 deposit was derived from the technical report titled “Resource Estimate for the NISK-1 Deposit, Lac Levac Property, Nemiscau, Québec” dated December 2009. The key assumptions, parameters and methods used to prepare the mineral resource estimates described above are set out in the technical report.

Future Exploration:

Future Work

The company plans to further advance the previously defined historic resources with confirmation drilling, additional infill, and resource definition drilling commencing in Q2. An updated resource estimate will be prepared upon completion of the additional drilling. Surface exploration is also contemplated for other prospective targets on the property.

Golden Ivan

The Golden Ivan property is situated toward the south of British Columbia’s prolific Golden Triangle, which hosts numerous profitable mineral deposits and is known to be highly prospective for large scale mineral systems, including large-scale porphyry systems, high-grade gold and silver veins, and volcanogenic massive sulphides. The Golden Triangle is host to past and current mining operations including Pretium, Eskay Creek, Johnny Mountain, Red Mountain, Snip Mine, Premier Mine, Golden Bear and Valley of the Kings. The Golden Triangle has reported mineral resources (past production and current resources) in total of 67 million oz of gold, 569 million ounces of silver and 27 billion pounds of copper.

The Golden Ivan property is located approximately 15km south west of the Red Mountain Gold/Silver deposit and 30 km south of the historic Premier Gold mine which just announced construction financing being completed to place this past producer again into production. Immediately to the south of the property significant Silver resources have recently been established at the Porter-Idaho deposit, along several mineralized veins that strike onto the Golden Ivan property.

Figure 1 – Golden Ivan as noted in Maps above is located in the heart of Golden Triangle & Close to Stewart

“Golden Ivan is a great acquisition for Chilean. The recent news from Ascot Resources regarding their now financed plans to build the Premier mine within a few kilometres of our property is certainly a positive one for all property owners in the Southern part of the Triangle. Geographically Golden Ivan’s location between StrikePoint’s Silverado project to the south and Scottie Resources to the North on a under explored and undrilled land package is certainly very interesting to us on a geological basis. The recent Geophysical work done by the Optionor makes us anxious to get in their next summer and drill those three Porphyry looking targets.” Commented Terry Lynch Power Nickel CEO.

Future Exploration

The company intends to focus future exploration efforts to determine the potential causative source intrusions of the mineralization observed across the property, and surrounding areas. The initial phase of exploration is anticipated to include systematic geological and structural and alteration mapping, as well as geochemical sampling across the property to determine any local areas of anomalism. This would be followed by ground-based geophysics to confirm local structural trends prior to proceeding with an initial drill program in the summer/fall of 2021.

Projects in Chile

Chile’s prolific Atacama iron-oxide-copper-gold (IOCG) belt hosts a number of significant copper-gold deposits, including Mantos Blancos, Manto Verde and Candelaria. The Candelaria deposit, owned by Lundin Mining (TSX:LUN), has produced 470 Mt at 0.95 percent copper, 0.22 grams per ton (g/t) gold and 3.1 g/t silver. It holds the title as the world’s second-largest iron-oxide-copper-gold deposit.

Power Nickel (TSXV:PNPN) wholly owned 5,600 hectare Tierra de Oro and 4,300 hectare Zulema projects are located within the belt. Zulema is located just 30 kilometers from the Candelaria deposit, with which it shares similar geography.

Previous exploration data generated by both the company and other historic operators have been compiled and 8,660 training points were subjected to evaluation by Windfall’s propriety CARDS AI model. CARDS uses data mining techniques to analyze compiled exploration data and to identify areas target zones with high statistical similarity to known “signatures” of areas of copper, gold and silver mineralization (Figures 3 and 4 below). A total of thirteen (13) prospective target zones were identified by the prediction analysis, of which the company has elected to drill test two of the zones.

  • The ‘Chanchero’ Zone has previously been identified as being prospective for copper porphyry style mineralization and remains untested. The area comprises a 0.75 square kilometres zone of argillic and quartz-sericite-pyrite alteration hosted by augite-hornblende diorite to granodiorite with roof pendants of hornblende monzonite. A significant colour anomaly is also evident. The area was surveyed by 3-D Induced Polarization (IP) methods in 2008 and generated a chargeability anomaly greater than 50MV/V at its core which is open at depth. The area is to be the focus of four (4) core holes that are proposed to intersect the chargeability anomaly longitudinally and at depth.

Figure 1: Locations of 4 Proposed drill holes at the Chanchero target, relative to the outline/projected shape of the greater at than 50MV/V chargeability anomaly as defined by the 2008 3-D Induced Polarization survey.

  • The ‘Iron Skarn’ zone is an AI generated target Gold anomaly which occurs along a pronounced structure and is located along strike from existing shallow artisanal gold workings. A single core hole is to be orientated to intersect the structure at depth below the projected level of the adjacent historical workings.

The Phase 1 program is to consist of 1,500 meters of core drilling is expected to be completed by mid December (2020) and assays are expected to be received in mid to late January (2021).

In addition to the drilling program, the company intends to complete a systematic sampling program over the remaining target areas identified by the AI analysis. Limited ground truth sampling on three of the AI targets produced sample results including 10.32 and 5.79 grams per tonnes gold at the Cobalt zone, and another series of nine (9) samples that graded between 0.77 percent to 3.23 percent Copper. In addition to wider surface sampling in areas where no surface indications are visible the company plans to conduct localized IP.

Figure 2: Tierra De Oro property CARDS target model-A for Copper anomalism

Figure 3: Tierra De Oro property CARDS target model-A for Gold anomalism

Figure 4: Chanchero 3D IP anomalism

“We were excited to commence drilling on TDO. In particular we believe the AI guidance will focus our search and enhance our odds of drilling success. Chanchero the large IP anomaly was home of the Chanchero Gold Rush in Chile in the early 1900s and we believe it is possible the large IP anomaly could be the causative source of that mineralization. It’s the type of drill hole Junior Miners dream about. We have de-risked it as much as we can and now we await the results of the Assays which we would expect towards the end of January,” commented Terry Lynch, Chilean Metals’ CEO.

All three of the company’s projects benefit significantly from exceptional infrastructure and access. Chilean Metals’ management team brings decades of experience and an extensive track record of success in mining exploration and resource development. The company plans to leverage technological innovation as well as C$3 million in completed financing to further develop its diverse portfolio of assets.

Management Team

Peter Kent — Chairman

Formerly with the TecSyn Group of Companies, at which he was Vice President General Counsel and Corporate Secretary. Peter brings over 25 years of business experience regarding complex business and legal affairs. In addition to his time at Tecsyn, Peter was also a corporate commercial lawyer at Bassel Sullivan, a Toronto-based boutique law firm.

Terry Lynch — CEO

Terry Lynch graduated in 1981 from St. Francis Xavier University with a joint honours degree in Economics and BBA. Prior to becoming a director with International PBX Ventures in 2012, Lynch had been CEO of privately held Nevada-focused Relief Gold. He also had been a director and later CEO of TSX-listed Firstgold Corp. He assumed the CEO position after the company had run into financial difficulty bringing its Relief Canyon mine into production. He arranged a sale of 51 percent of the company for a total capital injection of $26.5 million from Northwest Non-Ferrous Metals, one of China’s largest mining engineering and consulting groups.

From 2005 to 2008, Lynch was a partner with Kingsmill Capital Partners, a financial advisory firm specializing in advising public and private early stage growth companies. Prior to joining Kingsmill Capital, he spent 15 years operating startup companies in industrial products, oil and gas and media. Mr Lynch is currently a director and co-founder of Cardiol Therapeutics.

Greg McKenzie — Director

Greg McKenzie is a senior investment banker with 20 years of experience in financing, M&A, financial advisory, valuation and strategic advice primarily to mid-cap companies. His transactions are valued in excess of $18 billion. McKenzie has worked in New York and Toronto and has held positions with Morgan Stanley, CIBC World Markets, Haywood Securities and Salman Partners. While at these firms, Greg advised management and boards of companies in various sectors including: metals and mining, industrials, consumer products, technology and healthcare. McKenzie was also called to the bar in New York and Ontario and practiced law with a leading Canadian securities and M&A law firm.

Ximena Perez — Managing Director of Chile

Ximena Perez has 13 years of experience in Chile as an exploration and production geologist, the first five years of which she spent as a production geologist in underground mining in Cu. She developed a career as an Exploration Geologist with extensive experience in drilling program supervision, data management and geological modeling. She participated in the exploration for the expansion of Skarn Las Cenizas (Cu-Ag), Talcuna (stratabound and veins Cu-Au), Punitaqui (stratabound and veins Cu-Ag-Au) and Dayton (epithermal of Au), in the latter two as Chief Exploration Geologist.

Perez has experience in exploration consultancies for medium-sized mining, as well as independent work in resource inventories. She has served as Exploration Geologist for Chilean Metals Inc., and since 2018 she has been Managing Director Chile in the company.

Les Mallard — Director

Les Mallard is a graduate from The University of Prince Edward Island with a BA in Economics. He has spent over 30 years in the Canadian Produce Industry employed in various capacities with Chiquita Canada and Chiquita Brands North America. After retiring from Chiquita in 2017, he started Mallard Produce Solutions, a produce consulting company focused on providing North American and Latin American clients with business solutions to expand their market potential. Les is also on the Board of Directors for the Canadian Produce Marketing Association and Hydroponic Life.

Power Nickel Follows Up High Grade Results at Nisk with New Fully Funded 5000 M Drill Program

Power Nickel Follows Up High Grade Results at Nisk with New Fully Funded 5000 M Drill Program

Power Nickel Inc. (the "Company" or "Power Nickel") (TSXV:PNPN)(OTCBB:CMETF)(FRA:IVVI) is pleased to announce that a follow-up drill program has been authorized to take place as quickly as permits and a diamond drill rig can be obtained with the expectation that a 5000-meter program can commence later in Q2 after breakup

Power Nickel CEO Terry Lynch commented, "The results we have obtained from our current round as identified in the table below when combined with the historical NI 43-101 mineral resource estimate are very encouraging. In a world that has woken up to a serious shortage of High-Grade Nickel Sulphate projects we are confident the Nisk project has great potential to play a significant role in providing Class 1 Nickel in the most Environmental, Social, and Governance ("ESG") friendly way to Battery makers in North America and beyond."

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Power Nickel Continues Extension of Mineralization with High Grade Results at Nisk

Power Nickel Continues Extension of Mineralization with High Grade Results at Nisk

PN-21-003A - 27.4 Metres 0.94% Ni, 0.63% Cu, 0.06% Co, 0.72gPd, 0.10g Pt

PN-21-002 - 8.4 Metres 1.45% 0.40% Cu, 0.10% Co, 1.21gPd, 0.45g Pt

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Power Nickel Starts 4000 Metre Drilling Program

Power Nickel Starts 4000 Metre Drilling Program

Power Nickel Inc. (the "Company" or "Power Nickel") (TSXV:PNPN)(OTCBB:CMETF)(Frankfurt:IVVI) is pleased to announce that it has commenced drilling on its Nisk Project. As previously noted the Company has used a new 3D geological model to generate the targets for this exploration program. The 3D geological model developed by 3DGeo-Solution Inc. ("3DGS") identified a prospective set of targets that the Company feels will give the best potential to expand the Nisk historical deposit

The resource estimates at the Nisk project are of historic nature and the Company's geology team has not completed sufficient work to confirm a NI 43-101 compliant mineral resource. Therefore, caution is appropriate since these historic estimates cannot, and should not be relied on. For merely informational purposes see Table 1.

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Power Nickel to Commence 4000 metre Drilling Program on Its Major Nickel Development Target "Nisk"

Power Nickel Inc. (the "Company" or "Power Nickel") (TSXV:PNPN)(OTCQB:CMETF)(Frankfurt:IVVI) is pleased to announce that it has received and approved a 3D Litho-Structural Report on the Nisk project in James Bay from 3DGeo-Solution Inc. ("3DGS"), an expert in 3D modeling and Mineral Resource Estimation. The report identified a prospective set of targets that is felt will give the best potential to expand the Nisk historical deposit

The resource estimates at the Nisk project are of historic nature and the Company's geology team has not completed sufficient work to confirm a NI 43-101 compliant mineral resource. Therefore, caution is appropriate since these historic estimates cannot, and should not be relied on. For merely informational purposes see Table 1.

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Chilean Metals is Now Power Nickel

Summary:

  • Chilean Metals Inc. has formally changed its name to "Power Nickel Inc." to reflect its focus on the development of its James Bay High-Grade Nickel Copper Cobalt Palladium "Nisk" Project.
  • Effective Monday on July 12 Power Nickel will start trading on the TSXV under the symbol PNPN
  • Power Nickel will hereafter create a subsidiary Consolidation Gold and Copper Inc. to be spun out as a separate public company where it will hold our interests in the British Columbia Golden Ivan project and our complete suite of Chilean assets and sufficient capital for one year of operations.
  • It is expected that Power Nickel will retain an 80% ownership position in Consolidation Gold and Copper and Shareholders of Power Nickel will directly receive the remaining 20% through a plan of arrangement which we expect to formally announce before the end of July.

Power Nickel Inc. (the "Company" or "Power Nickel") (TSXV:PNPN, OTCBB: CMETF, Frankfurt IVVI) is pleased to announce that it will commence trading under its new symbol PNPN on the TSXV on July 12, 2021

Proposed Transaction Highlights

Chilean Metals has formally been renamed Power Nickel Inc. and will focus its efforts on the exploration and development of the James Bay Nisk project. On February 1, 2021, Chilean Metals completed the acquisition of its option to acquire up to 80% of the Nisk project from Critical Elements Lithium Corporation. The below estimates at the Nisk project are of a historic resource and the Company's geology expert team has not completed sufficient work to confirm a NI 43-101 compliant resource. Therefore, caution is appropriate since the estimates cannot, and should not be relied upon. For merely informational purposes see Table 1.

Table ‑1: Historical Resource Estimate figures for respective confidence categories at the NISK-1 deposit, After RSW Inc 2009: Resource Estimate for the NISK-1 Deposit, Lac Levac Property, Nemiscau, Québec.

The information regarding the NISK-1 deposit was derived from the technical report titled "Resource Estimate for the NISK-1 Deposit, Lac Levac Property, Nemiscau, Québec" dated December 2009. The key assumptions, parameters and methods used to prepare the mineral resource estimates described above are set out in the technical report.

The NISK property comprises a large land position (20 kilometres of strike length) with numerous high-grade intercepts outside the current resource area. Power Nickel, formerly Chilean is focused on expanding its current high-grade nickel-copper PGE mineralization historical resource prepared in accordance with NI 43-101, identifying additional high-grade mineralization, and developing a process to potentially produce nickel sulphates responsibly for batteries to be used in the electric vehicles industry.

  • Shareholders of Power Nickel will receive shares in Consolidation Gold and Copper Inc. proposed to be carved out by a plan of arrangement, at ratios to be determined by legal, tax and valuation considerations
  • Consolidation Gold and Copper is proposed to hold all the historic assets which remain in Chile as follows:
  • The 5600-hectare Tierra de Oro (TDO) property is located about 70 Kms south of Copiapo. Historically about $6,000,000 has been spent exploring TDO with the most recent drill program completed and reported in January 2021 which highlighted a 2-metre section that returned 716 grams of silver and .45% copper.
  • The 4300-hectare Zulema property located about 50 Kms southwest from Copiapo and adjoining the Candelaria Mine[1] property (Over 950 Million Tonnes Copper, Gold & Silver according to NI- 43101 2018 report on Lundin Mining site)) An exploration program at the property in 2018 highlighted a garnet magnetite skarn with multiple lenses of Copper- Magnetite mineralization. Within the skarn, copper ranged from 0.12- 1.19% Cu and between 0.05 - 0.99g/t Au.
  • The 9,000-hectare Palo Negro and Hornitos properties are located in Region 3 about 30 Kms west of the Candelaria mine. The properties are currently the focus of a number of geophysical programs including magnetics and IP over portions of the property which have previously been highlighted to be of interest.
  • Assets also include a 3% NSR royalty interest on any future production from the Copaquire Cu-Mo deposit, previously sold to a subsidiary of Teck Resources Inc. ("Teck"). Under the terms of the sale agreement, Teck has the right to acquire one-third of the 3% NSR for $3 million dollars at any time. The Copaquire property borders Teck's producing Quebrada Blanca copper mine[2] in Chile's First Region.
  • The property hosts two known mineral showings (Gold Ore, and Magee), and a portion of the past-producing Silverado Mine, which was reportedly exploited between 1921 and 1939. These mineral showings are described to be Polymetallic veins that contain quantities of Silver, Lead, Zinc +/- Gold +/- Copper. Numerous additional mineral occurrences, showings, and past-producing mines are located in the immediate areas surrounding the property, further supporting the sense of a presence of widespread mineralization in the areas.
  • The property is relatively underexplored. In 2018 Precision Geophysics completed an 88-line kilometre combined magnetic and gamma-ray spectrometry survey on behalf of the vendor (who sold to Chilean Metals) Granby Gold Inc. Standard magnetic and radiometric data products were prepared and additional interpolate structural analyses were performed on the collected data. A number of areas of coincident magnetic and radiometric anomalism have been identified, additionally ‘structurally prepared' zones are identified from the structural analysis interpolates. Such characteristics are widely regarded as favorable indicators of widespread hydrothermal alteration aka Porphyries and may aid in vectoring toward any causative source intrusions that may be located on the property. Three preliminary target areas of merit are established as a result of that survey and will be the focus of initial explorations at the site.
  • Consolidation Gold & Copper Inc. will also hold the previously purchased asset we have called the Golden Ivan project in the Golden Triangle. The Golden Triangle is host to numerous past and current mining operations and the region has reported mineral resources that total up to 67 million oz of gold, 569 million oz of silver, and 27 billion pounds of copper. Recent mineral development activity within the local area includes Ascot Resources recently funded Premier Gold mine[3] (2.3 Million oz gold), which has received $105 million in project construction financing for the development of renewed operations at the historic exploited Premier Gold deposit. Other notable active projects in the local area include the neighbouring Silverado project, and Red Mountain, and Homestake projects amongst many others.[4] Further to the north Pretivm's Bruce Jack mine[5] (4.2 million oz gold), and the neighboring KSM and Eskay deposits also have significant gold, silver, and copper resources that are yet to be realized.
  • Shareholders of the proposed Consolidation Gold and Copper Inc. should benefit from an increased focus on core opportunities that appeal to each different investor base. As Chilean Metals, now Power Nickel grew through the acquisition of NISK and Golden Ivan, it is anticipated that the new public company could similarly benefit on a go-forward basis.

Company CEO and Director Mr. Terry Lynch stated, "The result of this proposed transaction will be two stand-alone companies with attractive assets focused on specific opportunities to grow and create value for their shareholders. The driving force behind the change is to communicate in a very clear way our shift in primary focus on the NISK Battery Metals project. It is rare to find a project with a historical resource that we believe has a credible chance to become a mine. The electrification movement in Automobiles and Industry is growing more and more every day and this growth will be very supportive to the price curves in Nickel, Copper, Cobalt, and Palladium. We look forward to concentrating our efforts on NISK and moving it from Historical resource through the mine development process as quickly as possible. We are currently evaluating a newly prepared 3D Model of the NISK project and will finalize our drilling program in the next week and announce a Q3 start of an expected 3-4,000 metre drill program. We would expect after this round of drilling to have a revised 43-101 available in Q4 2021."

Board and Management Team

Power Nickel will feature the same board as Chilean Metals today.

Consolidation Gold and Copper Inc. will have the same board with the valuable addition of Hugh Maddin to the Board. Hugh Maddin is a distinguished and accomplished retired lawyer and an experienced mining investor. Hugh Maddin owns Granby Gold, from whom Chilean Metals purchased the Golden Ivan project in 2020.

Transaction Details

The proposed transactions will be carried out by way of a court-approved plan of arrangement under the Business Corporations Act (British Columbia) and are subject to a number of conditions being satisfied or waived at or prior to closing, including approval of the shareholders of Power Nickel and receipt of all necessary regulatory, TSXV and court approvals and the satisfaction of certain other closing conditions customary for a transaction of this nature.

It is expected that the required special meeting of Chilean Metals shareholders to approve the proposed Transaction will be held in August 2021 with closing shortly thereafter. The Company continues to plan the final structure to address regulatory, accounting, tax, corporate, and securities matters in Canada, the United States (where Chilean, now Power Nickel has some resident shareholders) and Chile, where certain assets, as well as shareholders, are located

Further information regarding the transactions will be contained in a management information circular to be prepared by the Company and mailed to shareholders in connection with an annual general and special meeting of shareholders to consider the transactions. All shareholders of the Company are urged to read the information circular once available, as it will contain important additional information concerning the transactions.

About Power Nickel Inc.

Power Nickel is a Canadian junior exploration company focusing on high-potential copper, gold, and battery metal prospects in Canada and Chile.

On February 1, 2021 Power Nickel (then called Chilean Metals) completed the acquisition of its option to acquire up to 80% of the Nisk project.

The NISK property comprises a large land position (20 kilometres of strike length) with numerous high-grade intercepts outside the current resource area. Chilean is focused on expanding its current high-grade nickel-copper PGE mineralization historical resource prepared in accordance with NI 43-101, identifying additional high-grade mineralization and developing a process to potentially produce nickel sulphates responsibly for batteries for the electric vehicles industry.

Power Nickel (then called Chilean Metals) announced on June 8th, 2021 that an agreement has been made to complete the 1oo% acquisition of its Golden Ivan project in the heart of the Golden Triangle. The Golden Triangle has reported mineral resources (past production and current resources) in a total of 67 million ounces of gold, 569 million ounces of silver, and 27 billion pounds of copper. This property hosts two known mineral showings (gold ore and magee), and a portion of the past-producing Silverado mine, which was reportedly exploited between 1921 and 1939. These mineral showings are described to be Polymetallic veins that contain quantities of silver, lead, zinc, plus/minus gold, and plus/minus copper.

Power Nickel, pre proposed Plan of Arrangement is the 100-per-cent owner of five properties comprising over 50,000 acres strategically located in the prolific iron-oxide-copper-gold belt of northern Chile. It also owns a 3-per-cent NSR royalty interest on any future production from the Copaquire copper-molybdenum deposit, recently sold to a subsidiary of Teck resources Inc. Under the terms of the sale agreement, Teck has the right to acquire one-third of the 3-per-cent NSR for $3-million at any time. The Copaquire property borders Teck's producing Quebrada Blanca copper mine in Chile's first region.

Qualified Person

Qualified Person Luke van der Meer, P.Geo. (Licence # 37848), Independent Geological Consultant, Qualified Person under NI 43-101, has reviewed and approved the technical content of this release.

ON BEHALF OF THE BOARD OF DIRECTORS

Power Nickel Inc.
Terry Lynch, CEO
647-448-8044

For further information, readers are encouraged to contact:

Power Nickel Inc.
The Canadian Venture Building
82 Richmond St East, Suite 202
Toronto, ON

Terry Lynch & CEO terry@powernickel.com

Cautionary Note Regarding Forward-Looking Statement

This news release may contain certain statements that may be deemed 'forward-looking statements'. All statements in this release, other than statements of historical fact, that address events or developments that PNPN expects to occur, including details related to the proposed spin-out transactions, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words 'expects', 'plans', 'anticipates', 'believes', 'intends', 'estimates', 'projects', 'potential' and similar expressions, or that events or conditions 'will', 'would', 'may', 'could' or 'should' occur. Forward-looking statements in this document include statements regarding current and future exploration programs, activities and results. Although PNPN believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration success, continued availability of capital and financing, inability to obtain required regulatory or governmental approvals and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.

[1] Reference to the nearby Candelaria mine is for information purposes only and there are no assurances that the Company's properties will achieve similar results.

[2] Reference to the nearby Quebrada Blanca mine is for information purposes only and there are no assurances that the Company's properties will achieve similar results.

[3] Reference to the nearby Premier Gold mine is for information purposes only and there are no assurances that the Company's properties will achieve similar results.

[4] Reference to these nearby properties is for information purposes only and there are no assurances that the Company's properties will achieve similar results.

[5] Reference to the nearby Bruce Jack mine is for information purposes only and there are no assurances that the Company's properties will achieve similar results.

SOURCE: Chilean Metals, Inc.



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