CNI Continental Nickel Limited

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES


Continental Nickel Limited (TSX VENTURE:CNI) ("Continental" or the "Company") is
pleased to announce the closing of a previously announced (see Company's news
release dated December, 17, 2009) non-brokered private placement of 230,000
flow-through ("FT") shares sold to one institutional investor. The FT shares
were sold at a price of $1.10 per share raising gross proceeds of $253,000 and
are subject to a hold period expiring on April 22, 2010.


The proceeds raised in the FT placement will be used to fund exploration
programs at the St. Stephen nickel and copper project in New Brunswick. The St.
Stephen project is under option from Abitex Resources of Val d'Or, Quebec and
the Company can acquire up to a 75% interest in the project. The Company
recently completed a ground geophysical survey (see press release of December 9,
2009) on the St. Stephen Property and outlined two new and untested, high
conductance electromagnetic (EM) anomalies near known nickel-copper sulphide
zones. The Company intends to drill test these and several other identified
targets in 2010. The gross proceeds raised from the flow-through offering will
be used for "Canadian exploration expense" as defined in the Income Tax Act
(Canada) and will be renounced for the 2009 taxation year.


In connection with the flow-through private placement, the Company has paid a
cash finder's fee of 5% of the gross proceeds raised under the offering.


A second non-brokered, non-flow-through, private placement (also previously
announced on December 17, 2009) to the Company's largest shareholder, IMX
Resources Limited ("IMX") of Australia is still subject to closing, which will
be announced upon completion. Pursuant to the terms of the IMX placement, the
Company plans to issue 207,269 common shares at a price of $0.92 per share for
gross proceeds of $190,687.


This news release does not constitute an offer to sell or a solicitation of an
offer to buy any of the securities in the United States. The securities have not
been and will not be registered under the United States Securities Act of 1933,
as amended (the "U.S. Securities Act") or any state securities laws and may not
be offered or sold within the United States or to U.S. Persons as defined under
applicable securities laws unless registered under the U.S. Securities Act and
applicable state securities laws or an exemption from such registration is
available.


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, where NI 43-101 Mineral Resources have been
defined, and an option joint venture on the St. Stephen project in New
Brunswick, Canada. Continental Nickel has 30,362,395 shares issued and
outstanding (33,029,895 on a fully-diluted basis) and trades on the TSX Venture
Exchange under the symbol CNI. The Company remains well funded with over C$9.5
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 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.

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