Continental Nickel Reports a Major Increase in Mineral Resources, Including the First Mineral Resource Estimate for the Sleeping Giant Nickel-Copper Sulphide Deposit in Tanzania Friday, 18 March 2011 13:25 Continental Nickel Limited (TSX VENTURE:CNI) reported that Measured and Indicated Mineral Resources at Ntaka Hill, using a US$17/tonne Net Smelter Return cut-off, have increased to 4,981,000 tonnes grading 1.22% nickel and 0.24% copper, with additional Inferred Mineral Resources totalling 1,860,000 tonnes grading 0.68% nickel and 0.15% copper. At the new Sleeping Giant discovery, Inferred Mineral Resources calculated at a US$17/tonne NSR cut-off total 15,400,000 tonnes grading 0.77% nickel and 0.17% copper. At a US$80/tonne NSR cut-off, Measured and Indicated Mineral Resources total 3,683,000 tonnes grading 1.52% nickel and 0.28% copper and Inferred Mineral Resources, dominated by the Sleeping Giant deposit, total 10,900,000 tonnes grading 0.98% nickel and 0.22% copper. The NI 43-101 Mineral Resource estimate was completed by Roscoe Postle Associates Inc. ("RPA") of Toronto, Ontario and incorporates additional drilling completed, after the 2009 Mineral Resource estimate (Press Release July 15, 2009), on seven separate sulphide deposits, including the new Sleeping Giant deposit discovered in 2010. The estimate is based on data obtained from 230 diamond drill holes totalling 35,361 metres completed to explore for and delineate the various sulphide zones at nominal 25 to 100 metre drill section spacing. Craig MacDougall, President & CEO of Continental Nickel Limited, commented "this is an outstanding achievement by the exploration team which has not only significantly upgraded the Mineral Resources at Ntaka Hill, but has also advanced the new Sleeping Giant deposit from discovery to an inferred Mineral Resource in just 6 months. This new discovery, which has demonstrated drill intersections of significant grade over width, including locally high grade intercepts, as well as potentially high nickel recoveries, remains open in all directions and has the potential to develop into a major new nickel sulphide deposit. These results continue to justify our ongoing commitment to exploration. Further "step out" drilling to define the extent of the Sleeping Giant deposit will be a primary objective in 2011, along with the commencement of a scoping study. The project's location, within 200kms of a deep water port in a mining friendly jurisdiction such as Tanzania, is an important positive factor in future economic and feasibility studies."