Continental Nickel Intersects 3.35% Ni and 0.46% Cu Over 21.0 Metres, Including 7.11% Ni and 0.71% Cu Over 6.35 Metres

TORONTO, ONTARIO, Jan 22 (MARKET WIRE) --
Continental Nickel Limited (TSX VENTURE: CNI) is pleased to announce the
remaining 2007 drill assay results from its 70% owned Nachingwea nickel
sulphide project in Tanzania. The Nachingwea project is a 70:30 JV with
IMX Resources NL ("IMX") (formerly Goldstream Mining NL) of Australia. In
2007, 53 drill holes totalling 10,514 metres were completed testing
twelve conductive targets identified from the Crone ground TDEM survey.
The 2007 drill program was highly successful, discovering six new, near
surface Ni-Cu sulphide zones in addition to the NAD013 zone discovered by
IMX in 2006. 24 of the 53 holes drilled in 2007 intersected sulphide
mineralization grading greater than 2% Ni, over core widths ranging from
less than 1 metre to 21.0 metres.

Results for 22 drill holes were reported up to December 10, 2007. This
release describes the results from the remaining 31 drill holes. The
results are listed in the attached table. The locations of the various
holes are illustrated on the attached figures.

Highlights from the current results include:

- Target J:

-- NAD07-069 intersects 21.0 metres grading 3.35% Ni and 0.46% Cu,

including 7.11% Ni and 0.71% Cu over 6.35 metres;

-- NAD07-065 intersects 16.3 metres grading 2.88% Ni and 0.44% Cu,

including 5.71% Ni and 0.54% Cu over 3.4 metres;

- Target H:

-- NAD07-043 intersects 6.8 metres grading 5.53% Ni and 0.31% Cu,

including 15.89% Ni and 0.77% Cu over 2.15 metres;

- NAD013:

-- NAD07-060 intersects 5.2 metres grading 4.45% Ni and 3.01% Cu;

- Target M (New Discovery):

-- NAD07-044 intersects 1.98% Ni and 0.47% Cu over 11.3 metres;

including 3.19% Ni and 0.76% Cu over 5.3 metres.

Bore hole EM surveys were completed on the 2007 drill holes during
November and December and the data are currently being modelled and
interpreted. With the receipt of all outstanding drill hole assays, the
company is integrating drill hole and geophysical data in order to
prioritize targets and design an aggressive 2008 follow up drill program.
It is expected that the 2008 field program will commence by April.

A 5900 line kilometre airborne VTEM survey was also completed in
December, with processing and interpretation of the data in progress.
Results will be reported once they are received.

Target J:

The initial discovery of Zone J was reported December 10, 2007. Discovery
drill hole NAD07-030 intersected 17.95 metres of net textured sulphide
mineralization grading 2.59% Ni and 0.41% Cu. The mineralization appears
to be nearly flat lying at very shallow depths (starting at 30 metres
depth) and was further tested by drill holes NAD07-065 and 069 as
described below.

Hole NAD07-065 was drilled 20 metres southeast along strike of the
discovery hole NAD07-030 and intersected 16.3 metres of massive to net
textured sulphides from 34.7 metres down hole grading 2.88% Ni and 0.44%
Cu. Massive sulphide mineralization was intersected at the start of the
interval and graded 5.71% Ni and 0.54% Cu over 3.4 metres. Drill hole
NAD07-069 was drilled 20 metres up dip on the same section as NAD07-065
and intersected a 21.0 metre interval of massive to net textured
sulphides from 30.0 metres down hole grading 3.35% Ni and 0.46% Cu. This
interval includes a 6.35 metre interval of massive sulphide
mineralization starting at 32.65 metres grading 7.11% Ni and 0.71% Cu.

The discovery of high grade (greater than 2.5% Ni) massive to net
textured sulphide mineralization over a significant thickness on the east
side of the Ntaka intrusion opens a substantial area for evaluation. The
J Zone is a priority target for follow up in the 2008 program.

Target H:

Follow up drilling confirmed the discovery of high grade Ni
mineralization at Target H, that was announced on November 20, 2007
(drill hole NAD07-028 intersecting 7.50% Ni and 1.15% Cu over 9.55
metres) This new sulphide zone is shallow dipping and occurs at shallow
depths of less than 60 metres. Drill holes NAD07-041 and 043 were drilled
20 metres along strike to the southeast.

Hole NAD07-041 intersected narrow zones of sulphide mineralization
starting at 84.6 metres down hole grading 2.07% Ni and 0.71% Cu over 3.75
metres (including 9.01% Ni and 0.44% Cu over 0.75 metres). Hole NAD07-043
was drilled 20 metres down dip on the same section as NAD07-043 and
intersected disseminated to massive sulphide mineralization starting from
84.0 metres down hole grading 5.53% Ni and 0.31% Cu over 6.80 metres,
including a 2.15 metre interval of coarse massive sulphides grading
15.98% Ni and 0.77% Cu.

Drill hole NAD07-070 drilled midway between Zones H and NAD013, primarily
as a platform to complete a bore hole EM survey, intersected a number of
intervals of sulphide mineralization including 1.70 metres grading 1.54%
Ni and 0.49% Cu from 99.15 metres; 5.0 metres grading 1.07% Ni and 0.20 %
Cu from 125.0 metres and 4.05 metres grading 1.41% Ni and 0.43 % Cu from
288.75 metres down hole. The upper two intervals may correlate with Zone
H which would suggest that the zone may extend northwest along strike for
125 metres.

Zone H remains open along strike to both the northwest and southeast of
the existing drilling. The dip extent across the center of the zone to
date appears to be limited, but further drill testing is warranted given
the pinch and swell and bifurcating nature of the high grade massive
sulphide mineralization.

NAD013 Zone:

At the NAD013 zone originally discovered by IMX in 2006, additional drill
testing was completed along strike to the northwest and up and down dip
of the original discovery holes. Holes NAD07-053 and 055 were drilled 20
metres along strike to the northwest of NAD06-013 (11.23% Ni, 1.74% Cu
over 3.0 metres, previously reported). Hole NAD07-053 intersected
disseminated to stringer sulphide mineralization starting from 89.1
metres grading 1.22% Ni and 0.46% Cu over 5.1 metres and 2.75 metres
grading 1.69% Ni and 0.39% Cu from 121.25 metres. Hole NAD07-055 was
drilled 25 metres up dip on the same section and intersected a massive
sulphide zone grading 4.73% Ni and 0.51% Cu over 0.60 metres at 63.85
metres down hole.

Holes NAD07-056 and 058 were drilled 20 metres up dip of the NAD06-013
and NAD07-019 intersections, respectively, and both holes intersected
narrow massive sulphide zones representing the up dip extent of the
NAD013 sulphide zone. NAD07-056 intersected 0.6 metres of massive
sulphide grading 10.3% Ni and 0.99% Cu at 49.0 metres down hole, while
NAD07-058 intersected a 0.25 metre interval grading 10.15% Ni and 0.15%
Cu at 39.75 metres down hole.

Drill holes NAD07-060 and 062 tested down dip of holes NAD07-019 and 020
(previously reported) on the same section. Drill hole NAD07-060
intersected a strong stringer to massive sulphide zone at 91.9 metres
grading 4.45% Ni and 3.01% Cu over 5.2 metres. Hole NAD07-062 tested 40
metres down dip on the same section as NAD07-060 intersecting
disseminated to net textured mineralization 122.0 metres down hole
grading 2.41% Ni, 0.27% Cu over 2.1 metres.

The zone remains open down dip and along strike to the northeast where
hole NAD07-068 drilled 250 metres north of the NAD013 zone returned an
interval of disseminated to net textured mineralization starting at 52.0
metres grading 1.1% Ni and 0.22% Cu over 6.4 metres. This intersection
indicates a possible linkage between the NAD013 zone and the newly
discovered L zone (drill hole NAD07-039 intersected 2.40% Ni and 0.50% Cu
over 15.25 metres, reported on December 10, 2007) located 200 metres
north of drill hole NAD07-068.

Target M:

Target M is an isolated conductive target located approximately 650
metres northeast of Target L and represents another new Ni-Cu zone
discovered on the property.

The target was tested by a single drill hole NAD07-044 which intersected
disseminated to net textured to semi-massive sulphide mineralization
within ultramafic rock starting at 83.0 metres down hole. The sulphide
zone graded 1.98% Ni and 0.47 % Cu over 11.3 metres, including a 5.3
metre interval grading 3.19% Ni and 0.76% Cu.

The mineralization remains open in all directions.

Target G:

Assays from eleven additional drill holes testing Target G are presented
in the attached table. Although of generally lower grades (0.52 to 2.26%
Ni), significant thicknesses of sulphide mineralization (up to 17.1
metres) have been intersected confirming the potential for a large, lower
grade sulphide zone at relatively shallow depths.

Craig MacDougall, President & CEO of Continental Nickel Limited, reported
"the 2007 exploration program on Nachingwea project has met with
unparalleled success given the early stage of exploration on this vast
property. The exploration team has in one field season discovered six new
Ni-Cu sulphide zones, near surface, that exhibit outstanding nickel
grades over significant thicknesses. All of the new discoveries remain to
be further evaluated and there is potential for one or more to develop
into a significant deposit. In addition, the potential for other
discoveries on the property remains outstanding and the completion of the
airborne survey will provide immediate focus to identify target areas of
interest for exploration in 2008".

Quality Control

The drilling was completed by Tandrill Limited of Tanzania. Drill core
samples (NQ) are cut in half by a diamond saw on site. Half of the core
is retained for reference purposes and half is sent for analysis. Samples
are generally collected in 1.0 metre intervals or less at the discretion
of the site geologists. Sample preparation is completed at the ALS Chemex
preparation lab in Mwanza, Tanzania. Sample pulps are sent by courier to
ALS Chemex analytical laboratory in Vancouver, Canada. 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 with an ICP-AES
finish (PGM-ICP23).

The quality control, technical information and all aspects of the
exploration program were supervised by Patricia Tirschmann, P.Geo., Vice
President of Exploration for CNI. Ms. Tirschmann is a qualified person as
defined by National Instrument 43-101.

About Continental Nickel

Continental Nickel Limited is an exploration company focused on
developing and advancing nickel sulphide exploration projects in
geologically prospective, but under explored regions globally.
Continental Nickel has 30,009,727 shares issued and outstanding
(32,435,916 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: No stock exchange, securities commission or other
regulatory authority has approved or disapproved the information
contained herein. 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.

Information in this announcement relating to exploration results is based
on data compiled by Patricia Tirschmann, P. Geo., who is a registered
member of the Association of Professional Geoscientists of Ontario and
who is a full-time employee of the company. Patricia Tirschmann has
sufficient relevant experience to qualify as a Competent Person under the
2004 Edition of the Australasian Code for the Reporting of Exploration
Results, Mineral Resources and Ore Reserves. Patricia Tirschmann consents
to the inclusion of the data in the form and context in which it appears.

Summary of Recent Assay Results, Nachingwea Project, Tanzania.

---------------------------------------------------------------------------
Drillhole Location Az/Dip Hole From To Inter- % Ni % Cu % Co
(NAD07-) (local Length (m) (m) val
grid) (m) (m)
---------------------------------------------------------------------------
NAD013
AREA :
053 L4449N, 050/-71 169.6 89.1 94.2 5.1 1.22 0.46 0.04
2701E
121.25 124.0 2.75 1.69 0.34 0.07
---------------------------------------------------------------------------
055 L4449N, 050/-71 120.0 63.85 64.5 0.65 4.73 0.51 0.08
2726E
---------------------------------------------------------------------------
056 L4424N, 050/-65 121.6 49.0 49.6 0.60 10.30 0.99 0.14
2746E
---------------------------------------------------------------------------
058 L4399N, 050/-69 121.6 39.75 40.0 0.25 10.15 0.15 0.15
2756E
45.6 46.3 0.7 2.27 0.61 0.03
---------------------------------------------------------------------------
060 L4399N, 050/-70 250.6 91.9 97.1 5.2 4.45 3.01 0.07
2683E
---------------------------------------------------------------------------
062 L4399, 050/-86 298.6 122.0 124.1 2.1 2.41 0.27 0.03
2682E
---------------------------------------------------------------------------
068 L4704N, 050/-65 596.1 52.0 58.4 6.4 1.1 0.22 0.02
2750E
---------------------------------------------------------------------------
TARGET H :
041 L4080N, 050/-58 169.4 84.6 88.35 3.75 2.07 0.71 0.03
2774E Incl.:
87.6 88.35 0.75 9.01 0.44 0.10
---------------------------------------------------------------------------
043 L4080N, 050/-73 172.6 84.0 90.8 6.8 5.53 0.31 0.08
2773E Incl.:
89.6 89.05 2.15 15.89 0.77 0.21
---------------------------------------------------------------------------
064 L4100N, 050/-71 142.6 38.0 40.0 2.0 1.75 0.49 0.05
2726E
109.0 110.0 1.0 0.10 1.47 0.01
---------------------------------------------------------------------------
070 L4228N, 050/-66 601.9 99.15 100.85 1.70 1.54 0.49 0.04
2690E
125.0 130.0 5.0 1.07 0.20 0.03
288.75 292.80 4.05 1.41 0.43 0.07
Incl.
288.75 289.75 1.0 2.64 0.94 0.12
---------------------------------------------------------------------------
TARGET L :
066 L4900N, 050/-58 175.5 NSA NSA NSA
2825E
---------------------------------------------------------------------------
TARGET M :
044 L5275N, 230/-64 109.3 83.0 94.3 11.3 1.98 0.47 0.04
3512E Incl.:
89.0 94.3 5.3 3.19 0.76 0.06
---------------------------------------------------------------------------
TARGET J :
065 L4479N, 050/-75 75.8 34.7 51.0 16.3 2.88 0.44 0.09
4231E Incl.:
34.7 38.10 3.4 5.71 0.54 0.16
---------------------------------------------------------------------------
069 L4479N, 050/-55 79.2 30.0 51.0 21.0 3.35 0.46 0.10
4231E Incl.:
32.65 45.10 12.45 4.81 0.65 0.15
& 32.65 39.0 6.35 7.11 0.71 0.22
---------------------------------------------------------------------------
067 L4450N, 050/-65 515.1 NSA NSA NSA
4156E
---------------------------------------------------------------------------
TARGET G :
040 L4400N, 050/-72 202.7 133.75 137.5 3.75 0.84 0.22 0.05
3874E
---------------------------------------------------------------------------
042 L4501N, 050/-73 196.7 25.5 31.0 5.5 0.56 0.19 0.04
3843E
79.4 82.4 3.0 0.66 0.17 0.05
---------------------------------------------------------------------------
045 L4400N, 050/-75 195.3 138.35 141.8 3.45 1.01 0.22 0.06
3825E
---------------------------------------------------------------------------
047 L4300N, 050/-80 175.7 NSA NSA NSA
3814E
---------------------------------------------------------------------------
050 L4600N, 050/-61 200.7 116.0 128.0 12.0 0.52 0.14 0.04
3890E
---------------------------------------------------------------------------
052 L4601N, 050/-65 200.7 98.0 108.5 10.5 0.72 0.16 0.03
3976E
---------------------------------------------------------------------------
054 L4650N, 050/-74 196.7 114.35 129.0 14.65 0.59 0.15 0.05
3974E
---------------------------------------------------------------------------
057 L4650N, 050/-61 199.4 104.0 121.1 17.1 0.53 0.14 0.04
3974E
---------------------------------------------------------------------------
059 L4700N, 050/-84 181.4 101.0 105.6 4.6 1.60 0.28 0.14
4024E Incl.:
101.0 103.2 2.2 2.26 0.27 0.19
---------------------------------------------------------------------------
061 L4400N, 050/-77 181.7 NSA NSA NSA
3799E
---------------------------------------------------------------------------
063 L4700N, 050/-69 181.6 NSA NSA NSA
4024E
---------------------------------------------------------------------------
TARGET N :
046 L5050N, 230/-80 156.7 NSA NSA NSA
4178E
---------------------------------------------------------------------------
TARGET O :
048 L3743N, 050/-60 148.5 NSA NSA NSA
6604E
---------------------------------------------------------------------------
TARGET P :
033 L4201N, 050/-75 232.7 49.0 62.15 13.15 0.72 0.20 0.04
3673E
---------------------------------------------------------------------------
051 L3570N, 050/-62 128.9 79.0 87.45 8.45 0.64 0.19 0.03
3559E
---------------------------------------------------------------------------

(i) Note: Intervals represent core lengths, not necessarily true widths.
Pt, Pd and Au assay results are not reported because in general, they are
less than 1.0 g/t on a combined basis.
(ii) NSA - No Significant Assays

To view a map of the Nachingwea Property Ntaka Grid Total Field
Magnetics

and TDEM Targets, please visit the following link:
http://www.ccnmatthews.com/docs/cni122-1.pdf

To view a map of the Nachingwea Property Ntaka Grid - West drill plan
please visit the following link:
http://www.ccnmatthews.com/docs/cni122-2.pdf

To view a map of the Nachingwea Property Ntaka Grid - East drill plan,
please visit the following link:
http://www.ccnmatthews.com/docs/cni122-3.pdf

TSX Venture Exchange does not accept responsibility for the adequacy or
accuracy of this release.

Contacts:
Continental Nickel Limited
Craig MacDougall, P. Geo.
President and CEO
(416) 364-7111
(416) 364-8114 (FAX)
Email: info@continentalnickel.com
Website: www.continentalnickel.com

Copyright 2008, Market Wire, All rights reserved.

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