SHARE CAPITAL, WARRANTS AND OPTIONS (Tables)

9 Months Ended

Sep. 30, 2022

IfrsStatementLineItems [Line Items]

SCHEDULE OF SHARE CAPITAL

	Shares Outstanding		Share Capital
North American Nickel Inc.		(post-consolidation basis)
December 31, 2020		21,966,730	$	89,626,730
Share capital issued through private placement		1,658,133		1,989,760
Share issue costs		-		(89,935	)
Value allocated to warrants		-		(495,228	)
Exercised options		100,000		112,000
Exercised options fair value		-		92,478
Exercised warrants		2,516,063		1,641,674
Exercised warrants fair value		-		573,502
December 31, 2021		26,240,926		93,450,981
Share capital issued through subscription receipt financing		4,223,600		10,136,640
Share issue costs		-		(913,304	)
Exercised warrants		1,283,873		717,420
Exercised warrants fair value		-		138,662
Balance as at August 3, 2022 prior to business combination with PNRC		31,748,399	$	103,530,399

Notes to the Unaudited Condensed Interim Consolidated Financial statements

For the Three and Nine Months Ended September 30, 2022

(Expressed in Canadian dollars)

	Shares Outstanding			Share Capital
Premium Nickel Resources Corp.
December 31, 2020		64,083,487		$	1,468,174
Share capital issued through private placement		12,596,421			6,771,729
Share issue costs					(287,228	)
December 31, 2021		76,679,908			7,952,675
Share capital issued through private placement		8,936,167			22,388,599
Share issue cost		-			(1,960,977	)
Balance as at August 3, 2022 prior to business combination with NAN		85,616,075	*	$	28,380,297

* Before the closing of the RTO, NAN owned 7,667,707 common shares of PNRC, representing approximately 8.96% of the issued and outstanding common shares of PNRC, based on there being 85,616,075 common shares of PNRC issued and outstanding at that time.

Subsequent to the RTO transaction, the share capital of the Company was as follows:

	Shares Outstanding		Share Capital
Premium Nickel Resources Ltd. (formerly “North American Nickel Inc.”)
Balance as at August 3, 2022 prior to business combination with PNRC		31,748,399	$	103,530,399
Decrease in the share capital to that of PNRC upon RTO (Note 4)		-		(75,150,102	)
		31,748,399		28,380,297
Issued pursuant to reverse takeover in exchange for shares of PNRC (Note 4)		82,157,536		92,070,357
		113,905,935		120,450,654
Exercise warrants post-RTO		1,236,408		569,399
Exercised warrants fair value				3,019,037
Exercise options post-RTO		300,000		117,000
Exercised options fair value				101,531
Balance as at September 30, 2022		115,442,343	$	124,257,621

SCHEDULE OF INPUTS TO OPTION PRICING MODEL

The fair value of stock options granted and vested during the nine months ended September 30, 2022 was calculated using the following assumptions:

	September 30, 2022			December 31, 2021
Expected dividend yield		0	%		0	%
Latest private placement price	$	2.49		$	0.95
Expected share price volatility		125.83	%		125.18%-127.03	%
Risk free interest rate		1.68	%		0.42% - 1.11	%
Expected life of options		5 years			5 years

SCHEDULE OF NUMBER AND WEIGHTED AVERAGE EXERCISE PRICES OF WARRANTS

The outstanding warrants of NAN prior to the completion of the RTO were as follows:

North American Nickel	Number Outstanding (Post-consolidation basis)			Weighted Average Exercise Price ($)
December 31, 2021		3,216,565			0.75
Issued		295,652			2.40
Exercised		(1,283,877	)		0.56
Cancelled / expired		-			-
Balance as at August 3, 2022 prior to business combination with PNRC		2,228,340			1.11

Subsequent to the RTO, the outstanding warrants of the Company were as follows:

Premium Nickel Resources Ltd.	Number Outstanding (Post-consolidation basis)			Weighted Average Exercise Price ($)
Balance as at August 3, 2022 prior to business combination with PNRC		2,228,340			1.11
Issued		-			-
Exercised		(1,236,408	)		0.46
Cancelled / expired		(12,375	)		-
Balance as at September 30, 2022		979,557			1.94

SCHEDULE OF NUMBER AND WEIGHTED AVERAGE REMAINING CONTRACTUAL LIFE OF OUTSTANDING WARRANTS

At September 30, 2022, the Company had outstanding common share purchase warrants exercisable to acquire common shares of the Company as follows:

Warrants Outstanding		Expiry Date	Exercise Price ($)		Weighted Average remaining contractual life (years)
	683,905	April 16, 2023		1.75		0.38
	295,652	August 3, 2024		2.40		0.55
	979,557					0.93

SCHEDULE OF NUMBER AND WEIGHTED AVERAGE EXERCISE PRICES OF SHARE OPTIONS

The outstanding options of each company prior to the completion of the RTO were as follows:

North American Nickel	Number Outstanding (post-consolidation basis)			Weighted Average Exercise Price ($)
December 31, 2021		3,010,919			1.35
Cancelled/expired		(15,125	)		6.00
Balance as at August 3, 2022 prior to business combination with PNRC		2,995,794			1.33

Notes to the Unaudited Condensed Interim Consolidated Financial statements

For the Three and Nine Months Ended September 30, 2022

(Expressed in Canadian dollars)

Premium Nickel Resources Corp.	Number Outstanding		Weighted Average Exercise Price ($)
December 31, 2021		5,775,000		0.52
Issued		2,600,000		2.49
Balance as at August 3, 2022 prior to business combination with NAN		8,375,000		1.13

Subsequent to the RTO, the outstanding options of the Company were as follows:

Premium Nickel Resources Ltd.	Number Outstanding		Weighted Average Exercise Price ($)
Balance as at August 3, 2022 prior to business combination with PNRC		2,995,794		1.33
Issued pursuant to RTO in exchange for options of PNRC		8,827,250		1.16
Balance as at September 30, 2022		11,823,044		1.21

SCHEDULE OF NUMBER AND WEIGHTED AVERAGE REMAINING CONTRACTUAL LIFE OF OUTSTANDING SHARE OPTIONS

Details of options outstanding as at September 30, 2022 are as follows:

Options Outstanding		Options Exercisable		Expiry Date	Exercise Price ($)		Weighted average remaining contractual life (years)
	1,160,000		1,160,000	February 24, 2025		0.80		0.24
	240,000		240,000	August 19, 2025		0.45		0.06
	4,743,000		4,743,000	January 26, 2026		0.39		1.34
	597,000		597,000	February 25, 2026		1.60		0.17
	1,343,850		1,343,850	September 29, 2026		0.91		0.45
	998,794		998,794	October 25, 2026		2.00		0.34
	2,740,400		2,740,400	January 20, 2027		2.62		1.00
	11,823,044		11,823,044					3.60

Warrant reserve [member]

IfrsStatementLineItems [Line Items]

SCHEDULE OF INPUTS TO OPTION PRICING MODEL

The fair value of the liability of the Warrant was estimated using the Black-Scholes Option Pricing Model with the following assumptions:

	June 30, 2022			December 31, 2021
Expected dividend yield		0	%		0	%
Latest private placement price	$	2.49		$	0.95
Expected share price volatility		141.63	%		144.13	%
Risk free interest rate		3.14	%		1.02	%
Remaining life of warrants		2.66 years			3.16 years