Breakthrough Metallurgical Results Propel Canada Nickel's Mann Project Forward

• Canada Nickel reports strong initial metallurgical test results from its Mann Northwest property
• Overall nickel recoveries of 58% and 59% achieved using standard Crawford process flowsheet
• Nickel and iron concentrate grades in line with expectations
• Results demonstrate potential to leverage Crawford development work across Timmins Nickel District
• Canada Nickel is advancing next-gen nickel-sulfide projects for the EV and stainless steel markets

About Canada Nickel

Canada Nickel Company (TSXV:CNC) (OTCQX:CNIKF) is advancing the next generation of nickel-sulfide projects to deliver the nickel required to feed the high growth electric vehicle and stainless steel markets. The company has applied in multiple jurisdictions to trademark the terms NetZero NickelTM, NetZero CobaltTM, NetZero IronTM and is pursuing the development of processes to allow the production of net zero carbon nickel, cobalt, and iron products.

Canada Nickel is currently anchored by its 100% owned flagship Crawford Nickel-Cobalt Sulfide Project located in the prolific Timmins-Cochrane mining camp of northern Ontario. It is expanding its footprint across the region with additional acquisitions including the Mann property referenced in this release. The company aims to provide investors with secure leverage to nickel in low political risk jurisdictions, positioning it to become a leading supplier to the battery and stainless steel industries.

Promising Initial Metallurgical Results from Mann Northwest

Canada Nickel has announced robust initial metallurgical test results from its Mann Northwest property, part of the larger Mann project located in the prolific Timmins mining region of Ontario. The company reported overall nickel recoveries of 58% and 59% from the first two tests, achieved using the standard process flowsheet developed for its flagship Crawford Nickel-Cobalt Sulfide project.

The samples tested had nickel head grades of 0.29% and 0.30% and were selected from well-serpentinized dunite, confirming the potential to transfer the Crawford metallurgical approach to the mineralization at Mann. In addition to the strong nickel recoveries, both samples delivered nickel concentrate grades exceeding 38% and iron recoveries of 44% and 48% into concentrates grading 58% and 62% iron.

While still early stage, these positive initial results suggest Canada Nickel may be able to replicate the success and knowledge gained at Crawford across its portfolio of properties in the emerging Timmins Nickel District. The company will now proceed with further open circuit variability testing to optimize performance, followed by locked-cycle tests to confirm recoveries and grades for future engineering studies.

Demonstrating District-Scale Potential

The Mann property covers three large ultramafic targets, each with a geophysical footprint exceeding the 1.6 km2 area of Crawford. Mann Northwest, from which these initial samples were taken, has an impressive target footprint of 6.0 km2.

Canada Nickel CEO Mark Selby commented: "These initial results at Mann Northwest, along with our earlier success achieved at Reid using the standard flowsheet developed for Crawford, demonstrate the potential to leverage our development work at Crawford across the portfolio of targets throughout the Timmins Nickel District."

The company is in the process of vending into an 80% interest in the Mann property, with the remaining 20% to be retained by partner Noble Mineral Exploration. Located just 45 km northeast of Timmins and 20 km south of Cochrane, the project is favorably situated in the heart of the well-established Timmins-Cochrane mining camp.

Advancing a New Generation of Nickel Sulfide Projects

With its flagship Crawford project and now a growing regional land package, Canada Nickel is aiming to develop the next generation of nickel sulfide projects to supply the electric vehicle and stainless steel markets. Demand for nickel is forecast to grow significantly over the coming decade as the world transitions to clean energy technologies and infrastructure.

The company has applied to trademark the terms NetZero NickelTM, NetZero CobaltTM, and NetZero IronTM in multiple jurisdictions as it advances the development of processes to produce net zero carbon nickel, cobalt and iron products. Canada Nickel seeks to provide investors with secure leverage to rising nickel demand by focusing on nickel sulfide projects in low political risk jurisdictions.

Details of the Metallurgical Test Program

The two samples from Mann Northwest were tested at a third-party lab, with Sample 1 taken from 200-273m depth in drill hole MAN23-03 and Sample 2 from 112-164m depth in drill hole MAN23-02.

Both samples delivered strong recoveries of critical metals using the standard flowsheet and test procedures developed through the variability program for the feasibility study at Crawford. This includes key parameters such as target grind sizes, reagent dosing strategies and flowsheet configuration.

Sample 1 achieved 59% nickel recovery, 28% cobalt recovery, 44% iron recovery and 10% chromium recovery. The nickel concentrate grade exceeded 38%.

Sample 2 returned similar results with 58% nickel recovery, 15% cobalt recovery, 48% iron recovery and 10% chromium recovery, also into a +38% nickel concentrate.

More than half of the recovered nickel was reported to the high-grade nickel concentrates, with the balance recovered into the byproduct iron concentrate streams. Average iron concentrate grades were 58% and 62% for the two samples.

Next Steps in Evaluation of Mann

Canada Nickel will now proceed with a more extensive metallurgical testing program to fully evaluate the Mann mineralization, following a similar path to what was completed at Crawford.

This will include open circuit variability testing of a larger number of samples to optimize flowsheet parameters and confirm metallurgical performance across a range of feed characteristics. Locked-cycle tests will then be performed to demonstrate steady-state metallurgical performance and provide confirmation of concentrate grades and recoveries for future engineering.

Continued drilling is also planned to define the extents of mineralization at Mann and to support initial mineral resource estimation. The three Mann targets remain largely unexplored and represent a significant discovery opportunity for the company.

Conclusion

The initial metallurgical test results from Mann Northwest are a positive early indicator for Canada Nickel as it cost-effectively advances a portfolio of nickel sulfide assets across the Timmins region. The achievement of strong nickel recoveries and high concentrate grades using the same process approach developed for Crawford suggests potential for the company to deploy a central processing facility for multiple deposits in the future.

While these are only the first results and much work remains to define resources and refine metallurgy, the Mann project provides an exciting near-term growth opportunity for Canada Nickel as a potential source of additional feed beyond Crawford. The company is well positioned to capitalize on the global transition to clean energy technologies, with a large resource base in a Tier 1 jurisdiction and favourably located projects supported by existing regional infrastructure.

With a strong technical team, an innovative approach to sustainable metal production, and a commitment to leading ESG practices, Canada Nickel offers a compelling investment case in the battery metals space. As it continues to deliver exploration success and advance development of its project pipeline, the company is one to watch in the rapidly evolving nickel industry.