Canada Nickel - The Key to Unlocking North America's EV Revolution

• Canada Nickel is advancing the large-scale Crawford nickel sulfide project in Timmins, Ontario, targeting production by 2027
• The company has received investments from major mining companies Anglo American and Agnico Eagle, as well as battery maker Samsung SDI
• Canada Nickel plans to build downstream processing facilities, which the government is excited about as part of its mine-to-EV strategy
• The company is engaging with provincial and federal government officials who are providing support and funding for critical mineral projects
• Canada Nickel has a large land package around Crawford with 20+ properties and expects to publish 7 additional resources by March 2025

Nickel's Critical Role in the EV Revolution

The global shift towards electric vehicles is accelerating demand for critical battery metals, with nickel playing an essential role. As automakers ramp up production of EVs to meet increasingly stringent emissions regulations and growing consumer interest, securing reliable supplies of nickel has become a top priority. This presents a compelling opportunity for investors to gain exposure to the EV revolution through nickel mining companies poised to help meet this burgeoning demand.

Canada Nickel: Advancing a World-Class Nickel Sulfide Project

One company well-positioned to capitalize on the EV boom is Canada Nickel (TSX-V:CNC). The company's flagship Crawford project, located in the established Timmins mining camp of Ontario, is the second largest nickel sulfide reserve in the world. Canada Nickel is rapidly advancing Crawford towards production, with a target of first output by 2027.

Mark Selby, CEO of Canada Nickel, emphasized the project's scale and strategic importance: "With Crawford you know, [it will be the] Western world's largest nickel sulfide operation when fully ramped up. And then you know, even more importantly for governments both federal and provincial, there's a number of reasons we're doing the downstream announcement. It really is, you know, in the whole mine to EV strategy that they have at the federal level in Ontario, it's that first stage processing that really is the critical missing link."

Interview with President & CEO, Mark Selby

Major Mining & Battery Companies Invest in Canada Nickel

The potential of Crawford and Canada Nickel's other properties has attracted investments from some of the biggest names in mining and EV batteries. Diversified global miners Anglo American and Agnico Eagle, two of the world's largest mining companies, have taken equity stakes in Canada Nickel. This not only provides a strong vote of confidence in the project but also brings valuable technical expertise.

Perhaps even more significantly, Samsung SDI, one of the largest EV battery manufacturers, has also invested directly in Canada Nickel. This strategic investment underscores the importance major battery makers are placing on securing nickel supplies. It could also potentially open the door for Canada Nickel to sign lucrative nickel offtake agreements, further de-risking the Crawford project.

Government Backing Critical Mineral Development

The Canadian government has identified nickel as a critical mineral essential to the energy transition. Both federal and provincial governments are providing strong support for the development of Ontario's nickel resources. Canada Nickel has been engaging closely with government officials about its plans, including a recent discussion with Ontario Premier Doug Ford, Mines Minister George Pirie, and Industry Minister Vic Fedeli about the Crawford project and associated downstream processing facilities.

This governmental support goes beyond just words - Canada Nickel expects a steady stream of funding announcements from various federal programs starting in mid-2024. CEO Mark Selby views this as "a once in a generation opportunity, particularly with assets the scale of ours, to basically build a multi-decade asset with a bunch of free leverage from the governments who want critical minerals to be mined and processed here."

Plans for Integrated Downstream Processing

Beyond just extracting nickel, Canada Nickel is planning to build downstream processing plants to upgrade the metal into material suitable for EV batteries. The Ontario and Canadian governments are particularly excited about these plans, as they fill a missing link in the "mine-to-EV" supply chain the country is looking to build.

With more government funding available for processing than mining alone, this integrated approach could pay off handsomely for Canada Nickel. The company has assembled a top-tier team to advance these plans, including the former head of Inco's global refinery network.

Huge Exploration Potential Around Crawford

While Crawford alone is a world-class asset, Canada Nickel has assembled a dominant land position surrounding the project, with over 20 different properties. By applying its geophysical exploration model that has proven extremely effective at Crawford, the company expects to publish maiden resources on seven of these targets by March 2025.

Early indications are very promising, with these new properties having a combined geophysical footprint nearly 10 times larger than Crawford's. While more drilling is needed, this points to the potential for Canada Nickel to become a true nickel district, possibly rivaling world-class camps like Sudbury. Selby hinted at the scale of this upside: "We'll see whether we double or triple or, see where we get to by this time next year in terms of overall resource base."

The Investment Thesis for Canada Nickel

• Exposure to soaring nickel demand from the EV revolution through the world's second largest nickel sulfide reserve
• Backed by major mining companies and Samsung SDI - significantly validates the project and company
• Expects to receive significant government funding thanks to nickel's "critical mineral" status
• Additional value creation through integrated downstream processing - captures more of the battery supply chain
• Huge exploration upside with properties surrounding Crawford potentially rivaling world-class nickel camps
• Led by experienced management team with track record of success in nickel project development

In a world racing towards electrification, securing supplies of nickel and other key battery metals is essential. Canada Nickel offers a unique combination of scale, exploration upside, processing plans and government support to become a major nickel supplier to the EV industry. With demand poised to soar, now appears an opportune time for investors to take a position in this compelling story.

Nickel Insight

The 21st century will likely be remembered as the dawn of the electric vehicle age. Concerns about climate change are driving a monumental shift from internal combustion engines to battery-powered EVs. Governments around the world are enacting increasingly aggressive emissions reduction targets and supporting this transition with consumer incentives and charging infrastructure. Major automakers have read the writing on the wall and are investing hundreds of billions of dollars to electrify their fleets.

However, this EV revolution hinges on securing vast quantities of battery raw materials, especially nickel. The metal is a key component of the cathodes in lithium-ion batteries, prized for its ability to increase energy density and range. As EV production scales up into the millions of units, nickel demand could increase 4-8x by 2040 according to some forecasts.

Meeting this demand growth requires developing new nickel projects today, given the long lead times in the mining industry. Mark Selby emphasized the urgency: "If you could find another Crawford, we would like a piece of that as well and so, they [automakers and battery companies] have the plans, they have the budgets, they know how much nickel they're going to need by 2027, by 2030, by 2032 and they know there's very few new projects that can actually deliver it."