Canada Nickel Advances MacDiarmid Exploration and Secures C$6.37M in Financing

• MacDiarmid drilling intersected significant nickel mineralization, including 0.25% Ni over 363 metres in hole MAC25-09, with mineralized zones spanning approximately 2,200 metres in strike length and 400 metres in width
• Completed non-brokered private placements totaling C$6.37 million, including 4,245,750 flow-through shares at C$1.06 per share and 2,201,259 units to Agnico Eagle at C$0.85 per unit
• Warrants from unit offering exercisable at C$1.20 until July 7, 2028, providing potential future capital
• Follow-up exploration at Midlothian property scheduled to begin the week of July 14, 2025
• Initial resource estimates for Mann Central and Texmont expected in July, with three additional estimates planned by year-end

Canada Nickel Company Inc. (TSXV: CNC, OTCQX: CNIKF) is advancing a pipeline of nickel-sulphide projects to supply the growing electric vehicle and stainless steel markets. Headquartered in Toronto, the company is led by CEO Mark Selby, a seasoned executive with experience in the nickel sector, including past leadership at Royal Nickel Corporation (RNC). Under his guidance, Canada Nickel has positioned itself as a potential major supplier of low-carbon nickel through its strategic focus on regional development and downstream processing opportunities.

Canada Nickel's cornerstone asset is the 100%-owned Crawford Nickel-Cobalt Sulphide Project, located in Ontario's Timmins-Cochrane mining camp. The company is also actively pursuing a NetZero metals initiative, seeking to produce nickel, cobalt, and iron products with minimal carbon footprint. This dual focus on traditional mining operations and sustainable processing technologies reflects the company's strategic approach to meeting evolving market demands while addressing environmental considerations.

Exploration Progress at MacDiarmid

Expanding the Central Zone

Canada Nickel's winter 2025 drilling campaign at the MacDiarmid property, located 23 kilometres southwest of Crawford, focused on testing extensions to previously identified mineralized areas within a 3-kilometer-long ultramafic body. Seven new holes were completed in the central portion of the ultramafic unit, with results indicating broad mineralized intervals. Hole MAC25-09 returned 0.25% nickel across 363 metres, while MAC25-07 and MAC25-08 showed stacked mineralized intervals with grades consistently around 0.25-0.26% nickel. The assays revealed disseminated nickel sulphides throughout the serpentinized dunite host rock, along with co-products including cobalt, palladium, platinum, chromium, iron, and sulphur at varying concentrations.

The drilling results suggest the mineralized zone spans approximately 2,200 metres in strike length and 400 metres in width, representing a larger footprint of mineralized material for the early-stage exploration project. The broad widths and consistent grades near surface appear characteristic of bulk-tonnage deposits, where economics are typically driven by volume rather than high-grade concentrations. While additional elements like cobalt, iron, and platinum group metals were identified in the assays, their potential economic contribution would depend on recovery and processing methods that have yet to be determined. The company indicated that further investigation of certain areas, including a fault zone intersected by MAC25-10, is planned for later in 2025.

Regional Development Context

The continued expansion of mineralized zones at MacDiarmid adds to the company's regional exploration database. The property's location in the Timmins region provides access to established mining infrastructure and transportation networks. The MacDiarmid property is part of Canada Nickel's broader district-scale approach, which includes multiple properties in the Timmins-Cochrane area.

The company's regional strategy involves advancing multiple nickel-sulphide targets across the district, with the Crawford Project serving as the flagship asset. This approach allows the company to evaluate various mineralized zones while building a comprehensive geological understanding of the area's potential. The proximity of these properties to one another and to established mining infrastructure represents a logistical advantage for exploration activities and potential future development scenarios.

Use of Proceeds

Financing Structure and Fund Allocation

Canada Nickel completed two separate offerings totaling C$6.37 million. The first consisted of 4,245,750 flow-through shares issued at C$1.06 per share, while the second involved 2,201,259 units issued to Agnico Eagle at C$0.85 per unit. Each unit consisted of one common share and one-half warrant, with each full warrant exercisable at C$1.20 for a three-year term ending July 7, 2028. The unit issuance was part of Agnico Eagle's pro rata participation rights from a previously closed brokered placement.

The flow-through structure enables investors to benefit from Canadian exploration expense deductions under federal and Ontario tax legislation. Flow-through proceeds will be used exclusively for eligible exploration expenditures qualifying as "Canadian exploration expenses," including critical mineral expenditures under both federal and Ontario tax laws. These must be incurred or deemed incurred by December 31, 2026, and renounced to purchasers by December 31, 2025.

Net proceeds from the unit offering will support ongoing advancement of the Crawford Nickel Sulphide Project, working capital, and general corporate purposes. This includes engineering, permitting, and continued exploration at district-scale targets. The funding structure provides flexibility for the company to advance multiple priorities simultaneously while maintaining compliance with flow-through spending requirements.

With this funding secured, Canada Nickel will continue to progress the Crawford Project through further engineering and permitting stages while accelerating regional exploration. The next key milestones include updated technical studies, exploration results, and regulatory approvals for both upstream and downstream components of its development strategy.