Canada Nickel Advances Reid Project with Record 1-Kilometer Nickel Interval

• Canada Nickel achieved its longest nickel mineralization interval to date at Reid, spanning over 1 kilometer and extending beyond the current resource at depth by 300 meters.
• The drilling program successfully infilled and extended existing nickel mineralization by 200 to 300 meters in multiple directions, demonstrating significant resource expansion potential.
• Reid's geophysical footprint measures 3.9 square kilometers, more than twice the size of the company's Crawford project, indicating substantial scale potential.
• The company expects to publish an updated mineral resource estimate by year-end 2025, which is anticipated to significantly increase the Inferred resource category.
• The Reid project's strategic location 39 kilometers northwest of Timmins, Ontario, positions it within the emerging Timmins Nickel District alongside multiple potential development opportunities.

Canada Nickel Company Inc. (TSXV: CNC) (OTCQX: CNIKF) continues to advance its nickel exploration portfolio in Ontario's emerging Timmins Nickel District. The company operates a 100% owned Reid Nickel Sulphide Project located approximately 39 kilometers northwest of Timmins, Ontario, as part of its broader strategy to develop significant nickel resources in the region. With established projects including Crawford and now the expanding Reid property, Canada Nickel has positioned itself as a key player in North America's critical minerals sector, focusing on large-scale nickel deposits that could serve the growing electric vehicle battery supply chain.

The latest exploration results from Reid demonstrate the property's potential to become a substantial nickel resource, with drilling results indicating mineralization extends well beyond previously defined boundaries.

Exploration Results Demonstrate Exceptional Scale

The recent drilling campaign at Reid has produced the longest nickel mineralization interval in the project's history, with results showing 0.28% nickel over 1,018 meters. This extensive interval includes multiple higher-grade zones, including 0.36% nickel over 97 meters and 0.42% nickel over 45 meters. These results represent a significant expansion of the known mineralization, extending beyond the current resource at depth by 300 meters.

CEO Mark Selby emphasized the significance of these findings, stating:

"Reid continues to deliver, with today's results confirming its substantial potential size and scale and the potential for multiple projects in the Timmins Nickel District. These results also validate the considerable potential identified when the initial resource was published at the end of last year, supported by a 3.9-square-kilometre geophysical target that is more than twice the size of Crawford."

The drilling program comprised 28 holes completed during the first and second quarters of 2025, designed specifically to infill previous drill sections and support an updated mineral resource calculation. The systematic approach has successfully extended known mineralization in multiple directions, with extensions ranging from 200 to 300 meters to the north, west, and south of previously defined zones.

Technical Characteristics & Mineralization Profile

Reid represents a large serpentinized ultramafic intrusion with a geophysical footprint approximately 2.5 times larger than Canada Nickel's Crawford project. The geological composition consists mainly of dunite and minor peridotite, hosting multiple intervals of higher-grade nickel mineralization throughout the deposit.

A particularly significant feature is the "Central Dyke Corridor" located near the center of the intrusion, where the main dunite body intersects with a series of north-south oriented dykes. This geological structure appears to play a crucial role in the distribution and concentration of nickel mineralization across the property.

The recent drilling results from the final 20 holes of the infill program show that all holes intersected long intervals of mineralized dunite and minor peridotite. Two specific holes, REI25-82 and REI25-89, were strategically drilled in the western portion of the geophysical target to test for shallow, higher-grade nickel mineralization. Both holes successfully intersected the targeted mineralization immediately below the overburden layer, confirming the near-surface potential of the deposit.

Resource Development & Timeline Expectations

The Initial Reid Resource, published on December 23, 2024, established a substantial foundation for the project's development. The resource estimate included an Indicated Resource of 0.59 billion tonnes grading 0.24% nickel, containing 1.4 million tonnes of nickel metal. Additionally, an Inferred Resource of 0.99 billion tonnes grading 0.23% nickel was defined, containing 2.2 million tonnes of nickel metal.

Beyond the established resource categories, Canada Nickel identified an Exploration Target potential for an additional 0.9 to 2.1 billion tonnes grading 0.20 to 0.22% nickel. This exploration target represents significant upside potential that the current drilling program aims to convert into measured and indicated resource categories.

The company expects the updated mineral resource, scheduled for completion by year-end 2025, to significantly increase the size of the Inferred resource category while upgrading portions to the Indicated and Measured categories. This progression would enhance the project's bankability and provide greater confidence for future development planning.

Selby expressed confidence in the timeline, noting:

"We look forward to further demonstrating Reid's scale with an updated resource by year-end."

This statement indicates management's expectation that the current drilling results will translate into a materially larger resource base when the updated estimate is published.

Strategic Position in the Timmins Nickel District

Reid's location within the broader Timmins Nickel District provides strategic advantages for Canada Nickel's long-term development plans. The proximity to existing infrastructure and the potential for multiple projects within the district could create operational synergies and reduce overall development costs across the company's portfolio.

The 3.9-square-kilometer geophysical target at Reid represents more than double the size of the Crawford project's footprint, suggesting the potential for multiple mining areas within a single property. This scale could support extended mine life and provide flexibility in development sequencing based on market conditions and technical considerations.

The Timmins region's established mining infrastructure, including transportation networks, power supply, and skilled workforce availability, positions Reid favorably for future development. These regional advantages could contribute to reduced capital requirements and shorter development timelines compared to greenfield projects in less developed regions.

Market Context & Critical Minerals Demand

The timing of Reid's resource expansion aligns with growing global demand for nickel, particularly from the electric vehicle battery sector. As governments and automakers accelerate electrification programs, securing reliable nickel supply sources has become increasingly strategic for battery manufacturers and automotive companies.

Canada Nickel's focus on developing domestic North American nickel resources addresses supply chain security concerns that have emerged as critical considerations for Western manufacturers. The company's projects could serve as alternative supply sources to traditional nickel-producing regions, potentially commanding premium pricing for their strategic value.

The scale of Reid's potential resource, combined with its location in a mining-friendly jurisdiction, positions the project to serve large-scale industrial customers requiring long-term supply security. The deposit's characteristics suggest it could support conventional mining and processing methods, potentially offering cost advantages over more complex nickel projects.

Financial Implications & Development Path

The expansion of Reid's resource profile through the current drilling program represents significant value creation potential for Canada Nickel shareholders. Converting exploration targets into measured and indicated resources typically increases project valuations and enhances financing capabilities for future development phases.

The systematic infill drilling approach demonstrates management's focus on methodical resource development rather than pursuing speculative exploration targets. This strategy reduces technical risk and provides a clearer path toward eventual mining operations.

The expected resource update by year-end 2025 will provide investors with updated metrics for evaluating Reid's economic potential. The combination of increased tonnage and potential grade improvements could significantly enhance the project's net present value calculations and support future feasibility studies.

For Investors

Canada Nickel's latest drilling results at Reid demonstrate the project's potential to become a significant nickel resource within North America's critical minerals supply chain. The record-breaking 1-kilometer mineralization interval, combined with successful extension drilling in multiple directions, validates management's assessment of Reid's substantial scale potential.

For investors evaluating Canada Nickel, Reid represents a key value driver alongside the company's existing Crawford project. The anticipated resource update by year-end 2025 should provide clarity on the project's ultimate size and grade profile, enabling more precise valuation assessments. The strategic location within the Timmins Nickel District, combined with established regional infrastructure, positions Reid favorably for future development.

The systematic exploration approach and consistent delivery of positive drilling results demonstrate management's technical competence and strategic focus. As the critical minerals sector continues to attract investment attention, Canada Nickel's expanding resource base at Reid positions the company to benefit from the growing demand for North American nickel sources. Investors should monitor the year-end resource update as a key catalyst for reassessing the company's overall value proposition and long-term development potential.