Canada Nickel Expands Midlothian Nickel Resource with High-Grade Drilling Results

• Canada Nickel reported consistently high-grade nickel intersections at Midlothian with grades of 0.29-0.30% nickel over hundreds of metres, representing the highest-grade intervals across the company's 18 drilled properties.
• The company successfully extended the mineralized zone by 200-300 metres to the south, expanding the potential resource footprint on a property that already exceeds the Crawford project's target area by 0.2 square kilometres.
• Midlothian offers operational advantages including year-round road access, shallow overburden, and near-surface mineralization starting at depths less than seven metres below surface.
• An initial resource estimate is targeted for completion by year-end 2025, utilizing three years of drilling data and potentially adding significant nickel resources to the company's portfolio.
• The company can secure 100% ownership of the property through a final payment of $400,000 and 140,000 shares, representing a modest investment for a potentially substantial asset.

Canada Nickel Company Inc. (TSXV: CNC) (OTCQX: CNIKF) has released additional positive exploration drilling results from its Midlothian nickel sulphide property, demonstrating consistent high-grade mineralization and expanding the known resource footprint. Canada Nickel is a nickel company focused on developing nickel sulphide projects to supply the critical minerals required for the energy transition. The company operates multiple properties across Ontario, with its flagship Crawford project being one of the largest nickel developments in North America. The latest Midlothian results reinforce the company's position in developing what it refers to as its "Three Giants" portfolio of nickel assets.

The Midlothian property results are particularly significant for investors as they demonstrate the potential for a substantial nickel resource with characteristics that may offer operational advantages over other projects in the portfolio. The property's year-round road accessibility, shallow overburden, and larger target footprint compared to the flagship Crawford project position it as a potentially valuable asset within Canada Nickel's development pipeline.

Key Drilling Results & Resource Expansion

The latest drilling campaign at Midlothian has yielded consistently high-grade nickel intersections across multiple holes. Drill hole MID25-17A intersected strong nickel mineralization immediately below overburden, recording 0.30% nickel over 18.7 metres and 0.30% nickel over 330.0 metres. Similarly, MID25-18A intersected 0.29% nickel over 449.0 metres, including a higher-grade zone of 0.36% nickel over 10.5 metres.

These results represent a significant expansion of the known mineralized zone, with the company successfully extending the outline of nickel mineralization by 200-300 metres to the south. The consistency of grades across extended intervals indicates a robust mineralized system that could support substantial resource calculations.

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

"The third of our 'Three Giants' continues to exceed expectations. The latest drill assays from Midlothian have delivered the most consistently higher-grade intervals we've seen across any of our 18 drilled properties, with the most recent three holes each returning 0.29–0.30% nickel over several hundred meters of core."

Property Characteristics & Development Advantages

The Midlothian property offers several operational advantages that distinguish it from other assets in Canada Nickel's portfolio. Located 70 kilometres south-southeast of Timmins and 25 kilometres west of Matachewan, the property benefits from year-round road accessibility, which could reduce development and operational costs compared to more remote locations.

The geological characteristics of Midlothian present additional advantages. The property features shallower overburden compared to other projects, potentially reducing stripping requirements and initial capital expenditures. The target footprint measures 2.7 kilometres long and 0.4 to 0.9 kilometres wide, covering 1.7 square kilometres, which exceeds the Crawford project's target footprint of 1.5 square kilometres.

Selby highlighted these advantages, noting:

"With a target footprint larger than our Crawford project and shallower overburden, Midlothian is showing its potential through these results."

2025 Drilling Campaign & Technical Results

The 2025 summer drilling campaign comprised six infill drillholes designed to better define the mineralized zone and support resource estimation work. All six holes intersected long, largely continuous intervals of mineralized dunite. Notably, the two holes collared directly on top of the mineralization intersected it at shallow depths of less than seven metres, confirming the near-surface nature of the resource.

The drilling targeted a geophysical anomaly measuring 2.7 kilometres long and 0.4 to 0.9 kilometres wide. While assay results have been reported for three of the six completed holes, results for the remaining three holes are still pending, potentially providing additional positive data to support resource estimation.

The technical success of the drilling program demonstrates the predictability of the mineralized system and supports the company's confidence in advancing toward a resource estimate.

Resource Development Timeline & Corporate Strategy

Canada Nickel has committed to producing an initial resource estimate for Midlothian by year-end 2025, utilizing the combined dataset from drilling campaigns conducted in 2023, 2024, and 2025. This timeline positions the company to potentially add a significant nickel resource to its portfolio within the current year.

The Midlothian property operates under a joint-venture structure with Canadian Gold Miner Corp. and Laurion Mineral Exploration Inc. Canada Nickel is in the final year of a four-year agreement requiring a final payment of $400,000 and the issuance of 140,000 shares to earn a 100% interest in the property. This relatively modest investment to secure full ownership represents an attractive risk-adjusted opportunity for shareholders.

Selby expressed confidence in the resource development timeline, stating:

"We look forward to announcing its initial resource estimate later this year."

Financial Considerations & Share Issuances

In conjunction with the drilling results announcement, Canada Nickel disclosed its agreement to issue 333,120 common shares valued at $249,840.51 to satisfy obligations to a service provider, subject to TSX Venture Exchange approval. These shares will be subject to a four-month hold period under applicable securities laws. This share issuance represents a minor dilution event but demonstrates the company's approach to managing cash flow while advancing exploration activities.

The financial commitment required to complete the Midlothian joint-venture agreement remains modest relative to the potential value being demonstrated through drilling results. The final $400,000 cash payment and 140,000 share issuance represent a small investment to secure a potentially significant asset.

For Investors

Canada Nickel's Midlothian property represents a compelling addition to the company's nickel development portfolio, offering a combination of high-grade mineralization, favorable operational characteristics, and near-term resource development potential. The consistency of drilling results across multiple campaigns and the expansion of the mineralized footprint support the property's potential to become a significant nickel asset.

For investors evaluating Canada Nickel, the Midlothian results demonstrate the company's ability to advance multiple high-quality nickel projects simultaneously while maintaining cost discipline. The pending initial resource estimate provides a near-term catalyst that could substantially increase the company's total resource base and support future development planning. The operational advantages of year-round access and shallow mineralization could translate into favorable project economics when development studies commence.

The modest investment required to secure full property ownership, combined with the demonstrated exploration success, positions Midlothian as a value-accretive asset within Canada Nickel's broader strategy of developing large-scale nickel resources to serve the growing electric vehicle and energy storage markets.