Canada Nickel Expands Timmins District to Challenge Sudbury's Scale

• Canada Nickel announced initial resources at Midlothian (595 Mt Inferred at 0.28% nickel) and Bannockburn (63 Mt Indicated, 129 Mt Inferred), expanding the Timmins Nickel District to 3.98 billion tonnes Measured & Indicated at 0.24% nickel containing 9.42 million tonnes of nickel metal.
• The Timmins District now contains 20.7 million tonnes of nickel across eight published resources, exceeding Sudbury's historic 19 million tonne pre-mining endowment, positioning it as a globally significant nickel region.
• Crawford Project remains on track for year-end 2026 construction start with improved economics: US$2.8 billion NPV and 17.6% IRR from March 2025 FEED results, supported by strategic shareholders including Agnico Eagle, Samsung SDI, and Anglo American.
• Indonesia's increasing control of global nickel supply (61% of production) and implementation of shorter mining licenses creates supply risk and opportunity for diversified sources in stable jurisdictions like Canada.
• Three separate carbon sequestration pathways position Canada Nickel to deliver zero-carbon nickel products, addressing growing demand for low-carbon battery materials from automotive and industrial sectors.

Canada Nickel Company's December 18, 2025 announcement of initial mineral resources at its Midlothian and Bannockburn projects represents a significant milestone in establishing the Timmins region of Ontario as a world-class nickel district. The company has now published eight of nine planned resource estimates, collectively containing more nickel than the historic Sudbury Basin, long considered Canada's premier nickel district. This achievement arrives as global nickel markets face increasing concentration risk in Indonesia and growing demand for low-carbon nickel supply chains from the electric vehicle sector.

The timing of this resource expansion proves particularly relevant as Indonesia implements more aggressive supply management policies. The Southeast Asian nation now controls 61% of global nickel production, exceeding OPEC's peak oil market share of 54% in 1973. Recent moves to reduce mining licenses from three years to one year, coupled with forestry-related production closures, signal a shift toward deliberate supply management that could reshape global nickel pricing dynamics.

For investors seeking exposure to the energy transition through critical minerals, Canada Nickel presents a rare opportunity to invest in a large-scale, low-cost nickel project in a stable jurisdiction with strategic partnership validation and potential for carbon-neutral production.

Company Overview

Canada Nickel Company operates as a pure-play nickel developer focused on advancing the Crawford Nickel Sulphide Project while systematically exploring and defining resources across the Timmins Nickel District in Ontario. The company has consolidated more than 20 ultramafic targets covering 42 square kilometers of prospective geology, approximately 25 times the 1.6 square kilometer footprint of the Crawford deposit itself. This land position provides significant exploration upside and potential for a multi-decade mining operation feeding centralized processing infrastructure.

Strategic validation came through equity investments from Agnico Eagle Mines (10.0% ownership), Samsung SDI (7.2%), and Anglo American (6.3%), alongside a convertible note held by Taykwa Tagamou Nation representing 7.1% on conversion. These partnerships provide not only capital but also technical expertise, offtake potential, and operational knowledge from established mining and battery manufacturing operations. Export Development Canada has issued a US$500 million Letter of Interest to serve as Mandated Lead Arranger for debt financing, while a leading Canadian financial institution provided a C$500 million support letter.

The company has established NetZero Metals as a wholly-owned subsidiary to develop downstream nickel processing and stainless steel manufacturing facilities in the Timmins region. Led by Mike Cox, who brings 35 years of nickel processing experience including senior roles with Inco Ltd. and Vale SA, NetZero Metals aims to create the largest nickel processing facility in North America and Canada's only large-scale stainless and alloy steel production operation.

Key Development: Midlothian & Bannockburn Resources

Canada Nickel's December 18, 2025 announcement detailed initial resource estimates for two projects that demonstrate the breadth and consistency of nickel mineralization across the Timmins District. Midlothian delivered 595 million tonnes of Inferred Resources at 0.28% nickel, containing 1.68 million tonnes of nickel metal, the highest average grade among the company's projects to date. Notably, this resource covers only 45% of Midlothian's identified geophysical target area, with an Exploration Target of an additional 434 to 980 million tonnes grading between 0.25% and 0.27% nickel remaining for follow-up drilling.

Bannockburn established 63 million tonnes of Indicated Resources at 0.28% nickel and 129 million tonnes of Inferred Resources at 0.27% nickel, containing 0.18 million and 0.34 million tonnes of nickel respectively. The resource covers approximately 70% of Bannockburn's geophysical footprint, leaving scope for expansion. Bannockburn drilling also intersected a significant massive sulphide discovery in the F-Zone, with 3.95% nickel, 0.40% copper, 0.15% cobalt and 1.08 g/t palladium plus platinum over 4.0 meters, the first massive sulphide intersection Canada Nickel has drilled in the Timmins District, potentially indicating higher-grade mineralization styles.

Mark Selby, CEO of Canada Nickel stated:

"We continue to demonstrate the world class potential of the Timmins Nickel District and have now published eight of nine resources, with over 3.9 billion tonnes at 0.24% nickel for 9.42 million tonnes of Measured and Indicated nickel, and 4.9 billion tonnes at 0.23% nickel for 11.48 million tonnes of Inferred nickel."

Selby previously served as CEO of Royal Nickel Corporation and brings extensive corporate development and nickel market expertise from executive roles with Inco and Quadra Mining. His emphasis on the Midlothian resource being "generated from just 45% of the target geophysical footprint" and yielding "the highest average grade resource to date" underscores the remaining exploration potential across the district.

Strategic Significance: Building a Sudbury-Scale District

The Timmins Nickel District has now achieved a critical mass that positions it among the world's major nickel regions. With eight published resources totaling 3.98 billion tonnes at 0.24% nickel in Measured and Indicated categories (9.4 million tonnes contained nickel) and 4.95 billion tonnes at 0.23% nickel in Inferred categories (11.48 million tonnes contained nickel), the district's combined 20.7 million tonnes of nickel exceeds the Sudbury Basin's estimated pre-mining endowment of 19 million tonnes. This comparison carries significant weight given Sudbury's status as one of history's most productive nickel mining districts.

The geographic concentration of these resources within trucking distance of centralized processing infrastructure creates operational synergies rarely available in the mining industry. Canada Nickel's strategy envisions Crawford as an anchor processing facility that could eventually treat ore from satellite deposits including Reid, Mann West, Mann Central, and others as Crawford's main zone ore depletes. This hub-and-spoke model improves project economics by amortizing processing capital across multiple ore sources while extending mine life beyond the 41-year timeline outlined in Crawford's bankable feasibility study.

Resource definition work continues across the district with one remaining resource estimate, Nesbitt, expected in Q1 2026. Beyond the nine primary targets with advanced drilling, Canada Nickel controls an additional 11+ ultramafic targets with minimal drilling but similar geophysical signatures. The company has achieved a 98% success rate in intersecting target mineralization across 18 properties drilled to date.

Crawford Project: Flagship Asset Economics

Crawford Nickel Sulphide Project forms the foundation of Canada Nickel's development pipeline with the world's second-largest nickel reserve and second-largest resource according to Wood Mackenzie's Q3 2023 data. The March 2025 Front End Engineering and Design (FEED) results improved project economics to US$2.8 billion after-tax NPV at an 8% discount rate and 17.6% internal rate of return, up from US$2.5 billion NPV and 17.1% IRR in the October 2023 bankable feasibility study. These improvements stemmed from optimized mine sequencing that accelerates higher-value ore from the East Zone and reduces pre-stripping by 30%.

The project contemplates a two-phase development starting with 60,000 tonnes per day processing capacity in Phase I, expanding to 120,000 tpd in Phase II after 3.5 years. Life-of-mine production averages 38,000 tonnes of nickel annually over 41 years, alongside significant byproducts: 67,000 tpa chromium, 1.4 million tpa iron, and 12,000 ounces combined palladium and platinum. Net C1 cash costs of US$0.39 per pound nickel and all-in sustaining costs of US$1.54/lb position Crawford in the first quartile of global nickel operations.

Initial capital requirements total US$2.0 billion including contingencies, with expansion capital of US$1.6 billion required for Phase II. Canada Nickel has structured a financing package targeting US$2.5 billion through four elements: US$1.0 billion equity (including US$600 million in investment tax credits, US$100 million from Samsung SDI offtake option exercise, and US$100-300 million from government programs), plus US$1.5 billion debt (including the EDC Letter of Interest and Canadian bank support).

Market Context: Indonesian Supply Risk Creates Opportunity

Global nickel supply dynamics have shifted dramatically over the past decade as Indonesia captured market share through aggressive development of laterite ore processing capacity. Indonesia now produces 61% of global nickel supply, a higher concentration than OPEC achieved during its 1973 peak at 54% of oil markets. This concentration emerged from China's investment in Indonesian nickel pig iron (NPI) and high-pressure acid leach (HPAL) facilities following Indonesia's 2014 ore export ban.

Recent policy changes signal Indonesia's intent to manage this dominant position more actively. Mining licenses have been reduced from three-year to one-year terms, creating uncertainty for producers. Several operations have faced closure based on "forestry violations," and local ore prices have risen to near-parity with Chinese import prices as seasonal supply from the Philippines drops during monsoon periods.

This supply concentration presents both risks and opportunities for Western nickel consumers. Automotive manufacturers developing electric vehicle supply chains face potential disruption if Indonesian production faces geopolitical restrictions or deliberate curtailment. Projects like Crawford in stable jurisdictions with transparent permitting provide supply diversification that carries strategic value beyond pure cost competitiveness.

Carbon Advantage: Three Pathways to Zero-Carbon Nickel

Canada Nickel has developed three separate approaches to carbon sequestration that position the company to deliver zero-carbon or carbon-negative nickel products. The company's In-Process Tailings (IPT) Carbonation technology treats tailings directly from the mineral processing circuit by conditioning them with CO2, with latest testwork demonstrating potential to store 1.5 million tonnes of CO2 annually. This approach qualifies for Canada's Carbon Capture Utilization and Storage (CCUS) investment tax credit of 50% for years 2022-2030.

The second pathway involves partnership with Australia-based NetCarb to commercialize their carbon mineralization technology. NetCarb's process could increase CO2 storage capacity by an order of magnitude to 10-15 million tonnes annually, potentially reaching more than 500 million tonnes of lifetime CO2 sequestration capacity at Crawford alone. The third approach partners with the University of Texas at Austin under a U.S. Department of Energy ARPA-E grant to develop CO2-to-rock mineralization through injection techniques.

These carbon sequestration capabilities address growing customer demand for low-carbon nickel supply chains. Major automakers including General Motors, Ford, and Tesla have committed to measuring and reducing Scope 3 emissions from their supply chains. Samsung SDI's strategic investment and offtake option reflect battery manufacturers' recognition that cell carbon footprints increasingly influence automotive purchasing decisions.

Investment Thesis for Canada Nickel Company

• District-scale exposure provides multi-decade development runway beyond Crawford with only 8 of 20+ targets resourced.
• Crawford's first-quartile economics validated through equity investments from Agnico Eagle, Anglo American, and Samsung SDI totaling over 23% ownership.
• Indonesian concentration at 61% creates opportunity for Canadian projects as Western consumers friend-shore battery supply chains.
• Three sequestration pathways position company to deliver zero-carbon nickel while potentially generating revenue from third-party CO2 storage services.
• Remaining 12+ undrilled ultramafic targets with 98% historical success rate provide option value beyond published resources.
• NetZero Metals subsidiary targeting North America's largest nickel refinery creates downstream value capture and carbon footprint control.

Canada Nickel Company presents institutional and retail investors with leveraged exposure to the energy transition through one of the industry's few large-scale, low-cost nickel projects in a stable jurisdiction. The company has systematically de-risked Crawford through completion of a bankable feasibility study, FEED optimization, and assembly of a comprehensive financing package backed by Export Development Canada and strategic industry partners. Target construction commencement by year-end 2026 positions Crawford for production by 2028-2029 as automotive nickel demand accelerates. The broader Timmins District consolidation distinguishes Canada Nickel from single-asset developers by creating optionality around satellite deposit development and long-term supply agreements with offtake partners seeking multi-decade nickel sources.

TL;DR

Canada Nickel expanded the Timmins Nickel District to 20.9 million tonnes contained nickel across eight resources, exceeding Sudbury's historic endowment. Crawford Project advances toward year-end 2026 construction with US$2.8B NPV and strategic backing from Agnico Eagle, Samsung SDI, and Anglo American. Three carbon sequestration pathways position the company to deliver zero-carbon nickel as Indonesian supply concentration creates friend-shoring opportunities.

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