Canada Nickel Forges Ahead with Crawford Project: FEED Underway, First Production Targeted for 2027

• Canada Nickel commences Front End Engineering Design (FEED) at Crawford Nickel Sulphide Project
• Crawford on track for mid-2025 construction decision and first production by year-end 2027
• FEED led by engineering partner Ausenco, expected to be completed by August 2024
• 2024 winter geotechnical program nearing completion, de-risking project and preparing for construction
• Canada Nickel advancing next generation of nickel-sulphide projects for high-growth EV and stainless steel markets

About Canada Nickel Company

Canada Nickel Company Inc. (TSXV:CNC) (OTCQX:CNIKF) is a mining company focused on developing the next generation of nickel-sulphide projects to supply the rapidly growing electric vehicle (EV) and stainless steel markets. The company's flagship asset is the 100% owned Crawford Nickel-Cobalt Sulphide Project, located in the prolific Timmins-Cochrane mining region of Ontario, Canada.

Canada Nickel is applying to trademark the terms NetZero Nickel™, NetZero Cobalt™, and NetZero Iron™ in multiple jurisdictions as it pursues processes to produce nickel, cobalt and iron products with net zero carbon footprints. By developing its projects in low political risk jurisdictions like Canada, the company aims to provide investors with attractive exposure to nickel.

Crawford Nickel Sulphide Project Advances to FEED Stage

In a significant milestone, Canada Nickel announced on April 11, 2024 that it has commenced Front End Engineering Design (FEED) for the Crawford Nickel Sulphide Project. This critical step in the project's development keeps Crawford on track for a mid-2025 construction decision and first production by the end of 2027.

The FEED work will be led by Canada Nickel's long-time engineering partner Ausenco Engineering Canada and supported by several firms that contributed to the project's feasibility study. Ausenco has been instrumental in Crawford's progress, leading the preliminary economic assessment (PEA) in 2020 and continuing to provide key support through the feasibility study completed in Q4 2023.

Mark Selby, CEO of Canada Nickel, expressed confidence in moving to the FEED phase given the ongoing success in advancing Crawford's financing and permitting. He stated,

"We are confidently moving into this next phase of project development which maintains our targets of a mid-2025 construction decision and first production by year-end 2027 by sufficiently advancing engineering on a number of fronts."

The FEED work is expected to wrap up by August 2024 and will incorporate data from the recently completed 2024 winter geotechnical program. This program has been focused on de-risking the project and gathering sufficient data to enable the start of construction once the final investment decision is made.

Key areas of focus for the geotechnical work included the process plant, primary crushing facility, mine stockpile, and tailings management. Notably, 24 test bearing-piles were driven in the planned process plant and primary crusher locations to refine structural foundation designs.

Ausenco: A Trusted Engineering Partner

Canada Nickel's progress with the Crawford project has been facilitated by its strong relationship with Ausenco, a diversified global engineering, construction and project management firm with deep expertise in mining.

Ausenco's capabilities span the full lifecycle of mining projects, from initial concept and pre-feasibility studies through to full project execution with EPCM (Engineering, Procurement and Construction Management) and EPC (Engineering, Procurement and Construction) delivery models.

Having first engaged with Canada Nickel in 2020 to lead the PEA, Ausenco has become a trusted partner. Following the successful completion of the PEA, Ausenco supported the feasibility study, overseeing the metallurgical pilot plant program, process plant and building design, and site water management while coordinating the various project consultants.

This continuity and depth of project knowledge will be invaluable as the Crawford project now advances into the FEED stage, where engineering will be progressed to enable a smooth transition into full construction.

Advancing the Next Generation of Nickel Sulphide Projects

Canada Nickel's primary focus is on nickel sulphide projects, which are well-suited to meeting the explosive demand growth projected for nickel from the EV battery and stainless steel sectors over the coming decade.

The company believes the Crawford project represents the next generation of such projects with the potential to deliver large volumes of responsibly produced nickel to market. Nickel is a key component in the lithium-ion batteries used in most electric vehicles.

By pursuing the development of net zero carbon production processes for nickel, cobalt and iron, Canada Nickel aims to ensure its projects are aligned with the increasing ESG focus of OEMs and battery manufacturers in the EV supply chain. The company sees this as a key differentiator as it looks to become a major nickel supplier.

In addition to Crawford, Canada Nickel has several other 100% owned nickel sulphide projects in its portfolio to provide additional growth potential. All its properties are located in Ontario, a top-tier mining jurisdiction, providing a low political risk environment.

Conclusion

The commencement of FEED marks a key de-risking milestone for Canada Nickel's Crawford project and demonstrates the continued progress toward the target of first nickel production in 2027. The FEED work over the coming months will fine-tune project engineering and pave the way for the start of construction, pending a positive final investment decision in mid-2025.

With the completion of the feasibility study in Q4 2023, Crawford is now one of the few nickel sulphide projects globally that is approaching shovel-ready status. Given the looming deficits projected in the nickel market as demand from EVs and stainless steel accelerates, Canada Nickel is well-positioned to capitalize.

Key advantages for Canada Nickel include:

• Large, high-grade nickel sulphide resource at Crawford with further district-scale exploration potential
• Location in a world-class mining jurisdiction with clear permitting processes
• Pursuing net zero carbon production to align with increasing downstream ESG requirements
• Experienced management team with strong industry relationships and capital markets experience
• Advancing project engineering and de-risking to enable rapid progress to production

As Canada Nickel continues to deliver on project catalysts and advance Crawford and its other projects, the company appears well-positioned to generate substantial value for shareholders. With nickel remaining a critical metal for the clean energy transition, Canada Nickel offers a compelling investment case.