Canada Nickel Releases 2024 ESG Report - Advancing Critical Minerals Strategy Through Indigenous Partnerships & Carbon Innovation

• Canada Nickel secured a landmark $20 million equity investment from Taykwa Tagamou Nation, the first Indigenous Nation in Canada to invest in a critical minerals project at this scale.
• The company's In-Process Tailings Carbonation technology demonstrated potential to permanently store up to 1.5 million tonnes of CO₂ annually, creating one of North America's largest proposed carbon sinks.
• Local economic impact expanded significantly with 60% of new hires from the local area and 37% of $32.5 million procurement spending directed to Timmins region suppliers.
• Female representation reached 33% on the Board of Directors and 34% across the workforce, more than double the mining industry average.
• The company maintained zero environmental non-compliance incidents while reducing water intensity by 21% despite a 464% increase in drilling activities.

Canada Nickel Releases 2024 ESG Report

Canada Nickel Company Inc. (TSX-V:CNC) (OTCQB: CNIKF) is a Canadian mining company developing nickel projects in the Timmins Nickel District of Ontario. The company is advancing the Crawford Nickel Sulphide Project as part of Ontario's Critical Minerals Corridor, focusing on supplying materials for Canada's clean energy transition and defense resilience through responsible mining practices and Indigenous partnerships.

The release of Canada Nickel's 2024 Environmental, Social and Governance Report provides investors with critical insights into the company's operational progress, strategic partnerships, and positioning within Canada's critical minerals strategy. The report demonstrates measurable advances across key ESG metrics while highlighting the company's unique approach to carbon storage and Indigenous collaboration, factors that could significantly impact long-term valuation and regulatory approval processes.

Strategic Indigenous Partnerships Drive Project Development

Canada Nickel's approach to Indigenous engagement represents a fundamental shift from traditional mining industry practices, with partnerships that extend beyond consultation to equity ownership and operational control. The company signed a landmark contracting agreement with Flying Post, Matachewan, and Mattagami First Nations to ensure Indigenous business leadership in infrastructure construction for the Crawford Project.

The most significant development was Taykwa Tagamou Nation's $20 million investment, becoming the first Indigenous Nation in Canada to secure an equity stake in a critical minerals project of this magnitude. This investment grants the Nation the right to appoint a director to Canada Nickel's Board, creating direct Indigenous representation in corporate governance.

"Indigenous partnerships and community stewardship are not a side project at Canada Nickel – they are embedded into how we operate," said Pierre-Philippe Dupont, Vice President of Sustainability.

"We are building more than a mine; we are helping build a resilient, low-carbon critical minerals corridor that reflects the values of the communities we work with. From equity ownership and business partnerships to direct investment in local infrastructure, this is what inclusive growth looks like."

These partnerships address a critical risk factor for mining projects in Canada, where Indigenous consent and participation have become essential for regulatory approval and social license to operate. The equity structure creates aligned interests between the company and Indigenous Nations, potentially reducing project development risks and timeline uncertainties.

Carbon Storage Technology Creates Competitive Differentiation

Canada Nickel's In-Process Tailings Carbonation technology represents a significant technological advancement with substantial implications for the company's environmental profile and potential revenue streams. Pilot testing confirmed the technology's capacity to permanently store up to 1.5 million tonnes of CO₂ annually, positioning the Crawford site as one of North America's largest proposed carbon sinks.

This carbon storage capability addresses two critical market trends: the mining industry's need to reduce emissions and the growing carbon credit market. The technology could provide Canada Nickel with additional revenue streams through carbon credit sales while reducing the overall carbon footprint of nickel production, a key consideration for electric vehicle manufacturers seeking sustainable supply chains.

The environmental performance metrics support the company's low-carbon positioning. Water intensity decreased to 0.38 m³/metre drilled in 2024 from 0.48 despite a 464% increase in drilling activities, achieved through water recycling and improved tracking systems. The company maintained zero environmental non-compliance incidents, demonstrating operational discipline that reduces regulatory risks.

Local Economic Impact Strengthens Community Relations

Canada Nickel's local hiring and procurement strategies create economic benefits that strengthen community support while potentially reducing operational costs. The company achieved 60% local hiring for new positions in 2024, significantly above typical mining industry benchmarks. Local procurement represented 37% of the company's $32.5 million in spending, directing economic benefits to the Timmins region.

This local focus addresses community concerns about resource extraction while creating stakeholders with vested interests in project success. Local hiring can reduce labor costs and turnover while improving project acceptance. The procurement strategy builds regional supply chain capacity that could support long-term operations.

CEO Mark Selby emphasized the strategic nature of this approach: "The milestones achieved in 2024 reflect the strength and vision of our team and the powerful model we're building with Indigenous Nations and communities across the Timmins Nickel District. With major partnerships, a unique carbon storage solution, and strong support across the region, we are proud to be advancing nickel in a way that is inclusive, future-focused, and aligned with the goals of both the Governments of Ontario and Canada's critical minerals strategies."

Governance & Diversity Metrics Exceed Industry Standards

Canada Nickel's governance structure reflects evolving investor expectations around diversity and transparency. Female representation reached 33% on the Board of Directors and 34% across the workforce, more than double the mining industry average. This diversity positioning could appeal to ESG-focused institutional investors and improve access to capital markets that prioritize diversity metrics.

The company's reporting transparency distinguishes it within the junior mining sector. Canada Nickel remains one of the only junior mining companies in Canada to produce three consecutive ESG reports aligned with the United Nations Global Compact, Global Reporting Initiative, and UN Sustainable Development Goals. The recent reports also align with Task Force on Climate-related Financial Disclosures standards.

This comprehensive reporting approach addresses institutional investor requirements for ESG disclosure and demonstrates management's commitment to governance standards that could facilitate future financing and partnership opportunities.

Federal Impact Assessment Progress Indicates Regulatory Advancement

The submission of the federal Impact Statement for the Crawford Nickel Sulphide Project represents significant progress in the regulatory approval process. Canada Nickel established formal mitigation measures and engagement processes with all potentially impacted Indigenous Nations as part of this submission.

Federal environmental assessments typically represent the most complex regulatory hurdle for major mining projects in Canada. Progress through this process indicates management's ability to navigate regulatory requirements while maintaining Indigenous and community support. Successful completion of the federal assessment would remove a major development risk and potentially unlock project financing.

The combination of Indigenous partnerships, environmental mitigation measures, and comprehensive ESG reporting positions Canada Nickel favorably within the federal assessment process, which increasingly weighs social license and community benefits alongside environmental factors.

Market Position Within Critical Minerals Strategy

Canada Nickel's development timeline aligns with growing government support for critical minerals development. Both federal and provincial governments have identified nickel as essential for electric vehicle battery production and defense applications. Government funding programs and tax incentives for critical minerals projects could provide financial support for Crawford Project development.

The company's positioning within Ontario's Critical Minerals Corridor provides access to developing infrastructure and government support programs. The region's focus on integrated critical minerals processing could create downstream opportunities and supply chain efficiencies that improve project economics.

Investment Considerations & Risk Factors

Canada Nickel's 2024 ESG report demonstrates progress across multiple development fronts while highlighting both opportunities and risks for investors. The Indigenous partnerships and carbon storage technology create competitive advantages that could facilitate regulatory approval and access to ESG-focused capital. However, the company remains in the development stage with typical junior mining risks around financing, permitting, and construction execution.

The carbon storage technology, while promising, requires continued validation and potential regulatory framework development for carbon credit monetization. Indigenous partnerships, while strategically valuable, represent new models that lack extensive precedent in the Canadian mining sector.

Market conditions for nickel remain volatile, influenced by electric vehicle adoption rates, Indonesian supply developments, and global economic conditions. Canada Nickel's success depends on maintaining cost competitiveness while delivering on ESG commitments that could command premium pricing from environmentally conscious customers.

For Investors

Canada Nickel's 2024 ESG Report illustrates a mining company adapting to evolving industry standards through Indigenous partnerships, environmental innovation, and comprehensive governance practices. The company's strategic approach addresses key risks in mining development while positioning for opportunities in the critical minerals market. For investors evaluating Canada Nickel, the report demonstrates management's ability to advance multiple complex initiatives while maintaining operational discipline. The success of the Indigenous partnership model and carbon storage technology could create significant competitive advantages, though execution risks remain substantial given the company's development stage and the novel nature of these approaches.