Canada Nickel Secures Historic $20M Indigenous Partnership Strengthening Critical Minerals Position

• Canada Nickel Company closed a $20 million convertible note with Taykwa Tagamou Nation, representing the largest known direct equity investment by a First Nation in a Canadian critical minerals company to date.
• The five-year convertible note carries a 6.15% annual coupon paid quarterly and provides conversion rights into 16.67 million common shares at $1.20 per share, representing a 7.9% equity interest in the company.
• The partnership solidifies the relationship between Canada Nickel and TTN, who serves as a development partner for the Crawford Nickel Sulphide Project and associated infrastructure including power transmission lines and electric haul fleet.
• The transaction demonstrates Canada Nickel's commitment to Indigenous partnership and positions the company strategically within the growing critical minerals sector focused on electric vehicle and clean energy markets.

Canada Nickel Company Inc. (TSXV:CNC) is advancing next-generation nickel-sulphide projects to supply the rapidly expanding electric vehicle and stainless-steel markets. The company is anchored by its 100% owned flagship Crawford Nickel Sulphide Project in the emerging Timmins Nickel District.

Strategic Partnership Details

Financial Structure & Terms

The $20 million secured convertible note carries a five-year term from closing with significant financial benefits for both parties. The coupon rate was adjusted from an initially proposed 4.75% to 6.15% per annum, paid quarterly prior to conversion, reflecting Taykwa Tagamou Nation's financing costs.

The conversion mechanism provides TTN with the right to convert the note into 16.67 million common shares at a conversion price of $1.20 per share. Based on Canada Nickel's current issued and outstanding share capital of 193,590,725 common shares, this conversion would represent a 7.9% equity interest in the company.

The agreement includes governance provisions that extend beyond typical financial arrangements. TTN will maintain one seat on Canada Nickel's Board of Directors for the duration of the convertible note or, following conversion, as long as the Nation holds at least 7.9% of the company's shares. This structure provides TTN with meaningful input into corporate decision-making processes.

Indigenous Partnership Model

In the news release, Chief Bruce Archibald of Taykwa Tagamou Nation emphasized the significance of meaningful Indigenous participation in resource development. "This transaction is a significant step forward for both TTN and Canada Nickel," said Chief Archibald.

"It demonstrates what's possible when First Nations are meaningfully included as equity partners with real decision-making authority. We are proud to make this investment on behalf of our community - one that supports long-term economic benefit while advancing sustainable development on our Traditional Territory."

Deputy Chief Derek Archibald highlighted the Nation's strategic approach to economic development and the trust built with Canada Nickel over time.

"TTN has worked hard over the years to build our economic strength - through investments in infrastructure, project development, and governance. This agreement is a reflection of that work and the trust we've built with Canada Nickel. From the beginning, the Company has demonstrated a genuine commitment to transparency, collaboration, and shared benefit. We're proud to continue this journey together, grounded in respect and true partnership."

Corporate Commitment to Partnership

Canada Nickel CEO Mark Selby positioned the investment within the broader context of the company's strategic development plans.

"We are honoured to have Taykwa Tagamou Nation as long-term partners in the development of Crawford and the broader Timmins Nickel District," said Selby. "TTN has been a pivotal partner from the very beginning- supporting critical infrastructure, shaping project development, and now playing a key role as we unlock the overall potential of the District. This investment is a reflection of TTN's vision, leadership, and commitment to co-developing projects that deliver generational benefits - for their Nation, for the North, and for Canada's clean energy economy."

Market Position & Industry Context

Crawford Nickel Sulphide Project

The partnership builds upon an existing development relationship between Canada Nickel and TTN regarding the Crawford Nickel Sulphide Project. TTN already serves as a development partner for both the primary project and associated infrastructure components, including power transmission lines and electric haul fleet development.

This infrastructure partnership extends beyond traditional mining relationships, encompassing critical elements necessary for sustainable project development. The power transmission line development aligns with broader industry trends toward electrification and reduced carbon footprint in mining operations.

Indigenous Partnership Precedent

The $20 million investment establishes a new benchmark for Indigenous equity participation in Canadian critical minerals development. This model demonstrates how resource companies can move beyond traditional consultation approaches toward meaningful equity partnerships that provide Indigenous communities with direct financial participation in project success.

Critical Minerals Sector Dynamics

The transaction occurs within the context of growing global demand for critical minerals, particularly nickel, driven by electric vehicle adoption and renewable energy infrastructure development. Canada Nickel's focus on low political risk jurisdictions addresses investor concerns about supply chain security and regulatory stability.

The company's pursuit of net-zero carbon production processes through its trademarked NetZero products positions it to meet increasingly stringent environmental requirements from end-users in the automotive and steel industries.

Canada Nickel's partnership with Taykwa Tagamou Nation represents a strategic milestone that extends beyond traditional project financing. The $20 million convertible note provides immediate capital while establishing a partnership model that addresses social license, regulatory risk, and operational execution challenges common in resource development.

For investors evaluating Canada Nickel, this transaction demonstrates management's commitment to sustainable development practices and Indigenous partnership, factors increasingly important to institutional investors and ESG-focused portfolios. The partnership provides operational advantages through TTN's infrastructure involvement and local expertise while establishing a precedent for additional Indigenous partnerships as the company develops the broader Timmins Nickel District.

As global demand for responsibly sourced critical minerals continues to grow, Canada Nickel's partnership approach positions the company advantageously within an increasingly competitive sector.