Canada Nickel Signs Binding Letter of Intent to Divest Lucas Gold Project & Expands Crawford Project Footprint

• Canada Nickel has signed a binding Letter of Intent (LOI), dated July 13, 2026, with Noble Mineral Exploration Inc. to sell the Lucas Gold Project.
• Under the proposed transaction, Noble will issue 5,000,000 units to Canada Nickel, each unit valued at $0.06 and comprising one common share and one half non-transferable common share purchase warrant, with each whole warrant exercisable at $0.15 per share for 2 years.
• Canada Nickel will retain a back-in right to acquire a 25% interest in the property by reimbursing Noble 4 times its exploration expenditures, exercisable following a defined trigger date.
• Separately, Canada Nickel has acquired a 100% interest in mining claims in Lucas Township, within the Crawford Project's overall footprint, in exchange for 60,000 Canada Nickel common shares (subject to a 4-month hold) and a 1.5% net smelter return (NSR) royalty, half of which can be bought down for $500,000 to reduce the NSR to 0.75%.
• The transaction remains subject to the negotiation of a definitive agreement and compliance with legal requirements, including approval by the TSX Venture Exchange.

Company Overview

Canada Nickel Company Inc. (TSXV: CNC | OTCQX: CNIKF) is advancing the next generation of nickel-sulphide projects to supply nickel for the electric vehicle and stainless steel markets. The company is anchored by its 100%-owned flagship Crawford Nickel-Cobalt Sulphide Project, located in the Timmins-Cochrane nickel district of Ontario. Canada Nickel is pursuing the development of processes to enable the production of net-zero carbon nickel, cobalt, and iron products, and has applied in multiple jurisdictions to trademark the terms NetZero Nickel, NetZero Cobalt, and NetZero Iron.

Property Transaction Positions Company to Realise Value from Non-Core Asset

Canada Nickel announced it has signed a binding Letter of Intent (LOI) with Noble Mineral Exploration Inc. to sell the Lucas Gold Project, a non-core asset. Chief Executive Officer of Canada Nickel, Mark Selby, commented on the transaction:

"We are pleased to position the Company to generate value from a non-core property with Noble Mineral Exploration and wish them well with their exploration activities."

Transaction Structure

Under the terms of the LOI, Noble will issue 5,000,000 units to Canada Nickel, with each unit valued at $0.06. Each unit consists of one common share and one half non-transferable common share purchase warrant, with each whole warrant exercisable at $0.15 per share for a period of 2 years.

Canada Nickel has also been granted a back-in right allowing it to purchase a 25% interest in the property at any time from the trigger date, by paying Noble an amount equal to 4 times the exploration expenditures Noble has incurred on the property, including costs of geological, scientific, and other analyses and reports. The trigger date is defined as the earliest of: 36 months from closing of the transaction; the date on which at least $5 million of exploration expenditures have been incurred on or in respect of the property (including adjacent properties); or the date Noble enters a binding agreement to sell the property, or a change of control occurs at Noble, unless the back-in right is unaffected by such a transaction.

The transaction remains subject to the parties negotiating a definitive agreement, as well as compliance with legal requirements and any requirements of the TSX Venture Exchange.

Additional Claims Acquired Within Crawford Footprint

In a separate transaction, Canada Nickel has acquired a 100% interest in a set of mining claims in Lucas Township, situated within the company's proposed Crawford Project overall footprint. The purchase includes the issuance of 60,000 Canada Nickel common shares, subject to a 4-month hold, and a 1.5% net smelter return (NSR) royalty, 50% of which can be bought down for $500,000, reducing the NSR to 0.75%.

Qualified Person

Stephen J. Balch, P.Geo. (ON), Vice President (VP) Exploration of Canada Nickel and a qualified person as defined under National Instrument 43-101, has verified the data disclosed in the release and has reviewed and approved the technical information on behalf of Canada Nickel.

Next Steps

Canada Nickel and Noble will announce further details as work on the definitive agreement proceeds, with the transaction subject to the negotiation of that agreement and to the satisfaction of legal requirements, including approval from the TSX Venture Exchange.

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