Canada Nickel Signs MOU with RWE Supply & Trading to Support Commercialisation of Low-Carbon Steel in Europe & North America

• Canada Nickel Company Inc. has signed a memorandum of understanding (MOU) with RWE Supply & Trading GmbH (RWEST), a global energy and carbon trading firm, to support the commercialisation of low-carbon intermediate stainless and alloy steel products from the Company's wholly-owned downstream subsidiary, Net Zero Metals.
• RWEST brings European and US market access, Carbon Border Adjustment Mechanism (CBAM) expertise, and carbon trading capabilities to the partnership.
• The MOU is focused on semi-finished steel, alloys, and stainless products, including long-term offtake structures.
• Implementation of the European Union's (EU) CBAM is expected to increase the competitiveness of Ontario's low-carbon steel.
• The companies are targeting a definitive agreement within 2026.

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.

Strategic Commercial Partnership

The company announced on July 6, 2026, a strategic commercial partnership with RWE Supply & Trading GmbH (RWEST), a leading global energy and carbon trading firm. The memorandum of understanding (MOU) is intended to support the commercialisation of low-carbon intermediate stainless and alloy steel products from Canada Nickel's wholly-owned downstream subsidiary, Net Zero Metals, utilising feed from the Company's Crawford Nickel Project.

The partnership gives Canada Nickel access to RWEST's European and US customer base, along with the firm's carbon and European Union (EU) Carbon Border Adjustment Mechanism (CBAM) expertise, and structuring and trading capabilities. This is expected to position Net Zero Metals' low-carbon steel ahead of accelerating EU carbon compliance costs.

Chief Executive Officer and Director of Canada Nickel Company, Mark Selby, commented on the significance of the partnership:

"I am very excited to work with this global leader whose strategic focus on the energy transition aligns directly with what we are building at Net Zero Metals. RWEST's reach across European and US markets, combined with their deep carbon trading and CBAM expertise, makes them the ideal partner to support the commercialization of our low-carbon steel and help us maximize value from the low carbon attributes of both our nickel and steel products."

Selby continued, addressing the timing of the agreement:

"The timing of this strategic partnership could not be better. Implementation of CBAM driving higher EU carbon costs combined with persistent energy price volatility in Europe are creating real demand for stable energy, low-carbon steel supply. Ontario's stable, low-carbon and renewable energy gives us a structural cost advantage that only grows as CBAM carbon costs rise through the decade. We look forward to advancing this relationship to a definitive agreement before year-end."

Marc Milligan of RWE Supply & Trading also spoke to the strategic fit between the 2 companies:

"Canada Nickel's potential to support significant low-carbon stainless and alloy intermediate steel production offers an attractive solution for the European Energy Transition. Low-carbon steel is essential for the planned expansion of offshore and onshore wind capacities and high-quality low carbon nickel is essential for battery production to support battery storage development in the EU. This partnership fits squarely with our long-term strategy to help decarbonize the European industry. We look forward to working with the Canada Nickel team to unlock value from its low carbon steel and nickel products and we see significant growth potential for developing sustainable and reliable metal supply chains into the EU."

Scope of the Memorandum of Understanding

The MOU, signed on June 1, 2026, sets out a working plan for the 2 companies. A first step is mapping out which customers across the EU and US market should be approached, and in what order. From there, Canada Nickel and RWEST will build out how semi-finished steel, alloys, and stainless products are positioned and sold, including structuring long-term offtake arrangements and delivered product solutions.

RWEST's carbon trading background is also central to the arrangement. The firm will help shape how Canada Nickel positions itself under CBAM and manages compliance, and will work on turning the Company's carbon advantage into commercial value that benefits both Canada Nickel and its customers. Beyond that, RWEST is expected to help Canada Nickel gain access to export credit agencies, including those in Germany and across the wider EU, as well as other EU financing sources.

About RWE Supply & Trading GmbH

RWEST connects the RWE Group to wholesale markets worldwide, covering energy, bulk commodities, and metal raw materials. The firm employs approximately 2,000 people across 14 trading offices, and runs what is described as Europe's largest energy trading floor, based at RWE's headquarters in Essen, Germany. Its 2024 trading activity spanned 1,475 terawatt-hours (TWh) of power, 634 billion cubic metres of gas, 934 million metric tonnes of carbon dioxide certificates, and 45 million fine ounces of precious metals.

RWEST sits wholly within the RWE Group, a business with a history spanning more than 125 years, a workforce of more than 20,000, and a market capitalisation exceeding €35 billion. RWE ranks among the top global players in green energy, holding the #2 position worldwide in offshore wind and #4 in both solar and wind across the US and Europe.

Next Steps

Canada Nickel and RWEST are targeting a definitive agreement later in 2026. As that agreement comes together, the 2 companies expect to continue working through the customer, product, and sales groundwork described above for semi-finished steel, alloys, and stainless products, while RWEST continues to support Canada Nickel with CBAM compliance and in broadening access to export credit and other EU financing sources.

FAQs (AI-Generated)