Canada Nickel to Receive $500,000 from Ontario's Critical Minerals Innovation Fund to Develop NetZero Metals Subsidiary

• Canada Nickel awarded $500,000 from Ontario's Critical Minerals Innovation Fund to develop low-carbon nickel processing facility through its NetZero Metals subsidiary.
• Canada Nickel signs definitive agreement to secure access to 32,000 acres of surface rights required to build the Crawford Nickel Sulphide Project.
• Canada Nickel and Noble Mineral Exploration form new private company "ExploreCo" to consolidate interests in nickel projects northeast of Timmins, Ontario.
• NetZero Metals nickel processing plant expected to reach over 80,000 tonnes annual capacity and be the largest in North America, utilizing low-carbon production.
• Canada Nickel extends repayment date of US$15 million loan facility with Auramet International to complete strategic financing initiatives.

Canada Nickel Company Inc. (TSXV:CNC) is a Canadian mining company advancing the next generation of high-potential nickel-sulphide projects. The company's flagship Crawford Nickel Sulphide Project, located in the prolific Timmins-Cochrane mining camp of Ontario, is being developed to deliver the nickel required for the fast-growing electric vehicle and stainless steel markets. Canada Nickel has trademarked the terms NetZero Nickel™, NetZero Cobalt™, and NetZero Iron™ in multiple jurisdictions as it pursues the development of processes to produce net-zero carbon nickel, cobalt, and iron products.

Critical Minerals Funding for NetZero Metals Processing

Canada Nickel has been awarded $500,000 from the Government of Ontario's Critical Minerals Innovation Fund (CMIF) to support the development of an innovative, low-carbon nickel processing facility through its wholly-owned subsidiary, NetZero Metals Inc. The proposed facility, which will be located near the Crawford Project in Timmins, Ontario, aims to develop and validate a process to convert nickel concentrate into battery-grade nickel and cobalt products using a novel approach that replaces conventional coal-based reductants with locally-sourced, renewable biochar.

“This commitment highlights the province’s leadership in fostering innovation and advancing clean technology solutions. By supporting our efforts to develop a low-cost, low-carbon nickel processing facility, Ontario is strengthening the foundation for a sustainable battery metal supply chain that will drive economic growth and contribute to the global energy transition.” - Mark Selby, CEO of Canada Nickel on the Government of Ontario’s support.

When fully ramped up, the NetZero Metals processing plant is expected to produce over 75,000 tonnes of nickel annually, marking a significant step in establishing a domestic battery metals supply chain for the electric vehicle industry. NetZero Metals is collaborating with industry leaders to advance the design and testing of this transformative, first-of-its-kind processing technology.

Surface Rights & Exploration Consolidation

Canada Nickel signed two definitive agreements that significantly advance the Crawford Project. The first agreement secures access to 32,000 acres of surface rights required to construct the project. As part of the transaction, Canada Nickel will transfer 47,750 acres of non-core mining rights to the Surface Rights Holder to facilitate future certainty and sustainable resource development in the area.

The second agreement sees Canada Nickel enter into a transaction with Noble Mineral Exploration to consolidate ownership of key mining patents in several townships through the formation of a new private company, ExploreCo. This transaction simplifies future development of Crawford and other regional nickel properties held by Canada Nickel.

Financing Update

To support ongoing advancement of its projects and strategic initiatives, Canada Nickel has extended the repayment date of its existing US$15 million loan facility with Auramet International from January 9, 2025, to March 14, 2025. As part of the extension, approximately 1 million new warrants will be issued to Auramet while 750,000 previously issued warrants will be cancelled. The extended loan will carry an interest rate of 1.25% per month for the extension period.

Key Takeaway

Through its latest series of announcements, Canada Nickel has demonstrated significant progress in advancing the Crawford Project towards a 2025 construction decision. With the formation of NetZero Metals and its development of innovative processing technology, the company is positioning itself at the forefront of delivering the low-carbon nickel that is critical to meeting the growing demands of the electric vehicle revolution.

By securing the surface rights necessary to unlock the project and consolidating its exploration interests in partnership with Noble, Canada Nickel has strengthened the foundation for Crawford's future development. The extended loan facility from Auramet provides near-term financing flexibility as Canada Nickel works to complete strategic funding initiatives in the coming months.

For investors, Canada Nickel presents a compelling opportunity to gain exposure to the rapidly growing battery metals sector, anchored by a world-class nickel sulphide resource in a low-risk jurisdiction. With its commitment to industry-leading environmental performance through the NetZero Metals platform, experienced management team, and strong partnerships, Canada Nickel is well-positioned to generate long-term value as it brings the Crawford Project to fruition.