Canada Nickel Unveils Strategic Spin-Out & Land Consolidation

• Canada Nickel Company Inc. announces creation of 'ExploreCo' subsidiary
• ExploreCo to consolidate eastern exploration properties and Mann Township joint venture
• Transaction simplifies Crawford Nickel Sulphide Project development
• Potential for ExploreCo to become publicly listed in the future
• Strategic move to unlock value from Canada Nickel's extensive asset portfolio

About Canada Nickel

Canada Nickel Company Inc. (TSXV: CNC) (OTCQX: CNIKF) is a forward-thinking mining company focused on advancing next-generation nickel-sulphide projects. The company aims to meet the growing demand for nickel in electric vehicle batteries and stainless steel production. With its flagship Crawford Nickel-Cobalt Sulphide Project located in the heart of the prolific Timmins-Cochrane mining camp, Canada Nickel is positioning itself as a key player in the sustainable nickel market. The company is also pioneering the development of NetZero Nickel™, NetZero Cobalt™, and NetZero Iron™ processes, aiming to produce net-zero carbon nickel, cobalt, and iron products.

In a strategic move that promises to reshape its asset portfolio and unlock hidden value, Canada Nickel Company Inc. has announced the creation of a new subsidiary, temporarily dubbed 'ExploreCo', and a significant consolidation of its land package in the Crawford region. This development represents a pivotal moment for investors looking at Canada Nickel, as it demonstrates the company's commitment to maximizing shareholder value through innovative corporate structuring and strategic asset management. The creation of ExploreCo not only streamlines Canada Nickel's operations but also opens up new avenues for growth and potential future value realization through a possible public listing of the subsidiary.

Unveiling ExploreCo

The formation of ExploreCo marks a significant milestone in Canada Nickel's strategic evolution. This new subsidiary is set to consolidate the company's eastern exploration properties, including the existing joint venture with Noble Mineral Exploration in Mann Township. The move is designed to create a focused entity that can better unlock the value of these assets, which may not be fully reflected in Canada Nickel's current market valuation.

ExploreCo's Portfolio & Structure

• Control over 1,989 mining claims totaling approximately 42,000 hectares
• Properties include nickel assets in Mann, Newmarket, Reaume, Calder, Galna, McCool, Moody, Mortimer, Stimson, and other townships
• Initial ownership split: 80% Canada Nickel, 20% Noble Mineral Exploration
• First $5 million in funding to be provided by Canada Nickel from existing funds
• Subsequent funding to be pro-rata based on ownership percentages

Leadership & Governance

ExploreCo will be helmed by Steve Balch, Canada Nickel's current Vice President of Exploration, ensuring continuity and expertise in the management of these assets. The governance structure reflects the ownership split, with Canada Nickel appointing two directors, Noble nominating one, and two additional directors to be mutually agreed upon. This balanced approach aims to leverage the strengths of both companies while maintaining alignment with Canada Nickel's strategic objectives.

Potential for Public Listing

One of the most intriguing aspects of the ExploreCo announcement is the possibility of a future public listing. While contingent on market conditions, this potential move could create significant value for Canada Nickel shareholders. A public listing would provide a clear market valuation for these assets and potentially unlock additional capital for exploration and development.

Crawford Region Consolidation

Alongside the creation of ExploreCo, Canada Nickel has made strategic moves to consolidate its land package in the Crawford region. This consolidation is crucial for simplifying the development process of the Crawford Nickel Sulphide Project and other nearby properties.

Key Aspects of the Consolidation:

• Acquisition of 832 mining claims and 291 mining patents from Noble in Calder, Duff, Jamieson, Jessop, and MacDiarmid townships
• Consolidation of surface rights and remaining claims around the Crawford project
• Issuance of 162,000 common shares to Noble for consolidating ownership of certain third-party properties
• Noble retains exploration rights for non-nickel opportunities in specific townships, subject to Canada Nickel's approval

This consolidation addresses several key objectives:

• Simplifies land ownership structure around Crawford
• Facilitates easier acquisition of surface rights necessary for project development
• Streamlines future permitting and development processes
• Enhances Canada Nickel's control over its core asset area

The consolidation of the Crawford region land package is particularly significant for the development of the Crawford Nickel Sulphide Project. By simplifying the ownership structure and gaining greater control over surface rights, Canada Nickel has effectively de-risked a crucial aspect of project development.

Benefits for the Crawford Project

• Streamlined negotiations for surface rights acquisition
• Potential for faster permitting processes
• Greater flexibility in project design and infrastructure planning
• Reduced complexity in stakeholder engagement

This move demonstrates Canada Nickel's forward-thinking approach to project development, addressing potential hurdles well in advance of critical development milestones.

A Transformative Step for Canada Nickel

The creation of ExploreCo and the consolidation of the Crawford region land package represent a transformative step for Canada Nickel. These strategic moves demonstrate the company's commitment to maximizing shareholder value and its innovative approach to asset management in the mining sector. For investors looking at Canada Nickel, these developments offer several compelling reasons to take note:

• Enhanced Focus: The company can now dedicate more resources and attention to advancing the Crawford Nickel Sulphide Project, potentially accelerating its path to production.
• Value Unlocking: ExploreCo's potential future listing provides a clear mechanism for realizing the value of exploration assets that may be underappreciated in Canada Nickel's current structure.
• Risk Mitigation: The consolidation of the Crawford region simplifies the development process, reducing potential obstacles and streamlining future operations.
• Strategic Vision: These moves showcase management's ability to think strategically about asset optimization and corporate structure, a crucial quality in the dynamic mining sector.
• Future Growth Potential: With a streamlined focus on Crawford and a dedicated exploration vehicle in ExploreCo, Canada Nickel is well-positioned to capitalize on the growing demand for nickel in the clean energy transition.

As the company moves forward with finalizing these transactions and executing its strategic plan, investors should closely monitor progress updates, exploration results from ExploreCo, and advancements in the Crawford project. While challenges and risks remain, as with any mining development project, Canada Nickel's latest moves position it as an increasingly attractive option for investors seeking exposure to the nickel sector and the broader electric vehicle supply chain.

The coming months will be crucial as the company works to close these transactions and begin realizing the benefits of its restructured asset portfolio. For investors with a long-term perspective and a bullish outlook on nickel demand, Canada Nickel's strategic repositioning could offer an cmpelling opportunity to participate in the development of a significant new nickel sulphide district in one of Canada's most prolific mining regions.