Canada Nickel's Path Forward to Advancing Next-Generation Nickel Projects for the EV & Stainless Steel Markets

• The company has signed definitive agreements to consolidate land position around Crawford through the creation of ExploreCo with Noble Mineral Exploration and securing option on 32,000 acres of key surface rights.
• Canada Nickel has extended the repayment date on its US$15 million loan facility with Auramet International to March 14, 2025 as it completes strategic financing initiatives.
• The company has joined the federal government's Equal by 30 campaign to increase career opportunities and pay equity for women in the mining industry, targeting 50% female representation.
• Canada Nickel continues to develop the Crawford Nickel Sulphide Project in the prolific Timmins mining camp to supply nickel for the rapidly growing electric vehicle and stainless steel industries, and processes for net zero carbon nickel, cobalt and iron production. CNC has filed trademarks for NetZero Nickel™, NetZero Cobalt™ and NetZero Iron™.

Canada Nickel Company Inc. (TSXV:CNC) is a mineral resource company focused on advancing the next generation of high-quality nickel-sulphide projects. The company's flagship asset is the 100% owned Crawford Nickel Sulphide Project, located in the heart of the prolific Timmins-Cochrane mining camp in Ontario, Canada. Canada Nickel's objective is to become a leading supplier of nickel to feed the high-growth electric vehicle (EV) battery and stainless steel markets. The company is also pursuing the development of processes to produce net zero carbon nickel, cobalt, and iron products, and has applied to trademark the terms NetZero Nickel™, NetZero Cobalt™, and NetZero Iron™.

Consolidation of Crawford Land Package

On January 2025, Canada Nickel signed two definitive agreements to consolidate its land position around the Crawford project:

ExploreCo Subsidiary Formation

‍Canada Nickel and Noble Mineral Exploration entered into a definitive agreement to contribute certain mining properties into a new private company ("ExploreCo"). This will consolidate their interests in a regional portfolio of nickel projects and help simplify future development of Crawford and nearby properties. The transaction is expected to close by January 31, 2025 subject to TSX Venture Exchange approval.‍

Surface Rights Acquisition

‍Canada Nickel has entered into an agreement with the main surface rights holder for an option to acquire 32,000 acres of surface rights required to construct the Crawford project. As part of the deal, Canada Nickel will issue 5.5 million shares and transfer 47,750 acres of non-core mining rights. The company can exercise the option by December 31, 2026 with the right to extend up to 5 years.

CEO Mark Selby commented:

"Today's announcements secure access to 32,000 acres of surface rights and is another critical step for the Company as we complete our permitting and move toward a construction decision on Crawford in 2025. We are proud of our progress in unlocking the potential of the Crawford project and the Timmins Nickel District, building a future that benefits the environment and supports future generations."

Advancing Gender Equity in Mining

On January 6, 2025, Canada Nickel announced it will join the federal government's Equal by 30 campaign which aims to increase equal representation and pay equity for women in clean energy roles by 2030. The initiative falls under the Equality in Energy Transitions Initiative – a joint effort between the Clean Energy Ministerial and International Energy Agency.

Women currently comprise only 16% of Canada's mining workforce compared to 48% in other industries. By joining Equal by 30, Canada Nickel has committed to improving diversity, equity, and inclusion (DEI) practices with the goal of increasing female representation to 50% over time. The company's board is currently 33% women and women represent 32% of its total workforce.

Specific commitments include:

• Establishing relationships with women-focused mining groups
• Designing and implementing a phased DEI program to increase gender equality knowledge
• Conducting annual compensation analysis to ensure fair pay
• Providing workplace harassment prevention training

"Currently, women only make up 16% of the mining industry. Our team at Canada Nickel wants to change this. Our hope is that as our workforce grows we can continue to strive towards 50% and ensure equitable principles are within both our ethos and policies to guarantee this sustainability."

The Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources Canada, stated:

"The Government of Canada supports inclusive and fair work environments for everyone. By advocating for equal representation and pay equity for women in mining, Canada Nickel is committing to the full potential of our workforce across the country, and is promoting innovation, economic growth, and opportunities for all in favour of a stronger, more resilient Canadian economy."

Extension of Auramet Loan Facility

Canada Nickel announced it has extended the repayment date of its previously announced US$15 million loan facility with Auramet International, Inc. from January 9 to March 14, 2025. An extension fee of US$438,465 will be paid and 1,750,000 warrants at a $0.96 strike price will be issued with a 9-month expiry. CEO Mark Selby stated:

"I am pleased that we are extending repayment of our loan with Auramet to March 14, 2025 allowing us to complete various strategic financing initiatives during this timeframe."

The loan will carry a 1.25% monthly interest rate for the extension period, with interest on the original amount deferred to March 14th. The agreement is subject to TSX-V approval.

The Path Forward

In 2025, Canada Nickel will focus on advancing the Crawford project through permitting and towards a construction decision. The recent transactions to consolidate mining and surface rights around Crawford are key enablers for its development.

With the world rapidly shifting to electric vehicles, demand for nickel and other battery metals is set to soar in the coming years. As a large, scalable nickel sulphide project in a Tier-1 jurisdiction, Crawford is well-positioned to become a major supplier to the EV battery supply chain. The project also benefits from excellent infrastructure and proximity to the mining hub of Timmins.

Canada Nickel's commitment to produce NetZero Nickel™, NetZero Cobalt™ and NetZero Iron™ products also sets it apart, aligning with the increasing ESG focus of automakers and consumers. The development of a zero-carbon mining operation and processing facility will be a key differentiator.

Lastly, Canada Nickel's focus on building an inclusive and gender-balanced workforce through the Equal by 30 pledge shows its commitment to positive social impact, which will help attract top talent and earn the support of all stakeholders.

Key Takeaways

Canada Nickel presents an attractive investment opportunity in the fast-growing EV battery metals space. The company's flagship Crawford project is a large, high-grade nickel sulphide deposit with the scale and location advantages to become a long-term supplier of responsibly-produced nickel.

With the recently announced transactions consolidating the properties around Crawford, Canada Nickel has meaningfully de-risked the project and cleared the path for permitting and construction. The company also benefits from an experienced management team, led by CEO Mark Selby, which has a proven track record of creating shareholder value in the sector.

Importantly, Canada Nickel's commitment to developing zero-carbon nickel production aligns with the expectations of OEMs and positions the company as a leader in the industry's transition to greater sustainability. Its participation in the Equal by 30 campaign will also strengthen its social license to operate and ability to attract leading talent.

While risks remain, including the need to secure project financing, we believe the outlook for Canada Nickel is very positive and the company offers significant upside potential as it continues to advance Crawford towards production in the coming years. Interested investors should continue to monitor its progress and consider adding exposure to this compelling nickel development story.