Canada Nickel's Reid Property Delivers Exceptional Drill Results, Highlighting Significant Nickel Potential

• Canada Nickel Company's Reid property delivers excellent new drill results, including best interval to date of 687 metres of 0.27% nickel
• All four reported holes intersected long intervals of nickel mineralization, with three holes encountering higher-grade sections
• Reid has large-scale potential, with an ultramafic sequence nearly twice as thick as the Company's flagship Crawford project
• Canada Nickel is advancing the next generation of nickel-sulphide projects to supply the high-growth electric vehicle and stainless steel markets
• The Company is well-positioned to provide investors leverage to nickel in low political risk jurisdictions

About Canada Nickel Company

Canada Nickel Company Inc. (TSXV: CNC) (OTCQX: CNIKF) is a mineral exploration company focused on delivering the nickel required for the rapidly growing electric vehicle and stainless steel industries. The Company's flagship asset is its 100% owned Crawford Nickel-Cobalt Sulphide Project, located in the prolific Timmins-Cochrane mining camp in Ontario, Canada. In addition to Crawford, Canada Nickel has a portfolio of exploration properties in the Timmins region, including the promising Reid property.The Company is at the forefront of developing processes to produce net zero carbon nickel, cobalt and iron products. It has applied to trademark the terms NetZero Nickel™, NetZero Cobalt™, and NetZero Iron™ in multiple jurisdictions. By pursuing these initiatives, Canada Nickel aims to become a leader in supplying sustainably-produced metals that will help drive the global transition to a low-carbon future.

Exceptional New Drill Results from Reid

In a press release dated May 6, 2024, Canada Nickel provided an impressive update on its 2024 exploration program at the Reid property. The highlight was a new best interval to date of 687 metres grading 0.27% nickel in hole REI24-18. This intercept included higher-grade sections of 36.0 metres of 0.41% nickel and 7.5 metres of 0.56% nickel.The four holes reported in this release all intersected long intervals of nickel mineralization, with hole lengths ranging from 676 to 726 metres and average nickel grades of 0.24% to 0.27%. Importantly, three of the four holes encountered sections of higher-grade mineralization within the main ultramafic body.

These results underscore the significant potential of the Reid property. The ultramafic sequence in the area drilled is over 800 metres thick, which is almost double the thickness of the main zone at Crawford. With a geophysical target measuring 3.9 square kilometres, Reid is nearly 2.4 times larger than Crawford, suggesting it could host a very sizable nickel deposit.

Advancing a Portfolio of High-Potential Nickel Projects

Canada Nickel's 2024 exploration program is aimed at delivering seven new mineral resources by Q2 2025 and making six additional discoveries across its project portfolio in the Timmins region of Ontario. The Company currently has six drill rigs turning to advance these objectives.

The Timmins area has a rich mining history and is one of the world's most established and lowest-risk mining jurisdictions. With its Crawford project and a pipeline of earlier-stage properties, Canada Nickel is well-positioned to build on the region's nickel endowment to supply growing demand from the EV battery and stainless steel sectors.

The Company's strategic focus is on nickel sulphide projects, which are well-suited to supplying the battery market. Nickel sulphide deposits are relatively rare globally but have several advantages compared to laterite nickel deposits. These include lower capital and operating costs, higher nickel recoveries, and a smaller environmental footprint.

Path to Developing NetZero Nickel™ Production

Looking beyond exploration and development, Canada Nickel is working on novel technologies to enable production of net zero carbon nickel, cobalt and iron products. The Company sees this as a key differentiator as the world transitions to cleaner technologies to combat climate change.

Nickel is a vital component in the batteries that power electric vehicles. As global automakers ramp up their EV production, there will be a corresponding surge in nickel demand. Canada Nickel believes the industry will increasingly focus on sourcing nickel with the lowest possible carbon footprint to align with the environmental benefits of EVs.

The Company's NetZero Nickel™ initiative aims to develop a unique integrated facility that can deliver nickel with zero carbon emissions. This would be achieved through the use of sequestered CO2 and carbon offsets in the mining and processing operations. By pursuing this technology, Canada Nickel hopes to become the supplier of choice for EV manufacturers seeking sustainably-sourced battery metals.

Well-Funded to Advance Exploration and Development

Canada Nickel is well-capitalized to continue advancing its project portfolio. The Company had a strong cash position of approximately $24 million as of the end of the first quarter of 2024. This provides ample funding to support its ongoing exploration and development activities.

The Company's strong financial position is a key advantage in the current market environment. Many junior mining companies are facing challenges in raising capital due to market volatility and risk aversion among investors. Canada Nickel's healthy cash balance allows it to continue creating value through drilling while minimizing dilution for shareholders.

In addition to its existing cash, Canada Nickel has several options to access additional funding as needed to advance its projects. These include potential strategic investments from mining industry partners, traditional equity financings, and the sale of royalties or streams on its projects. The Company's strong investor base and track record of exploration success make it an attractive partner for larger mining companies looking to gain exposure to nickel.

Experienced Leadership Team

Canada Nickel is led by a highly experienced management team with a track record of success in mineral exploration and development. CEO Mark Selby was previously a senior executive at Royal Nickel Corporation (now Karora Resources), where he was instrumental in the development of the Dumont nickel project in Quebec.

The Company's VP Exploration, Steve Balch, is a geologist with over 30 years of experience in nickel sulphide exploration. He has played a key role in several major nickel discoveries, including the Crawford project. The technical team also includes industry veterans with expertise in geophysics, metallurgy and mine engineering.

Canada Nickel's board of directors includes several mining industry leaders with experience at major global companies. Chairman Anthony Milewski is a well-known investment professional with a focus on battery metals and has served on the boards of several successful mining ventures.

The strength of the Company's leadership team is a major asset as it works to create value through exploration and development. With their deep experience and networks in the mining industry, the Canada Nickel team is well-equipped to navigate the challenges of advancing projects from discovery through to production.

Conclusion

Canada Nickel presents a compelling opportunity for investors seeking exposure to the growing demand for nickel driven by the electric vehicle revolution. With its flagship Crawford project and a portfolio of highly prospective exploration properties, the Company is well-positioned to become a leading nickel sulphide producer in a low-risk mining jurisdiction.

The latest drill results from the Reid property highlight the potential for Canada Nickel to deliver a steady pipeline of new discoveries and mineral resources. The Company's experienced technical team has a proven track record of finding and advancing high-quality nickel projects.

Looking ahead, Canada Nickel's NetZero Nickel™ initiative has the potential to set it apart as a supplier of choice for sustainably-minded EV manufacturers. As the world transitions to cleaner technologies, there will be a growing focus on sourcing raw materials with minimal carbon footprints. Canada Nickel is at the forefront of developing processes to deliver nickel, cobalt and iron products with net zero carbon emissions.

With its strong cash position and multiple options to access additional funding, Canada Nickel is well-funded to continue creating value through exploration and development. The Company's experienced leadership team and supportive shareholder base provide a solid foundation for continued growth.

In summary, Canada Nickel offers investors leveraged exposure to rising nickel demand in a geopolitically stable jurisdiction. The Company's exploration success, sustainability initiatives, and strong financial position make it a standout investment opportunity in the battery metals space.