EV Nickel - Carefully Advancing Both Projects

• EV Nickel, a Toronto-based Canadian company, has significant assets in Northern Ontario, near Timmins, focused on nickel production.
• The global demand for nickel, a crucial component for the energy transition and electrification, is projected to increase. By 2035, there's a need for an additional 3 million tons of annual nickel production from the 2022 baseline of 3.2 million tons.
• The company's current valuation is perceived as undervalued, with them being the fifth-largest in terms of nickel reserves but trading at a significant discount compared to peers.
• EV Nickel has two main projects: the near-surface W4 project and the larger, lower-grade CarLang project. The W4 project offers a potential shorter route to revenue, while the CarLang project may require partnering with a major firm due to its scale and requirements.
• The company emphasizes producing "clean nickel," focusing on low carbon costs and environmentally friendly methods, aligning with the global push for sustainable practices.

A Promising Clean Nickel Play Poised for Growth

EV Nickel is an emerging clean nickel company with significant assets and tremendous potential upside for investors. Based in Canada, EV Nickel has two promising nickel projects that could help address the massive demand growth for nickel driven by the electric vehicle revolution. With a deeply discounted valuation compared to peers and massive nickel resources already discovered, EV Nickel presents a compelling investment opportunity.

Interview with President & CEO, Sean Samson

Massive Nickel Demand Growth Creates Opportunity

Global nickel demand is forecasted to grow dramatically over the next decade, driven by the adoption of electric vehicles (EVs). According to a recent benchmark study, between 2022 production of 3.2 million tons of nickel and the required production by 2035 of 6.2 million tons, the industry will need to find 3 million additional tons per year of nickel supply.

For context, the large nickel mining district of Sudbury, Ontario only produces around 65,000 tons per year. EV Nickel's peer Canada Nickel is only forecasting 45,000-50,000 tons per year from their project. To reach the required 3 million tons of new nickel supply, the industry would need 46 more mining districts the size of Sudbury. This demonstrates the enormity of the nickel supply challenge ahead.

Geopolitical Issues Constrain Supply Growth

Much of the world's nickel production comes from geopolitically complicated jurisdictions that may limit Western access to supply. Russia is the third largest nickel producer globally, but sanctions limit Western companies from engaging with Russian nickel producers.

Indonesia and the Philippines account for the #1 and #2 spots in nickel production, but both countries have moved closer to China for investment and development partnerships. With rising geopolitical tensions between China and the West over Taiwan, Western automakers looking to source nickel could face additional complications.

New ESG Pressures Change Sourcing Requirements

In addition to geographical constraints, heightened ESG pressures are changing the sourcing requirements for nickel. As automakers aim for more transparency around the emissions from material sourcing, mining companies can no longer just focus on delivering the lowest cost nickel.

Now the focus is also on understanding the carbon footprint. With new regulations like the EU mandate for automakers to disclose full lifecycle emissions from 2025 models, automakers urgently require nickel supply from low-carbon sources. This further squeezes the pipeline of available nickel supply for the EV revolution.

Canada Well Positioned to Fill the Supply Gap

With major nickel-producing regions and countries present challenges for Western automakers, Canada is well positioned to help fill the nickel supply gap. The Canadian government at both federal and provincial levels is very supportive of critical mineral development strategies to enable domestic nickel production.

EV Nickel's assets in the Timmins region of Northern Ontario can leverage excellent infrastructure like roads, power, and local facilities to fast-track nickel production. The Timmins region is shaping up to be a new nickel sulfide district, with EV Nickel's discoveries showing potentially massive nickel resources.

EV Nickel Provides Exposure to Two Highly Promising Nickel Projects

Two Distinct Nickel Projects

Near-Term Production Potential at the W4 Nickel Project

• Recently increased resource estimate to 2 million tons containing 99 million lbs of nickel at an average grade of 1.01% nickel
• Shallow depth with over 90% of resource within 400 meters from the surface
• Located just 7km from a third-party mill owned by EV Nickel investor, presenting a potential toll milling opportunity
• Targeting initial production in 3-4 years based on simple operation and excellent infrastructure

Large-Scale Potential at the CarLang Nickel Project

• Massive mineralized zone covering over 10km distance, open along strike and at depth
• Initial resource estimate of 2.4 million tons containing 484 million lbs of nickel at an average grade of 0.24% nickel
• One of the world's top 5 largest undeveloped nickel sulfide projects, but valued at a steep discount to peers
• Ideal location with ready access to roads, rail, power, and community support
• Requires partner for large-scale development, but a highly attractive asset for a potential acquirer

Deep Value Opportunity Relative to Peers

Despite the tremendously valuable assets and resources already discovered, EV Nickel trades at a steep discount relative to peers, presenting a compelling value opportunity:

• EV Nickel's enterprise value per ton of nickel resource is $1.07, more than 200x cheaper than the peer average of $233
• The CarLang project alone ranks among the top 5 nickel sulfide projects globally, but does not demand a premium valuation
• Upside potential from additional exploration and resource expansion at both projects
• Additional upside from successfully commercializing the company's proprietary bioleaching process

Management Team Delivering Results

The EV Nickel management team has extensive mining experience and has delivered impressive results:

• Doubled the company's land package through strategic acquisitions
• Discovered and delineated over 2.4 million tons of nickel resources across its multiple projects
• Advanced development and permitting activities to ready projects for production

Proprietary Clean Nickel Extraction Process

EV Nickel is also developing a proprietary bioleaching process for extracting nickel from concentrate in an environmentally friendly way. This has the potential to produce low-carbon "clean nickel" to meet automaker demand. If proven successful at a commercial scale, this technology could provide additional upside and competitive positioning.

Key Takeaways for Investors

With its impressive nickel resources, progress towards production, excellent location and infrastructure, discounted valuation, proven team, and clean nickel technology, EV Nickel presents a compelling investment opportunity. As the electric vehicle revolution accelerates and nickel demand outpaces supply, EV Nickel looks well positioned to benefit and deliver substantial returns to investors. The company offers exposure to in-demand nickel resources that can help feed the EV revolution, underpinned by significant upside potential as these assets are further de-risked and developed.

Massive upside potential from EV demand growth‍

EV adoption is accelerating and will require millions of tons of new nickel supply. EV Nickel provides leveraged exposure to this massive demand growth.

World-class assets in a Tier 1 mining jurisdiction‍

The company's CarLang project already ranks among the top 5 global nickel projects. Location in Canada provides stability.

Deep value relative to peers‍

Trading at a steep discount to peers suggests a significant upside as the company advances projects.

De-risked path to near-term cash flow

‍The W4 project could realize production within 3-4 years, providing cash flow.

Exploration upside through additional discoveries‍

Excellent potential for new discoveries across the company's land package.

Clean nickel technology differentiation‍

A proprietary bioleaching process could produce low-carbon nickel preferred by automakers.

Proven management team‍

The technical team has a track record of exploration success and discovery.

Takeout potential‍

Assets could attract acquisition interest from majors looking to secure nickel supply.

Leverage to rising nickel prices‍

Production and cash flow are highly geared to nickel price appreciation.

Significant revaluation potential‍

A combination of de-risking milestones could re-rate valuation significantly higher.

EV Nickel offers attractive leverage to the EV thematic combined with assets that could generate shareholder value through exploration, development and even acquisition. The current discounted valuation provides an attractive entry point. As the company reaches de-risking milestones, the upside potential is substantial.

Risks to Consider

There are of course risks to consider for a small, cash-constrained mining company like EV Nickel in a quiet market environment:

Financing Risks

• Accessing capital/funding could be challenging in current market conditions
• Share price weakness limits financing options like equity issuance
• Taking on debt could be difficult with limited cash flows

Development Delays

• Progress on exploration, permitting, or engineering studies could face delays
• Pushing out production timelines due to insufficient funding or slow progress

Dilution Risks

• Additional equity issuances to raise capital could dilute existing shareholders
• Funding partnerships may require giving up significant project interests

Acquisition Skepticism

• Lack of takeout interest from larger miners in down markets
• Less willingness to pay premiums for early-stage assets

Nickel Market Changes

• Softness in nickel market pricing could hurt project economics
• Oversupply conditions could emerge depending on global nickel projects

Execution Risks

• Challenges executing operations with a limited balance sheet
• Any missteps would be costly without financial flexibility

While the potential rewards make it an interesting speculative play, investors should weigh EV Nickel's risks and capital constraints in the current market.